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This entry was published on 2014-09-22
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Repurchase of equipment upon termination
General Business (GBS) CHAPTER 20, ARTICLE 33-A
§ 696-f. Repurchase of equipment upon termination. 1. Whenever any
dealer enters into a dealer agreement with a supplier wherein the dealer
agrees to maintain an inventory of equipment or repair parts and the
dealer agreement is subsequently terminated, the supplier shall
repurchase the inventory as provided in this article. The dealer may
keep the inventory if such dealer desires provided the dealer has a
contractural right to do so. If the dealer has any outstanding debts to
the supplier then part or all of the repurchase amount equal to, but no
more than, the total amount of the debts may be credited to the dealer's

2. If the dealer decides not to keep the inventory, the supplier shall
repurchase that inventory previously purchased and held by the dealer on
the date of termination of the contract. The supplier shall pay one
hundred percent of the net cost of all new, unsold, undamaged and
complete equipment which is resalable, less a reasonable allowance for
depreciation due to usage by the dealer and deterioration directly
attributable to weather conditions at the dealer's location and less all
programs and discounts previously allowed thereon and eighty-five
percent of the current net price of all new, unused, undamaged repair
parts and accessories which are listed in the supplier's effective price
list or catalogue less all programs and discounts previously allowed
thereon by the supplier to the dealer. The supplier shall also pay the
dealer six percent of the current net price on all new, unused and
undamaged repair parts returned to cover the cost of handling, packing
and loading. The supplier shall have the option of performing the
handling, packing and loading or paying one hundred percent of the
current net price of parts in lieu of paying the six percent sum imposed
herein for these services and in this case the dealer shall make
available to the supplier, at the dealer's address or at the places at
which it is located, all equipment previously purchased by the dealer,
after receipt by the dealer of the full repurchase amount.

3. Upon payment within sixty days of the repurchase amount to the
dealer, the title and right to possession of the repurchased inventory
shall transfer or be transferred to the supplier.

4. The provisions of this article shall not require the repurchase
from the dealer of:

(a) any repair part which has a limited storage life or is otherwise
subject to deterioration;

(b) any single repair part which is priced as a set of two or more

(c) any repair part which because of its condition is not resalable as
a new part without repairing or reconditioning;

(d) any inventory for which the dealer is unable to furnish evidence
reasonably satisfactory to the supplier, of good title, free and clear
of all claims, liens and encumbrances;

(e) any inventory which the dealer desires to keep, provided the
dealer has a contractural right to do so;

(f) any equipment which is not in new, unused, undamaged, and complete

(g) any equipment which has been used by the dealer or has
deteriorated because of weather conditions at the dealer's location
unless the supplier receives a reasonable allowance for such usage or

(h) any repair parts which are not in new, unused, undamaged

(i) any inventory which was ordered by the dealer on or after the date
of receipt of the notification of termination of the dealer agreement;

(j) any inventory which was acquired by the dealer from any source
other than the supplier.

5. If any supplier shall fail or refuse to repurchase any inventory
covered under the provisions of this article within sixty days after
termination of a dealer's contract, he shall be civilly liable for a
total amount of one hundred fifteen percent of the current net price of
the inventory plus any freight charges paid by the dealer plus all cost
of financing such repurchase, including courts costs and reasonable
attorneys' fees allowed by the court.