(1) (a) Unless one or more of the provisions found in subparagraphs (I) to (X) of paragraph (b) of subsection (2) of this section apply, a supplier shall give an equipment dealer one hundred eighty days written notice of the supplier's intent to terminate, cancel, or not renew a dealer agreement or to change the competitive circumstances of such agreement.
(b) (I) Notice sent pursuant to paragraph (a) of this subsection (1) shall state the reasons for termination, cancellation, or nonrenewal and state that the dealer has one hundred eighty days in which to cure any claimed deficiency.
(II) If the dealer cures the deficiency to the supplier's satisfaction within the onehundred-eighty-day period, the supplier may not terminate, cancel, refuse to renew, or change the competitive circumstances of the agreement for the reasons specified in the notice. The terms of the agreement shall not expire and the supplier shall not change the competitive circumstances of the agreement before the end of the one-hundred-eighty-day period without the dealer's written consent.
(2) (a) A supplier, either directly or through an agent, shall not terminate, cancel, fail to renew, or substantially change the competitive circumstances of a dealership agreement without cause.
(b) For purposes of this subsection (2), "cause" means when a dealer:
Fails to comply with the terms of the agreement if these requirements are not different from those imposed on other similarly situated dealers in this state;
Transfers a controlling ownership interest in the dealership without the supplier'sconsent; except that the supplier shall not withhold consent without good reason;
Makes a material misrepresentation or falsification of a record;
Files a voluntary petition in bankruptcy or has an involuntary petition in bankruptcyfiled against him or her that has not been discharged within the sixty-day period after it was filed;
Is insolvent or in receivership;
Pleads guilty to or is convicted of a felony;
Fails to operate in the normal course of business for seven consecutive businessdays or terminates the business;
Relocates or establishes a new or additional equipment dealer's place of business,representing the same supplier, without the supplier's consent;
Fails to satisfy a payment obligation as it comes due and payable to the supplier;
Fails to promptly account to the supplier for any proceeds from the sale of equipment or to hold such proceeds in trust for the supplier's benefit;
Consistently engages in business practices that are detrimental to the consumer orthe supplier, including use of excessive pricing or misleading advertising or failing to provide service and replacement parts or perform warranty obligations;
Consistently fails to meet the suppliers market penetration requirements based onavailable record information and after receiving notice from the supplier of the supplier's requirements;
Consistently fails to meet building and housekeeping requirements;
Consistently fails to provide adequate sales, service, or parts personnel commensurate with the dealer agreement;
Consistently fails to comply with the applicable licensing laws pertaining to theproducts and services the dealer represents for and on the supplier's behalf.
Source: L. 95: Entire article R&RE, p. 366, § 1, effective July 1.
Editor's note: This section is similar to former § 35-38-103 as it existed prior to 1995. 35-38-105. Surplus parts inventory - credits. (1) (a) Unless this section is specifically waived in writing by the dealer, a supplier shall allow a dealer to periodically, but no less than once every twelve months, return a portion of the dealer's surplus parts inventory for credit.
(b) The supplier shall notify the dealer of a time period during which a dealer may submit the dealer's surplus parts list and return inventory. A supplier may stagger return periods for its dealers.
If a supplier has not notified its dealer of a specific time period for returning surplusparts within the preceding twelve-month period, it shall allow the dealer to return surplus parts within sixty days of receiving the dealer's request to make such return.
(a) A supplier shall allow surplus-parts return on a dollar value of parts equal to ten percent of the total dollar value of all parts purchased by the dealer from the supplier during either the twelve-month period immediately preceding the supplier's notification to the dealer of the supplier's return program or, if subsection (2) of this section applies, the month the dealer makes a return request.
(b) The dealer may elect to return a dollar value of the surplus parts equal to less than ten percent of the total dollar value of the parts the dealer purchased during the preceding twelve months.
A dealer may not return obsolete parts; except that a dealer may return a part forcredit if such part is found in the supplier's current returnable parts list or any superseded part that is not the subject of the supplier's parts return program as of the date of termination.
A dealer shall return only new and unused parts to the supplier of such parts.
The minimum credit allowed for returned parts is ninety-five percent of the net priceas listed in the supplier's current returnable parts list as of the date that the supplier provides notice of its return program or, if subsection (2) of this section applies, the date that the dealer submits a request for return.
A supplier shall issue credit within ninety days after receiving a return part.
Nothing in this section shall be construed to prevent a supplier from charging back tothe dealer's account amounts previously paid or credited as a discounted incident to the dealer's purchase of equipment.
Source: L. 95: Entire article R&RE, p. 368, § 1, effective July 1.
Editor's note: This section is similar to former § 35-38-104 as it existed prior to 1995.