N.Y. General Business Law § 696-e: Parts and return of parts

§ 696-e. Parts and return of parts. 1. Every supplier shall provide

for the availability of repair parts throughout the reasonable useful

life of any equipment sold.

2. Every supplier shall provide to its dealers, on an annual basis, an

opportunity to return a portion of their surplus parts inventory for

credit. The surplus procedure shall be administered as follows:

(a) The supplier may notify its dealers of a time period, of at least

sixty days duration, during which time dealers may submit their surplus

parts list and return their surplus parts to the supplier.

(b) If a supplier has not notified a dealer of a specific time period

for returning surplus parts within the preceding twelve months, then it

shall authorize and allow the dealer's surplus parts return request

within thirty days after receipt of such request from the dealer.

(c) Pursuant to the provisions of this subdivision, a supplier must

allow surplus parts return authority on a dollar value of parts equal to

six percent of the total dollar value of parts purchased by the dealer

from the supplier during the twelve month period immediately preceding

the notification to the dealer by the supplier of the surplus parts

return program, or the month the dealer's return request is made,

whichever is applicable. However, the dealer may elect to return a

dollar value of the dealer's surplus parts equal to less than six

percent of the total dollar value of parts purchased by the dealer from

the supplier during the preceding twelve month period as provided

herein.

(d) No obsolete or superceded part, may be returned, but any part

listed in the supplier's current returnable parts list or any superceded

part that has not been the subject of the supplier's parts return

program at the date of notification to the dealer by the supplier of the

surplus parts return program, or the date of the dealer's parts return

request, whichever is applicable, shall be eligible for return and the

credit specified. However, returned parts must be in new and unused

condition and must have been purchased by the dealer from the supplier

to whom they are returned unless no program for the return of such part

has been offered by the supplier.

(e) The minimum lawful credit to be allowed for returned parts shall

be eighty-five percent of the cost thereof as listed in the supplier's

current returnable parts list at the date of the notification to the

dealer by the supplier of the surplus parts return program, or the date

of the dealer's parts return request, whichever is applicable.

(f) Applicable credit hereunder must be issued or furnished to the

dealer within sixty days after receipt of the dealer's returned parts by

the supplier.

(g) Packing and return freight expense incurred in any return of

surplus parts pursuant to the terms of this subdivision shall be borne

by the supplier.

(h) The provisions of this section shall be supplemental to any

agreement between the dealer and the supplier covering the return of

equipment, attachments and repair parts which provides the dealer with

greater protection. The dealer can elect to pursue either his or her

contract remedy or the remedy provided by state law, and an election by

the dealer to pursue his or her contract remedy shall not bar his or her

right to the remedy provided herein as to those repair parts not

affected by the contract remedy. Notwithstanding anything contained

herein, the rights of a supplier to charge back to the dealer's account

amounts previously paid or credited as a discount incident to the

dealer's purchase of goods shall not be affected. Further, any

repurchase hereunder shall not be subject to the provisions of the bulk

sales law. Additionally, nothing shall preclude a price for return parts

which is greater than the total allowance for parts allowed herein and

the shipping allowance, in such case the packing, freight and handling

expense charge, shall not be borne by the supplier.