2009 Louisiana Laws TITLE 32 Motor vehicles and traffic regulation :: RS 32:1268.1 Manufacturer, distributor, or wholesaler repurchase; marine dealer; products

§1268.1.  Manufacturer mandatory repurchase; motorcycle or all-terrain vehicle dealer; marine dealer; recreational or travel trailer dealer; utility trailer dealer

A.(1)  In the event that a dealer ceases to engage in the business of being a motorcycle or all-terrain vehicle dealer, or ceases to sell a particular make of motorcycle or all-terrain vehicle, and after notice thereof to the manufacturer or distributor by registered or certified mail, return receipt requested within thirty days thereafter, the manufacturer or distributor, at a minimum, shall repurchase all new and unused motorcycles and all-terrain vehicles of the current and immediate prior model year and all parts on hand that are currently listed in the manufacturer's price book that have not been damaged or substantially altered to the prejudice of the manufacturer while in the possession of the dealer and all required demonstrators.

(2)  The manufacturer shall make the required repurchase after the dealer terminates his franchise, selling, or other contractual agreement and within sixty days of the submission by the dealer to the manufacturer, by registered or certified mail, return receipt requested, of a final inventory of motorcycles and all-terrain vehicles, and parts on hand.

B.(1)  In the event that a dealer ceases to engage in the business of being a marine dealer, or ceases to sell a particular make of marine product, and after notice thereof to the manufacturer or distributor by registered or certified mail return receipt requested within thirty days thereafter, the manufacturer or distributor, at a minimum, shall repurchase all new and unused marine products of the current and immediate prior model year and all parts on hand that are currently listed in the manufacturer's price book that have not been damaged or substantially altered to the prejudice of the manufacturer while in the possession of the dealer and all required demonstrators.  However, whenever the marine dealer gives notice of termination of the contract, franchise, or selling agreement, the manufacturer or distributor shall have the right to appoint an Independent Marine Surveyor to inspect the marine dealer's inventory to determine whether or not the inventory has been substantially altered or damaged to the prejudice of the manufacturer, through neglect or otherwise, while in the possession of the marine dealer and shall determine a fair diminution of value caused by such alteration, damage, or neglect.  If the Independent Marine Surveyor finds that the inventory of marine products has been so altered, damaged, or neglected, the value assessment of the inventory of marine products established by him shall be considered by the commission in determining the market value of the inventory.

(2)  The manufacturer shall make the required repurchase after the dealer terminates his franchise, selling, or other contractual agreement and within sixty days of the submission by the dealer to the manufacturer, by registered or certified mail return receipt requested, of a final inventory of marine products and parts on hand.

(3)(a)  Notwithstanding the provisions of Paragraphs (1) and (2) of this Subsection, in the event that a dealer in marine products ceases to engage in the business of being a marine dealer of a specified brand of boats, boat packages, or marine motors, and the dealer has an area of responsibility that is not shared with another marine dealer, the manufacturer or distributor may appeal the repurchasing requirements of Paragraph (1) of this Subsection and the penalties imposed pursuant to Paragraph (2) of this Subsection, to the commission to determine whether or not the requirements of these Paragraphs are fair and equitable under the circumstances.

(b)  Any appeal under the provisions of this Section shall be filed with the commission within fifteen days of receipt of notice from the marine dealer that the franchise, sales and service, or similar agreement has been terminated.

(c)  The commission shall consider all relevant evidence and render a decision within thirty days of the day the appeal was filed. Either party may appeal the decision of the commission provided that a commercial surety bond is posted to compensate the prevailing party for compliance with the commission's decision.

C.(1)  In the event that a dealer ceases to engage in the business of being a recreational vehicle or travel trailer dealer, or ceases to sell a particular make of recreational vehicle or travel trailer, and after notice thereof to the manufacturer or distributor by registered or certified mail return receipt requested within thirty days thereafter, the manufacturer or distributor, at a minimum, shall repurchase all new and recreational vehicles and travel trailers of the current and immediate prior model year and all parts on hand that are currently listed in the manufacturer's price book that have not been damaged or substantially altered to the prejudice of the manufacturer while in the possession of the dealer and all required demonstrators.

(2)  The manufacturer shall make the required repurchase after the dealer terminates his franchise, selling, or other contractual agreement and within sixty days of the submission by the dealer to the manufacturer, by registered or certified mail return receipt requested, of a final inventory of recreational vehicles and travel trailers and parts on hand.

D.(1)  In the event that a dealer ceases to engage in the business of being a utility trailer dealer, or ceases to sell a particular make of utility trailer, and after notice thereof to the manufacturer or distributor by registered or certified mail return receipt requested within thirty days thereafter, the manufacturer or distributor, at a minimum, shall repurchase all utility trailers of the current and immediate prior model year and all parts on hand that are currently listed in the manufacturer's price book that have not been damaged or substantially altered to the prejudice of the manufacturer while in the possession of the dealer and all required demonstrators.

(2)  The manufacturer shall make the required repurchase after the dealer terminates his franchise, selling, or other contractual agreement and within sixty days of the submission by the dealer to the manufacturer, by registered or certified mail return receipt requested, of a final inventory of utility trailers and parts on hand.

E.  Failure to make said repurchase without just cause shall subject the manufacturer to a penalty of one and one-half percent per month or fraction thereof of the inventory value of returnable marine products and parts, utility trailers and parts, recreational vehicles and travel trailers and parts, or motorcycles and all-terrain vehicles and parts, payable to the dealer, commencing on the sixty-first day following the date of receipt of the final inventory and continuing until such time as said repurchase is made.

Acts 2009, No. 403, §1, eff. July 7, 2009.