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The Vermont Statutes Online
Title
09
:
Commerce and Trade
Chapter
107
:
MACHINERY DEALERSHIPS
§
4074. Repurchase terms
(a) Within 90
days from receipt of the written request of the dealer, a supplier under the
duty to repurchase inventory pursuant to section 4073 of this title may examine
any books or records of the dealer to verify the eligibility of any item for
repurchase. Except as otherwise provided in this chapter, the supplier shall
repurchase from the dealer all inventory previously purchased from the supplier
in possession of the dealer on the date of termination of the dealer agreement
and required signage, special tools, books, manuals, supplies, data processing
equipment, and software previously purchased from the supplier or other
qualified vendor approved by the supplier in the possession of the dealer on
the date of termination of the dealer agreement.
(b) The supplier
shall pay the dealer:
(1) 100 percent
of the net cost of all new and undamaged and complete farm and utility
tractors, utility equipment, forestry equipment, industrial equipment, farm
implements, farm machinery, yard and garden equipment, attachments, and
accessories purchased from the supplier within the 30-month period preceding
the date of termination, less a reasonable allowance for deterioration
attributable to weather conditions at the dealer's location.
(2) 90 percent
of the current net prices of all new and undamaged repair parts.
(3) 85 percent
of the current net prices of all new and undamaged superseded repair parts.
(4) 85 percent
of the latest available published net price of all new and undamaged noncurrent
repair parts.
(5) Either the
fair market value, or assume the lease responsibilities of any specific data
processing hardware that the supplier required the dealer to purchase to
satisfy the reasonable requirements of the dealer agreement, including computer
systems equipment and software required and approved by the supplier to
communicate with the supplier.
(6) Repurchase
at 75 percent of the net cost of specialized repair tools, signage, books and
supplies previously purchased, pursuant to requirements of the supplier and
held by the dealer on the date of termination. Specialized repair tools must be
unique to the supplier's product line and must be complete and in usable
condition.
(7) Repurchase
at average as-is value shown in current industry guides, dealer-owned rental
fleet financed by the supplier or its finance subsidiary, provided the
equipment was purchased from the supplier within 30 months of the date of
termination.
(c) The party
that initiates the termination of the dealer agreement shall pay the cost of
the return, handling, packing, and loading of the inventory. If the termination
is initiated by the supplier, the supplier shall reimburse the dealer five
percent of the net parts return credited to the dealer as compensation for
picking, handling, packing, and shipping the parts returned to the supplier.
(d) Payment to
the dealer required under this section shall be made by the supplier not later
than 45 days after receipt of the inventory by the supplier. A penalty shall be
assessed in the amount of daily interest at current New York prime rate plus
three percent of any outstanding balance over the required 45 days. The
supplier shall be entitled to apply any payment required under this section to
be made to the dealer as a setoff against any amount owed by the dealer to the
supplier. (Added 1993, No. 113 (Adj. Sess.), § 1, eff. March 4, 1994.)