§ 322C.16 — Repurchase or sale of inventory

Iowa § 322C.16

• Jurisdiction: Iowa
• Title VIII: TRANSPORTATION
• Ch. 322C: TOWABLE RECREATIONAL VEHICLE DEALERS, MANUFACTURERS, AND DISTRIBUTORS

Text

1. If a manufacturer-dealer agreement is terminated, canceled, or not renewed by the
manufacturer or distributor without good cause, or by a dealer with good cause and, in the
case of termination or cancellation, the manufacturer or distributor fails to provide notice
or cure the deficiencies claimed by the dealer, the manufacturer or distributor shall, at the
dealer’s option and within forty-five days after termination, cancellation, or nonrenewal,
repurchase all of the following:
a. All new, untitled towable recreational vehicles that the dealer acquired from the
manufacturer or distributor within twelve months prior to the effective date of the notice of
termination, cancellation, or nonrenewal of the manufacturer-dealer agreement that have
not been used other than for demonstration purposes, and that have not been altered or
damaged, at one hundred percent of the net invoice cost, including transportation, less
applicable rebates and discounts to the dealer. If any of the towable recreational vehicles
repurchased pursuant to this paragraph are damaged, but do not require a disclosure under
section 321.69A, the amount due to the dealer shall be reduced by the cost to repair the
vehicle. Damage incurred by a vehicle prior to delivery to the dealer that was disclosed at
the time of delivery shall not disqualify repurchase pursuant to this paragraph.
b. All undamaged proprietary parts for any line-make subject to the termination,
cancellation, or nonrenewal that was sold to the dealer for resale within twelve months
prior to the effective date of the termination, cancellation, or nonrenewal of the
manufacturer-dealer agreement, if accompanied by the original invoice, at one hundred five
percent of the original net price paid to the manufacturer or distributor.
c. All properly functioning diagnostic equipment, special tools, current signage, or
other equipment and machinery that was purchased by the dealer upon the request of the
manufacturer or distributor for any line-make subject to the termination, cancellation, or
nonrenewal within five years prior to the effective date of the termination, cancellation, or
nonrenewal of the manufacturer-dealer agreement that can no longer be used in the normal
course of the dealer’s ongoing business.
§322C.16, RECREATIONAL VEHICLE DEALERS, MANUFACTURERS, & DISTRIBUTORS 10
2. If towable recreational vehicles of a particular line-make subject to a terminated,
canceled, or nonrenewed manufacturer-dealer agreement are not repurchased or required
to be repurchased pursuant to the agreement, the dealer may continue to sell such vehicles
existing in the dealer’s inventory until the vehicles are no longer in the dealer’s inventory.