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ID H0280
Bill
AI Summary
House Bill 280 - Farm Equipment Repurchase and Dealer Protection
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Suppliers must repurchase all unused, unsold, and undamaged farm equipment and parts within 36 months of contract termination at 100% net cost, plus depreciated values for demonstration/rental equipment and data processing equipment purchased within 5 years at 80% of original cost annually.
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Suppliers must repurchase manuals, repair manuals, specialized repair tools, and current signage at specified depreciation rates (100% for new items, declining to 50% minimum), with all payments due within 90 days of termination or subject to interest charges at statutory rates.
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Dealers may recover compensatory damages plus up to two times compensatory damages in civil actions for supplier violations, with venue established in the county where the dealer's principal place of business is located.
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Suppliers must accept or reject warranty claims within 30 days and pay accepted claims within 30 days, including labor at dealer's retail rate plus 20% markup on parts, with prohibition on cost recovery through surcharges or discount reductions.
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Suppliers must provide 90 days' written notice and obtain dealer consent before changing payment terms, security agreements, or guarantors; failure to comply results in cancellation of the affected guaranty or security agreement.
Legislative Description
Amends and adds to existing law relating to farm equipment to provide for the repurchase of equipment, construction equipment and repair parts for equipment; to remove certain time conditions; to provide that certain provisions shall apply to purchases by retailers from persons, firms or corporations in the business of selling or retailing farm equipment; to provide for the passage of title relating to equipment; to provide for civil liability relating to violations of specified provisions; to provide for the repurchase of equipment from heirs; to provide for liability upon failure to pay following cancellation of contracts relating to equipment; to provide that judgments may include treble damages; to provide notice requirements relating to wholesalers, manufacturers and distributors of equipment; to provide for jurisdiction and venue; to revise provisions relating to agreements between suppliers and dealers of farm equipment; to revise provisions relating to compensation for warranty claims; to provide for the sale, lease and rental of new equipment; and to provide for the use of certain dealers and to provide for dealer compensation.
FARM EQUIPMENT
Last Action
Governor signed Session Law Chapter 270 Effective: 07/01/11
4/8/2011