§ 66-184. Repurchase terms.
§ 66‑184. Repurchaseterms.
(a) The supplier shallrepurchase from the dealer within 90 days after termination of the agreementall inventory previously purchased from the supplier that remains unsold on thedate of termination of the agreement.
(b) The supplier shallpay the dealer:
(1) One hundred percent(100%) of the current net price of all new, unused, unsold, undamaged, andcomplete farm, construction, utility, and industrial equipment, implements,machinery, outdoor power equipment, and attachments.
(2) Ninety percent (90%)of the current net price of all new, unused, and undamaged repair andsuperseded parts.
(3) Seventy‑fivepercent (75%) of the net cost of all specialized repair tools purchased in theprevious three years and fifty percent (50%) of the net cost of all specializedrepair tools purchased in the previous four through six years pursuant to therequirements of the supplier and held by the dealer on the date of termination.Such specialized repair tools shall be unique to the supplier's product lineand shall be in complete and resalable condition. Farm implements, machinery,utility and industrial equipment, and outdoor power equipment used indemonstrations, including equipment leased primarily for demonstration orlease, shall also be subject to repurchase under this section at its agreeddepreciated value, provided the equipment is in new condition and has not beendamaged.
(4) At its amortizedvalue, the price of any specific data processing hardware and software andtelecommunications equipment that the supplier required the dealer to purchasewithin the past five years.
(c) Repealed by SessionLaws 2001‑343, s. 1.
(d) The supplier shallpay the cost of shipping the inventory from the dealer's location and shall paythe dealer ten percent (10%) of the current net price of all new, unused,undamaged repair parts returned, to cover the cost of handling, packing, andloading. The supplier may perform the handling, packing, and loading instead ofpaying the ten percent (10%) for the services. The dealer and the supplier mayeach furnish a representative to inspect all parts and certify theiracceptability when packed for shipment.
(e) The supplier shallpay the full repurchase amount to the dealer not later than 30 days afterreceipt of the inventory. If the dealer has any outstanding debts to thesupplier, then the repurchase amount may be credited to the dealer's account.
(f) Upon payment ofthe repurchase amount to the dealer, the title and right of possession to therepurchased inventory shall transfer to the supplier. Annually, at the end ofeach calendar year, or after termination or cancellation of the agreement, thedealer's reserve account for recourse, retail sale, or lease contracts shallnot be debited by a supplier or lender for any deficiency unless the dealer orthe heirs of the dealer have been given at least seven business days' notice bycertified or registered United States mail, return receipt requested, of anyproposed sale of the equipment financed and an opportunity to purchase theequipment. The former dealer or the heirs of the dealer shall be givenquarterly status reports on any remaining outstanding recourse contracts. Asthe recourse contracts are reduced, any reserve account funds shall be returnedto the dealer or the heirs of the dealer in direct proportion to theliabilities outstanding.
(g) In the event of thedeath of the dealer or the majority stockholder of a corporation operating as adealer, the supplier shall, at the option of the heir, repurchase the inventoryfrom the heir of the dealer or majority stockholder as if the supplier hadterminated the agreement. The heir shall have one year from the date of thedeath of the dealer or majority stockholder to exercise the heir's optionsunder this section. Nothing in this section shall require the repurchase of anyinventory if the heir and the supplier enter into a new agreement to operatethe retail dealership.
(h) A supplier shallhave 90 days in which to consider and make a determination upon a request by afamily member to enter into a new agreement to operate the dealership. In theevent the supplier determines that the requesting family member is notacceptable, the supplier shall provide the family member with a written noticeof its determination with the stated reasons for nonacceptance. This sectiondoes not entitle an heir, personal representative, or family member to operatea dealership without the specific written consent of the supplier.
(i) Notwithstandingthe provisions of this section, in the event that a supplier and a dealer haveexecuted an agreement concerning succession rights prior to the dealer's death,and if the agreement has not been revoked, that agreement shall be enforcedeven if it designates someone other than the surviving spouse or heir of thedecedent as the successor. (1985, c. 441, s. 1; 2001‑343, s. 1.)