Montana Code 30-11-702. Repurchase of inventory items upon cancellation of dealership or distribution contract
30-11-702. Repurchase of inventory items upon cancellation of dealership or distribution contract. (1) Upon cancellation of a written dealership contract between a retailer and a wholesaler, manufacturer, or distributor, the wholesaler, manufacturer, or distributor shall, at the retailer’s request, pay to the retailer, or credit to the retailer’s account if the retailer has outstanding any sums owing the wholesaler, manufacturer, or distributor, an amount equal to:
Terms Used In Montana Code 30-11-702
- Contract: A legal written agreement that becomes binding when signed.
- Current net price: means :
(a)with respect to a dealership contract, the price listed in the wholesaler's, manufacturer's, or distributor's price list or catalog in effect at the time a dealership contract is discontinued or, if none is then in effect, the last available price so listed; and
(b)with respect to a distribution contract, the price listed in the manufacturer's or distributor's price list or catalog in effect at the time a distribution contract is discontinued or, if none is then in effect, the last available price so listed. See Montana Code 30-11-701
- Dealership contract: means a written contract between a retailer and a wholesaler, manufacturer, or distributor in which the retailer becomes a dealer in goods sold by the wholesaler, manufacturer, or distributor, evidenced by a franchise agreement, sales agreement, security agreement, or other similar agreement or arrangement. See Montana Code 30-11-701
- Distribution contract: means a written contract between a wholesaler and a manufacturer or distributor in which the wholesaler becomes a dealer in goods sold by the manufacturer or distributor, evidenced by a franchise agreement, sales agreement, security agreement, or other similar agreement or arrangement. See Montana Code 30-11-701
- Inventory: means :
(a)farm implements, machinery, attachments, and repair parts;
(b)industrial and construction equipment and repair parts;
(c)new motor vehicles, trucks, trailers, semitrailers, pole trailers, travel trailers, and repair parts sold by a dealer as defined in 61-1-101;
(d)motorcycles, motor-driven cycles, recreational vehicles, and quadricycles, as those terms are defined in 61-1-101, and repair parts;
(e)snowmobiles, as defined in 23-2-601, and repair parts;
(f)off-highway vehicles, as defined in 23-2-801, and repair parts; and
(g)vessels, as defined in 23-2-502, detachable motors or engines used to propel vessels, and repair parts. See Montana Code 30-11-701
- Net cost: means :
(a)with respect to a dealership contract, the price actually paid for an inventory item by the retailer to the wholesaler, manufacturer, or distributor, plus applicable freight costs paid by or charged to the retailer; and
(b)with respect to a distribution contract, the price actually paid for an inventory item by the wholesaler to a manufacturer or distributor, plus applicable freight costs paid by or charged to the wholesaler. See Montana Code 30-11-701
- Wholesaler: means any individual, partnership, association, or corporation engaged in the business of selling inventory, as defined in this section, to retailers. See Montana Code 30-11-701
(a)100% of the net cost of all new, undamaged, and complete inventory items held by the dealer at the time of cancellation, including vehicles with less than 1,000 miles on the odometer, plus cost of freight to return the inventory; and
(b)100% of the current net price of each repair part carried on the most recent price list or catalog or the last catalog or price list in which the repair part was listed as provided by the manufacturer or distributor and held by the dealer at the time of cancellation, plus cost of freight to return the repair parts.
(2)Upon cancellation of a written distribution contract entered into between a wholesaler and a manufacturer or distributor, the manufacturer or distributor shall, at the wholesaler’s request, pay to the wholesaler, or credit to the wholesaler’s account if the wholesaler has outstanding any sums owing to the manufacturer or distributor, an amount equal to:
(a)100% of the net cost of all new, undamaged, and complete inventory items, except repair parts, held by the wholesaler at the time of cancellation, including vehicles with less than 1,000 miles on the odometer; and
(b)100% of the current net price of each repair part carried on the most recent price list or catalog or the last catalog or price list in which the repair part was listed as provided by the manufacturer or distributor and held by the wholesaler at the time of cancellation.
(3)Payment or allowance of credit to the retailer’s or wholesaler’s account of the sum required in subsection (1) or (2) must be made within 60 days of the retailer’s or wholesaler’s repurchase request. Title to such inventory items passes to the wholesaler, manufacturer, or distributor upon making such payment.
(4)A manufacturer or distributor has 30 days from the date of the repurchase request to complete, at the retailer’s or wholesaler’s place of business, an inventory, evaluation, and analysis of the items for which the retailer or wholesaler requests compensation under subsection (3). The retailer or wholesaler shall, on request, make all of the items available to the manufacturer or distributor, at the retailer’s or wholesaler’s place of business during normal business hours, to complete an inventory, evaluation, and analysis. The 30-day deadline must be tolled during delays caused by acts of God, fire, flood, blackouts, riots, or terrorist acts.