§ 51:481 — Applicability of Part

Louisiana § 51:481

• Jurisdiction: Louisiana
• Title 51: Trade and Commerce

Text

§481. Applicability of Part
A. The provisions of this Part shall apply to written contracts or oral agreements of
definite or indefinite duration between any person, firm, corporation, partnership, limited
liability company, or other business entity engaged in the business of selling, distributing,
or retailing farm, construction, forestry, heavy industrial material handling, utility and lawn
and garden equipment, engines, implements, machinery, attachments, and repair parts for
such equipment and any wholesaler, manufacturer, or distributor of such equipment and
repair parts, whereby the retailer agrees with the wholesaler, manufacturer, or distributor to
maintain a stock of such parts, or complete equipment or machines, or attachments. Any
successor in interest of the manufacturer, wholesaler, or distributor shall include any
purchaser of assets or stock, any surviving corporation or other business entity resulting from
merger or liquidation, any receiver or assignee, or any trustee of the original equipment
manufacturer, wholesaler, or distributor.
B. For the purposes of this Part, the following words and phrases shall have the
following meanings:
(1) "Agent" means any manufacturer, wholesaler, or wholesale distributor; any
purchaser of assets or stock of any surviving corporation or other business entity resulting
from a merger or liquidation; any receiver or assignee; or any trustee of the original
equipment manufacturer, wholesaler, or distributor.
(2) "Burden of proof", in the context of an incentive agreement, means that, if a
dealer objects to the market statistics provided by the agent in support of a bonus or penalty
proposed by the agent pursuant to the agreement, the agent shall provide all of the following
information:
(a) The name of the entity or individual that purchased the contested equipment upon
which the amount of the incentive payment or penalty is based.
(b) Sufficient evidence of the first substantial use of the contested equipment within
the dealer's area of responsibility. Sufficient evidence shall consist of either:
(i) Geospatial telematic data from the reported equipment's hardware.
(ii) All of the following:
(aa) Name of the entity or individual that purchased the equipment.
(bb) City and state to which the equipment was delivered, as indicated on the
manufacturer's delivery receipt provided by the dealer to the retail purchaser.
(cc) PIN, VIN, or serial number of the equipment.
(dd) Product segment (large ag, mid ag, or small ag) of the equipment.
(ee) Model class of the equipment.
(ff) Size class (horsepower) of the equipment.
(3) "Dealer" means any farm dealer, heavy industrial equipment dealer, construction
equipment dealer, forestry equipment dealer, material handling equipment dealer, utility
equipment dealer, engines equipment dealer, lawn and garden equipment dealer, or retail
equipment distributor dealer.
(4) "Dealer agreement" means a written or oral agreement between a dealer and an
agent that provides for the rights and obligations of the parties with respect to the sale or
purchase of equipment or repair parts.
(5) "Farm equipment", "construction equipment", "forestry equipment", "heavy
industrial equipment", "material handling equipment", "utility equipment", and "lawn and
garden equipment" includes every vehicle designed or adapted and used exclusively for
agricultural, construction, forestry, industrial material handling, utility, or lawn and garden
operations, although incidentally operated or used upon the highways.
(6) "Incentive agreement" means any agreement between the agent and dealer
involving the payment of a bonus or incentive payment by the agent to the dealer, or the
imposition of a penalty by the agent on the dealer, based upon the dealer's sales within its
area of responsibility.
(7) "Superseded parts" includes any part that will provide the same function as a
previously available part and can be purchased from the manufacturer, wholesaler, or
distributor on the date of cancellation.

Legislative History

Acts 1991, No. 627, §1; Acts 2015, No. 466, §1; Acts 2021, No. 359, §1.