51-07 Miscellaneous Provisions - North Dakota Statutes

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CHAPTER 51-07MISCELLANEOUS PROVISIONS51-07-01. Retail farm implement; lawn and garden equipment; or vehicle dealermay recover price of merchandise upon discontinuance of contract by wholesaler or retail
dealer.1.If a person engaged in the business of retailing farm implements, machinery, or
attachments, or parts for the same; lawn and garden equipment, or parts for the
same; or automobiles, trucks, or semitrailers, or parts for the same, enters a contract
under which the retailer agrees to maintain a stock of the merchandise covered
under this section with a wholesaler, manufacturer, or distributor of the covered
merchandise and tools and the wholesaler, manufacturer, or distributor or the retailer
desires to cancel or discontinue the contract, the wholesaler, manufacturer, or
distributor shall pay to the retailer, unless the retailer desires to keep the
merchandise, a sum equal to:a.One hundred percent of the net cost of all current unused complete farm
implements, machinery, and attachments; lawn and garden equipment; and
automobiles, trucks, and semitrailers.b.One hundred percent of the actual merchandise and tool transportation charges
that have been paid by the retailer.c.Ninety percent of the net prices on parts, including superseded parts, as shown
in the manufacturer's, wholesaler's, or distributor's current price lists or catalogs
in effect at the time the contract is canceled, discontinued, or not renewed.
These parts must have previously been purchased from the wholesaler,
manufacturer, or distributor, and must have been either held by the retailer on
the date of the cancellation of, discontinuance of, or failure to renew the
contract or received by the retailer from the wholesaler, manufacturer, or
distributor after the date of the cancellation, discontinuance, or failure to renew.d.Fifty percent of the net cost of all complete specialized tools for the covered
merchandise.e.Five percent of the current net price of all parts returned for the handling,
packing, and loading of the parts back to the wholesaler, manufacturer, or
distributor.2.Upon the payment of the amounts under subsection 1, the retailer shall pass the title
to the covered merchandise and tools to the manufacturer, wholesaler, or distributor
making the payment, and the manufacturer, wholesaler, or distributor is entitled to
the possession of the covered merchandise and tools. All payments required to be
made under this section must be made within thirty days after the final settlement
between the retailer and the wholesaler, manufacturer, or distributor.3.The provisions of this section are supplemental to any agreement between the
retailer and the manufacturer, wholesaler, or distributor covering the return of any
merchandise and tools covered under this section. The retailer can elect to pursue
either the retailer's contract remedy or the remedy provided in this section.Anelection by the retailer to pursue the retailer's contract remedy does not bar the
retailer's right to the remedy provided in this section as to any merchandise and
tools covered under this section which is not affected by the contract remedy.4.The obligations of any wholesaler, manufacturer, or distributor under this section and
sections 51-07-01.1 and 51-07-03 apply to any successor in interest or assignee of
that wholesaler, manufacturer, or distributor. A successor in interest includes anyPage No. 1purchaser of assets or stock, any surviving corporation or limited liability company
resulting from a merger or liquidation, any receiver, or any trustee of the original
wholesaler, manufacturer, or distributor.5.The provisions of this section apply to all contracts now in effect which have no
expiration date and are a continuing contract, and all other contracts entered or
renewed after July 31, 2003. Any contract in force and effect on August 1, 2003,
which by its own terms will terminate on a date subsequent thereto is governed by
the law as it existed before August 1, 2003.51-07-01.1. Termination of retail contract to be done in good faith - Definition ofgood cause.1.Any manufacturer, wholesaler, or distributor of merchandise and tools covered under
section 51-07-01, excluding automobile dealers, truck dealers, or parts dealers of
the automobiles or trucks, that enters a contract with any person engaged in the
business of retailing the covered merchandise by which the retailer agrees to
maintain a stock of the covered merchandise may not terminate, cancel, or fail to
renew the contract with the retailer without good cause.2.For the purpose of this section, good cause for terminating, canceling, or failing to
renew a contract is limited to failure by the retailer to substantially comply with those
essential and reasonable requirements imposed by the contract between the parties
if the requirements are not different from those requirements imposed on other
similarly situated retailers. The determination by the manufacturer, wholesaler, or
distributor of good cause for the termination, cancellation, or failure to renew must
be made in good faith.3.In any action against a manufacturer, wholesaler, or distributor for violation of this
section, the manufacturer, wholesaler, or distributor shall establish that the
termination, cancellation, or failure to renew was made in good faith for good cause.
If a notice of termination is issued and the dealer challenges the notice by filing an
action, there is an automatic stay during the pendency of the action.If themanufacturer, wholesaler, or distributor fails to establish good cause for its action,
the manufacturer, wholesaler, or distributor is liable for all special and general
damages sustained by the plaintiff, including the costs of the litigation and
reasonable attorney's fees for prosecuting the action and the plaintiff, if appropriate,
is entitled to injunctive relief. This section applies to all contracts now in effect which
have no expiration date and are continuing contracts and all other contracts entered,
amended, or renewed after July 31, 2003.Any contract in force and effect onAugust 1, 2003, which by its terms will terminate on a date subsequent thereto is
governed by the law as it existed before August 1, 2003.51-07-01.2.Prohibited practices under farm equipment dealership contracts. Amanufacturer, wholesaler, or distributor of farm implements, machinery, or repair parts who
enters into a contract with any person engaged in the business of selling and retailing farm
implements and repair parts for farm implements may not:1.Coerce or attempt to coerce the farm equipment dealer to accept delivery of farm
equipment, parts, or accessories that the farm equipment dealer has not voluntarily
ordered.2.Condition or attempt to condition the sale of farm equipment on a requirement that
the farm equipment dealer also purchase other goods or services, except that a farm
equipment manufacturer may require the dealer to purchase all parts reasonably
necessary to maintain the quality of operation in the field of any farm equipment
used in the trade area and telecommunication necessary to communicate with the
farm equipment manufacturer.Page No. 23.Coerce or attempt to coerce a farm equipment dealer into a refusal to purchase farm
equipment manufactured by another farm equipment manufacturer.4.Discriminate in the prices charged for farm equipment of like grade and quality sold
by the farm equipment manufacturer to similarly situated farm equipment dealers.
This subsection does not prevent the use of differentials that make only due
allowance for differences in the cost of manufacture, sale, or delivery or for the
differing methods or quantities in which the farm equipment is sold or delivered by
the farmequipment manufacturer.This section does notdiminishthemanufacturer's, wholesaler's, or distributor's ability to provide volume discounts,
bonuses, or special machine ordering programs commonly used in the industry.5.Attempt or threaten to terminate, cancel, fail to renew, or substantially change the
competitive circumstances of the dealership contract for any reason other than
failure of the farm equipment dealer to comply with the terms of the written contract
between the parties or if the attempt or threat is based on the results of a
circumstance beyond the farm equipment dealer's control, including a sustained
drought or other natural disaster in the dealership market area or a labor dispute.51-07-02.Prices of implements, machinery, automobiles, and parts - Howdetermined. Repealed by S.L. 2003, ch. 435,