322F.7 Violations.
362 words·~2 min read·
/ia/chapter-322f-equipment-dealership-agreements/322f-7·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A violation of this chapter includes but is not limited to a supplier doing any of the following:
1. Requires a dealer to accept delivery of equipment that the dealer has not ordered.
2. Requires a dealer to order or accept delivery of equipment with special features or accessories not included in the base price list of equipment as publicly advertised by the supplier.
3. Requires a dealer to enter into any agreement, whether written or oral, which amends or supplements an existing dealership agreement with the supplier, unless the supplementary or amendatory agreement is imposed on other similarly situated dealers.
4. Requires as a condition of renewal or extension of a dealership agreement that the dealer complete substantial renovation of the dealer’s place of business, or acquire new or additional space to serve as the dealer’s place of business, unless the supplier provides at least one year’s written notice of the condition which states all grounds supporting the condition. The supplier must provide a reasonable time for the dealer to complete the renovation or acquisition.
5. Requires a dealer to refuse to purchase equipment distributed by another supplier.
6. Discriminates in the prices charged for equipment of like grade and quality sold by the supplier to similarly situated dealers. This subsection does not prevent the use of differentials which make only due allowance for costs related to the manufacture, sale, or delivery of equipment, or to methods or quantities of equipment sold or delivered.
7. a.
(1)For a dealership agreement governing equipment other than outdoor power equipment, takes action terminating, canceling, or failing to renew the dealership agreement, or substantially changes the competitive circumstances intended by the dealership agreement, due to the results of conditions beyond the dealer’s control, including drought, flood, labor disputes, or economic recession.
(2)For a dealership agreement governing outdoor power equipment, takes action terminating, canceling, or failing to renew the dealership agreement due to the results of conditions beyond the dealer’s control, including drought, flood, labor disputes, or economic recession.
b. This subsection shall not apply if the dealer is in default of a security agreement in effect with the supplier.
Referred to in §322F.8