44-6705

44-6705. Cancellation of dealer agreement;
repurchase

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.