2023 Montana Code Annotated
Title 30. Trade and Commerce
Chapter 11. Sales
Part 7. Canceled Dealership Contracts,Repurchase Requirements, and Dealer Data
30-11-702. Repurchase of inventory items upon cancellation of dealership or distribution contract

30-11-702. Repurchase of inventory items upon cancellation of dealership or distribution contract. (1) Upon cancellation of a written dealership contract between a retailer and a wholesaler, manufacturer, or distributor, the wholesaler, manufacturer, or distributor shall, at the retailer's request, pay to the retailer, or credit to the retailer's account if the retailer has outstanding any sums owing the wholesaler, manufacturer, or distributor, an amount equal to:

(a) 100% of the net cost of all new, undamaged, and complete inventory items held by the dealer at the time of cancellation, including vehicles with less than 1,000 miles on the odometer, plus cost of freight to return the inventory; and

(b) 100% of the current net price of each repair part carried on the most recent price list or catalog or the last catalog or price list in which the repair part was listed as provided by the manufacturer or distributor and held by the dealer at the time of cancellation, plus cost of freight to return the repair parts.

(2) Upon cancellation of a written distribution contract entered into between a wholesaler and a manufacturer or distributor, the manufacturer or distributor shall, at the wholesaler's request, pay to the wholesaler, or credit to the wholesaler's account if the wholesaler has outstanding any sums owing to the manufacturer or distributor, an amount equal to:

(a) 100% of the net cost of all new, undamaged, and complete inventory items, except repair parts, held by the wholesaler at the time of cancellation, including vehicles with less than 1,000 miles on the odometer; and

(b) 100% of the current net price of each repair part carried on the most recent price list or catalog or the last catalog or price list in which the repair part was listed as provided by the manufacturer or distributor and held by the wholesaler at the time of cancellation.

(3) Payment or allowance of credit to the retailer's or wholesaler's account of the sum required in subsection (1) or (2) must be made within 60 days of the retailer's or wholesaler's repurchase request. Title to such inventory items passes to the wholesaler, manufacturer, or distributor upon making such payment.

(4) A manufacturer or distributor has 30 days from the date of the repurchase request to complete, at the retailer's or wholesaler's place of business, an inventory, evaluation, and analysis of the items for which the retailer or wholesaler requests compensation under subsection (3). The retailer or wholesaler shall, on request, make all of the items available to the manufacturer or distributor, at the retailer's or wholesaler's place of business during normal business hours, to complete an inventory, evaluation, and analysis. The 30-day deadline must be tolled during delays caused by acts of God, fire, flood, blackouts, riots, or terrorist acts.

History: En. Sec. 2, Ch. 338, L. 1983; amd. Sec. 2, Ch. 297, L. 1985; amd. Sec. 8, Ch. 522, L. 1991; amd. Sec. 6, Ch. 283, L. 2019.