§ 696-E — Parts and return of parts

§ 696-e. Parts and return of parts. 1. Every supplier shall provide\nfor the availability of repair parts throughout the reasonable useful\nlife of any equipment sold.\n 2. Every supplier shall provide to its dealers, on an annual basis, an\nopportunity to return a portion of their surplus parts inventory for\ncredit. The surplus procedure shall be administered as follows:\n (a) The supplier may notify its dealers of a time period, of at least\nsixty days duration, during which time dealers may submit their surplus\nparts list and return their surplus parts to the supplier.\n (b) If a supplier has not notified a dealer of a specific time period\nfor returning surplus parts within the preceding twelve months, then it\nshall authorize and allow the dealer's surplus parts return request\nwithin thirty days after receipt of such request from the dealer.\n (c) Pursuant to the provisions of this subdivision, a supplier must\nallow surplus parts return authority on a dollar value of parts equal to\nsix percent of the total dollar value of parts purchased by the dealer\nfrom the supplier during the twelve month period immediately preceding\nthe notification to the dealer by the supplier of the surplus parts\nreturn program, or the month the dealer's return request is made,\nwhichever is applicable. However, the dealer may elect to return a\ndollar value of the dealer's surplus parts equal to less than six\npercent of the total dollar value of parts purchased by the dealer from\nthe supplier during the preceding twelve month period as provided\nherein.\n (d) No obsolete or superceded part, may be returned, but any part\nlisted in the supplier's current returnable parts list or any superceded\npart that has not been the subject of the supplier's parts return\nprogram at the date of notification to the dealer by the supplier of the\nsurplus parts return program, or the date of the dealer's parts return\nrequest, whichever is applicable, shall be eligible for return and the\ncredit specified. However, returned parts must be in new and unused\ncondition and must have been purchased by the dealer from the supplier\nto whom they are returned unless no program for the return of such part\nhas been offered by the supplier.\n (e) The minimum lawful credit to be allowed for returned parts shall\nbe eighty-five percent of the cost thereof as listed in the supplier's\ncurrent returnable parts list at the date of the notification to the\ndealer by the supplier of the surplus parts return program, or the date\nof the dealer's parts return request, whichever is applicable.\n (f) Applicable credit hereunder must be issued or furnished to the\ndealer within sixty days after receipt of the dealer's returned parts by\nthe supplier.\n (g) Packing and return freight expense incurred in any return of\nsurplus parts pursuant to the terms of this subdivision shall be borne\nby the supplier.\n (h) The provisions of this section shall be supplemental to any\nagreement between the dealer and the supplier covering the return of\nequipment, attachments and repair parts which provides the dealer with\ngreater protection. The dealer can elect to pursue either his or her\ncontract remedy or the remedy provided by state law, and an election by\nthe dealer to pursue his or her contract remedy shall not bar his or her\nright to the remedy provided herein as to those repair parts not\naffected by the contract remedy. Notwithstanding anything contained\nherein, the rights of a supplier to charge back to the dealer's account\namounts previously paid or credited as a discount incident to the\ndealer's purchase of goods shall not be affected. Further, any\nrepurchase hereunder shall not be subject to the provisions of the bulk\nsales law. Additionally, nothing shall preclude a price for return parts\nwhich is greater than the total allowance for parts allowed herein and\nthe shipping allowance, in such case the packing, freight and handling\nexpense charge, shall not be borne by the supplier.\n