CHAPTER 3. REPURCHASE OF FARM OR INDUSTRIAL MACHINERY INVENTORY
IC 15-12-3
Chapter 3. Repurchase of Farm or Industrial Machinery Inventory
IC 15-12-3-1
Application of chapter
Sec. 1. (a) This chapter applies to the following:
(1) Contracts that may be terminated or altered at will.
(2) Contracts formed or renewed after June 30, 1989.
(b) This chapter may not be construed to impair the obligation ofa contract in violation of Article 1, Section 24 of the Constitution ofthe State of Indiana.
(c) This chapter does not affect a security interest that awholesaler, manufacturer, or distributor may have in a retailer'sinventory.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-2
"All terrain vehicle"
Sec. 2. As used in this chapter, "all terrain vehicle" has themeaning set forth in IC 14-8-2-5.7.
As added by P.L.2-2008, SEC.3. Amended by P.L.86-2010, SEC.9.
IC 15-12-3-3
"Current net price"
Sec. 3. As used in this chapter, "current net price" means:
(1) the price listed by a wholesaler, manufacturer, or distributorof inventory in effect at the time a contract is terminated; minus
(2) an applicable trade or cash discount.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-4
"Farm or industrial machinery"
Sec. 4. (a) As used in this chapter, "farm or industrial machinery"means any of the following:
(1) A farm implement.
(2) A tractor.
(3) Farm machinery.
(4) Utility and industrial equipment.
(5) Construction machinery, including a track and wheel tractor,a motor grader, and an excavator.
(6) An attachment or repair part for a machine listed insubdivisions (1) through (5).
(b) The term does not include an all terrain vehicle.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-5
"Inventory"
Sec. 5. As used in this chapter, "inventory" means farm orindustrial machinery held by a retailer.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-6
"Net cost"
Sec. 6. As used in this chapter, "net cost" means:
(1) the price a retailer paid to a wholesaler, manufacturer, ordistributor for inventory; minus
(2) any discounts, retainage, and prepaid freight or returnfreight.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-7
"Person"
Sec. 7. As used in this chapter, "person" means an individual, acorporation, a limited liability company, a partnership, a trust, or anunincorporated association.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-8
"Retailer"
Sec. 8. (a) As used in this chapter, "retailer" means a personengaged in the business of selling, at retail, farm or industrialmachinery.
(b) The term does not include a retail seller of:
(1) petroleum products, if the sale of petroleum products is theprimary purpose of the retail seller's business;
(2) motor vehicles (as defined in IC 9-13-2-105(a)); or
(3) automotive care and replacement products.
(c) The term includes the heirs, personal representative, guardian,or receiver of a retailer.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-9
"Retainage"
Sec. 9. As used in this chapter, "retainage" refers to variouspurchase, invoice, and other discounts held by the supplier and duethe retailer at a later time.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-10
Repurchase of inventory; exceptions
Sec. 10. (a) Upon the termination of a written or an unwrittencontract between a retailer and a wholesaler, manufacturer, ordistributor of farm or industrial machinery under which the retailerhad agreed to maintain an inventory, the wholesaler, manufacturer,or distributor shall repurchase the inventory of the retailer undersection 11 of this chapter.
(b) If the retailer has an outstanding debt to the wholesaler,manufacturer, or distributor, the amount to be paid in repurchase ofthe inventory may be credited to the retailer's account.
(c) The requirement under subsection (a) that a wholesaler,manufacturer, or distributor repurchase inventory does not apply
when a contract is terminated based upon:
(1) the conviction of the retailer (or a principal owner oroperator of the retailer) of an offense involving theft,dishonesty, or false statement; or
(2) a fraudulent misrepresentation by the retailer to thewholesaler, manufacturer, or distributor that is material to thecontract.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-11
Farm and industrial machinery repurchased; proof of purchase
Sec. 11. (a) Except as provided in section 14 of this chapter, awholesaler, manufacturer, or distributor shall repurchase farm orindustrial machinery that:
(1) the retailer previously purchased from the wholesaler,manufacturer, or distributor; and
(2) the retailer held as inventory on the date of the terminationof the contract.
(b) For purposes of subsection (a)(1), proof of purchase from thesupplier may include retail invoices from the supplier or a referenceto an item in a current or past supplier price book.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-12
Repurchase price; packaging
Sec. 12. (a) The price for a repurchase under this chapter mustequal the sum of:
(1) one hundred percent (100%) of the net cost of all new,unsold, undamaged, and complete farm or industrial machinery(except repair parts); plus
(2) one hundred percent (100%) of the current net price of allnew, unused, and undamaged repair parts.
(b) Except as provided in subsection (c), a wholesaler,manufacturer, or distributor that is required to repurchase farm orindustrial machinery from a retailer under this chapter shall payfreight charges incurred in shipping the farm or industrial machinery(except repair parts) back to the wholesaler, manufacturer, ordistributor.
(c) A retailer shall pay freight charges incurred in shipping repairparts that are repurchased under this chapter back to the wholesaler,manufacturer, or distributor.
(d) A retailer is responsible for the packaging of all farm orindustrial machinery that is repurchased from the retailer under thischapter in preparation for the shipment of the machinery back to thewholesaler, manufacturer, or distributor.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-13
Title to inventory
Sec. 13. Upon the payment to the retailer of the repurchase price
under section 12 of this chapter, the title to the inventory passes tothe wholesaler, manufacturer, or distributor.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-14
Repurchase exceptions
Sec. 14. This chapter does not require the repurchase of any of thefollowing:
(1) A repair part that has a limited storage life or is subject todeterioration, including rubber items, gaskets, batteries,solvents, and lubricants.
(2) A single repair part that is priced as a set of two (2) or moreitems.
(3) Inventory for which the retailer is unable to furnishevidence, satisfactory to the wholesaler, manufacturer, ordistributor, of clear title, free and clear of all claims, liens, andencumbrances.
(4) Inventory that the retailer desires to keep, provided theretailer has a contractual right to keep the inventory.
(5) Inventory that is not in a new, unused, and undamagedcondition.
(6) Inventory that was ordered by the retailer on or after thedate of notification of termination of the contract.
(7) Inventory that was acquired by the retailer from a sourceother than the wholesaler, manufacturer, or distributor.
(8) Complete farm and industrial machinery, except repair parts,that was purchased at least thirty-six (36) months before thedate of termination.
(9) A repair part that is in a broken or damaged package, if thepackage is necessary for the resale of the repair part to acustomer by a retailer.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-15
Civil liability
Sec. 15. A wholesaler, manufacturer, or distributor that fails orrefuses to repurchase inventory as required under this chapter withinninety (90) days after the termination of a contract is liable in a civilaction to the retailer for:
(1) one hundred percent (100%) of the current net price ofrepair parts;
(2) one hundred percent (100%) of the net cost of all otherinventory;
(3) the retailer's reasonable attorney's fees;
(4) court costs; and
(5) interest on the amounts determined under subdivisions (1)through (2), computed at a simple interest rate that is set by thecourt at not less than six percent (6%) per year and not morethan ten percent (10%) per year, and beginning to accrue on thesixty-first day after the termination of the contract.As added by P.L.2-2008, SEC.3.
IC 15-12-3-16
Repurchase after death, incapacity, or insolvency
Sec. 16. (a) If a retailer:
(1) is an individual who dies or is incapacitated; or
(2) is a corporation that becomes insolvent;
the retailer's heirs, personal representative, guardian, or receiver maycompel a wholesaler, manufacturer, or distributor to repurchase theretailer's inventory under this chapter as if the retailer's contract hadterminated.
(b) The retailer's heirs, personal representative, guardian, orreceiver must exercise the right provided by this section not laterthan one hundred eighty (180) days after the retailer's death,incapacitation, or insolvency. However, this section does not requirethe repurchase of inventory if the heirs, personal representative,guardian, or receiver enters into a new contract with the wholesaler,manufacturer, or distributor.
As added by P.L.2-2008, SEC.3.
IC 15-12-3-17
Inspection of inventory
Sec. 17. A retailer, wholesaler, manufacturer, or distributor may,in person or through a representative, inspect all inventory andcertify its acceptability when it is packed for shipment to thewholesaler, manufacturer, or distributor for repurchase under thischapter.
As added by P.L.2-2008, SEC.3.