51-20 Recreation Vehicle Franchises
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<![CDATA[CHAPTER 51-20RECREATION VEHICLE FRANCHISES51-20-01. Definitions. As used in this chapter, unless the context requires otherwise:1."Contractual arrangement" means a written franchise or other written agreement, by<br>whatever name such agreement may be called, between a distributor and a dealer<br>by which the dealer agrees to sell at retail and service the distributor's recreation<br>vehicles in a given location or locations, whether or not exclusively with respect to a<br>given geographic area, and the distributor authorizes the dealer to sell, or sell and<br>service, and agrees to supply an inventory of recreation vehicles, and, if the dealer is<br>to perform service, an inventory of parts for those vehicles.2."Dealer" means a person, partnership, corporation, limited liability company, or other<br>business entity which sells at retail and services new recreation vehicles.3."Distributor" means any manufacturer, wholesaler, or distributor of recreation<br>vehicles who has a contractual arrangement with a dealer in such vehicles.4."Recreation vehicle" includes snowmobiles as defined in section 39-24-01, plus<br>trailers for transporting same when those trailers are furnished by the same<br>distributor who furnishes the snowmobiles; off-highway vehicles as defined in<br>section 39-29-01; motorcycles as defined in section 39-01-01; travel trailers, which<br>term means vehicles without motive power designed for recreational use as living or<br>sleeping quarters for people and which do not exceed forty feet [12.19 meters] in<br>length; and motorboats, whether propelled by an inboard or outboard marine engine,<br>plus any outboard marine engines and boat trailers.5."Repair parts" includes accessories.51-20-02. Recreation vehicle dealers may recover value of vehicles or parts fromdistributor in certain cases.1.If a dealer has entered a written contract with a distributor in which the dealer agrees<br>to maintain a stock of recreation vehicles, repair parts, or both recreation vehicles<br>and repair parts, and either the dealer or the distributor desires to cancel or<br>discontinue the contract, the distributor shall pay to the dealer, unless the dealer<br>desires to keep the recreation vehicles or repair parts, the following amounts:a.A sum equal to one hundred percent of the net cost of all current year, unused,<br>and complete recreation vehicles;b.Eighty-five percent of the current net prices on repair parts, including the<br>superseded parts listed in current price lists or catalogs, if the superseded parts<br>have previously been purchased from the distributor and were in the dealer's<br>inventory on the date of cancellation or discontinuance of the contract or were<br>thereafter received by the dealer from the distributor;c.A sum equal to five percent of the current net price of all parts returned as<br>reimbursement for handling, packing, and loading of those parts; andd.Any freight charges on the equipment or repair parts paid by the dealer.2.When a distributor has made payment in accordance with this section, title to the<br>recreation vehicles and repair parts must pass to the distributor and the distributor is<br>entitled to possession of the recreation vehicles and repair parts. The provisions of<br>this section are supplemental to any contractual rights which the dealer may have<br>with respect to reimbursement for recreation vehicles and parts inventory held by thePage No. 1dealer at cancellation or discontinuance of a contractual arrangement. The dealer<br>may elect to pursue the dealer's rights under the contractual arrangement and under<br>this section. An election by a dealer to pursue a contractual remedy does not bar<br>the dealer's right to the remedy provided by this section with respect to those pieces<br>of recreation vehicles and repair parts not affected by the contract remedy.3.This section applies to every contract now in effect which has no stated expiration<br>date and to all other contracts entered after July 31, 2001. Contracts in force and<br>effect on July 31, 2001, which by their terms will terminate on a date subsequent to<br>July 31, 2001, are governed by the law existing before August 1, 2001.Page No. 2Document Outlinechapter 51-20 recreation vehicle franchises]]>