{"data":{"id":"us-ok/okla.-stat.-tit.-15-15-246","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 15, § 15-246","heading":"Payment of equipment after agreement termination","body":"A. Whenever any dealer enters into a dealer agreement with a\n\nsupplier and either the supplier or the dealer desires to terminate,\n\nor otherwise discontinue the dealer agreement, the supplier shall\n\npay to the dealer or credit to the dealer’s account, if the dealer\n\nhas outstanding any sums owing the supplier, unless the dealer\n\nshould desire to keep such equipment or repair parts:\n\n1. A sum equal to one hundred percent (100%) of the net\n\nequipment cost of all new, unsold, undamaged equipment, less a\n\ndownward adjustment for such equipment between twenty-four (24)\n\nmonths and thirty-six (36) months old that reflects a reasonable\n\nallowance for refurbishment and the price another dealer will pay\n\nfor such equipment, one hundred percent (100%) of the net equipment\n\ncost of all unsold, undamaged demonstrators, less a downward\n\nadjustment to reflect a reasonable allowance for refurbishment and\n\nthe price another dealer will pay for such equipment, and ninety\n\npercent (90%) of the current net parts cost on new, unsold,\n\nundamaged repair parts, that had previously been purchased from the\n\nsupplier and held by the dealer on the date that the dealer\n\nagreement terminates or expires. Notwithstanding anything to the\n\ncontrary contained herein, demonstrators with less than fifty (50)\n\nhours, for machines with hour meters, of use will be considered new,\n\nunsold, undamaged equipment subject to repurchase under this\n\nparagraph;\n\n2. A sum equal to five percent (5%) of the current net parts\n\nprice of all repair parts returned to compensate the dealer for the\n\nhandling, packing and loading of such repair parts for return to the\n\nsupplier; provided, however, the five percent (5%) will not be paid\n\nor credited to the dealer if the supplier elects to perform the\n\nhandling, packing and loading of the repair parts itself;\n\n3. The fair market value of any specific data processing\n\nhardware or software that the supplier required the dealer to\n\nacquire or purchase to satisfy the requirements of the supplier,\n\nincluding computer equipment required and approved by the supplier\n\nto communicate with the supplier. Fair market value of property\n\nsubject to repurchase pursuant to this paragraph will be deemed to\n\nbe the acquisition cost thereof, including any shipping, handling\n\nand set-up fees, less straight line depreciation of the acquisition\n\ncost over three (3) years. If the dealer purchased data processing\n\nhardware or software that exceeded the supplier’s minimum\n\nrequirements, the acquisition cost of the data processing hardware\n\nor software will be deemed to be the acquisition cost of hardware or\n\nsoftware of similar quality that did not exceed the minimum\n\nrequirements of the supplier; or\n\n4. A sum equal to seventy-five (75%) of the net cost, including\n\nshipping, handling and set-up fees, of all specialized service or\n\nrepair tools previously purchased pursuant to requirements of the\n\nsupplier within fifteen (15) years prior to the date of the\n\napplicable notification of termination of the dealer agreement. The\n\nspecialized service or repair tools must be unique to the supplier’s\n\nproduct line and must be complete and in good operating condition.\n\nB. Upon the payment or allowance of credit to the dealer’s\n\naccount of the sums required by this section, the title to all\n\ninventory purchased hereunder shall pass to the supplier making such\n\npayment, and the supplier shall be entitled to the possession of the\n\ninventory. All payments or allowances of credit due dealers shall\n\nbe paid or credited within ninety (90) days after receipt by the\n\nsupplier of property required to be repurchased hereunder. Any\n\npayments or allowances of credit due dealers that are not paid\n\nwithin the ninety-day period will accrue interest at the maximum\n\nrate allowed by law. The supplier may withhold payments due under\ncredit due dealers shall\n\nbe paid or credited within ninety (90) days after receipt by the\n\nsupplier of property required to be repurchased hereunder. Any\n\npayments or allowances of credit due dealers that are not paid\n\nwithin the ninety-day period will accrue interest at the maximum\n\nrate allowed by law. The supplier may withhold payments due under\n\nthis subsection during the period of time in which the dealer fails\n\nto comply with its contractual obligations to remove any signage\n\nindicating that the dealer is an authorized dealer of the supplier.\n\nC. If any supplier refuses to repurchase any inventory covered\n\nunder the provisions of the Fair Practices of Equipment\n\nManufacturers, Distributors, Wholesalers and Dealers Act after\n\ntermination or discontinuance of the dealer agreement, the supplier\n\nwill be civilly liable to the dealer for one hundred ten percent\n\n(110%) of the amount that would have been due for the inventory if\n\nthe supplier had timely complied with this act, any freight charges\n\npaid by the dealer, interest accrued, and the dealer’s actual costs\n\nof any court or arbitration proceeding, including costs for attorney\n\nfees and costs for arbitrators.\n\nD. The supplier and dealer will each pay fifty percent (50%) of\n\nthe costs of freight, at truckload rates, to ship any equipment or\n\nrepair parts returned to the supplier pursuant to this act.\n\nE. Notwithstanding any provision to the contrary in the Uniform\n\nCommercial Code adopted by this state, the dealer will retain title\n\nto and have a first and prior lien against all inventory returned by\n\nthe dealer to the supplier under the provisions of this act until\n\nthe dealer is paid all amounts owed by the supplier for the\n\nrepurchase of such inventory required under the provisions of this\n\nact and the supplier shall hold the proceeds of such inventory in\n\ntrust for the benefit of the dealer.\n\nF. The provisions of this section shall not be construed to\n\naffect in any way any security interest which the supplier may have\n\nin the inventory of the dealer, and any repurchase hereunder shall\n\nnot be subject to the provisions of the bulk sales law or to the\n\nclaims of any secured or unsecured creditors of the supplier or any\n\nassignee of the supplier until such time as the dealer has received\n\nfull payment or credit, as applicable, due hereunder.\n\nG. The provisions of this section shall not apply to a\n\nspecialty agricultural equipment supplier if the dealer terminates\n\nthe dealer agreement and such termination is without good reason. A\n\ndealer has good reason to terminate the dealer agreement for any of\n\nthe following reasons:\n\n1. The death or disability of a majority owner of a dealership;\n\n2. The dealership terminates the dealer agreement and:\n\na. substantially all of the dealership assets or all\n\nshares of stock of the dealership are sold to a new\n\nowner, and\n\nb. no owner of the terminated dealership continues to own\n\nan interest in the continuing dealership;\n\n3. The filing of bankruptcy by or against the dealership which\n\nhas not been discharged within thirty (30) days after the filing,\n\nthe appointment of a receiver or assignment for the benefit of\n\ncreditors; or\n\n4. The specialty agricultural equipment supplier:\n\na. abandons the market or withdraws from the market by no\n\nlonger selling to the dealer a type of equipment\n\npreviously sold to the dealer that constituted a\n\nmaterial part of the specialty agricultural equipment\n\nsold by such supplier,\n\nb. consistently sells product to the dealer that is\n\ndefective or breaches the implied warranty of\n\nmerchantability,\n\nc. consistently fails to provide adequate product support\n\nfor the type and use of the product, which includes,\n\nbut is not limited to, technical assistance, operator\n\nand repair manuals, and part lists and diagrams,\n\nd. consistently fails to provide adequate training,\nh supplier,\n\nb. consistently sells product to the dealer that is\n\ndefective or breaches the implied warranty of\n\nmerchantability,\n\nc. consistently fails to provide adequate product support\n\nfor the type and use of the product, which includes,\n\nbut is not limited to, technical assistance, operator\n\nand repair manuals, and part lists and diagrams,\n\nd. consistently fails to provide adequate training,\n\nrequired by such supplier, for maintenance, repair, or\n\nusage of such supplier’s product,\n\ne. consistently fails to provide marketing and marketing\n\nsupport for such supplier’s product and marketing is a\n\nrequirement of the dealer contract,\n\nf. consistently fails to meet such supplier’s warranty\n\nobligations to the dealer as required by contract or\n\nlaw including obligations under the Fair Practices of\n\nEquipment Manufacturers, Distributors, Wholesalers and\n\nDealers Act,\n\ng. engaged in conduct that is injurious or detrimental to\n\nthe dealer’s customers, the public welfare or the\n\nreputation of the dealer,\n\nh. made material misrepresentations or falsification of\n\nany record, or\n\ni. breached the dealer agreement or a violated a\n\nprovision of the Fair Practices of Equipment\n\nManufacturers, Distributors, Wholesalers and Dealers\n\nAct.\n\nNothing in this subsection shall be construed to limit a\n\nspecialty agricultural equipment supplier’s obligation to repurchase\n\na dealer’s inventory as provided in this section if such supplier\n\nterminates or otherwise discontinues a dealer agreement.","path":["OK Code","Title 15"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os15.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"c0b27d6e7b7d4b48ad36456229f71f604b7947931c99750b7ef2b203a1b49ce5","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-15-15-245a.5","next":"us-ok/okla.-stat.-tit.-15-15-247"},"notice":"GroundRules: Original legal text. Not legal advice."}