N.Y. General Business Law 696-E – Parts and return of parts
§ 696-e. Parts and return of parts. 1. Every supplier shall provide for the availability of repair parts throughout the reasonable useful life of any equipment sold.
Terms Used In N.Y. General Business Law 696-E
- Contract: A legal written agreement that becomes binding when signed.
- Dealer: means any person selling or agreeing to sell primarily equipment under an agreement with a supplier. See N.Y. General Business Law 696-A
- Equipment: means vehicles and machinery and the accessories and parts thereto which are designed to be used for farm and agricultural purposes, lawn, garden, golf course, landscaping or grounds and maintenance/utility activities, provided however that self-propelled vehicles primarily for the transportation of persons or property on a street or highway are specifically excluded. See N.Y. General Business Law 696-A
- Supplier: means the manufacturer, wholesaler or distributor of the equipment to be sold by the dealer. See N.Y. General Business Law 696-A
2. Every supplier shall provide to its dealers, on an annual basis, an opportunity to return a portion of their surplus parts inventory for credit. The surplus procedure shall be administered as follows:
(a) The supplier may notify its dealers of a time period, of at least sixty days duration, during which time dealers may submit their surplus parts list and return their surplus parts to the supplier.
(b) If a supplier has not notified a dealer of a specific time period for returning surplus parts within the preceding twelve months, then it shall authorize and allow the dealer's surplus parts return request within thirty days after receipt of such request from the dealer.
(c) Pursuant to the provisions of this subdivision, a supplier must allow surplus parts return authority on a dollar value of parts equal to six percent of the total dollar value of parts purchased by the dealer from the supplier during the twelve month period immediately preceding the notification to the dealer by the supplier of the surplus parts return program, or the month the dealer's return request is made, whichever is applicable. However, the dealer may elect to return a dollar value of the dealer's surplus parts equal to less than six percent of the total dollar value of parts purchased by the dealer from the supplier during the preceding twelve month period as provided herein.
(d) No obsolete or superceded part, may be returned, but any part listed in the supplier's current returnable parts list or any superceded part that has not been the subject of the supplier's parts return program at the date of notification to the dealer by the supplier of the surplus parts return program, or the date of the dealer's parts return request, whichever is applicable, shall be eligible for return and the credit specified. However, returned parts must be in new and unused condition and must have been purchased by the dealer from the supplier to whom they are returned unless no program for the return of such part has been offered by the supplier.
(e) The minimum lawful credit to be allowed for returned parts shall be eighty-five percent of the cost thereof as listed in the supplier's current returnable parts list at the date of the notification to the dealer by the supplier of the surplus parts return program, or the date of the dealer's parts return request, whichever is applicable.
(f) Applicable credit hereunder must be issued or furnished to the dealer within sixty days after receipt of the dealer's returned parts by the supplier.
(g) Packing and return freight expense incurred in any return of surplus parts pursuant to the terms of this subdivision shall be borne by the supplier.
(h) 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 dealer can elect to pursue either his or her contract remedy or the remedy provided by state law, and an election by the dealer to pursue his or her contract remedy shall not bar his or her right to the remedy provided herein as to those 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 supplier.