16-1403.   Change of lawn and garden equipment dealership contracts;restrictions.(a) Whenever any retailer enters into a contract with asupplier and such supplier or retailer terminates, cancels, fails torenew, or in factsubstantially discontinues such contract, such supplier shall pay to suchretailer, or credit to such retailer's account, if and only to the extentthat the retailer has outstanding sums owing the supplier, unless theretailer should desire to keep all or part of such merchandise, a sum equalto 100% of the net cost of all new, unused, undamaged andcomplete lawn andgarden equipment, including transportation charges which have been paid bysuch retailer, and 95% of the current net prices of new,unused andundamaged repair parts which had previously been purchased from suchsupplier preceding the date of notification of the termination, and held bysuch retailer on the date of the cancellation or discontinuance of suchcontract.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 lawn andgarden equipment and repair parts and other equipment shall then pass to thesupplier making such payment, and such supplier shall then be entitled tothe possession of such lawn and garden equipment and repair parts. Allpayments required to be made under the provisions of this section must bemade within 60 days after the return of the lawn and gardenequipment,repair parts or other equipment. After 60 days, all paymentsor allowancesshall include interest calculated from the date of return at the rateprescribed in K.S.A. 16-204, and amendments thereto.

      (b)   The provisions of this section shall not be construed to affect inany way any security interest which the supplier may have in the inventoryof the retailer, except that any repurchase hereunder shall not be subjectto the provisions of the bulk sales law or to the claims of any secured orunsecured creditors of the supplier or any assignee or the supplier untilsuch time the retailer has received payment in full, subject to any offsetthe retailer may owe to the supplier.

      History:   L. 1992, ch. 40, § 3;L. 2000, ch. 84, § 5; July 1.