2013 Vermont Statutes
Title 09 Commerce and Trade
Chapter 107 MACHINERY DEALERSHIPS
§ 4074 Repurchase terms
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(3) 85 percent of the current net prices of all new and undamaged superseded repair parts;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; and
(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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