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H0197aa.........................................................by BUSINESS
AGRICULTURE EQUIPMENT DEALERS/SUPPLIERS - Amends and adds to existing law
to revise certain contractual requirements between suppliers and dealers of
agricultural equipment; to provide certain prohibited practices; to provide
for arbitration in Idaho; to revise procedures regarding warranty claims;
and to provide application to certain data processing software.
02/14 House intro - 1st rdg - to printing
02/15 Rpt prt - to Bus
03/02 Rpt out - to Gen Ord
03/09 Rpt out amen - to engros
03/10 Rpt engros - 1st rdg - to 2nd rdg as amen
03/11 2nd rdg - to 3rd rdg as amen
03/14 3rd rdg as amen - PASSED - 68-0-2
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
Chadderdon, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Clark, Henderson
Floor Sponsor - Block
Title apvd - to Senate
03/15 Senate intro - 1st rdg - to Agric Aff
03/18 Rpt out - rec d/p - to 2nd rdg
03/21 2nd rdg - to 3rd rdg
03/22 3rd rdg - PASSED - 31-0-3, 1 vacancy
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Langhorst, Lodge,
Malepeai, McGee, McKenzie, Pearce, Richardson, Schroeder, Stegner,
Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Keough, Little, Marley, (District 21 seat
vacant)
Floor Sponsor - Davis
Title apvd - to House
03/23 To enrol
03/24 Rpt enrol - Sp signed
03/25 Pres signed
03/28 To Governor
04/01 Governor signed
Session Law Chapter 238
Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 197
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO AGRICULTURAL AND FARM EQUIPMENT AND CONTRACTS; AMENDING SECTION
3 28-23-101, IDAHO CODE, TO PROVIDE FOR THE PAYMENT OR CREDIT FOR DEMONSTRA-
4 TION OR RENTAL EQUIPMENT THAT HAS NOT BEEN RETAILED TO AN END USER, TO
5 PROVIDE FOR REPURCHASE OF DATA PROCESSING MATERIALS AND TO MAKE TECHNICAL
6 CORRECTIONS; AMENDING SECTION 28-23-102, IDAHO CODE, TO REVISE THE PROCE-
7 DURES AND CREDITS FOR REPURCHASE OF REPAIR PARTS, REPAIR MANUALS, SPECIAL-
8 IZED REPAIR TOOLS AND SIGNAGE AND TO MAKE TECHNICAL CORRECTIONS; AMENDING
9 SECTION 28-23-105, IDAHO CODE, TO PROVIDE FOR ONE HUNDRED PERCENT CURRENT
10 NET PRICE FOR MANUALS AND REPAIR MANUALS AND REASONABLE REIMBURSEMENT FOR
11 SERVICES PERFORMED IN CONNECTION WITH ASSEMBLY AND PREDELIVERY INSPECTIONS
12 OF THE EQUIPMENT, TO PROVIDE VENUE FOR CAUSES OF ACTION AND TO MAKE TECH-
13 NICAL CORRECTIONS; AMENDING SECTION 28-23-106, IDAHO CODE, TO PROVIDE
14 APPLICATION TO TRANSPORTATION CHARGES WHICH HAVE BEEN PAID BY THE RETAILER
15 OR INVOICED TO THE RETAILER'S ACCOUNT, TO PROVIDE APPLICATION TO MULTIPLE
16 PARTS AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 28-23-108,
17 IDAHO CODE, TO INCREASE NOTICE PROVISIONS TO NINETY DAYS, TO PROVIDE FOR
18 NOTICE REGARDING ACCESSORIES AND TO MAKE A TECHNICAL CORRECTION; AMENDING
19 SECTION 28-24-102, IDAHO CODE, TO FURTHER DEFINE TERMS; AMENDING SECTION
20 28-24-103, IDAHO CODE, TO REVISE UNLAWFUL ACTS AND PRACTICES REGARDING
21 EQUIPMENT DEALERS; AMENDING SECTION 28-24-104, IDAHO CODE, TO REVISE TIME
22 PERIODS FOR A DEALER TO CURE A DEFICIENCY, TO PROVIDE PROCEDURES PRIOR TO
23 THE TERMINATION OR NONRENEWAL OF A DEALER AGREEMENT AND TO MAKE A TECHNI-
24 CAL CORRECTION; AMENDING PART 1, CHAPTER 24, TITLE 28, IDAHO CODE, BY THE
25 ADDITION OF NEW SECTIONS 28-24-104A, 28-24-104B, 28-24-104C, 28-24-104D
26 AND 28-24-104E, IDAHO CODE, TO PROVIDE THE ESTABLISHMENT OF A NEW DEALER-
27 SHIP AND THE SUPPLIER'S DUTIES, TO PROVIDE FOR WARRANTY CLAIMS, TO PROVIDE
28 FOR AUDIT OF WARRANTY CLAIMS, TO PROVIDE FOR ARBITRATION AND TO PROVIDE
29 FOR SUCCESSORS IN INTEREST; AND AMENDING SECTION 28-24-105, IDAHO CODE, TO
30 INCLUDE DATA PROCESSING SOFTWARE IN REMEDIES AND ENFORCEMENT PROVISIONS,
31 TO PROVIDE VENUE FOR CAUSES OF ACTION AND TO MAKE A TECHNICAL CORRECTION.
32 Be It Enacted by the Legislature of the State of Idaho:
33 SECTION 1. That Section 28-23-101, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 28-23-101. REPURCHASE OF FARM MACHINERY, IMPLEMENTS, ATTACHMENTS, ACCES-
36 SORIES AND PARTS UPON TERMINATION OF CONTRACT AND OBLIGATION TO REPURCHASE.
37 Whenever any person, firm, or corporation engaged in the business of selling
38 and retailing farm implements and repair parts for farm implements enters into
39 a written or parol contract, sales agreement or security agreement whereby the
40 retailer agrees with any wholesaler, manufacturer, or distributor of farm
41 implements, machinery, attachments, accessories or repair parts to maintain a
42 stock of parts which may include, but is not limited to, complete or whole
43 machines, or attachments, or demonstration and rental equipment and thereafter
2
1 the written or parol contract, sales agreement or security agreement is termi-
2 nated, cancelled canceled or discontinued, then the wholesaler, manufacturer,
3 or distributor shall pay to the retailer or credit to the retailer's account,
4 if the retailer has outstanding any sums owing the wholesaler, manufacturer,
5 or distributor, unless the retailer should desire and has a contractual right
6 to keep such merchandise, a sum equal to one hundred per cent percent (100%)
7 of the net cost of all unused complete farm implements, machinery and repair
8 parts and stock of parts, attachments in new condition which have been pur-
9 chased by the retailer from the wholesaler, manufacturer or distributor within
10 the thirty-six (36) months immediately preceding notification by either party
11 of intent to cancel or discontinue the contract, including the transportation
12 charges to the retailer. and from the retailer to the destination designated
13 by the wholesaler, manufacturer, or distributor, which have been paid by the
14 retailer, or invoiced to retailer's account by the wholesaler, manufacturer or
15 distributor The payment or credit for demonstration or rental equipment that
16 has not been retailed to an end user is a sum equal to the depreciated value
17 of the equipment to which the supplier and the retailer have agreed. The
18 wholesaler, manufacturer, or distributor shall pay to the retailer a reason-
19 able reimbursement for services performed in connection with the assembly and
20 predelivery inspections of the farm equipment and attachments. The supplier
21 assumes ownership of farm implements, machinery and repair parts and stock FOB
22 the dealer location.
23 A supplier must repurchase any specific data processing hardware, soft-
24 ware, telecommunications equipment and computer communications hardware spe-
25 cifically required by the supplier to meet the supplier's minimum requirements
26 and purchased by the dealer in the prior five (5) years and held by the dealer
27 on the date of termination. The purchase price is the original net cost to the
28 dealer, less twenty percent (20%) per year.
29 SECTION 2. That Section 28-23-102, Idaho Code, be, and the same is hereby
30 amended to read as follows:
31 28-23-102. REPURCHASE OF REPAIR PARTS. Whenever any person, firm, or cor-
32 poration engaged in the business of selling and retailing farm implements and
33 repair parts for farm implements enters into a written or parol contract,
34 sales agreement or security agreement whereby the retailer agrees with any
35 wholesaler, manufacturer, or distributor of farm implements, machinery,
36 attachments, accessories or repair parts to maintain a stock of parts or com-
37 plete or whole machines, or attachments, manuals and repair manuals and there-
38 after the written or parol contract, sales agreement or security agreement is
39 terminated, cancelled canceled or discontinued, then the wholesaler, manufac-
40 turer, or distributor shall pay to the retailer or credit to the retailer's
41 account, if the retailer has outstanding any sums owing the wholesaler, manu-
42 facturer, or distributor, unless the retailer should desire and has a contrac-
43 tual right to keep such merchandise, a sum equal to one hundred per cent per-
44 cent (100%) of the current net prices, including the transportation charges
45 from the retailer to the destination, which shall include a mailing address,
46 designated by the wholesaler, manufacturer or distributor within fifteen (15)
47 days of said termination, cancellation or discontinuance, wholesaler, manufac-
48 turer or distributor which have been paid by the retailer, or invoiced to a
49 retailer's account by the wholesaler, manufacturer or distributor, on manuals
50 and repair manuals, repair parts, including superseded or previously included
51 parts listed in current price lists or catalogs or electronic catalogs in use,
52 or previously used within thirty-six (36) months prior to the latest parts
53 price list issue date by the wholesaler, manufacturer or distributor on the
3
1 date of cancellation or discontinuance of the contract, which parts had previ-
2 ously been purchased by the retailer from the wholesaler, manufacturer, or
3 distributor and are held by the retailer on the date of the cancellation or
4 discontinuance of the contract or thereafter received by the retailer from the
5 wholesaler, manufacturer or distributor.
6 The wholesaler, manufacturer, or distributor shall also pay the retailer
7 or credit to his account a sum equal to five per cent percent (5%) of the cur-
8 rent net price of all parts returned for the handling, packing, and loading of
9 the parts back to the wholesaler, manufacturer, or distributor unless the
10 wholesaler, manufacturer or distributor elects to perform inventorying, pack-
11 ing and loading of the parts itself themselves.
12 Upon the payment or allowance of credit to the retailer's account of the
13 sum required by this section and section 28-23-101, Idaho Code, the title to
14 the farm implements, farm machinery, attachments, accessories or repair parts
15 shall pass to the manufacturer, wholesaler or distributor making the payment
16 or allowing the credit and the manufacturer, wholesaler or distributor shall
17 be entitled to the possession of the farm implements, machinery, attachments,
18 accessories or repair parts. Title to farm implements, attachments, accesso-
19 ries and repair parts is transferred to the supplier FOB the dealer location.
20 The provisions of this section shall apply to any part return adjustment
21 agreement made between a dealer and a supplier. All payments or allowances of
22 credit due retailers under this section shall be paid or credited by the manu-
23 facturer, wholesaler, or distributor within ninety (90) days after the return
24 of the farm implements, farm machinery, attachments, accessories or repair
25 parts. After the ninety (90) days all sums of credits due shall include inter-
26 est at the rate specified in section 28-22-104(1), Idaho Code. However, this
27 section and section 28-23-101, Idaho Code, shall not in any way affect any
28 security interest which the wholesaler, manufacturer or distributor may have
29 in the inventory of the retailer.
30 A supplier shall repurchase at one hundred percent (100%) of net dealer
31 cost, manuals and repair manuals purchased in the previous six (6) years and
32 at fifty percent (50%) for manuals and repair manuals purchased in the previ-
33 ous seven (7) through twelve (12) years as required by the supplier and held
34 by the dealer on the date of termination. Manuals and repair manuals must be
35 unique to the supplier's product line and must be in complete and in readable
36 condition.
37 A supplier must repurchase, and the dealer must sell to the supplier, spe-
38 cialized repair tools. As applied in this section, "specialized repair tools"
39 is defined as those tools required by the supplier and unique to the diagnosis
40 or repair of the supplier's products. For specialized repair tools that are in
41 new, unused condition and are applicable to the supplier's current products,
42 the purchase price is one hundred percent (100%) of the original net cost to
43 the dealer. For all other specialized repair tools, in complete and resalable
44 condition, the purchase price is the original net cost to the dealer less
45 twenty percent (20%) per year depreciation, but not less than fifty percent
46 (50%) of the original purchase price.
47 A supplier must repurchase, and the dealer must sell to the supplier, cur-
48 rent signage. As used in this section, "current signage" means the principal
49 outdoor signage required by the supplier that displays the supplier's current
50 logo or similar exclusive identifier, and that identifies the dealer as repre-
51 senting either the supplier or the supplier's products, or both. The purchase
52 price shall be the original net cost to the dealer less twenty percent (20%)
53 per year, but may in no case be less than fifty percent (50%) of the original
54 cost to the dealer.
4
1 SECTION 3. That Section 28-23-105, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 28-23-105. FAILURE TO PAY SUMS SPECIFIED ON CANCELLATION OF CONTRACTS --
4 LIABILITY. In the event that any manufacturer, wholesaler, or distributor of
5 farm implements, machinery, attachments, accessories and repair parts, upon
6 the cancellation of a contract by either a retailer or such manufacturer,
7 wholesaler or distributor, fails or refuses to make payment to the dealer or
8 his heir or heirs as required by this section, the manufacturer, wholesaler or
9 distributor shall be liable in a civil action to be brought by the retailer or
10 his heir or heirs for (a) one hundred per cent percent (100%) of the net cost
11 of the farm implements, machinery, and attachments and accessories, (b) trans-
12 portation charges required in sections 28-23-101 and 28-23-102, Idaho Code,
13 which have been paid by the retailer, or invoiced to the retailer's account,
14 (c) one hundred per cent percent (100%) of the current net price of repair
15 parts, and (d) five per cent percent (5%) for handling, packing and loading,
16 if applicable, (e) one hundred percent (100%) of the current net price for
17 manuals and repair manuals, and (f) reasonable reimbursement for services per-
18 formed in connection with assembly and predelivery inspections of the equip-
19 ment. A person, firm or corporation which brings an action under this section
20 must commence the action in the county in which the principal place of busi-
21 ness of the retailer is located.
22 SECTION 4. That Section 28-23-106, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 28-23-106. EXCEPTIONS. This act shall not require the repurchase from a
25 retailer of a repair part where the retailer previously has failed to return
26 the repair part to the wholesaler, manufacturer or distributor after being
27 offered a reasonable opportunity to return the repair part at a price not less
28 than one hundred per cent percent (100%) of the net price of the repair part
29 as listed in the then current price list or catalog, and transportation
30 charges required in section 28-23-102, Idaho Code, which have been paid by the
31 retailer, or invoiced to the retailer's account. This act shall not require
32 the repurchase from a retailer of repair parts which have a limited storage
33 life or are otherwise subject to deterioration, such as rubber items, gaskets
34 and batteries; repair parts in broken or damaged packages; single repair parts
35 priced as a set of two (2) or more items; and repair the retailer purchased in
36 a set of multiple parts, unless the set is complete and in resalable condition
37 and parts which because of their condition are not resalable as new parts
38 without new packaging or reconditioning.
39 SECTION 5. That Section 28-23-108, Idaho Code, be, and the same is hereby
40 amended to read as follows:
41 28-23-108. GUARANTY AND SECURITY AGREEMENT NOTICE REQUIREMENTS. All
42 wholesalers, manufacturers, or distributors of farm implements, machinery,
43 attachments, accessories or repair parts shall give the retailer a minimum of
44 sixty ninety (690) days' notice in writing and obtain consent from the dealer
45 before changing the time and manner of payment of any indebtedness owed by
46 retailer to manufacturer, distributor or wholesaler, and before taking and
47 making any changes in notes or security for any indebtedness, and before
48 releasing or adding additional guarantors, and before granting renewals or
49 extensions of such indebtedness.
5
1 SECTION 6. That Section 28-24-102, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 28-24-102. DEFINITIONS. As used in this chapter:
4 (1) "Assigned area of responsibility" means the geographic region for
5 which a particular dealer is responsible for the marketing, selling, leasing
6 or servicing of equipment pursuant to a dealer agreement as assigned by the
7 supplier.
8 (2) "Continuing commercial relationship" means any relationship in which
9 the equipment dealer has been granted the right to sell or service equipment
10 manufactured by supplier.
11 (23) "Dealer agreement" means a contract or agreement, either expressed
12 or implied, whether oral or written, between a supplier and an equipment
13 dealer, by which the equipment dealer is granted the right to sell, distribute
14 or service the supplier's equipment, where there is a continuing commercial
15 relationship between the supplier and the equipment dealer.
16 (4) "Demonstration and/or rental equipment" is equipment that has been
17 used but has not been sold to an end user.
18 (35) "Equipment" means machines designed for or adapted and used for
19 agriculture, horticulture, livestock and grazing and related industries but
20 not exclusive to agricultural use. Equipment also includes:
21 (a) "All-terrain vehicles" or "ATVs," including three-wheeled and four-
22 wheeled motorized vehicles, generally characterized by large, low-pressure
23 tires, a seat designed to be straddled by the operator, and handlebars for
24 steering. All-terrain vehicles are intended for off-road use.
25 (b) "Outdoor power equipment" including equipment powered by a two-cycle
26 or four-cycle gas or diesel engine, or electric motor, which is used to
27 maintain commercial, public or residential lawns and gardens or used in
28 landscape, turf, golf course or plant nursery maintenance.
29 (46) "Equipment dealer" or "equipment dealership" means any person, part-
30 nership, corporation, association or other form of business enterprise, pri-
31 marily engaged in the retail sale and/or service of equipment in this state,
32 pursuant to any oral or written agreement for a definite or indefinite period
33 of time in which there is a continuing commercial relationship in the market-
34 ing of the equipment or related services.
35 (57) "Good cause" means failure by an equipment dealer to substantially
36 comply with essential and reasonable requirements imposed upon the equipment
37 dealer by the dealer agreement, provided, such requirements are not different
38 from those requirements imposed on other similarly situated equipment dealers
39 in the state either by their terms or in the manner of their enforcement.
40 (68) "Supplier" means the manufacturer, wholesaler or distributor of the
41 equipment to be sold by the equipment dealer, or any successor in interest to
42 or assignee of the supplier. A successor in interest includes any purchaser of
43 assets or stock, any surviving corporation resulting from merger or liquida-
44 tion, any receiver or any trustee of the original supplier.
45 (9) "Warranty claim" means a claim for payment submitted by an equipment
46 dealer to a supplier for service or parts, or both, provided to a customer
47 under a:
48 (a) Warranty issued by the supplier; or
49 (b) Recall or modification order issued by the supplier.
50 SECTION 7. That Section 28-24-103, Idaho Code, be, and the same is hereby
51 amended to read as follows:
52 28-24-103. DEALER AGREEMENTS -- UNLAWFUL ACTS AND PRACTICES. It shall be
6
1 a violation of the provisions of this chapter for a supplier to:
2 (1) Require or attempt to require any equipment dealer to order or accept
3 delivery of any equipment or parts or any equipment with special features or
4 accessories not included in the base list price of such equipment as publicly
5 advertised by the supplier which the equipment dealer has not voluntarily
6 ordered;
7 (2) Require or attempt to require any equipment dealer to enter into any
8 agreement, whether written or oral, supplementing or amending an existing
9 dealer agreement with such supplier unless such amendment or supplementary
10 agreement is imposed on other similarly situated dealers in the state;
11 (3) Refuse to deliver in reasonable quantities and within a reasonable
12 time after receipt of the equipment dealer's order, to any equipment dealer
13 having a dealer agreement for the retail sale of new equipment sold or dis-
14 tributed by such supplier, equipment covered by such dealer agreement specifi-
15 cally advertised or represented by such supplier to be available for immediate
16 delivery. The failure to deliver any such equipment shall not be considered a
17 violation of the provisions of this chapter when deliveries are based on prior
18 retail sales ordering histories, the priority given to the sequence in which
19 the orders are received or manufacturing schedules or if such failure is due
20 to prudent and reasonable restriction on extension of credit by the supplier
21 to the equipment dealer, an act of God, work stoppage or delay due to a strike
22 or labor difficulty, a bona fide shortage of materials, freight embargo or
23 other cause over which the supplier has no control;
24 (4) Terminate, cancel or fail to renew the dealer agreement of any equip-
25 ment dealer or substantially change the competitive circumstances of the
26 dealer agreement, attempt to terminate or cancel, or threaten not to renew the
27 dealer agreement or attempt or threaten to substantially change the competi-
28 tive circumstances of the dealer agreement without good cause. Nothing in this
29 paragraph shall be interpreted to apply to a discontinuation of or change in
30 the product line of an equipment dealer;
31 (5) Condition the renewal, continuation or extension of a dealer agree-
32 ment on the equipment dealer's substantial renovation of the equipment
33 dealer's place of business or on the construction, purchase, acquisition or
34 rental of a new place of business by the equipment dealer, unless:
35 (a) The supplier has advised the equipment dealer in writing of its
36 demand for such renovation, construction, purchase, acquisition or rental
37 within a reasonable time prior to the effective date of the proposed date
38 of renewal or extension, but in no case less than one (1) year; and
39 (b) The supplier demonstrates the need for such change in the place of
40 business and the reasonableness of the demand with respect to marketing
41 and servicing the supplier's products and any significant economic condi-
42 tions existing at the time in the equipment dealer's trade area, and the
43 equipment dealer does not make a good faith effort to complete such con-
44 struction or renovation plans within one (1) year.
45 (6) Discriminate in the prices charged for equipment of like grade and
46 quality sold by the supplier to similarly situated dealers in this state where
47 the effect of such discrimination may be to substantially lessen competition
48 or tend to create a monopoly in a line of commerce. The provisions of this
49 subsection do not prevent the use of differentials which make only due allow-
50 ance for differences in the cost of manufacture, sale or delivery of equipment
51 resulting from the differing methods or quantities in which such equipment is
52 sold or delivered; provided that nothing shall prevent a supplier from offer-
53 ing a lower price in order to meet an equally low price of a competitor, or
54 the services or facilities furnished by a competitor;
55 (7) Unreasonably withhold consent for an equipment dealer to change the
7
1 capital structure of the equipment dealership or the means by which it is
2 financed, provided that the equipment dealer meets the reasonable capital
3 requirements of the supplier;
4 (8) Prevent, by contract or otherwise, any equipment dealer or any offi-
5 cer, member, partner or stockholder of an equipment dealership from selling,
6 assigning, or transferring any interest or portion thereof held by any of them
7 in the equipment dealership to any other person or party; provided, however,
8 that no equipment dealer, officer, partner, member or stockholder shall have
9 the right to sell, transfer, or assign the equipment dealership or the power
10 of management or control thereof without the written consent of the supplier,
11 except that such consent shall not be unreasonably withheld if the buyer,
12 transferee, or assignee meets the reasonable financial, business experience
13 and character standards of the supplier. Should a supplier determine that the
14 designated transferee is not acceptable, the supplier shall provide the equip-
15 ment dealer with written notice of the supplier's objections and specific rea-
16 sons for withholding its consent within thirty (30) calendar days of receipt
17 of notice from the equipment dealer;
18 (9) Require an equipment dealer to assent to a release, assignment, nova-
19 tion, waiver or estoppel which would relieve any person from liability imposed
20 by this chapter;
21 (10) (a) Unreasonably withhold consent, in the event of the death of the
22 equipment dealer or the principal owner of the equipment dealership, to
23 the transfer of the equipment dealer's or the principal owner's interest
24 in the equipment dealership to a member or members of the family of the
25 equipment dealer or of the principal owner or to another qualified indi-
26 vidual, if the family member or other qualified individual meets the rea-
27 sonable financial, business experience and character standards of the sup-
28 plier. A supplier shall have sixty (60) days to consider a request to make
29 a transfer to a family member or other qualified an individual. If, within
30 that period, the supplier determines that the designated family member or
31 other qualified individual does not meet the reasonable financial, busi-
32 ness experience and character standards of the supplier, it shall provide
33 the designated family member or other qualified individual dealership,
34 heirs to the dealership, or the estate of the dealer with written notice
35 of its objection and the specific reasons for withholding its consent. If
36 the family member or other qualified individual reasonably satisfies the
37 supplier's objections within sixty (60) days after notice thereof, the
38 supplier shall approve the transfer. As used in this paragraph, "family"
39 means and includes a spouse, parents, siblings, children, step-children,
40 sons-in-law, daughters-in-law, and lineal descendants, including those by
41 adoption of the equipment dealer or principal owner of the equipment deal-
42 ership. Nothing in this paragraph shall entitle a family member or other
43 qualified individual to continue to operate the dealership without the
44 consent of the supplier.
45 (b) Notwithstanding the provisions of paragraph (a) of this subsection,
46 in the event that a supplier and equipment dealer have duly executed an
47 agreement concerning succession rights prior to the equipment dealer's
48 death, and if such agreement has not been revoked, such agreement shall be
49 observed.
50 (11) Cause the equipment dealer to refrain from participation in the man-
51 agement, investment, acquisition or sale of any other related product or prod-
52 uct line of equipment, parts or accessories, from the same or separate loca-
53 tions;
54 (12) Fail to compensate a dealer for preparation and delivery of equipment
55 that the supplier sells or leases for use within this state and that the
8
1 dealer prepares for delivery and delivers.
2 SECTION 8. That Section 28-24-104, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 28-24-104. TERMINATION OF DEALER AGREEMENT OR CHANGE OF EQUIPMENT
5 DEALER'S COMPETITIVE CIRCUMSTANCES -- NOTICE -- GOOD CAUSE. (1) A supplier
6 shall provide written notice to the equipment dealer of any proposed termina-
7 tion or nonrenewal of a dealer agreement or substantial change in the competi-
8 tive circumstances of a dealer agreement. The notice shall state the reason(s)
9 constituting good cause for the action proposed to be taken. Except where good
10 cause is alleged under the provisions of paragraphs (a) through (e) of subsec-
11 tion (2) of this section, such notice shall be provided to the equipment
12 dealer not less than ninety (90) days before the proposed action is to become
13 effective. Except where good cause is alleged under paragraphs (a) through (d)
14 of subsection (2) of this section, the equipment dealer shall be given sixty
15 ninety (690) days within which to cure any claimed deficiency, and the notice
16 shall advise the dealer of his right to cure. If the claimed deficiency is
17 rectified within sixty ninety (690) days, the notice shall be void and the
18 proposed action shall not become effective. Notwithstanding the equipment
19 dealer's failure to cure the deficiency or deficiencies claimed, where a
20 ninety (90) day notice is required to be given by the supplier, the contrac-
21 tual term of the dealer agreement shall not expire, nor shall the dealer
22 agreement be otherwise terminated or cancelled canceled, nor shall the equip-
23 ment dealer's competitive circumstances be substantially changed prior to the
24 expiration of at least ninety (90) days following such notice without the
25 written consent of the equipment dealer.
26 (2) As used in this chapter, "good cause" shall exist, but not be limited
27 to the following circumstances when the equipment dealer has:
28 (a) Transferred a controlling ownership interest in the equipment dealer-
29 ship without the supplier's consent;
30 (b) Made a material misrepresentation to the supplier;
31 (c) Filed a voluntary petition in bankruptcy or has had an involuntary
32 petition in bankruptcy filed against the equipment dealer which has not
33 been discharged within sixty ninety (690) days after the filing; is in
34 default under the provisions of a security agreement in effect with the
35 supplier; or is insolvent or in receivership;
36 (d) Been convicted of a crime, punishable for a term of imprisonment for
37 one (1) year or more;
38 (e) Failed to operate in the normal course of business for ten (10) con-
39 secutive business days or has terminated said business;
40 (f) Relocated the equipment dealer's place of business without the
41 supplier's consent;
42 (g) Consistently engaged in business practices which are detrimental to
43 the consumer or supplier by way of excessive pricing, misleading advertis-
44 ing, failure to provide service and replacement parts or perform warranty
45 obligations;
46 (h) Inadequately represented the supplier over a one (1) year of such
47 period of time or length of time period specified in the dealer agreement
48 causing lack of performance in sales, service or warranty areas and failed
49 to achieve market penetration at levels consistent with similarly situated
50 equipment dealerships in the state based on available record information
51 or a time mutually agreed upon between the supplier and dealer to reflect
52 the ongoing market conditions;
53 (ih) Consistently failed to meet building and housekeeping requirements,
9
1 or has failed to provide adequate sales, service or parts personnel com-
2 mensurate with the the dealer agreement;
3 (ji) Failed to comply with the applicable licensing laws pertaining to
4 the products and services being represented for and on supplier's behalf;
5 (kj) Materially failed to comply with the terms of the dealer agreement.
6 (3) Notwithstanding the provisions of subsection (2) of this section,
7 before the termination or nonrenewal of a dealer agreement based upon a
8 supplier's claim that the dealer has failed to achieve market penetration at
9 levels consistent with similarly situated dealerships in the state, the sup-
10 plier shall provide written notice of its intention at least one (1) year in
11 advance.
12 (a) After issuance of such a notice, the supplier shall provide fair and
13 reasonable efforts to work with the dealer to assist the dealer in gaining
14 the required market penetration including, but not limited to, making
15 available to the dealer an adequate inventory of new equipment and parts,
16 and not withhold programs available to all dealers.
17 (b) Upon the end of the one (1) year period established in this subsec-
18 tion (3), the supplier may terminate or elect not to renew the dealer
19 agreement only upon written notice specifying the reasons for determining
20 that the dealer failed to meet reasonable market penetration. The notice
21 must specify that termination or nonrenewal is effective one hundred
22 eighty (180) days from the date of the notice and that either party may
23 petition the court.
24 (c) A supplier bears the burden of proving that a retailer's area of
25 responsibility or trade area does not afford sufficient sales potential to
26 reasonably support the retailer. The supplier's proof must be in writing.
27 SECTION 9. That Part 1, Chapter 24, Title 28, Idaho Code, be, and the
28 same is hereby amended by the addition thereto of NEW SECTIONS, to be known
29 and designated as Sections 28-24-104A, 28-24-104B, 28-24-104C, 28-24-104D and
30 28-24-104E, Idaho Code, and to read as follows:
31 28-24-104A. ESTABLISHMENT OF NEW DEALERSHIP -- SUPPLIER'S DUTIES. When a
32 supplier enters into an agreement to establish a new dealer or dealership or
33 to relocate a current dealer or dealership for a particular product line or
34 make of equipment, the supplier must give written notice of such an agreement
35 by certified mail to all existing dealers or dealerships whose assigned area
36 of responsibility is contiguous to the new dealer or dealership location. If
37 no area of responsibility has been assigned then the supplier must give writ-
38 ten notice of such an agreement by certified mail to the dealers or dealer-
39 ships within a seventy-five (75) mile radius of the new dealer location. The
40 supplier must provide in its written notice the following information about
41 the proposed new or relocated dealer or dealership:
42 (1) The proposed location;
43 (2) The proposed date for commencement of operation at the new location;
44 and
45 (3) The identities of all existing dealers or dealerships whose assigned
46 area of responsibility is contiguous to the new dealer or dealership location.
47 If no area of responsibility has been assigned then the supplier must give
48 written notice of such an agreement by certified mail to the dealers or deal-
49 erships located within a seventy-five (75) mile radius of the new dealer loca-
50 tion.
51 28-24-104B. WARRANTY CLAIMS. (1) An equipment dealer may submit a war-
52 ranty claim to a supplier if a warranty defect is identified and documented
10
1 prior to the expiration of a supplier's warranty:
2 (a) While a dealer agreement is in effect; or
3 (b) After the termination of a dealer agreement if the claim is for work
4 performed while the dealer agreement was in effect.
5 (2) A supplier shall accept or reject a warranty claim submitted under
6 subsection (1) of this section, within thirty (30) days of the date the sup-
7 plier received the claim. A warranty claim not rejected within thirty (30)
8 days of the date the supplier received the claim is considered to be accepted
9 by the supplier.
10 (3) No later than thirty (30) days after the date a warranty claim is
11 accepted or rejected under subsection (2) of this section, the supplier shall:
12 (a) Pay an accepted warranty claim; or
13 (b) Send the dealer written notice of the reason the warranty claim was
14 rejected.
15 (4) A supplier shall compensate the dealer for the warranty claim as fol-
16 lows:
17 (a) The dealer's established customer hourly retail labor rate multiplied
18 by the reasonable and customary amount of time required to complete such
19 work by similarly situated dealers, including diagnostic time, and cleanup
20 time, expressed in hours and fractions of an hour;
21 (b) The dealer's current net price on repair parts reimbursed at not less
22 than net plus twenty percent (20%) of the cost for warranty service per-
23 formed on behalf of the supplier to compensate for reasonable costs of
24 doing business; and
25 (c) Extraordinary freight and handling costs. For purposes of this sub-
26 section (4)(c), "extraordinary freight and handling costs" means costs
27 that are above and beyond the normal reimbursement policy of the supplier
28 for warranty repair work;
29 (d) When the repair work is for safety or mandatory modifications ordered
30 by the supplier, the supplier shall reimburse the dealer for transporta-
31 tion costs incurred by the dealer.
32 (5) After payment of a warranty claim, a supplier may not charge back,
33 off-set or otherwise attempt to recover from the dealer all or part of the
34 amount of the claim unless:
35 (a) The warranty claim was submitted in error;
36 (b) The services for which the warranty claim was made were not properly
37 performed or were unnecessary to comply with the warranty; or
38 (c) The dealer did not substantiate the warranty claim according to the
39 written requirements of the supplier that were in effect when the equip-
40 ment was delivered to the dealer by the customer for warranty repairs.
41 (6) If a supplier denies a warranty claim due to a particular item or
42 part of the claim, the denial shall only affect the items or parts in question
43 and not the complete warranty claim.
44 (7) A supplier may not pass the cost of covering warranty claims under
45 this chapter on to a dealer through any means including:
46 (a) Surcharges;
47 (b) Reduction of discounts; or
48 (c) Certification standards.
49 (8) Notwithstanding the provisions of subsection (4) of this section, a
50 dealer may accept the supplier's reimbursement terms and conditions in lieu of
51 the terms and conditions set forth in subsection (4) of this section.
52 28-24-104C. AUDIT OF WARRANTY CLAIMS. A supplier may not audit a dealer's
53 records with respect to any warranty claim submitted more than two (2) years
54 before the date of the audit.
11
1 28-24-104D. ARBITRATION. Any party to a retailer agreement aggrieved by
2 the conduct of the other party to the agreement under sections 28-23-101
3 through 28-23-111, Idaho Code, or under part 1, chapter 24, title 28, Idaho
4 Code, may seek arbitration of the issues under sections 7-901 through 7-922,
5 Idaho Code. Unless the parties agree to different arbitration rules, the arbi-
6 tration shall be conducted in Idaho pursuant to the commercial arbitration
7 rules of the American arbitration association. When the parties agree, the
8 arbitration shall be the parties' only remedy and the findings and conclusions
9 of the arbitrator or panel of arbitrators shall be binding upon both parties.
10 (1) The arbitrator or arbitrators may award the prevailing party:
11 (a) The costs of witness fees and other fees in the case;
12 (b) Reasonable attorney's fees; and
13 (c) Injunctive relief against unlawful termination, cancellation, non-
14 renewal or change in competitive circumstances.
15 (2) Any retailer has a civil cause of action in district court in this
16 state against a supplier for damages sustained by the retailer as a conse-
17 quence of the supplier's violation of part 1, chapter 24, title 28, Idaho
18 Code, or sections 28-23-101 through 28-23-111, Idaho Code, together with:
19 (a) The actual costs of the action;
20 (b) Reasonable attorney's fees; and
21 (c) Injunctive relief against unlawful termination, cancellation, non-
22 renewal or change in competitive circumstances.
23 (3) No dealer shall be required to waive his rights to judicial recourse
24 by contractual agreements through penalty of loss of trade discounts or
25 changes in the competitive circumstances of the dealer by the supplier deemed
26 to be punitive in nature or effect. The remedies set forth in this section are
27 not exclusive and are in addition to any other remedies permitted by law,
28 unless the parties have mutually agreed to binding arbitration under this sec-
29 tion.
30 28-24-104E. SUCCESSORS IN INTEREST. The obligations of any supplier under
31 this chapter are applied to any successor in interest or assignee of the sup-
32 plier. A successor in interest includes any purchaser of assets or stock, any
33 surviving corporation resulting from merger or liquidation, and any receiver
34 or any trustee of the original supplier.
35 SECTION 10. That Section 28-24-105, Idaho Code, be, and the same is
36 hereby amended to read as follows:
37 28-24-105. REMEDIES AND ENFORCEMENT. Monetary damages may be recovered
38 for losses sustained as a consequence of any violation of the provisions of
39 this chapter. Such recovery may also include a requirement that the supplier
40 repurchase at fair market value any data processing hardware, software and
41 specialized repair tools and equipment previously purchased from the supplier
42 or approved vendor of the supplier pursuant to requirements of the supplier.
43 Injunctive relief may also be granted against any actual or threatened viola-
44 tion of the provisions of this chapter. In any action brought under this
45 chapter the prevailing party shall be entitled to recover reasonable
46 attorney's fees and costs. The remedies set forth in this section shall not be
47 deemed exclusive and shall be in addition to any other remedies permitted by
48 law. A person, firm or corporation which brings an action under this section
49 must commence the action in the county in which the principal place of busi-
50 ness of the retailer is located.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
Moved by Miller
Seconded by Rydalch
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 197
1 AMENDMENT TO SECTION 6
2 On page 5 of the printed bill, in line 25, delete "including" and insert:
3 "means".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 197, As Amended
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO AGRICULTURAL AND FARM EQUIPMENT AND CONTRACTS; AMENDING SECTION
3 28-23-101, IDAHO CODE, TO PROVIDE FOR THE PAYMENT OR CREDIT FOR DEMONSTRA-
4 TION OR RENTAL EQUIPMENT THAT HAS NOT BEEN RETAILED TO AN END USER, TO
5 PROVIDE FOR REPURCHASE OF DATA PROCESSING MATERIALS AND TO MAKE TECHNICAL
6 CORRECTIONS; AMENDING SECTION 28-23-102, IDAHO CODE, TO REVISE THE PROCE-
7 DURES AND CREDITS FOR REPURCHASE OF REPAIR PARTS, REPAIR MANUALS, SPECIAL-
8 IZED REPAIR TOOLS AND SIGNAGE AND TO MAKE TECHNICAL CORRECTIONS; AMENDING
9 SECTION 28-23-105, IDAHO CODE, TO PROVIDE FOR ONE HUNDRED PERCENT CURRENT
10 NET PRICE FOR MANUALS AND REPAIR MANUALS AND REASONABLE REIMBURSEMENT FOR
11 SERVICES PERFORMED IN CONNECTION WITH ASSEMBLY AND PREDELIVERY INSPECTIONS
12 OF THE EQUIPMENT, TO PROVIDE VENUE FOR CAUSES OF ACTION AND TO MAKE TECH-
13 NICAL CORRECTIONS; AMENDING SECTION 28-23-106, IDAHO CODE, TO PROVIDE
14 APPLICATION TO TRANSPORTATION CHARGES WHICH HAVE BEEN PAID BY THE RETAILER
15 OR INVOICED TO THE RETAILER'S ACCOUNT, TO PROVIDE APPLICATION TO MULTIPLE
16 PARTS AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 28-23-108,
17 IDAHO CODE, TO INCREASE NOTICE PROVISIONS TO NINETY DAYS, TO PROVIDE FOR
18 NOTICE REGARDING ACCESSORIES AND TO MAKE A TECHNICAL CORRECTION; AMENDING
19 SECTION 28-24-102, IDAHO CODE, TO FURTHER DEFINE TERMS; AMENDING SECTION
20 28-24-103, IDAHO CODE, TO REVISE UNLAWFUL ACTS AND PRACTICES REGARDING
21 EQUIPMENT DEALERS; AMENDING SECTION 28-24-104, IDAHO CODE, TO REVISE TIME
22 PERIODS FOR A DEALER TO CURE A DEFICIENCY, TO PROVIDE PROCEDURES PRIOR TO
23 THE TERMINATION OR NONRENEWAL OF A DEALER AGREEMENT AND TO MAKE A TECHNI-
24 CAL CORRECTION; AMENDING PART 1, CHAPTER 24, TITLE 28, IDAHO CODE, BY THE
25 ADDITION OF NEW SECTIONS 28-24-104A, 28-24-104B, 28-24-104C, 28-24-104D
26 AND 28-24-104E, IDAHO CODE, TO PROVIDE THE ESTABLISHMENT OF A NEW DEALER-
27 SHIP AND THE SUPPLIER'S DUTIES, TO PROVIDE FOR WARRANTY CLAIMS, TO PROVIDE
28 FOR AUDIT OF WARRANTY CLAIMS, TO PROVIDE FOR ARBITRATION AND TO PROVIDE
29 FOR SUCCESSORS IN INTEREST; AND AMENDING SECTION 28-24-105, IDAHO CODE, TO
30 INCLUDE DATA PROCESSING SOFTWARE IN REMEDIES AND ENFORCEMENT PROVISIONS,
31 TO PROVIDE VENUE FOR CAUSES OF ACTION AND TO MAKE A TECHNICAL CORRECTION.
32 Be It Enacted by the Legislature of the State of Idaho:
33 SECTION 1. That Section 28-23-101, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 28-23-101. REPURCHASE OF FARM MACHINERY, IMPLEMENTS, ATTACHMENTS, ACCES-
36 SORIES AND PARTS UPON TERMINATION OF CONTRACT AND OBLIGATION TO REPURCHASE.
37 Whenever any person, firm, or corporation engaged in the business of selling
38 and retailing farm implements and repair parts for farm implements enters into
39 a written or parol contract, sales agreement or security agreement whereby the
40 retailer agrees with any wholesaler, manufacturer, or distributor of farm
41 implements, machinery, attachments, accessories or repair parts to maintain a
42 stock of parts which may include, but is not limited to, complete or whole
43 machines, or attachments, or demonstration and rental equipment and thereafter
2
1 the written or parol contract, sales agreement or security agreement is termi-
2 nated, cancelled canceled or discontinued, then the wholesaler, manufacturer,
3 or distributor shall pay to the retailer or credit to the retailer's account,
4 if the retailer has outstanding any sums owing the wholesaler, manufacturer,
5 or distributor, unless the retailer should desire and has a contractual right
6 to keep such merchandise, a sum equal to one hundred per cent percent (100%)
7 of the net cost of all unused complete farm implements, machinery and repair
8 parts and stock of parts, attachments in new condition which have been pur-
9 chased by the retailer from the wholesaler, manufacturer or distributor within
10 the thirty-six (36) months immediately preceding notification by either party
11 of intent to cancel or discontinue the contract, including the transportation
12 charges to the retailer. and from the retailer to the destination designated
13 by the wholesaler, manufacturer, or distributor, which have been paid by the
14 retailer, or invoiced to retailer's account by the wholesaler, manufacturer or
15 distributor The payment or credit for demonstration or rental equipment that
16 has not been retailed to an end user is a sum equal to the depreciated value
17 of the equipment to which the supplier and the retailer have agreed. The
18 wholesaler, manufacturer, or distributor shall pay to the retailer a reason-
19 able reimbursement for services performed in connection with the assembly and
20 predelivery inspections of the farm equipment and attachments. The supplier
21 assumes ownership of farm implements, machinery and repair parts and stock FOB
22 the dealer location.
23 A supplier must repurchase any specific data processing hardware, soft-
24 ware, telecommunications equipment and computer communications hardware spe-
25 cifically required by the supplier to meet the supplier's minimum requirements
26 and purchased by the dealer in the prior five (5) years and held by the dealer
27 on the date of termination. The purchase price is the original net cost to the
28 dealer, less twenty percent (20%) per year.
29 SECTION 2. That Section 28-23-102, Idaho Code, be, and the same is hereby
30 amended to read as follows:
31 28-23-102. REPURCHASE OF REPAIR PARTS. Whenever any person, firm, or cor-
32 poration engaged in the business of selling and retailing farm implements and
33 repair parts for farm implements enters into a written or parol contract,
34 sales agreement or security agreement whereby the retailer agrees with any
35 wholesaler, manufacturer, or distributor of farm implements, machinery,
36 attachments, accessories or repair parts to maintain a stock of parts or com-
37 plete or whole machines, or attachments, manuals and repair manuals and there-
38 after the written or parol contract, sales agreement or security agreement is
39 terminated, cancelled canceled or discontinued, then the wholesaler, manufac-
40 turer, or distributor shall pay to the retailer or credit to the retailer's
41 account, if the retailer has outstanding any sums owing the wholesaler, manu-
42 facturer, or distributor, unless the retailer should desire and has a contrac-
43 tual right to keep such merchandise, a sum equal to one hundred per cent per-
44 cent (100%) of the current net prices, including the transportation charges
45 from the retailer to the destination, which shall include a mailing address,
46 designated by the wholesaler, manufacturer or distributor within fifteen (15)
47 days of said termination, cancellation or discontinuance, wholesaler, manufac-
48 turer or distributor which have been paid by the retailer, or invoiced to a
49 retailer's account by the wholesaler, manufacturer or distributor, on manuals
50 and repair manuals, repair parts, including superseded or previously included
51 parts listed in current price lists or catalogs or electronic catalogs in use,
52 or previously used within thirty-six (36) months prior to the latest parts
53 price list issue date by the wholesaler, manufacturer or distributor on the
3
1 date of cancellation or discontinuance of the contract, which parts had previ-
2 ously been purchased by the retailer from the wholesaler, manufacturer, or
3 distributor and are held by the retailer on the date of the cancellation or
4 discontinuance of the contract or thereafter received by the retailer from the
5 wholesaler, manufacturer or distributor.
6 The wholesaler, manufacturer, or distributor shall also pay the retailer
7 or credit to his account a sum equal to five per cent percent (5%) of the cur-
8 rent net price of all parts returned for the handling, packing, and loading of
9 the parts back to the wholesaler, manufacturer, or distributor unless the
10 wholesaler, manufacturer or distributor elects to perform inventorying, pack-
11 ing and loading of the parts itself themselves.
12 Upon the payment or allowance of credit to the retailer's account of the
13 sum required by this section and section 28-23-101, Idaho Code, the title to
14 the farm implements, farm machinery, attachments, accessories or repair parts
15 shall pass to the manufacturer, wholesaler or distributor making the payment
16 or allowing the credit and the manufacturer, wholesaler or distributor shall
17 be entitled to the possession of the farm implements, machinery, attachments,
18 accessories or repair parts. Title to farm implements, attachments, accesso-
19 ries and repair parts is transferred to the supplier FOB the dealer location.
20 The provisions of this section shall apply to any part return adjustment
21 agreement made between a dealer and a supplier. All payments or allowances of
22 credit due retailers under this section shall be paid or credited by the manu-
23 facturer, wholesaler, or distributor within ninety (90) days after the return
24 of the farm implements, farm machinery, attachments, accessories or repair
25 parts. After the ninety (90) days all sums of credits due shall include inter-
26 est at the rate specified in section 28-22-104(1), Idaho Code. However, this
27 section and section 28-23-101, Idaho Code, shall not in any way affect any
28 security interest which the wholesaler, manufacturer or distributor may have
29 in the inventory of the retailer.
30 A supplier shall repurchase at one hundred percent (100%) of net dealer
31 cost, manuals and repair manuals purchased in the previous six (6) years and
32 at fifty percent (50%) for manuals and repair manuals purchased in the previ-
33 ous seven (7) through twelve (12) years as required by the supplier and held
34 by the dealer on the date of termination. Manuals and repair manuals must be
35 unique to the supplier's product line and must be in complete and in readable
36 condition.
37 A supplier must repurchase, and the dealer must sell to the supplier, spe-
38 cialized repair tools. As applied in this section, "specialized repair tools"
39 is defined as those tools required by the supplier and unique to the diagnosis
40 or repair of the supplier's products. For specialized repair tools that are in
41 new, unused condition and are applicable to the supplier's current products,
42 the purchase price is one hundred percent (100%) of the original net cost to
43 the dealer. For all other specialized repair tools, in complete and resalable
44 condition, the purchase price is the original net cost to the dealer less
45 twenty percent (20%) per year depreciation, but not less than fifty percent
46 (50%) of the original purchase price.
47 A supplier must repurchase, and the dealer must sell to the supplier, cur-
48 rent signage. As used in this section, "current signage" means the principal
49 outdoor signage required by the supplier that displays the supplier's current
50 logo or similar exclusive identifier, and that identifies the dealer as repre-
51 senting either the supplier or the supplier's products, or both. The purchase
52 price shall be the original net cost to the dealer less twenty percent (20%)
53 per year, but may in no case be less than fifty percent (50%) of the original
54 cost to the dealer.
4
1 SECTION 3. That Section 28-23-105, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 28-23-105. FAILURE TO PAY SUMS SPECIFIED ON CANCELLATION OF CONTRACTS --
4 LIABILITY. In the event that any manufacturer, wholesaler, or distributor of
5 farm implements, machinery, attachments, accessories and repair parts, upon
6 the cancellation of a contract by either a retailer or such manufacturer,
7 wholesaler or distributor, fails or refuses to make payment to the dealer or
8 his heir or heirs as required by this section, the manufacturer, wholesaler or
9 distributor shall be liable in a civil action to be brought by the retailer or
10 his heir or heirs for (a) one hundred per cent percent (100%) of the net cost
11 of the farm implements, machinery, and attachments and accessories, (b) trans-
12 portation charges required in sections 28-23-101 and 28-23-102, Idaho Code,
13 which have been paid by the retailer, or invoiced to the retailer's account,
14 (c) one hundred per cent percent (100%) of the current net price of repair
15 parts, and (d) five per cent percent (5%) for handling, packing and loading,
16 if applicable, (e) one hundred percent (100%) of the current net price for
17 manuals and repair manuals, and (f) reasonable reimbursement for services per-
18 formed in connection with assembly and predelivery inspections of the equip-
19 ment. A person, firm or corporation which brings an action under this section
20 must commence the action in the county in which the principal place of busi-
21 ness of the retailer is located.
22 SECTION 4. That Section 28-23-106, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 28-23-106. EXCEPTIONS. This act shall not require the repurchase from a
25 retailer of a repair part where the retailer previously has failed to return
26 the repair part to the wholesaler, manufacturer or distributor after being
27 offered a reasonable opportunity to return the repair part at a price not less
28 than one hundred per cent percent (100%) of the net price of the repair part
29 as listed in the then current price list or catalog, and transportation
30 charges required in section 28-23-102, Idaho Code, which have been paid by the
31 retailer, or invoiced to the retailer's account. This act shall not require
32 the repurchase from a retailer of repair parts which have a limited storage
33 life or are otherwise subject to deterioration, such as rubber items, gaskets
34 and batteries; repair parts in broken or damaged packages; single repair parts
35 priced as a set of two (2) or more items; and repair the retailer purchased in
36 a set of multiple parts, unless the set is complete and in resalable condition
37 and parts which because of their condition are not resalable as new parts
38 without new packaging or reconditioning.
39 SECTION 5. That Section 28-23-108, Idaho Code, be, and the same is hereby
40 amended to read as follows:
41 28-23-108. GUARANTY AND SECURITY AGREEMENT NOTICE REQUIREMENTS. All
42 wholesalers, manufacturers, or distributors of farm implements, machinery,
43 attachments, accessories or repair parts shall give the retailer a minimum of
44 sixty ninety (690) days' notice in writing and obtain consent from the dealer
45 before changing the time and manner of payment of any indebtedness owed by
46 retailer to manufacturer, distributor or wholesaler, and before taking and
47 making any changes in notes or security for any indebtedness, and before
48 releasing or adding additional guarantors, and before granting renewals or
49 extensions of such indebtedness.
5
1 SECTION 6. That Section 28-24-102, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 28-24-102. DEFINITIONS. As used in this chapter:
4 (1) "Assigned area of responsibility" means the geographic region for
5 which a particular dealer is responsible for the marketing, selling, leasing
6 or servicing of equipment pursuant to a dealer agreement as assigned by the
7 supplier.
8 (2) "Continuing commercial relationship" means any relationship in which
9 the equipment dealer has been granted the right to sell or service equipment
10 manufactured by supplier.
11 (23) "Dealer agreement" means a contract or agreement, either expressed
12 or implied, whether oral or written, between a supplier and an equipment
13 dealer, by which the equipment dealer is granted the right to sell, distribute
14 or service the supplier's equipment, where there is a continuing commercial
15 relationship between the supplier and the equipment dealer.
16 (4) "Demonstration and/or rental equipment" is equipment that has been
17 used but has not been sold to an end user.
18 (35) "Equipment" means machines designed for or adapted and used for
19 agriculture, horticulture, livestock and grazing and related industries but
20 not exclusive to agricultural use. Equipment also includes:
21 (a) "All-terrain vehicles" or "ATVs," including three-wheeled and four-
22 wheeled motorized vehicles, generally characterized by large, low-pressure
23 tires, a seat designed to be straddled by the operator, and handlebars for
24 steering. All-terrain vehicles are intended for off-road use.
25 (b) "Outdoor power equipment" means equipment powered by a two-cycle or
26 four-cycle gas or diesel engine, or electric motor, which is used to main-
27 tain commercial, public or residential lawns and gardens or used in land-
28 scape, turf, golf course or plant nursery maintenance.
29 (46) "Equipment dealer" or "equipment dealership" means any person, part-
30 nership, corporation, association or other form of business enterprise, pri-
31 marily engaged in the retail sale and/or service of equipment in this state,
32 pursuant to any oral or written agreement for a definite or indefinite period
33 of time in which there is a continuing commercial relationship in the market-
34 ing of the equipment or related services.
35 (57) "Good cause" means failure by an equipment dealer to substantially
36 comply with essential and reasonable requirements imposed upon the equipment
37 dealer by the dealer agreement, provided, such requirements are not different
38 from those requirements imposed on other similarly situated equipment dealers
39 in the state either by their terms or in the manner of their enforcement.
40 (68) "Supplier" means the manufacturer, wholesaler or distributor of the
41 equipment to be sold by the equipment dealer, or any successor in interest to
42 or assignee of the supplier. A successor in interest includes any purchaser of
43 assets or stock, any surviving corporation resulting from merger or liquida-
44 tion, any receiver or any trustee of the original supplier.
45 (9) "Warranty claim" means a claim for payment submitted by an equipment
46 dealer to a supplier for service or parts, or both, provided to a customer
47 under a:
48 (a) Warranty issued by the supplier; or
49 (b) Recall or modification order issued by the supplier.
50 SECTION 7. That Section 28-24-103, Idaho Code, be, and the same is hereby
51 amended to read as follows:
52 28-24-103. DEALER AGREEMENTS -- UNLAWFUL ACTS AND PRACTICES. It shall be
6
1 a violation of the provisions of this chapter for a supplier to:
2 (1) Require or attempt to require any equipment dealer to order or accept
3 delivery of any equipment or parts or any equipment with special features or
4 accessories not included in the base list price of such equipment as publicly
5 advertised by the supplier which the equipment dealer has not voluntarily
6 ordered;
7 (2) Require or attempt to require any equipment dealer to enter into any
8 agreement, whether written or oral, supplementing or amending an existing
9 dealer agreement with such supplier unless such amendment or supplementary
10 agreement is imposed on other similarly situated dealers in the state;
11 (3) Refuse to deliver in reasonable quantities and within a reasonable
12 time after receipt of the equipment dealer's order, to any equipment dealer
13 having a dealer agreement for the retail sale of new equipment sold or dis-
14 tributed by such supplier, equipment covered by such dealer agreement specifi-
15 cally advertised or represented by such supplier to be available for immediate
16 delivery. The failure to deliver any such equipment shall not be considered a
17 violation of the provisions of this chapter when deliveries are based on prior
18 retail sales ordering histories, the priority given to the sequence in which
19 the orders are received or manufacturing schedules or if such failure is due
20 to prudent and reasonable restriction on extension of credit by the supplier
21 to the equipment dealer, an act of God, work stoppage or delay due to a strike
22 or labor difficulty, a bona fide shortage of materials, freight embargo or
23 other cause over which the supplier has no control;
24 (4) Terminate, cancel or fail to renew the dealer agreement of any equip-
25 ment dealer or substantially change the competitive circumstances of the
26 dealer agreement, attempt to terminate or cancel, or threaten not to renew the
27 dealer agreement or attempt or threaten to substantially change the competi-
28 tive circumstances of the dealer agreement without good cause. Nothing in this
29 paragraph shall be interpreted to apply to a discontinuation of or change in
30 the product line of an equipment dealer;
31 (5) Condition the renewal, continuation or extension of a dealer agree-
32 ment on the equipment dealer's substantial renovation of the equipment
33 dealer's place of business or on the construction, purchase, acquisition or
34 rental of a new place of business by the equipment dealer, unless:
35 (a) The supplier has advised the equipment dealer in writing of its
36 demand for such renovation, construction, purchase, acquisition or rental
37 within a reasonable time prior to the effective date of the proposed date
38 of renewal or extension, but in no case less than one (1) year; and
39 (b) The supplier demonstrates the need for such change in the place of
40 business and the reasonableness of the demand with respect to marketing
41 and servicing the supplier's products and any significant economic condi-
42 tions existing at the time in the equipment dealer's trade area, and the
43 equipment dealer does not make a good faith effort to complete such con-
44 struction or renovation plans within one (1) year.
45 (6) Discriminate in the prices charged for equipment of like grade and
46 quality sold by the supplier to similarly situated dealers in this state where
47 the effect of such discrimination may be to substantially lessen competition
48 or tend to create a monopoly in a line of commerce. The provisions of this
49 subsection do not prevent the use of differentials which make only due allow-
50 ance for differences in the cost of manufacture, sale or delivery of equipment
51 resulting from the differing methods or quantities in which such equipment is
52 sold or delivered; provided that nothing shall prevent a supplier from offer-
53 ing a lower price in order to meet an equally low price of a competitor, or
54 the services or facilities furnished by a competitor;
55 (7) Unreasonably withhold consent for an equipment dealer to change the
7
1 capital structure of the equipment dealership or the means by which it is
2 financed, provided that the equipment dealer meets the reasonable capital
3 requirements of the supplier;
4 (8) Prevent, by contract or otherwise, any equipment dealer or any offi-
5 cer, member, partner or stockholder of an equipment dealership from selling,
6 assigning, or transferring any interest or portion thereof held by any of them
7 in the equipment dealership to any other person or party; provided, however,
8 that no equipment dealer, officer, partner, member or stockholder shall have
9 the right to sell, transfer, or assign the equipment dealership or the power
10 of management or control thereof without the written consent of the supplier,
11 except that such consent shall not be unreasonably withheld if the buyer,
12 transferee, or assignee meets the reasonable financial, business experience
13 and character standards of the supplier. Should a supplier determine that the
14 designated transferee is not acceptable, the supplier shall provide the equip-
15 ment dealer with written notice of the supplier's objections and specific rea-
16 sons for withholding its consent within thirty (30) calendar days of receipt
17 of notice from the equipment dealer;
18 (9) Require an equipment dealer to assent to a release, assignment, nova-
19 tion, waiver or estoppel which would relieve any person from liability imposed
20 by this chapter;
21 (10) (a) Unreasonably withhold consent, in the event of the death of the
22 equipment dealer or the principal owner of the equipment dealership, to
23 the transfer of the equipment dealer's or the principal owner's interest
24 in the equipment dealership to a member or members of the family of the
25 equipment dealer or of the principal owner or to another qualified indi-
26 vidual, if the family member or other qualified individual meets the rea-
27 sonable financial, business experience and character standards of the sup-
28 plier. A supplier shall have sixty (60) days to consider a request to make
29 a transfer to a family member or other qualified an individual. If, within
30 that period, the supplier determines that the designated family member or
31 other qualified individual does not meet the reasonable financial, busi-
32 ness experience and character standards of the supplier, it shall provide
33 the designated family member or other qualified individual dealership,
34 heirs to the dealership, or the estate of the dealer with written notice
35 of its objection and the specific reasons for withholding its consent. If
36 the family member or other qualified individual reasonably satisfies the
37 supplier's objections within sixty (60) days after notice thereof, the
38 supplier shall approve the transfer. As used in this paragraph, "family"
39 means and includes a spouse, parents, siblings, children, step-children,
40 sons-in-law, daughters-in-law, and lineal descendants, including those by
41 adoption of the equipment dealer or principal owner of the equipment deal-
42 ership. Nothing in this paragraph shall entitle a family member or other
43 qualified individual to continue to operate the dealership without the
44 consent of the supplier.
45 (b) Notwithstanding the provisions of paragraph (a) of this subsection,
46 in the event that a supplier and equipment dealer have duly executed an
47 agreement concerning succession rights prior to the equipment dealer's
48 death, and if such agreement has not been revoked, such agreement shall be
49 observed.
50 (11) Cause the equipment dealer to refrain from participation in the man-
51 agement, investment, acquisition or sale of any other related product or prod-
52 uct line of equipment, parts or accessories, from the same or separate loca-
53 tions;
54 (12) Fail to compensate a dealer for preparation and delivery of equipment
55 that the supplier sells or leases for use within this state and that the
8
1 dealer prepares for delivery and delivers.
2 SECTION 8. That Section 28-24-104, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 28-24-104. TERMINATION OF DEALER AGREEMENT OR CHANGE OF EQUIPMENT
5 DEALER'S COMPETITIVE CIRCUMSTANCES -- NOTICE -- GOOD CAUSE. (1) A supplier
6 shall provide written notice to the equipment dealer of any proposed termina-
7 tion or nonrenewal of a dealer agreement or substantial change in the competi-
8 tive circumstances of a dealer agreement. The notice shall state the reason(s)
9 constituting good cause for the action proposed to be taken. Except where good
10 cause is alleged under the provisions of paragraphs (a) through (e) of subsec-
11 tion (2) of this section, such notice shall be provided to the equipment
12 dealer not less than ninety (90) days before the proposed action is to become
13 effective. Except where good cause is alleged under paragraphs (a) through (d)
14 of subsection (2) of this section, the equipment dealer shall be given sixty
15 ninety (690) days within which to cure any claimed deficiency, and the notice
16 shall advise the dealer of his right to cure. If the claimed deficiency is
17 rectified within sixty ninety (690) days, the notice shall be void and the
18 proposed action shall not become effective. Notwithstanding the equipment
19 dealer's failure to cure the deficiency or deficiencies claimed, where a
20 ninety (90) day notice is required to be given by the supplier, the contrac-
21 tual term of the dealer agreement shall not expire, nor shall the dealer
22 agreement be otherwise terminated or cancelled canceled, nor shall the equip-
23 ment dealer's competitive circumstances be substantially changed prior to the
24 expiration of at least ninety (90) days following such notice without the
25 written consent of the equipment dealer.
26 (2) As used in this chapter, "good cause" shall exist, but not be limited
27 to the following circumstances when the equipment dealer has:
28 (a) Transferred a controlling ownership interest in the equipment dealer-
29 ship without the supplier's consent;
30 (b) Made a material misrepresentation to the supplier;
31 (c) Filed a voluntary petition in bankruptcy or has had an involuntary
32 petition in bankruptcy filed against the equipment dealer which has not
33 been discharged within sixty ninety (690) days after the filing; is in
34 default under the provisions of a security agreement in effect with the
35 supplier; or is insolvent or in receivership;
36 (d) Been convicted of a crime, punishable for a term of imprisonment for
37 one (1) year or more;
38 (e) Failed to operate in the normal course of business for ten (10) con-
39 secutive business days or has terminated said business;
40 (f) Relocated the equipment dealer's place of business without the
41 supplier's consent;
42 (g) Consistently engaged in business practices which are detrimental to
43 the consumer or supplier by way of excessive pricing, misleading advertis-
44 ing, failure to provide service and replacement parts or perform warranty
45 obligations;
46 (h) Inadequately represented the supplier over a one (1) year of such
47 period of time or length of time period specified in the dealer agreement
48 causing lack of performance in sales, service or warranty areas and failed
49 to achieve market penetration at levels consistent with similarly situated
50 equipment dealerships in the state based on available record information
51 or a time mutually agreed upon between the supplier and dealer to reflect
52 the ongoing market conditions;
53 (ih) Consistently failed to meet building and housekeeping requirements,
9
1 or has failed to provide adequate sales, service or parts personnel com-
2 mensurate with the the dealer agreement;
3 (ji) Failed to comply with the applicable licensing laws pertaining to
4 the products and services being represented for and on supplier's behalf;
5 (kj) Materially failed to comply with the terms of the dealer agreement.
6 (3) Notwithstanding the provisions of subsection (2) of this section,
7 before the termination or nonrenewal of a dealer agreement based upon a
8 supplier's claim that the dealer has failed to achieve market penetration at
9 levels consistent with similarly situated dealerships in the state, the sup-
10 plier shall provide written notice of its intention at least one (1) year in
11 advance.
12 (a) After issuance of such a notice, the supplier shall provide fair and
13 reasonable efforts to work with the dealer to assist the dealer in gaining
14 the required market penetration including, but not limited to, making
15 available to the dealer an adequate inventory of new equipment and parts,
16 and not withhold programs available to all dealers.
17 (b) Upon the end of the one (1) year period established in this subsec-
18 tion (3), the supplier may terminate or elect not to renew the dealer
19 agreement only upon written notice specifying the reasons for determining
20 that the dealer failed to meet reasonable market penetration. The notice
21 must specify that termination or nonrenewal is effective one hundred
22 eighty (180) days from the date of the notice and that either party may
23 petition the court.
24 (c) A supplier bears the burden of proving that a retailer's area of
25 responsibility or trade area does not afford sufficient sales potential to
26 reasonably support the retailer. The supplier's proof must be in writing.
27 SECTION 9. That Part 1, Chapter 24, Title 28, Idaho Code, be, and the
28 same is hereby amended by the addition thereto of NEW SECTIONS, to be known
29 and designated as Sections 28-24-104A, 28-24-104B, 28-24-104C, 28-24-104D and
30 28-24-104E, Idaho Code, and to read as follows:
31 28-24-104A. ESTABLISHMENT OF NEW DEALERSHIP -- SUPPLIER'S DUTIES. When a
32 supplier enters into an agreement to establish a new dealer or dealership or
33 to relocate a current dealer or dealership for a particular product line or
34 make of equipment, the supplier must give written notice of such an agreement
35 by certified mail to all existing dealers or dealerships whose assigned area
36 of responsibility is contiguous to the new dealer or dealership location. If
37 no area of responsibility has been assigned then the supplier must give writ-
38 ten notice of such an agreement by certified mail to the dealers or dealer-
39 ships within a seventy-five (75) mile radius of the new dealer location. The
40 supplier must provide in its written notice the following information about
41 the proposed new or relocated dealer or dealership:
42 (1) The proposed location;
43 (2) The proposed date for commencement of operation at the new location;
44 and
45 (3) The identities of all existing dealers or dealerships whose assigned
46 area of responsibility is contiguous to the new dealer or dealership location.
47 If no area of responsibility has been assigned then the supplier must give
48 written notice of such an agreement by certified mail to the dealers or deal-
49 erships located within a seventy-five (75) mile radius of the new dealer loca-
50 tion.
51 28-24-104B. WARRANTY CLAIMS. (1) An equipment dealer may submit a war-
52 ranty claim to a supplier if a warranty defect is identified and documented
10
1 prior to the expiration of a supplier's warranty:
2 (a) While a dealer agreement is in effect; or
3 (b) After the termination of a dealer agreement if the claim is for work
4 performed while the dealer agreement was in effect.
5 (2) A supplier shall accept or reject a warranty claim submitted under
6 subsection (1) of this section, within thirty (30) days of the date the sup-
7 plier received the claim. A warranty claim not rejected within thirty (30)
8 days of the date the supplier received the claim is considered to be accepted
9 by the supplier.
10 (3) No later than thirty (30) days after the date a warranty claim is
11 accepted or rejected under subsection (2) of this section, the supplier shall:
12 (a) Pay an accepted warranty claim; or
13 (b) Send the dealer written notice of the reason the warranty claim was
14 rejected.
15 (4) A supplier shall compensate the dealer for the warranty claim as fol-
16 lows:
17 (a) The dealer's established customer hourly retail labor rate multiplied
18 by the reasonable and customary amount of time required to complete such
19 work by similarly situated dealers, including diagnostic time, and cleanup
20 time, expressed in hours and fractions of an hour;
21 (b) The dealer's current net price on repair parts reimbursed at not less
22 than net plus twenty percent (20%) of the cost for warranty service per-
23 formed on behalf of the supplier to compensate for reasonable costs of
24 doing business; and
25 (c) Extraordinary freight and handling costs. For purposes of this sub-
26 section (4)(c), "extraordinary freight and handling costs" means costs
27 that are above and beyond the normal reimbursement policy of the supplier
28 for warranty repair work;
29 (d) When the repair work is for safety or mandatory modifications ordered
30 by the supplier, the supplier shall reimburse the dealer for transporta-
31 tion costs incurred by the dealer.
32 (5) After payment of a warranty claim, a supplier may not charge back,
33 off-set or otherwise attempt to recover from the dealer all or part of the
34 amount of the claim unless:
35 (a) The warranty claim was submitted in error;
36 (b) The services for which the warranty claim was made were not properly
37 performed or were unnecessary to comply with the warranty; or
38 (c) The dealer did not substantiate the warranty claim according to the
39 written requirements of the supplier that were in effect when the equip-
40 ment was delivered to the dealer by the customer for warranty repairs.
41 (6) If a supplier denies a warranty claim due to a particular item or
42 part of the claim, the denial shall only affect the items or parts in question
43 and not the complete warranty claim.
44 (7) A supplier may not pass the cost of covering warranty claims under
45 this chapter on to a dealer through any means including:
46 (a) Surcharges;
47 (b) Reduction of discounts; or
48 (c) Certification standards.
49 (8) Notwithstanding the provisions of subsection (4) of this section, a
50 dealer may accept the supplier's reimbursement terms and conditions in lieu of
51 the terms and conditions set forth in subsection (4) of this section.
52 28-24-104C. AUDIT OF WARRANTY CLAIMS. A supplier may not audit a dealer's
53 records with respect to any warranty claim submitted more than two (2) years
54 before the date of the audit.
11
1 28-24-104D. ARBITRATION. Any party to a retailer agreement aggrieved by
2 the conduct of the other party to the agreement under sections 28-23-101
3 through 28-23-111, Idaho Code, or under part 1, chapter 24, title 28, Idaho
4 Code, may seek arbitration of the issues under sections 7-901 through 7-922,
5 Idaho Code. Unless the parties agree to different arbitration rules, the arbi-
6 tration shall be conducted in Idaho pursuant to the commercial arbitration
7 rules of the American arbitration association. When the parties agree, the
8 arbitration shall be the parties' only remedy and the findings and conclusions
9 of the arbitrator or panel of arbitrators shall be binding upon both parties.
10 (1) The arbitrator or arbitrators may award the prevailing party:
11 (a) The costs of witness fees and other fees in the case;
12 (b) Reasonable attorney's fees; and
13 (c) Injunctive relief against unlawful termination, cancellation, non-
14 renewal or change in competitive circumstances.
15 (2) Any retailer has a civil cause of action in district court in this
16 state against a supplier for damages sustained by the retailer as a conse-
17 quence of the supplier's violation of part 1, chapter 24, title 28, Idaho
18 Code, or sections 28-23-101 through 28-23-111, Idaho Code, together with:
19 (a) The actual costs of the action;
20 (b) Reasonable attorney's fees; and
21 (c) Injunctive relief against unlawful termination, cancellation, non-
22 renewal or change in competitive circumstances.
23 (3) No dealer shall be required to waive his rights to judicial recourse
24 by contractual agreements through penalty of loss of trade discounts or
25 changes in the competitive circumstances of the dealer by the supplier deemed
26 to be punitive in nature or effect. The remedies set forth in this section are
27 not exclusive and are in addition to any other remedies permitted by law,
28 unless the parties have mutually agreed to binding arbitration under this sec-
29 tion.
30 28-24-104E. SUCCESSORS IN INTEREST. The obligations of any supplier under
31 this chapter are applied to any successor in interest or assignee of the sup-
32 plier. A successor in interest includes any purchaser of assets or stock, any
33 surviving corporation resulting from merger or liquidation, and any receiver
34 or any trustee of the original supplier.
35 SECTION 10. That Section 28-24-105, Idaho Code, be, and the same is
36 hereby amended to read as follows:
37 28-24-105. REMEDIES AND ENFORCEMENT. Monetary damages may be recovered
38 for losses sustained as a consequence of any violation of the provisions of
39 this chapter. Such recovery may also include a requirement that the supplier
40 repurchase at fair market value any data processing hardware, software and
41 specialized repair tools and equipment previously purchased from the supplier
42 or approved vendor of the supplier pursuant to requirements of the supplier.
43 Injunctive relief may also be granted against any actual or threatened viola-
44 tion of the provisions of this chapter. In any action brought under this
45 chapter the prevailing party shall be entitled to recover reasonable
46 attorney's fees and costs. The remedies set forth in this section shall not be
47 deemed exclusive and shall be in addition to any other remedies permitted by
48 law. A person, firm or corporation which brings an action under this section
49 must commence the action in the county in which the principal place of busi-
50 ness of the retailer is located.
STATEMENT OF PURPOSE
RS 14390
This legislation updates the statutory requirements defining the
business relations between the independent equipment dealer and the
manufacturers, wholesalers, and suppliers. It updates the "buy-
back" statutes to require the manufacturer/suppliers to repurchase
their required data processing, telecommunications, and computer
equipment, signage, special tools, repair manuals, and rental and
demonstration equipment. It also updates the protection statutes
to include provisions concernign transfer of ownership; selling of
"other" product lines; dealer compensation; soliciting of
customers; notice requirements; and warranty compensation.
The purpose of this legislation is to update the current Idaho
dealer statutes to a level at least equal to their counterparts in
the surrounding areas.
FISCAL NOTE
There is no fiscal impact to the state general fund.
CONTACT Rep. Sharon Block
Rep. John A. "Bert" Stevenson
Sen. Bart M. Davis
(208) 332-1000
Doug Burks, Burks Tractor, Twin Falls, ID
(208) 733-5543
Ed Schlofman, Schlofman Tractor & Implement Co.
(208) 376-3333
Ken Roberts
STATEMENT OF PURPOSE/FISCAL NOTE H 197