§4074. Repurchase terms

Link to law: http://legislature.vermont.gov/statutes/section/09/107/04074
Published: 2015

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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of the current net prices of all new and undamaged superseded repair parts.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.)
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