Delaware Code Title 6 Sec. 2723 – Repurchase terms
(a) The supplier shall repurchase from the dealer within 90 days after termination of the contract agreement all inventory previously purchased from the supplier that remains unsold on the date of termination of the agreement.
Terms Used In Delaware Code Title 6 Sec. 2723
- Contract: A legal written agreement that becomes binding when signed.
- Current net price: means the price listed in the supplier's price list in effect at the time the contract agreement is terminated, less any applicable discount allowed. See Delaware Code Title 6 Sec. 2720
- Dealer: means a person, firm or corporation engaged in the business of selling, at retail, construction, farm, industrial or outdoor power equipment and who maintains a total inventory of new equipment and repair parts valued at $50,000 or over and provides repair service for the above-mentioned equipment. See Delaware Code Title 6 Sec. 2720
- Inventory: means the tractors, implements, attachments, equipment and repair parts that the dealer purchased from the supplier. See Delaware Code Title 6 Sec. 2720
- Net cost: means the price the dealer paid the supplier for the inventory, less all applicable discounts allowed, plus the amount the dealer paid for freight costs from the supplier's location to the dealer's location, plus reasonable cost of assembly performed by the dealer. See Delaware Code Title 6 Sec. 2720
- Supplier: means a wholesaler, manufacturer or distributor who enters into a contract agreement with a dealer. See Delaware Code Title 6 Sec. 2720
(b) The supplier shall pay the dealer:
(1) One hundred percent of the net cost of all new, unused, undamaged and complete inventory except repair parts, less a reasonable allowance for deterioration attributable to weather conditions at the dealer’s location.
(2) Eighty-five percent of the current net price of all new, unused and undamaged repair parts that are currently listed in the supplier’s price book. The supplier may perform the handling, packing and loading of repair parts returned and withhold 5 percent of the current net price of the repair parts returned for their services.
(c) The inventory shall be returned FOB to the dealership. The dealer and the supplier may each furnish a representative to inspect all inventory and certify acceptability before being returned.
(d) The supplier shall pay the full repurchase amount to the dealer not later than 60 days after receipt of the inventory.