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CHAPTER 51-07MISCELLANEOUS PROVISIONS51-07-01. Retail farm implement; lawn and garden equipment; or vehicle dealermay recover price of merchandise upon discontinuance of contract by wholesaler or retail<br>dealer.1.If a person engaged in the business of retailing farm implements, machinery, or<br>attachments, or parts for the same; lawn and garden equipment, or parts for the<br>same; or automobiles, trucks, or semitrailers, or parts for the same, enters a contract<br>under which the retailer agrees to maintain a stock of the merchandise covered<br>under this section with a wholesaler, manufacturer, or distributor of the covered<br>merchandise and tools and the wholesaler, manufacturer, or distributor or the retailer<br>desires to cancel or discontinue the contract, the wholesaler, manufacturer, or<br>distributor shall pay to the retailer, unless the retailer desires to keep the<br>merchandise, a sum equal to:a.One hundred percent of the net cost of all current unused complete farm<br>implements, machinery, and attachments; lawn and garden equipment; and<br>automobiles, trucks, and semitrailers.b.One hundred percent of the actual merchandise and tool transportation charges<br>that have been paid by the retailer.c.Ninety percent of the net prices on parts, including superseded parts, as shown<br>in the manufacturer's, wholesaler's, or distributor's current price lists or catalogs<br>in effect at the time the contract is canceled, discontinued, or not renewed.<br>These parts must have previously been purchased from the wholesaler,<br>manufacturer, or distributor, and must have been either held by the retailer on<br>the date of the cancellation of, discontinuance of, or failure to renew the<br>contract or received by the retailer from the wholesaler, manufacturer, or<br>distributor after the date of the cancellation, discontinuance, or failure to renew.d.Fifty percent of the net cost of all complete specialized tools for the covered<br>merchandise.e.Five percent of the current net price of all parts returned for the handling,<br>packing, and loading of the parts back to the wholesaler, manufacturer, or<br>distributor.2.Upon the payment of the amounts under subsection 1, the retailer shall pass the title<br>to the covered merchandise and tools to the manufacturer, wholesaler, or distributor<br>making the payment, and the manufacturer, wholesaler, or distributor is entitled to<br>the possession of the covered merchandise and tools. All payments required to be<br>made under this section must be made within thirty days after the final settlement<br>between the retailer and the wholesaler, manufacturer, or distributor.3.The provisions of this section are supplemental to any agreement between the<br>retailer and the manufacturer, wholesaler, or distributor covering the return of any<br>merchandise and tools covered under this section. The retailer can elect to pursue<br>either the retailer's contract remedy or the remedy provided in this section.Anelection by the retailer to pursue the retailer's contract remedy does not bar the<br>retailer's right to the remedy provided in this section as to any merchandise and<br>tools covered under this section which is not affected by the contract remedy.4.The obligations of any wholesaler, manufacturer, or distributor under this section and<br>sections 51-07-01.1 and 51-07-03 apply to any successor in interest or assignee of<br>that wholesaler, manufacturer, or distributor. A successor in interest includes anyPage No. 1purchaser of assets or stock, any surviving corporation or limited liability company<br>resulting from a merger or liquidation, any receiver, or any trustee of the original<br>wholesaler, manufacturer, or distributor.5.The provisions of this section apply to all contracts now in effect which have no<br>expiration date and are a continuing contract, and all other contracts entered or<br>renewed after July 31, 2003. Any contract in force and effect on August 1, 2003,<br>which by its own terms will terminate on a date subsequent thereto is governed by<br>the law as it existed before August 1, 2003.51-07-01.1. Termination of retail contract to be done in good faith - Definition ofgood cause.1.Any manufacturer, wholesaler, or distributor of merchandise and tools covered under<br>section 51-07-01, excluding automobile dealers, truck dealers, or parts dealers of<br>the automobiles or trucks, that enters a contract with any person engaged in the<br>business of retailing the covered merchandise by which the retailer agrees to<br>maintain a stock of the covered merchandise may not terminate, cancel, or fail to<br>renew the contract with the retailer without good cause.2.For the purpose of this section, good cause for terminating, canceling, or failing to<br>renew a contract is limited to failure by the retailer to substantially comply with those<br>essential and reasonable requirements imposed by the contract between the parties<br>if the requirements are not different from those requirements imposed on other<br>similarly situated retailers. The determination by the manufacturer, wholesaler, or<br>distributor of good cause for the termination, cancellation, or failure to renew must<br>be made in good faith.3.In any action against a manufacturer, wholesaler, or distributor for violation of this<br>section, the manufacturer, wholesaler, or distributor shall establish that the<br>termination, cancellation, or failure to renew was made in good faith for good cause.<br>If a notice of termination is issued and the dealer challenges the notice by filing an<br>action, there is an automatic stay during the pendency of the action.If themanufacturer, wholesaler, or distributor fails to establish good cause for its action,<br>the manufacturer, wholesaler, or distributor is liable for all special and general<br>damages sustained by the plaintiff, including the costs of the litigation and<br>reasonable attorney's fees for prosecuting the action and the plaintiff, if appropriate,<br>is entitled to injunctive relief. This section applies to all contracts now in effect which<br>have no expiration date and are continuing contracts and all other contracts entered,<br>amended, or renewed after July 31, 2003.Any contract in force and effect onAugust 1, 2003, which by its terms will terminate on a date subsequent thereto is<br>governed by the law as it existed before August 1, 2003.51-07-01.2.Prohibited practices under farm equipment dealership contracts. Amanufacturer, wholesaler, or distributor of farm implements, machinery, or repair parts who<br>enters into a contract with any person engaged in the business of selling and retailing farm<br>implements and repair parts for farm implements may not:1.Coerce or attempt to coerce the farm equipment dealer to accept delivery of farm<br>equipment, parts, or accessories that the farm equipment dealer has not voluntarily<br>ordered.2.Condition or attempt to condition the sale of farm equipment on a requirement that<br>the farm equipment dealer also purchase other goods or services, except that a farm<br>equipment manufacturer may require the dealer to purchase all parts reasonably<br>necessary to maintain the quality of operation in the field of any farm equipment<br>used in the trade area and telecommunication necessary to communicate with the<br>farm equipment manufacturer.Page No. 23.Coerce or attempt to coerce a farm equipment dealer into a refusal to purchase farm<br>equipment manufactured by another farm equipment manufacturer.4.Discriminate in the prices charged for farm equipment of like grade and quality sold<br>by the farm equipment manufacturer to similarly situated farm equipment dealers.<br>This subsection does not prevent the use of differentials that make only due<br>allowance for differences in the cost of manufacture, sale, or delivery or for the<br>differing methods or quantities in which the farm equipment is sold or delivered by<br>the farmequipment manufacturer.This section does notdiminishthemanufacturer's, wholesaler's, or distributor's ability to provide volume discounts,<br>bonuses, or special machine ordering programs commonly used in the industry.5.Attempt or threaten to terminate, cancel, fail to renew, or substantially change the<br>competitive circumstances of the dealership contract for any reason other than<br>failure of the farm equipment dealer to comply with the terms of the written contract<br>between the parties or if the attempt or threat is based on the results of a<br>circumstance beyond the farm equipment dealer's control, including a sustained<br>drought or other natural disaster in the dealership market area or a labor dispute.51-07-02.Prices of implements, machinery, automobiles, and parts - Howdetermined. Repealed by S.L. 2003, ch. 435, <meta property="og:url" content="https://statutes.laws.com/test/" /> <meta property="og:site_name" content="Statutes" /> <meta property="article:modified_time" content="2019-12-27T23:25:16+00:00" /> <meta name="twitter:card" content="summary_large_image" /> <h2>State Codes and Statutes</h2> <a href='https://statutes.laws.com/'>Statutes</a> > <a href='https://statutes.laws.com/north-dakota'>North-dakota</a> > <a href='https://statutes.laws.com/north-dakota/t51'>T51</a> > <a href='https://statutes.laws.com/north-dakota/t51/t51c07'>T51c07</a><br><br><a href="https://law.justia.com/codes/north-dakota/2009/t51/pdf/t51c07.pdf">Download pdf</a><br><div id="embed_document" style="width:625px; height:815px; text-align:center;">Loading PDF...</div><script type="text/javascript"> var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t51/pdf/t51c07.pdf'; $(document).ready(function() { var embedwindow = $("#embed_document"); if ($.browser.msie){ embedwindow.html('<embed src="'+pdf_url+'" width="100%" height="100%"></embed>'); } else { embedwindow.html('<iframe style="width:100%; height:100%;" src="https://docs.google.com/gview?url='+window.escape(pdf_url)+'&embedded=true" frameborder="0"></iframe>'); } });</script><br><br><noframes>CHAPTER 51-07MISCELLANEOUS PROVISIONS51-07-01. Retail farm implement; lawn and garden equipment; or vehicle dealermay recover price of merchandise upon discontinuance of contract by wholesaler or retail<br>dealer.1.If a person engaged in the business of retailing farm implements, machinery, or<br>attachments, or parts for the same; lawn and garden equipment, or parts for the<br>same; or automobiles, trucks, or semitrailers, or parts for the same, enters a contract<br>under which the retailer agrees to maintain a stock of the merchandise covered<br>under this section with a wholesaler, manufacturer, or distributor of the covered<br>merchandise and tools and the wholesaler, manufacturer, or distributor or the retailer<br>desires to cancel or discontinue the contract, the wholesaler, manufacturer, or<br>distributor shall pay to the retailer, unless the retailer desires to keep the<br>merchandise, a sum equal to:a.One hundred percent of the net cost of all current unused complete farm<br>implements, machinery, and attachments; lawn and garden equipment; and<br>automobiles, trucks, and semitrailers.b.One hundred percent of the actual merchandise and tool transportation charges<br>that have been paid by the retailer.c.Ninety percent of the net prices on parts, including superseded parts, as shown<br>in the manufacturer's, wholesaler's, or distributor's current price lists or catalogs<br>in effect at the time the contract is canceled, discontinued, or not renewed.<br>These parts must have previously been purchased from the wholesaler,<br>manufacturer, or distributor, and must have been either held by the retailer on<br>the date of the cancellation of, discontinuance of, or failure to renew the<br>contract or received by the retailer from the wholesaler, manufacturer, or<br>distributor after the date of the cancellation, discontinuance, or failure to renew.d.Fifty percent of the net cost of all complete specialized tools for the covered<br>merchandise.e.Five percent of the current net price of all parts returned for the handling,<br>packing, and loading of the parts back to the wholesaler, manufacturer, or<br>distributor.2.Upon the payment of the amounts under subsection 1, the retailer shall pass the title<br>to the covered merchandise and tools to the manufacturer, wholesaler, or distributor<br>making the payment, and the manufacturer, wholesaler, or distributor is entitled to<br>the possession of the covered merchandise and tools. All payments required to be<br>made under this section must be made within thirty days after the final settlement<br>between the retailer and the wholesaler, manufacturer, or distributor.3.The provisions of this section are supplemental to any agreement between the<br>retailer and the manufacturer, wholesaler, or distributor covering the return of any<br>merchandise and tools covered under this section. The retailer can elect to pursue<br>either the retailer's contract remedy or the remedy provided in this section.Anelection by the retailer to pursue the retailer's contract remedy does not bar the<br>retailer's right to the remedy provided in this section as to any merchandise and<br>tools covered under this section which is not affected by the contract remedy.4.The obligations of any wholesaler, manufacturer, or distributor under this section and<br>sections 51-07-01.1 and 51-07-03 apply to any successor in interest or assignee of<br>that wholesaler, manufacturer, or distributor. A successor in interest includes anyPage No. 1purchaser of assets or stock, any surviving corporation or limited liability company<br>resulting from a merger or liquidation, any receiver, or any trustee of the original<br>wholesaler, manufacturer, or distributor.5.The provisions of this section apply to all contracts now in effect which have no<br>expiration date and are a continuing contract, and all other contracts entered or<br>renewed after July 31, 2003. Any contract in force and effect on August 1, 2003,<br>which by its own terms will terminate on a date subsequent thereto is governed by<br>the law as it existed before August 1, 2003.51-07-01.1. Termination of retail contract to be done in good faith - Definition ofgood cause.1.Any manufacturer, wholesaler, or distributor of merchandise and tools covered under<br>section 51-07-01, excluding automobile dealers, truck dealers, or parts dealers of<br>the automobiles or trucks, that enters a contract with any person engaged in the<br>business of retailing the covered merchandise by which the retailer agrees to<br>maintain a stock of the covered merchandise may not terminate, cancel, or fail to<br>renew the contract with the retailer without good cause.2.For the purpose of this section, good cause for terminating, canceling, or failing to<br>renew a contract is limited to failure by the retailer to substantially comply with those<br>essential and reasonable requirements imposed by the contract between the parties<br>if the requirements are not different from those requirements imposed on other<br>similarly situated retailers. The determination by the manufacturer, wholesaler, or<br>distributor of good cause for the termination, cancellation, or failure to renew must<br>be made in good faith.3.In any action against a manufacturer, wholesaler, or distributor for violation of this<br>section, the manufacturer, wholesaler, or distributor shall establish that the<br>termination, cancellation, or failure to renew was made in good faith for good cause.<br>If a notice of termination is issued and the dealer challenges the notice by filing an<br>action, there is an automatic stay during the pendency of the action.If themanufacturer, wholesaler, or distributor fails to establish good cause for its action,<br>the manufacturer, wholesaler, or distributor is liable for all special and general<br>damages sustained by the plaintiff, including the costs of the litigation and<br>reasonable attorney's fees for prosecuting the action and the plaintiff, if appropriate,<br>is entitled to injunctive relief. This section applies to all contracts now in effect which<br>have no expiration date and are continuing contracts and all other contracts entered,<br>amended, or renewed after July 31, 2003.Any contract in force and effect onAugust 1, 2003, which by its terms will terminate on a date subsequent thereto is<br>governed by the law as it existed before August 1, 2003.51-07-01.2.Prohibited practices under farm equipment dealership contracts. Amanufacturer, wholesaler, or distributor of farm implements, machinery, or repair parts who<br>enters into a contract with any person engaged in the business of selling and retailing farm<br>implements and repair parts for farm implements may not:1.Coerce or attempt to coerce the farm equipment dealer to accept delivery of farm<br>equipment, parts, or accessories that the farm equipment dealer has not voluntarily<br>ordered.2.Condition or attempt to condition the sale of farm equipment on a requirement that<br>the farm equipment dealer also purchase other goods or services, except that a farm<br>equipment manufacturer may require the dealer to purchase all parts reasonably<br>necessary to maintain the quality of operation in the field of any farm equipment<br>used in the trade area and telecommunication necessary to communicate with the<br>farm equipment manufacturer.Page No. 23.Coerce or attempt to coerce a farm equipment dealer into a refusal to purchase farm<br>equipment manufactured by another farm equipment manufacturer.4.Discriminate in the prices charged for farm equipment of like grade and quality sold<br>by the farm equipment manufacturer to similarly situated farm equipment dealers.<br>This subsection does not prevent the use of differentials that make only due<br>allowance for differences in the cost of manufacture, sale, or delivery or for the<br>differing methods or quantities in which the farm equipment is sold or delivered by<br>the farmequipment manufacturer.This section does notdiminishthemanufacturer's, wholesaler's, or distributor's ability to provide volume discounts,<br>bonuses, or special machine ordering programs commonly used in the industry.5.Attempt or threaten to terminate, cancel, fail to renew, or substantially change the<br>competitive circumstances of the dealership contract for any reason other than<br>failure of the farm equipment dealer to comply with the terms of the written contract<br>between the parties or if the attempt or threat is based on the results of a<br>circumstance beyond the farm equipment dealer's control, including a sustained<br>drought or other natural disaster in the dealership market area or a labor dispute.51-07-02.Prices of implements, machinery, automobiles, and parts - Howdetermined. 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class="shortcode-content"> <h2>State Codes and Statutes</h2> <a href='https://statutes.laws.com/'>Statutes</a> > <a href='https://statutes.laws.com/north-dakota'>North-dakota</a> > <a href='https://statutes.laws.com/north-dakota/t51'>T51</a> > <a href='https://statutes.laws.com/north-dakota/t51/t51c07'>T51c07</a><br><br><a href="https://law.justia.com/codes/north-dakota/2009/t51/pdf/t51c07.pdf">Download pdf</a><br><div id="embed_document" style="width:625px; height:815px; text-align:center;">Loading PDF...</div><script type="text/javascript"> var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t51/pdf/t51c07.pdf'; $(document).ready(function() { var embedwindow = $("#embed_document"); if ($.browser.msie){ embedwindow.html('<embed src="'+pdf_url+'" width="100%" height="100%"></embed>'); } else { embedwindow.html('<iframe style="width:100%; height:100%;" src="https://docs.google.com/gview?url='+window.escape(pdf_url)+'&embedded=true" frameborder="0"></iframe>'); } });</script><br><br><noframes>CHAPTER 51-07MISCELLANEOUS PROVISIONS51-07-01. Retail farm implement; lawn and garden equipment; or vehicle dealermay recover price of merchandise upon discontinuance of contract by wholesaler or retail<br>dealer.1.If a person engaged in the business of retailing farm implements, machinery, or<br>attachments, or parts for the same; lawn and garden equipment, or parts for the<br>same; or automobiles, trucks, or semitrailers, or parts for the same, enters a contract<br>under which the retailer agrees to maintain a stock of the merchandise covered<br>under this section with a wholesaler, manufacturer, or distributor of the covered<br>merchandise and tools and the wholesaler, manufacturer, or distributor or the retailer<br>desires to cancel or discontinue the contract, the wholesaler, manufacturer, or<br>distributor shall pay to the retailer, unless the retailer desires to keep the<br>merchandise, a sum equal to:a.One hundred percent of the net cost of all current unused complete farm<br>implements, machinery, and attachments; lawn and garden equipment; and<br>automobiles, trucks, and semitrailers.b.One hundred percent of the actual merchandise and tool transportation charges<br>that have been paid by the retailer.c.Ninety percent of the net prices on parts, including superseded parts, as shown<br>in the manufacturer's, wholesaler's, or distributor's current price lists or catalogs<br>in effect at the time the contract is canceled, discontinued, or not renewed.<br>These parts must have previously been purchased from the wholesaler,<br>manufacturer, or distributor, and must have been either held by the retailer on<br>the date of the cancellation of, discontinuance of, or failure to renew the<br>contract or received by the retailer from the wholesaler, manufacturer, or<br>distributor after the date of the cancellation, discontinuance, or failure to renew.d.Fifty percent of the net cost of all complete specialized tools for the covered<br>merchandise.e.Five percent of the current net price of all parts returned for the handling,<br>packing, and loading of the parts back to the wholesaler, manufacturer, or<br>distributor.2.Upon the payment of the amounts under subsection 1, the retailer shall pass the title<br>to the covered merchandise and tools to the manufacturer, wholesaler, or distributor<br>making the payment, and the manufacturer, wholesaler, or distributor is entitled to<br>the possession of the covered merchandise and tools. All payments required to be<br>made under this section must be made within thirty days after the final settlement<br>between the retailer and the wholesaler, manufacturer, or distributor.3.The provisions of this section are supplemental to any agreement between the<br>retailer and the manufacturer, wholesaler, or distributor covering the return of any<br>merchandise and tools covered under this section. The retailer can elect to pursue<br>either the retailer's contract remedy or the remedy provided in this section.Anelection by the retailer to pursue the retailer's contract remedy does not bar the<br>retailer's right to the remedy provided in this section as to any merchandise and<br>tools covered under this section which is not affected by the contract remedy.4.The obligations of any wholesaler, manufacturer, or distributor under this section and<br>sections 51-07-01.1 and 51-07-03 apply to any successor in interest or assignee of<br>that wholesaler, manufacturer, or distributor. A successor in interest includes anyPage No. 1purchaser of assets or stock, any surviving corporation or limited liability company<br>resulting from a merger or liquidation, any receiver, or any trustee of the original<br>wholesaler, manufacturer, or distributor.5.The provisions of this section apply to all contracts now in effect which have no<br>expiration date and are a continuing contract, and all other contracts entered or<br>renewed after July 31, 2003. Any contract in force and effect on August 1, 2003,<br>which by its own terms will terminate on a date subsequent thereto is governed by<br>the law as it existed before August 1, 2003.51-07-01.1. Termination of retail contract to be done in good faith - Definition ofgood cause.1.Any manufacturer, wholesaler, or distributor of merchandise and tools covered under<br>section 51-07-01, excluding automobile dealers, truck dealers, or parts dealers of<br>the automobiles or trucks, that enters a contract with any person engaged in the<br>business of retailing the covered merchandise by which the retailer agrees to<br>maintain a stock of the covered merchandise may not terminate, cancel, or fail to<br>renew the contract with the retailer without good cause.2.For the purpose of this section, good cause for terminating, canceling, or failing to<br>renew a contract is limited to failure by the retailer to substantially comply with those<br>essential and reasonable requirements imposed by the contract between the parties<br>if the requirements are not different from those requirements imposed on other<br>similarly situated retailers. The determination by the manufacturer, wholesaler, or<br>distributor of good cause for the termination, cancellation, or failure to renew must<br>be made in good faith.3.In any action against a manufacturer, wholesaler, or distributor for violation of this<br>section, the manufacturer, wholesaler, or distributor shall establish that the<br>termination, cancellation, or failure to renew was made in good faith for good cause.<br>If a notice of termination is issued and the dealer challenges the notice by filing an<br>action, there is an automatic stay during the pendency of the action.If themanufacturer, wholesaler, or distributor fails to establish good cause for its action,<br>the manufacturer, wholesaler, or distributor is liable for all special and general<br>damages sustained by the plaintiff, including the costs of the litigation and<br>reasonable attorney's fees for prosecuting the action and the plaintiff, if appropriate,<br>is entitled to injunctive relief. This section applies to all contracts now in effect which<br>have no expiration date and are continuing contracts and all other contracts entered,<br>amended, or renewed after July 31, 2003.Any contract in force and effect onAugust 1, 2003, which by its terms will terminate on a date subsequent thereto is<br>governed by the law as it existed before August 1, 2003.51-07-01.2.Prohibited practices under farm equipment dealership contracts. Amanufacturer, wholesaler, or distributor of farm implements, machinery, or repair parts who<br>enters into a contract with any person engaged in the business of selling and retailing farm<br>implements and repair parts for farm implements may not:1.Coerce or attempt to coerce the farm equipment dealer to accept delivery of farm<br>equipment, parts, or accessories that the farm equipment dealer has not voluntarily<br>ordered.2.Condition or attempt to condition the sale of farm equipment on a requirement that<br>the farm equipment dealer also purchase other goods or services, except that a farm<br>equipment manufacturer may require the dealer to purchase all parts reasonably<br>necessary to maintain the quality of operation in the field of any farm equipment<br>used in the trade area and telecommunication necessary to communicate with the<br>farm equipment manufacturer.Page No. 23.Coerce or attempt to coerce a farm equipment dealer into a refusal to purchase farm<br>equipment manufactured by another farm equipment manufacturer.4.Discriminate in the prices charged for farm equipment of like grade and quality sold<br>by the farm equipment manufacturer to similarly situated farm equipment dealers.<br>This subsection does not prevent the use of differentials that make only due<br>allowance for differences in the cost of manufacture, sale, or delivery or for the<br>differing methods or quantities in which the farm equipment is sold or delivered by<br>the farmequipment manufacturer.This section does notdiminishthemanufacturer's, wholesaler's, or distributor's ability to provide volume discounts,<br>bonuses, or special machine ordering programs commonly used in the industry.5.Attempt or threaten to terminate, cancel, fail to renew, or substantially change the<br>competitive circumstances of the dealership contract for any reason other than<br>failure of the farm equipment dealer to comply with the terms of the written contract<br>between the parties or if the attempt or threat is based on the results of a<br>circumstance beyond the farm equipment dealer's control, including a sustained<br>drought or other natural disaster in the dealership market area or a labor dispute.51-07-02.Prices of implements, machinery, automobiles, and parts - Howdetermined. 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