What Can A Dealer Do If The Manufacturer Doesnt Perform Under The Dealer Agreement?
Although the debtor is not required to perform under the dealer agreement pending assumption or rejection, if the debtor fails to perform, the dealer can petition the Bankruptcy Court for relief. The dealer can argue that the debtor should be required to perform since the debtor is getting the post petition benefit of the services provided by the dealer and performance by the debtor is the appropriate compensation for those services. The dealer can also ask the Court to require the debtor to assume or reject the dealer agreement since assumption would require cure and future compliance with the dealer agreement. In addition, the dealer could request that either the automatic stay be lifted for cause to allow the dealer to terminate the agreement or that the debtor be required to provide the dealer with adequate protection for its interests. Some, or all, of these potential actions may be precluded by the practical reality that a particular dealer may be dependent upon the debtor for it
