16-1303.   Change of outdoor power equipment dealership contracts;restrictions.(a) Whenever any retailer enters into a contract with a supplierand such supplier or retailer terminates, cancels, fails to renew, or in factsubstantially discontinues such contract, such supplier shall pay to suchretailer, or credit to such retailer's account, if and only to the extent thatthe retailer has outstanding sums owing the supplier, unless the retailershould desire to keep all or part of such merchandise, a sum equal to100% ofthe net cost of all new, unused, undamaged and complete outdoor powerequipment, including transportation charges which have been paid by suchretailer, and 95% of the current net prices of new, unusedand undamaged repairparts which had previously been purchased from such supplier preceding the dateof notification of the termination, and held by such retailer on the date ofthe cancellation or discontinuance of such contract.The supplier also shall pay such retailer a sum equal to 5% of the currentnet price of all parts returned for the handling, packing and loading of suchparts for return to the supplier, except that such 5% shall not be paid orcredited to the retailer if the supplier elects to perform the handling,packing, loading and transportation of the parts itself.Upon thepayment of such sum, the title and right of possession of such outdoor powerequipment and repair parts and other equipment shall then pass to the suppliermaking such payment, and such supplier shall then be entitled to the possessionof such outdoor power equipment and repair parts.All payments required to be made under the provisions ofthis section must be made within 60 days after the return ofthe outdoor powerequipment, repair parts or other equipment. After 60 days,all payments orallowances shall include interest calculated from the date of return at therate prescribed in K.S.A. 16-204, and amendments thereto.

      (b)   The provisions of this section shall not be construed to affect in anyway any security interest which the supplier may have in the inventory of theretailer, except that any repurchase hereunder shall not be subject to theprovisions of the bulk sales law or to the claims of any secured or unsecuredcreditors of the supplier or any assignee or the supplier until such time theretailer has received payment in full, subject to any offset the retailer mayowe to the supplier.

      History:   L. 1991, ch. 67, § 3;L. 2000, ch. 84, § 3; July 1.