1.Notwithstanding the terms of any contract, a manufacturer, wholesaler, or distributor of
farm implements, machinery, or repair parts who enters into a contract with any person
engaged in the business of selling and retailing farm implements and repair parts for
farm implements may not:
a.Require or attempt to require a farm equipment dealer to accept delivery of farm
equipment, parts, or accessories that the farm equipment dealer has not
voluntarily ordered or require the farm equipment dealer to maintain or stock a
level of equipment, parts, or accessories except as provided in subdivision b.
b.Condition or attempt to condition the sale of farm equipment, parts, or
accessories on a requirement that the farm equipment dealer also purchase other
goods or services, or purchase a minimum
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1. Notwithstanding the terms of any contract, a manufacturer, wholesaler, or distributor of
farm implements, machinery, or repair parts who enters into a contract with any person
engaged in the business of selling and retailing farm implements and repair parts for
farm implements may not:
a. Require or attempt to require a farm equipment dealer to accept delivery of farm
equipment, parts, or accessories that the farm equipment dealer has not
voluntarily ordered or require the farm equipment dealer to maintain or stock a
level of equipment, parts, or accessories except as provided in subdivision b.
b. Condition or attempt to condition the sale of farm equipment, parts, or
accessories on a requirement that the farm equipment dealer also purchase other
goods or services, or purchase a minimum quantity of farm equipment as a
condition of filling an order for farm equipment, except a farm equipment
manufacturer may require the dealer to purchase all parts reasonably necessary
to maintain the quality of operation in the field of any farm equipment used in the
trade area and telecommunication necessary to communicate with the farm
equipment manufacturer.
c. Require or attempt to require a farm equipment dealer into a refusal to purchase
farm equipment manufactured by another farm equipment manufacturer.
d. Require a farm equipment dealer to separate the line-makes operating within the
dealer's facility by requiring the separation of personnel, inventory, service areas,
display space, or otherwise dictate the method, manner, number of units, or the
location of farm equipment displays at the dealer's facility. This subdivision does
not prevent a farm equipment dealer and manufacturer from agreeing to those
terms if the agreement was supported by separate and valuable consideration.
The issuance, reissuance, or extension of a dealership contract alone is not
separate and valuable consideration.
e. Require a farm equipment dealer to either establish or maintain exclusive
facilities, personnel, or display space or to abandon an existing relationship with
another manufacturer in order to continue, renew, reinstate, or enter a dealer
agreement or to participate in any program discount, credit, rebate, or sales
incentive. This subdivision does not prevent a farm equipment dealer and
manufacturer from agreeing to establish or maintain exclusive facilities for
separate and valuable consideration. The issuance, reissuance, or extension of a
dealership contract alone is not separate and valuable consideration.
f. Discriminate in the prices charged for farm equipment of similar grade and quality
sold by the farm equipment manufacturer to similarly situated farm equipment
dealers. This subdivision does not prevent the use of differentials that make only
due allowance for differences in the cost of manufacture, sale, or delivery or for
the differing methods or quantities in which the farm equipment is sold or
delivered by the farm equipment manufacturer. This subdivision does not diminish
the manufacturer's, wholesaler's, or distributor's ability to provide volume
discounts, bonuses, or special machine ordering programs commonly used in the
industry.
g. Attempt or threaten to terminate, cancel, fail to renew, or substantially change the
competitive circumstances of the dealership contract for any reason other than
failure of the farm equipment dealer to substantially comply with the material
terms of the written contract between the parties or if the attempt or threat is
based on the results of a circumstance beyond the farm equipment dealer's
control, including a sustained drought or other natural disaster in the dealership
market area or a labor dispute. A substantial change in the competitive
circumstances includes the removal of authorization to operate at a location from
where the dealer is currently operating or the unreasonable removal of a product
line or segment.
h. Require a farm equipment dealer to unreasonably remodel, renovate, or
recondition the dealer's facilities, change the location of the facilities, or make
unreasonable alterations to the dealership premises. A request for a dealer to
remodel, renovate, or recondition the dealer's facilities, change the location of the
facilities, or make alterations to the dealership premises must be considered in
light of current and reasonably foreseeable projections of economic conditions,
financial expectations, and the dealer's market for the sale of farm equipment. A
facility modification request is unreasonable if the request is within seven years of
a farm equipment dealer's most recent facility remodel, renovation, or
reconditioning.
i. Unreasonably prevent or refuse to approve the relocation of a dealership to
another site within the dealer's relevant market area. The dealer shall provide the
manufacturer or distributor with notice of the proposed address and a reasonable
site plan of the proposed location. The manufacturer or distributor shall approve
or deny the request in writing within sixty days after receipt of the request. Failure
to deny the request within sixty days is deemed an approval.
j. Conduct a warranty or incentive audit or seek a chargeback on a warranty or
incentive payment more than one year after the date of the warranty or incentive
payment. A manufacturer may not charge back a dealer for an incentive or
warranty payment unless the manufacturer can satisfy its burden of proof that the
dealer's claim was false, fraudulent, or the dealer did not substantially comply
with the reasonable written procedures of the manufacturer. The audit and
chargeback provisions in this subdivision apply to all incentive and
reimbursement programs that are subject to audit by a manufacturer. Before
imposing a chargeback, a manufacturer shall identify each claim at issue and
provide the dealer with written explanation for the proposed chargeback for each
claim. The cumulative value of any chargeback, fees, penalties, or adverse action
for an individual claim may not exceed the total direct compensation received by
the dealer for the claim at issue. Thereafter, the manufacturer shall provide the
dealer a reasonable time, no less than forty-five days, to present additional
information regarding a claim at issue.
k. Use an unreasonable, arbitrary, or unfair sales, service, or other performance
standard in determining a farm equipment dealer's compliance with a contract or
program. Before applying any sales, service, or other performance standard to a
farm equipment dealer, a manufacturer shall communicate the performance
standard in writing in a clear and concise manner, including a detailed
explanation of the criteria, calculations, methodology, and data used to establish
the standard.
l. Require a farm equipment dealer in this state to enter an agreement with the
manufacturer or any other party which requires:
(1) The law of another jurisdiction to apply to a dispute between the dealer and
manufacturer;
(2) The dealer to bring an action against the manufacturer in a venue outside of
this state;
(3) The dealer waive the right to have all of this state's statutory and common
law apply;
(4) Reducing, modifying, or eliminating the dealer's right to resolve a dispute in
a state or federal court in this state; or
(5) The dealer to agree to arbitration or waive their rights to bring a cause of
action against the manufacturer, unless done in connection with a
settlement agreement to resolve a matter between a manufacturer and the
dealer. The settlement agreement must be entered voluntarily for separate
and valuable consideration. Renewal, reinstatement, or continuation of a
dealer agreement alone is not separate and valuable consideration.
2. As used in this section "farm equipment" and "farm implements" means all vehicular
implements and attachment units, designed and used primarily for planting, cultivating,
or harvesting farm products or used primarily in connection with the production of
agricultural produce or products, livestock, or poultry on farms, and which are
operated, drawn, or propelled by motor or animal power.