N.Y. General Business Law § 696-f: Repurchase of equipment upon termination

§ 696-f. Repurchase of equipment upon termination. 1. Whenever any

dealer enters into a dealer agreement with a supplier wherein the dealer

agrees to maintain an inventory of equipment or repair parts and the

dealer agreement is subsequently terminated, the supplier shall

repurchase the inventory as provided in this article. The dealer may

keep the inventory if such dealer desires provided the dealer has a

contractural right to do so. If the dealer has any outstanding debts to

the supplier then part or all of the repurchase amount equal to, but no

more than, the total amount of the debts may be credited to the dealer's

account.

2. If the dealer decides not to keep the inventory, the supplier shall

repurchase that inventory previously purchased and held by the dealer on

the date of termination of the contract. The supplier shall pay one

hundred percent of the net cost of all new, unsold, undamaged and

complete equipment which is resalable, less a reasonable allowance for

depreciation due to usage by the dealer and deterioration directly

attributable to weather conditions at the dealer's location and less all

programs and discounts previously allowed thereon and eighty-five

percent of the current net price of all new, unused, undamaged repair

parts and accessories which are listed in the supplier's effective price

list or catalogue less all programs and discounts previously allowed

thereon by the supplier to the dealer. The supplier shall also pay the

dealer six percent of the current net price on all new, unused and

undamaged repair parts returned to cover the cost of handling, packing

and loading. The supplier shall have the option of performing the

handling, packing and loading or paying one hundred percent of the

current net price of parts in lieu of paying the six percent sum imposed

herein for these services and in this case the dealer shall make

available to the supplier, at the dealer's address or at the places at

which it is located, all equipment previously purchased by the dealer,

after receipt by the dealer of the full repurchase amount.

3. Upon payment within sixty days of the repurchase amount to the

dealer, the title and right to possession of the repurchased inventory

shall transfer or be transferred to the supplier.

4. The provisions of this article shall not require the repurchase

from the dealer of:

(a) any repair part which has a limited storage life or is otherwise

subject to deterioration;

(b) any single repair part which is priced as a set of two or more

items;

(c) any repair part which because of its condition is not resalable as

a new part without repairing or reconditioning;

(d) any inventory for which the dealer is unable to furnish evidence

reasonably satisfactory to the supplier, of good title, free and clear

of all claims, liens and encumbrances;

(e) any inventory which the dealer desires to keep, provided the

dealer has a contractural right to do so;

(f) any equipment which is not in new, unused, undamaged, and complete

condition;

(g) any equipment which has been used by the dealer or has

deteriorated because of weather conditions at the dealer's location

unless the supplier receives a reasonable allowance for such usage or

deterioration;

(h) any repair parts which are not in new, unused, undamaged

condition;

(i) any inventory which was ordered by the dealer on or after the date

of receipt of the notification of termination of the dealer agreement;

or

(j) any inventory which was acquired by the dealer from any source

other than the supplier.

5. If any supplier shall fail or refuse to repurchase any inventory

covered under the provisions of this article within sixty days after

termination of a dealer's contract, he shall be civilly liable for a

total amount of one hundred fifteen percent of the current net price of

the inventory plus any freight charges paid by the dealer plus all cost

of financing such repurchase, including courts costs and reasonable

attorneys' fees allowed by the court.