N.Y. General Business Law 696-F – Repurchase of equipment upon termination
§ 696-f. Repurchase of equipment upon termination. 1. Whenever any dealer enters into a dealer agreement with a supplier wherein the dealer agrees to maintain an inventory of equipment or repair parts and the dealer agreement is subsequently terminated, the supplier shall repurchase the inventory as provided in this article. The dealer may keep the inventory if such dealer desires provided the dealer has a contractural right to do so. If the dealer has any outstanding debts to the supplier then part or all of the repurchase amount equal to, but no more than, the total amount of the debts may be credited to the dealer's account.
Terms Used In N.Y. General Business Law 696-F
- Contract: A legal written agreement that becomes binding when signed.
- Current net price: means the price listed in the supplier's effective price list or catalogue, less any applicable trade and cash discounts. See N.Y. General Business Law 696-A
- 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
- Dealer agreement: means any agreement between a supplier and a dealer by which the dealer is authorized to engage in the business of the retail sale, lease and/or service of equipment in accordance with methods and procedures prescribed by the 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
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Net cost: means the price the dealer paid to the supplier for the equipment, less all applicable discounts allowed, plus the freight costs from the supplier's location to the dealer's location. 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. If the dealer decides not to keep the inventory, the supplier shall repurchase that inventory previously purchased and held by the dealer on the date of termination of the contract. The supplier shall pay one hundred percent of the net cost of all new, unsold, undamaged and complete equipment which is resalable, less a reasonable allowance for depreciation due to usage by the dealer and deterioration directly attributable to weather conditions at the dealer's location and less all programs and discounts previously allowed thereon and eighty-five percent of the current net price of all new, unused, undamaged repair parts and accessories which are listed in the supplier's effective price list or catalogue less all programs and discounts previously allowed thereon by the supplier to the dealer. The supplier shall also pay the dealer six percent of the current net price on all new, unused and undamaged repair parts returned to cover the cost of handling, packing and loading. The supplier shall have the option of performing the handling, packing and loading or paying one hundred percent of the current net price of parts in lieu of paying the six percent sum imposed herein for these services and in this case the dealer shall make available to the supplier, at the dealer's address or at the places at which it is located, all equipment previously purchased by the dealer, after receipt by the dealer of the full repurchase amount.
3. Upon payment within sixty days of the repurchase amount to the dealer, the title and right to possession of the repurchased inventory shall transfer or be transferred to the supplier.
4. The provisions of this article shall not require the repurchase from the dealer of:
(a) any repair part which has a limited storage life or is otherwise subject to deterioration;
(b) any single repair part which is priced as a set of two or more items;
(c) any repair part which because of its condition is not resalable as a new part without repairing or reconditioning;
(d) any inventory for which the dealer is unable to furnish evidence reasonably satisfactory to the supplier, of good title, free and clear of all claims, liens and encumbrances;
(e) any inventory which the dealer desires to keep, provided the dealer has a contractural right to do so;
(f) any equipment which is not in new, unused, undamaged, and complete condition;
(g) any equipment which has been used by the dealer or has deteriorated because of weather conditions at the dealer's location unless the supplier receives a reasonable allowance for such usage or deterioration;
(h) any repair parts which are not in new, unused, undamaged condition;
(i) any inventory which was ordered by the dealer on or after the date of receipt of the notification of termination of the dealer agreement; or
(j) any inventory which was acquired by the dealer from any source other than the supplier.
5. If any supplier shall fail or refuse to repurchase any inventory covered under the provisions of this article within sixty days after termination of a dealer's contract, he shall be civilly liable for a total amount of one hundred fifteen percent of the current net price of the inventory plus any freight charges paid by the dealer plus all cost of financing such repurchase, including courts costs and reasonable attorneys' fees allowed by the court.