Article 10.--CONTRACTS TO MAINTAIN STOCK OF FARM EQUIPMENT
16-1002.Contracts, sales agreements or security agreements to
maintain stock of farm equipment or repair parts
by retailer; cancellation or discontinuance thereof; repurchase obligations
of wholesaler, manufacturer, distributor or transferee
of such wholesaler, manufacturer or distributor
thereon; contracts affected;
security interests not affected; repurchase not subject to bulk sales law
or the claims of secured or unsecured creditors of specified others.
(a) Whenever any person, firm or corporation engaged in the business of
selling and retailing farm implements, machinery, attachments or repair
parts therefor enters into a written or parol contract, sales
agreement or security agreement evidenced by a franchise agreement
whereby such retailer agrees to maintain a stock of parts or complete or
whole implements, machines or attachments with any wholesaler, manufacturer
or distributor of such implements, machinery, attachments or repair parts,
and either such wholesaler, manufacturer or distributor or the retailer
desires to cancel or discontinue the contract, such wholesaler, manufacturer
or distributor shall pay to such retailer or credit to such retailer's account,
if the retailer has outstanding any sums owing the wholesaler, manufacturer
or distributor, unless the retailer should desire to keep such merchandise,
a sum equal to 100% of the net cost of all new, unused, undamaged, complete
farm implements, machinery and attachments and 95% of the
current net
prices on new, unused, undamaged repair parts, including superseded parts,
which implements, machinery, attachments and parts had previously been
purchased from such wholesaler, manufacturer, distributor or transferee of
such wholesaler, manufacturer or distributor if the transferee acquired
substantially all of the assets of such wholesaler, manufacturer or
distributor, and held by such retailer on the date of the cancellation or
discontinuance of such contract. The wholesaler, manufacturer or
distributor shall also pay such retailer a sum equal to 5% of the current
net price of all parts returned for the handling, packing and loading of
such parts for return to the wholesaler, manufacturer or distributor,
except that such 5% shall not be paid or credited to the retailer if the
wholesaler, manufacturer or distributor elects to perform the handling,
packing, loading and transportation of the parts itself. Upon the payment
or allowance of credit to the retailer's account of the sum required by
this section, the title to such farm implements, machinery, attachments
and repair parts therefor shall pass to the manufacturer, wholesaler or
distributor making such payment, and such manufacturer, wholesaler
or distributor shall be entitled to the possession of such farm implements,
machinery, attachments or repair parts. All payments or allowances of
credit due retailers shall be paid or credited within 60 days after the
return of implements, machinery, attachments or repair parts. After 60
days, all payments or allowances shall include interest at the rate
prescribed by K.S.A. 16-204, and amendments thereto.
(b) The provisions of this section relating to a retailer's right to cancel
or discontinue a contract and receive payment for implements, machines,
attachments and parts returned shall apply to all contracts now in effect
which have no expiration date and are a continuing contract, and all other
contracts entered into or renewed after July 1, 1976. The provisions for a
retailer to receive payment for implements, machines, attachments and parts
returned shall apply only to implements, machines, attachments and parts
purchased after the effective date of this act. Any contract in force and
effect on July 1, 1976, which by its own terms will terminate on a date
subsequent thereto shall be governed by the law as it existed prior to this
act.
(c) The provisions of this section shall not be construed to affect in
any way any security interest which the wholesaler, manufacturer or
distributor may have in the inventory of the retailer, except
that any repurchase hereunder shall not be subject to the provisions of
the bulk sales law or to the claims of any secured or unsecured creditors
of the wholesaler, manufacturer or distributor or any assignee of the
wholesaler, manufacturer or distributor until such time the retailer has
received payment in full subject to any offset the retailer may owe to the
wholesaler, 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.
Article 10.--CONTRACTS TO MAINTAIN STOCK OF FARM EQUIPMENT
16-1002.Contracts, sales agreements or security agreements to
maintain stock of farm equipment or repair parts
by retailer; cancellation or discontinuance thereof; repurchase obligations
of wholesaler, manufacturer, distributor or transferee
of such wholesaler, manufacturer or distributor
thereon; contracts affected;
security interests not affected; repurchase not subject to bulk sales law
or the claims of secured or unsecured creditors of specified others.
(a) Whenever any person, firm or corporation engaged in the business of
selling and retailing farm implements, machinery, attachments or repair
parts therefor enters into a written or parol contract, sales
agreement or security agreement evidenced by a franchise agreement
whereby such retailer agrees to maintain a stock of parts or complete or
whole implements, machines or attachments with any wholesaler, manufacturer
or distributor of such implements, machinery, attachments or repair parts,
and either such wholesaler, manufacturer or distributor or the retailer
desires to cancel or discontinue the contract, such wholesaler, manufacturer
or distributor shall pay to such retailer or credit to such retailer's account,
if the retailer has outstanding any sums owing the wholesaler, manufacturer
or distributor, unless the retailer should desire to keep such merchandise,
a sum equal to 100% of the net cost of all new, unused, undamaged, complete
farm implements, machinery and attachments and 95% of the
current net
prices on new, unused, undamaged repair parts, including superseded parts,
which implements, machinery, attachments and parts had previously been
purchased from such wholesaler, manufacturer, distributor or transferee of
such wholesaler, manufacturer or distributor if the transferee acquired
substantially all of the assets of such wholesaler, manufacturer or
distributor, and held by such retailer on the date of the cancellation or
discontinuance of such contract. The wholesaler, manufacturer or
distributor shall also pay such retailer a sum equal to 5% of the current
net price of all parts returned for the handling, packing and loading of
such parts for return to the wholesaler, manufacturer or distributor,
except that such 5% shall not be paid or credited to the retailer if the
wholesaler, manufacturer or distributor elects to perform the handling,
packing, loading and transportation of the parts itself. Upon the payment
or allowance of credit to the retailer's account of the sum required by
this section, the title to such farm implements, machinery, attachments
and repair parts therefor shall pass to the manufacturer, wholesaler or
distributor making such payment, and such manufacturer, wholesaler
or distributor shall be entitled to the possession of such farm implements,
machinery, attachments or repair parts. All payments or allowances of
credit due retailers shall be paid or credited within 60 days after the
return of implements, machinery, attachments or repair parts. After 60
days, all payments or allowances shall include interest at the rate
prescribed by K.S.A. 16-204, and amendments thereto.
(b) The provisions of this section relating to a retailer's right to cancel
or discontinue a contract and receive payment for implements, machines,
attachments and parts returned shall apply to all contracts now in effect
which have no expiration date and are a continuing contract, and all other
contracts entered into or renewed after July 1, 1976. The provisions for a
retailer to receive payment for implements, machines, attachments and parts
returned shall apply only to implements, machines, attachments and parts
purchased after the effective date of this act. Any contract in force and
effect on July 1, 1976, which by its own terms will terminate on a date
subsequent thereto shall be governed by the law as it existed prior to this
act.
(c) The provisions of this section shall not be construed to affect in
any way any security interest which the wholesaler, manufacturer or
distributor may have in the inventory of the retailer, except
that any repurchase hereunder shall not be subject to the provisions of
the bulk sales law or to the claims of any secured or unsecured creditors
of the wholesaler, manufacturer or distributor or any assignee of the
wholesaler, manufacturer or distributor until such time the retailer has
received payment in full subject to any offset the retailer may owe to the
wholesaler, 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.
Article 10.--CONTRACTS TO MAINTAIN STOCK OF FARM EQUIPMENT
16-1002.Contracts, sales agreements or security agreements to
maintain stock of farm equipment or repair parts
by retailer; cancellation or discontinuance thereof; repurchase obligations
of wholesaler, manufacturer, distributor or transferee
of such wholesaler, manufacturer or distributor
thereon; contracts affected;
security interests not affected; repurchase not subject to bulk sales law
or the claims of secured or unsecured creditors of specified others.
(a) Whenever any person, firm or corporation engaged in the business of
selling and retailing farm implements, machinery, attachments or repair
parts therefor enters into a written or parol contract, sales
agreement or security agreement evidenced by a franchise agreement
whereby such retailer agrees to maintain a stock of parts or complete or
whole implements, machines or attachments with any wholesaler, manufacturer
or distributor of such implements, machinery, attachments or repair parts,
and either such wholesaler, manufacturer or distributor or the retailer
desires to cancel or discontinue the contract, such wholesaler, manufacturer
or distributor shall pay to such retailer or credit to such retailer's account,
if the retailer has outstanding any sums owing the wholesaler, manufacturer
or distributor, unless the retailer should desire to keep such merchandise,
a sum equal to 100% of the net cost of all new, unused, undamaged, complete
farm implements, machinery and attachments and 95% of the
current net
prices on new, unused, undamaged repair parts, including superseded parts,
which implements, machinery, attachments and parts had previously been
purchased from such wholesaler, manufacturer, distributor or transferee of
such wholesaler, manufacturer or distributor if the transferee acquired
substantially all of the assets of such wholesaler, manufacturer or
distributor, and held by such retailer on the date of the cancellation or
discontinuance of such contract. The wholesaler, manufacturer or
distributor shall also pay such retailer a sum equal to 5% of the current
net price of all parts returned for the handling, packing and loading of
such parts for return to the wholesaler, manufacturer or distributor,
except that such 5% shall not be paid or credited to the retailer if the
wholesaler, manufacturer or distributor elects to perform the handling,
packing, loading and transportation of the parts itself. Upon the payment
or allowance of credit to the retailer's account of the sum required by
this section, the title to such farm implements, machinery, attachments
and repair parts therefor shall pass to the manufacturer, wholesaler or
distributor making such payment, and such manufacturer, wholesaler
or distributor shall be entitled to the possession of such farm implements,
machinery, attachments or repair parts. All payments or allowances of
credit due retailers shall be paid or credited within 60 days after the
return of implements, machinery, attachments or repair parts. After 60
days, all payments or allowances shall include interest at the rate
prescribed by K.S.A. 16-204, and amendments thereto.
(b) The provisions of this section relating to a retailer's right to cancel
or discontinue a contract and receive payment for implements, machines,
attachments and parts returned shall apply to all contracts now in effect
which have no expiration date and are a continuing contract, and all other
contracts entered into or renewed after July 1, 1976. The provisions for a
retailer to receive payment for implements, machines, attachments and parts
returned shall apply only to implements, machines, attachments and parts
purchased after the effective date of this act. Any contract in force and
effect on July 1, 1976, which by its own terms will terminate on a date
subsequent thereto shall be governed by the law as it existed prior to this
act.
(c) The provisions of this section shall not be construed to affect in
any way any security interest which the wholesaler, manufacturer or
distributor may have in the inventory of the retailer, except
that any repurchase hereunder shall not be subject to the provisions of
the bulk sales law or to the claims of any secured or unsecured creditors
of the wholesaler, manufacturer or distributor or any assignee of the
wholesaler, manufacturer or distributor until such time the retailer has
received payment in full subject to any offset the retailer may owe to the
wholesaler, 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.