§ 696-e. Parts and return of parts. 1. Every supplier shall provide
for the availability of repair parts throughout the reasonable useful
life of any equipment sold.

2. Every supplier shall provide to its dealers, on an annual basis, an
opportunity to return a portion of their surplus parts inventory for
credit. The surplus procedure shall be administered as follows:

(a) The supplier may notify its dealers of a time period, of at least
sixty days duration, during which time dealers may submit their surplus
parts list and return their surplus parts to the supplier.

(b) If a supplier has not notified a dealer of a specific time period
for returning surplus parts within the preceding twelve months, then it
shall authorize and allow the dealer's surplus parts return request
within thirty days after receipt of such request from the dealer.

(c) Pursuant to the provisions of this subdivision, a supplier must
allow surplus parts return authority on a dollar value of parts equal to
six percent of the total dollar value of parts purchased by the dealer
from the supplier during the twelve month period immediately preceding
the notification to the dealer by the supplier of the surplus parts
return program, or the month the dealer's return request is made,
whichever is applicable. However, the dealer may elect to return a
dollar value of the dealer's surplus parts equal to less than six
percent of the total dollar value of parts purchased by the dealer from
the supplier during the preceding twelve month period as provided
herein.

(d) No obsolete or superceded part, may be returned, but any part
listed in the supplier's current returnable parts list or any superceded
part that has not been the subject of the supplier's parts return
program at the date of notification to the dealer by the supplier of the
surplus parts return program, or the date of the dealer's parts return
request, whichever is applicable, shall be eligible for return and the
credit specified. However, returned parts must be in new and unused
condition and must have been purchased by the dealer from the supplier
to whom they are returned unless no program for the return of such part
has been offered by the supplier.

(e) The minimum lawful credit to be allowed for returned parts shall
be eighty-five percent of the cost thereof as listed in the supplier's
current returnable parts list at the date of the notification to the
dealer by the supplier of the surplus parts return program, or the date
of the dealer's parts return request, whichever is applicable.

(f) Applicable credit hereunder must be issued or furnished to the
dealer within sixty days after receipt of the dealer's returned parts by
the supplier.

(g) Packing and return freight expense incurred in any return of
surplus parts pursuant to the terms of this subdivision shall be borne
by the supplier.

(h) The provisions of this section shall be supplemental to any
agreement between the dealer and the supplier covering the return of
equipment, attachments and repair parts which provides the dealer with
greater protection. The dealer can elect to pursue either his or her
contract remedy or the remedy provided by state law, and an election by
the dealer to pursue his or her contract remedy shall not bar his or her
right to the remedy provided herein as to those repair parts not
affected by the contract remedy. Notwithstanding anything contained
herein, the rights of a supplier to charge back to the dealer's account
amounts previously paid or credited as a discount incident to the
dealer's purchase of goods shall not be affected. Further, any
repurchase hereunder shall not be subject to the provisions of the bulk
sales law. Additionally, nothing shall preclude a price for return parts
which is greater than the total allowance for parts allowed herein and
the shipping allowance, in such case the packing, freight and handling
expense charge, shall not be borne by the supplier.