Groseth had the International Harvester (IH) truck franchise in Yankton, South Dakota. The franchise agreement Groseth signed required dealers to “cooperate with the Company by placing orders for goods in accordance with advance ordering programs announced by the Company.” IH wanted to terminate Groseth’s franchise because he refused to comply with IH’s requirement that a computerized “dealer communication network” (DCN) be set up. Under the Chapter 41 Types of Business Organizations 979 DCN, each dealer was required to obtain a computer terminal, display screen, and software. The DCN was initially used for ordering parts and allowed IH to reduce the number of employees needed for manual processing of “parts”

orders. Groseth refused to set up the DCN because of the expense. Moreover, he contended that the task of ordering parts was easily accomplished by telephone or written orders. Did IH have good cause to terminate Groseth’s franchise? [Groseth International Harvester, Inc. v International Harvester, 442 NW2d 229 (SD)]

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