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This entry was published on 2014-09-22
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Death or incapacity of dealer
General Business (GBS) CHAPTER 20, ARTICLE 33-A
§ 696-g. Death or incapacity of dealer. 1. In the event of the death
or incapacity of the dealer or the majority stockholder of a corporation
operating as a dealer, the supplier shall, at the option of the heirs at
law, if the dealer died intestate, or the executor under the terms of
the deceased dealer's last will and testament, if said dealer died
testate, repurchase the inventory from the estate as if the supplier had
terminated the contract and the inventory repurchase provisions of
section six hundred ninety-six-f of this article are made expressly
applicable hereto. The heirs or executor shall have nine months from the
date of the death of the dealer or majority stockholder to exercise the
option under this article. However, nothing in this article shall
require the repurchase of inventory if the heirs or executor and the
supplier enter into a new dealer agreement, or if a successor to the
dealer is established pursuant to paragraph (j) of subdivision three of
section six hundred ninety-six-b of this article. This section shall be
subject to that portion of the supplier's agreement with the dealer
pertaining to death of the dealer or succession, to the extent such
agreement is not inconsistent herewith.

2. 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 heirs or executor can elect to pursue either the
contract remedy or the remedy provided herein, and an election by the
heirs or executor to pursue contract remedy shall not bar such heirs' or
executor's right to the remedy provided herein as to those equipment,
attachments and 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