16-1002.   Contracts, sales agreements or security agreements tomaintain stock of farm equipment or repair partsby retailer; cancellation or discontinuance thereof; repurchase obligationsof wholesaler, manufacturer, distributor or transfereeof such wholesaler, manufacturer or distributorthereon; contracts affected;security interests not affected; repurchase not subject to bulk sales lawor the claims of secured or unsecured creditors of specified others.(a) Whenever any person, firm or corporation engaged in the business ofselling and retailing farm implements, machinery, attachments or repairparts therefor enters into a written or parol contract, salesagreement or security agreement evidenced by a franchise agreementwhereby such retailer agrees to maintain a stock of parts or complete orwhole implements, machines or attachments with any wholesaler, manufactureror distributor of such implements, machinery, attachments or repair parts,and either such wholesaler, manufacturer or distributor or the retailerdesires to cancel or discontinue the contract, such wholesaler, manufactureror distributor shall pay to such retailer or credit to such retailer's account,if the retailer has outstanding any sums owing the wholesaler, manufactureror distributor, unless the retailer should desire to keep such merchandise,a sum equal to 100% of the net cost of all new, unused, undamaged, completefarm implements, machinery and attachments and 95% of thecurrent netprices on new, unused, undamaged repair parts, including superseded parts,which implements, machinery, attachments and parts had previously beenpurchased from such wholesaler, manufacturer, distributor or transferee ofsuch wholesaler, manufacturer or distributor if the transferee acquiredsubstantially all of the assets of such wholesaler, manufacturer ordistributor, and held by such retailer on the date of the cancellation ordiscontinuance of such contract. The wholesaler, manufacturer ordistributor shall also pay such retailer a sum equal to 5% of the currentnet price of all parts returned for the handling, packing and loading ofsuch parts for return to the wholesaler, manufacturer or distributor,except that such 5% shall not be paid or credited to the retailer if thewholesaler, manufacturer or distributor elects to perform the handling,packing, loading and transportation of the parts itself. Upon the paymentor allowance of credit to the retailer's account of the sum required bythis section, the title to such farm implements, machinery, attachmentsand repair parts therefor shall pass to the manufacturer, wholesaler ordistributor making such payment, and such manufacturer, wholesaleror distributor shall be entitled to the possession of such farm implements,machinery, attachments or repair parts. All payments or allowances ofcredit due retailers shall be paid or credited within 60 days after thereturn of implements, machinery, attachments or repair parts. After 60days, all payments or allowances shall include interest at the rateprescribed by K.S.A. 16-204, and amendments thereto.

      (b)   The provisions of this section relating to a retailer's right to cancelor discontinue a contract and receive payment for implements, machines,attachments and parts returned shall apply to all contracts now in effectwhich have no expiration date and are a continuing contract, and all othercontracts entered into or renewed after July 1, 1976. The provisions for aretailer to receive payment for implements, machines, attachments and partsreturned shall apply only to implements, machines, attachments and partspurchased after the effective date of this act. Any contract in force andeffect on July 1, 1976, which by its own terms will terminate on a datesubsequent thereto shall be governed by the law as it existed prior to thisact.

      (c)   The provisions of this section shall not be construed to affect inany way any security interest which the wholesaler, manufacturer ordistributor may have in the inventory of the retailer, exceptthat any repurchase hereunder shall not be subject to the provisions ofthe bulk sales law or to the claims of any secured or unsecured creditorsof the wholesaler, manufacturer or distributor or any assignee of thewholesaler, manufacturer or distributor until such time the retailer hasreceived payment in full subject to any offset the retailer may owe to thewholesaler, manufacturer or distributor.

      History:   L. 1976, ch. 95, § 2;L. 1987, ch. 79, § 1;L. 1989, ch. 71, § 1;L. 2000, ch. 84, § 1; July 1.