§ 40-20-114 — Violations of chapter

(a) It shall be a violation of this chapter for a supplier
to take any one (1) or more of the following actions:
(i) To coerce, compel or require any dealer to accept
delivery of any equipment or repair parts which the dealer has
not voluntarily ordered, except as required by any applicable
law or unless the equipment or repair parts are safety features
required by a supplier;
(ii) To require any dealer to purchase goods or
services as a condition to the sale by the supplier to the
dealer of any equipment, repair parts or other goods or
services, except that nothing herein shall prohibit a supplier
from requiring the dealer to purchase all repair parts, special
tools and training reasonably necessary to maintain the safe
operation or quality of operation in the field of any equipment
offered for sale by the dealer;
(iii) To coerce any dealer into a refusal to purchase
equipment manufactured by another supplier. However, it shall
not be a violation of this section to require separate
facilities, financial statements, or sales staff for major
competing lines so long as the dealer is given at least three
(3) years notice of such requirement;
(iv) To refuse to deliver in reasonable quantities
and within a reasonable time, after receipt of the dealer's
order, to any dealer having a dealer agreement for the retail
sale of new equipment sold or distributed by the supplier,
equipment covered by the dealer agreement specifically
advertised or represented by the supplier to be available for
immediate delivery. The failure to deliver the equipment shall
not be considered a violation of this chapter if the failure is
due to prudent and reasonable restrictions on extensions of
credit by the supplier to the dealer, an act of God, work
stoppage or delay due to a strike or labor difficulty, a bona
fide shortage of materials, freight embargo, or other cause over
which the supplier has no control or a business decision by the
supplier to limit the production volume of the equipment;
(v) To discriminate, directly or indirectly, in
filling an order placed by a dealer for retail sale or lease of
new equipment under a dealer agreement as between dealers of the
same product line;
(vi) To discriminate, directly or indirectly, in
price between different dealers with respect to purchases of
equipment or repair parts of like grade and quality and
identical brand, where the effect of the discrimination may be
to substantially lessen competition, tend to create a monopoly
in any line of commerce or injure, destroy or prevent
competition with any dealer who either grants or knowingly
receives the benefit of the discrimination. Different prices
may be charged if:
(A) The differences are due to differences in
the cost of manufacture, sale or delivery of the equipment or
repair parts;
(B) The supplier can show that the lower price
was made in good faith to meet an equally low price of a
competitor; or
(C) The differences are related to the volume of
equipment purchased by dealers.
(vii) To prevent by contract or otherwise, any
dealer, from changing its capital structure, ownership or the
means by or through which the dealer finances its operations, so
long as the dealer gives prior notice to the supplier and
provided the dealer at all times meets any reasonable capital
standards agreed to between the dealer and the supplier and
imposed on similarly situated dealers and provided the change by
the dealer does not result in a change in the person with actual
or effective control of a majority of the voting interests of
the dealer;
(viii) To require a dealer to assent to a release,
assignment, novation, waiver or estoppel which would relieve any
person from liability imposed by this chapter;
(ix) Require as a condition of renewal or extension
of a dealer agreement that the dealer complete substantial
renovation to the dealer's place of business or to acquire new
or additional space to serve as the dealer's place of business
unless the supplier provides:
(A) At least one (1) year written notice of the
condition;
(B) All the grounds supporting the condition;
and
(C) A reasonable period of time in which to
complete the renovation or acquisition after the one (1) year
notice period expires.