44-6704

44-6704. Surplus parts inventory;
credits

A. Unless this section is specifically waived in writing by the dealer, a supplier
shall allow a dealer to periodically, or at least once every twelve months, return a
portion of the dealer's surplus parts inventory for credit. The supplier shall notify the
dealer of a time period when a dealer may submit the dealer's surplus parts list and
return this inventory. The designated return period shall be at least ninety days. A
supplier may stagger return periods for its dealers.

B. If a supplier has not notified its dealer of a specific time period for
returning surplus parts within the preceding twelve months, it shall allow the dealer to
return surplus parts within sixty days of receiving the dealer's request to make this
return.

C. A supplier shall allow surplus parts return on a dollar value of parts equal to
ten per cent of the total dollar value of all parts purchased by the dealer from the
supplier during either the twelve month period immediately preceding the supplier's
notification to the dealer of the supplier's return program or, if subsection B applies,
the month the dealer makes a return request. The dealer may elect to return a dollar
value of the surplus parts equal to less than ten per cent of the total dollar value of
the parts the dealer purchased during the preceding twelve months.

D. A dealer may not return obsolete or superseded parts. However, a dealer may
return for credit a part found in the supplier's current returnable parts list or a
superseded part that is not the subject of either the supplier's parts return program as
of the date the supplier notifies the dealer or, if subsection B applies, as of the date
the equipment dealer made a return request.

E. A dealer shall return only new and unused parts to the supplier of these parts.

F. The minimum credit allowed for returned parts is ninety-five per cent of the net
price as listed in the supplier's current returnable parts list as of the date that the
supplier provides notice of its return program or, if subsection B applies, the date that
the dealer submits a request for return.

G. A supplier shall issue credit within ninety days after receiving a return part.

H. This section does not prevent a supplier from charging back to the dealer's
account amounts previously paid or credited as a discount incident to the dealer's
purchase of goods.