SB 789 Summary

• Creates the "Fair Practices of Equipment Manufacturers, Distributors, Wholesalers and Dealers Act" regulating business relationships between equipment suppliers and independent dealers for agricultural, construction, industrial, and outdoor power equipment.

• Prohibits suppliers from terminating dealer agreements without "good cause," requiring 180 days advance notice (90 days for single-line dealers) with opportunity to cure deficiencies within 60 days.

• Requires suppliers to repurchase new, unsold equipment and repair parts from dealers upon termination at specified prices: 100% of net equipment cost for current inventory, 90% of net parts cost, plus compensation for specialized tools and data processing equipment.

• Establishes warranty claim procedures requiring suppliers to accept or reject claims within 45 days, pay accepted claims within 30 days, and compensate dealers at dealer's standard labor rate plus 15% markup on parts.

• Applies to dealer agreements with no expiration date and those entered into or renewed after November 1, 2011; effective date is November 1, 2011.