Manufacturer breached regulations by unilaterally non-renewing dealership agreement, but did not breach warranty reimbursement rules.
The applicant farm implement dealer brought a dispute against the respondent manufacturer regarding the end of their 19-year business relationship and warranty repair reimbursements.
The Tribunal divided the hearing into two phases, with Phase 1 focusing on liability.
The Tribunal found that the manufacturer did not breach section 18 of the Farm Implements Act regarding warranty reimbursements, as it paid the dealer in accordance with their existing agreement.
However, the Tribunal found that the manufacturer breached Ontario Regulation 123/06 by refusing to renew the dealership agreement, as the Regulation removed the manufacturer's contractual right to unilaterally non-renew and required that renewal approval not be unreasonably withheld.
Chesterman Farm Equipment Inc. v. CNH Canada Ltd., 2011 ONAFRAAT 10
