§ 51-07-01 — Retail farm implement; lawn and garden equipment; or vehicle dealer may recover price of merchandise upon discontinuance of contract by wholesaler or retail dealer

North Dakota § 51-07-01

• Jurisdiction: North Dakota
• Title 51: Sales and Exchanges
• Ch. 51-07: Miscellaneous Provisions

Text

recover price of merchandise upon discontinuance of contract by wholesaler or retail
dealer.
1. If a person engaged in the business of retailing farm implements, machinery, or
attachments, or parts for the same; lawn and garden equipment, or parts for the same;
or automobiles, trucks, or semitrailers, or parts for the same, enters a contract under
which the retailer agrees to maintain a stock of the merchandise covered under this
section with a wholesaler, manufacturer, or distributor of the covered merchandise and
tools and the wholesaler, manufacturer, or distributor or the retailer desires to cancel or
discontinue the contract, the wholesaler, manufacturer, or distributor shall pay to the
retailer, unless the retailer desires to keep the merchandise, a sum equal to:
a. One hundred percent of the net cost of all current unused complete farm
implements, machinery, and attachments; lawn and garden equipment; and
automobiles, trucks, and semitrailers.
b. One hundred percent of the actual merchandise and tool transportation charges
that have been paid by the retailer.
c. Ninety percent of the net prices on parts, including superseded parts, as shown in
the manufacturer's, wholesaler's, or distributor's current price lists or catalogs in
effect at the time the contract is canceled, discontinued, or not renewed. These
parts must have previously been purchased from the wholesaler, manufacturer, or
distributor, and must have been either held by the retailer on the date of the
cancellation of, discontinuance of, or failure to renew the contract or received by
the retailer from the wholesaler, manufacturer, or distributor after the date of the
cancellation, discontinuance, or failure to renew.
d. Fifty percent of the net cost of all complete specialized tools for the covered
merchandise.
e. Five percent of the current net price of all parts returned for the handling, packing,
and loading of the parts back to the wholesaler, manufacturer, or distributor.
2. Upon the payment of the amounts under subsection 1, the retailer shall pass the title
to the covered merchandise and tools to the manufacturer, wholesaler, or distributor
making the payment, and the manufacturer, wholesaler, or distributor is entitled to the
possession of the covered merchandise and tools. All payments required to be made
under this section must be made within thirty days after the final settlement between
the retailer and the wholesaler, manufacturer, or distributor.
3. The provisions of this section are supplemental to any agreement between the retailer
and the manufacturer, wholesaler, or distributor covering the return of any
merchandise and tools covered under this section. The retailer can elect to pursue
either the retailer's contract remedy or the remedy provided in this section. An election
by the retailer to pursue the retailer's contract remedy does not bar the retailer's right
to the remedy provided in this section as to any merchandise and tools covered under
this section which is not affected by the contract remedy.
4. The obligations of any wholesaler, manufacturer, or distributor under this section and
sections 51-07-01.1 and 51-07-03 apply to any successor in interest or assignee of
that wholesaler, manufacturer, or distributor. A successor in interest includes any
purchaser of assets or stock, any surviving corporation or limited liability company
resulting from a merger or liquidation, any receiver, or any trustee of the original
wholesaler, manufacturer, or distributor.
5. The provisions of this section apply to all contracts now in effect which have no
expiration date and are a continuing contract, and all other contracts entered or
renewed after July 31, 2003. Any contract in force and effect on August 1, 2003, which
by its own terms will terminate on a date subsequent thereto is governed by the law as
it existed before August 1, 2003.