44-6705. Cancellation of dealer agreement; repurchase

648 words·~3 min read·/az/title-44/44-6705

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. If a dealer agreement is cancelled or not renewed, the supplier shall repurchase the dealer's remaining inventory. The supplier shall also repurchase any specific data processing hardware that the supplier required the dealer to purchase, including computer systems equipment the supplier required for communications purposes. The supplier shall repurchase this equipment at its fair market value.

B. The supplier shall repurchase specialized repair tools purchased by the dealer pursuant to the supplier's requirements. The specialized repair tools shall be unique to the supplier product line and shall be complete and in usable condition. The supplier shall repurchase the specialized repair tools at a price equal to seventy-five per cent of the total invoice amount charged by the supplier to the dealer.

C. The supplier shall pay the dealer one hundred per cent of the net cost of all new, unsold, undamaged and complete equipment that is resalable. The supplier may deduct a reasonable allowance for depreciation due to the dealer's usage and deterioration caused by weather conditions at the dealer's location. The supplier may also deduct all programs and discounts it previously allowed.

D. The supplier shall pay the dealer ninety-five per cent of the current net price of all new, unused and undamaged repair parts and accessories that are listed in the supplier's effective price list or catalog. In computing the amount owed to the dealer the supplier may deduct from the current net price all programs and discounts previously allowed by the supplier to the dealer.

E. The supplier shall pay the dealer five per cent of the current net price on all new, unused and undamaged repair parts the dealer returns to cover the cost of handling, packing and loading. The supplier may perform the handling, packing and loading itself instead of paying this amount. The dealer shall make available to the supplier all equipment previously purchased by the dealer. The dealer shall make this equipment available at the dealer's place of business or at those places where the equipment is located.

F. This section does not require a supplier to repurchase any of the following:

1. A repair part that has a limited storage life or that is subject to deterioration.

2. A single repair part that is priced as a set of two or more items.

3. A repair part that, because of its condition, is not resalable as a new part without being repaired or reconditioned.

4. Inventory for which the equipment dealer is unable to furnish evidence, to the supplier's satisfaction, of good title that is free and clear of all claims, liens and encumbrances.

5. Inventory that the dealer wishes to keep, including lease or rental equipment, if the dealer has a contractual right to do so.

6. Equipment that is not in new, unused, undamaged and complete condition.

7. Equipment that has been used by the dealer or has deteriorated because of weather conditions at the dealer's location unless the supplier receives an allowance for this usage or deterioration. Previously unsold demonstrated equipment that has less than fifty hours of use and that is equipped with an hour meter is new equipment.

8. Repair parts that are not in new, unused and undamaged condition.

9. Inventory that the dealer ordered on or after the date the dealer received the notification of the supplier's termination of the dealer agreement.

10. Inventory that the dealer acquired from any source other than the supplier or the supplier's successor in interest.

G. If a supplier fails or refuses to repurchase inventory as prescribed by this section, the supplier is liable for one hundred ten per cent of the current net price of the inventory plus any freight charges paid by the dealer, interest at the highest legal rate from the date of shipment to the supplier and five per cent of the inventory's current net price to cover handling, packing and loading.