<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to commerce; regulating franchise agreements between outdoor sport <br />
         		<a id="pl.1.3"></a><var>1.3</var>equipment dealers, manufacturers, and distributors;proposing coding for new <br />
         		<a id="pl.1.4"></a><var>1.4</var>law as Minnesota Statutes, chapter 80G.<br />
         		<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>[80G.01] DEFINITIONS.</b><br />
         		<a id="pl.1.7"></a><var>1.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Scope.</b> For the purposes of sections 80G.01 to 
         <statute_ref>80G.11</statute_ref>, the terms <br />
         		<a id="pl.1.8"></a><var>1.8</var>defined in this section have the meanings given them.<br />
         		<a id="pl.1.9"></a><var>1.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Dealership agreement.</b> "Dealership agreement" means a written <br />
         		<a id="pl.1.10"></a><var>1.10</var>agreement of definite or indefinite duration between an outdoor sport equipment <br />
         		<a id="pl.1.11"></a><var>1.11</var>manufacturer and an outdoor sport equipment dealer or distributor that enables the dealer <br />
         		<a id="pl.1.12"></a><var>1.12</var>to purchase equipment from the manufacturer or dealer and provides for the rights and <br />
         		<a id="pl.1.13"></a><var>1.13</var>obligations of the parties with respect to the purchase or sale of outdoor sport equipment.<br />
         		<a id="pl.1.14"></a><var>1.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Designated successor.</b> "Designated successor" means one or more persons <br />
         		<a id="pl.1.15"></a><var>1.15</var>nominated by the dealer, in a written document filed by the dealer with the manufacturer <br />
         		<a id="pl.1.16"></a><var>1.16</var>or distributor at the time the dealership agreement is executed, to succeed the dealer in the <br />
         		<a id="pl.1.17"></a><var>1.17</var>event of the dealer's death or incapacity.<br />
         		<a id="pl.1.18"></a><var>1.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Outdoor sport equipment.</b> "Outdoor sport equipment" means <br />
         		<a id="pl.1.19"></a><var>1.19</var>snowmobiles as defined in section 
         <statute_ref>84.81</statute_ref>, subdivision 3; all-terrain vehicles as defined in <br />
         		<a id="pl.1.20"></a><var>1.20</var>section 
         <statute_ref>84.92</statute_ref>, subdivision 8; personal watercraft as defined in section 86B.005, subdivision <br />
         		<a id="pl.1.21"></a><var>1.21</var>14a; watercraft as defined in section 86C.01; and off-highway motorcycles, as defined in <br />
         		<a id="pl.1.22"></a><var>1.22</var>section 84.787, subdivision 7, and all attachments and repair parts for all of this equipment.<br />
         		<a id="pl.2.1"></a><var>2.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Outdoor sport equipment dealer or dealer.</b> "Outdoor sport equipment <br />
         		<a id="pl.2.2"></a><var>2.2</var>dealer" or "dealer" means a person engaged in acquiring outdoor sport equipment from a <br />
         		<a id="pl.2.3"></a><var>2.3</var>manufacturer and reselling the outdoor sport equipment at wholesale or retail.<br />
         		<a id="pl.2.4"></a><var>2.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Outdoor sport equipment distributor or distributor.</b> "Outdoor sport <br />
         		<a id="pl.2.5"></a><var>2.5</var>equipment distributor" means a person, other than a manufacturer, who offers for sale, <br />
         		<a id="pl.2.6"></a><var>2.6</var>sells, or distributes outdoor sport equipment to an outdoor sport equipment dealer or who <br />
         		<a id="pl.2.7"></a><var>2.7</var>maintains a factory representative, or who controls a person who offers for sale, sells, <br />
         		<a id="pl.2.8"></a><var>2.8</var>or distributes outdoor equipment to an outdoor sport equipment dealer. "Distributor" <br />
         		<a id="pl.2.9"></a><var>2.9</var>includes a wholesaler.<br />
         		<a id="pl.2.10"></a><var>2.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Outdoor sport equipment manufacturer or manufacturer.</b> "Outdoor <br />
         		<a id="pl.2.11"></a><var>2.11</var>sport equipment manufacturer" or "manufacturer" means a person engaged in the <br />
         		<a id="pl.2.12"></a><var>2.12</var>manufacture or assembly of outdoor sport equipment.  The term also includes any <br />
         		<a id="pl.2.13"></a><var>2.13</var>successor in interest of the outdoor sport equipment manufacturer, including any purchaser <br />
         		<a id="pl.2.14"></a><var>2.14</var>of assets or stock, any surviving corporation resulting from a merger or liquidation, any <br />
         		<a id="pl.2.15"></a><var>2.15</var>receiver or assignee, or any trustee of the original outdoor sport equipment manufacturer.<br />
         		<a id="pl.2.16"></a><var>2.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Person.</b> "Person" means an individual, partnership, limited partnership, <br />
         		<a id="pl.2.17"></a><var>2.17</var>corporation, limited liability company, trustee of a trust, personal representative of an <br />
         		<a id="pl.2.18"></a><var>2.18</var>estate, or any other type of business entity.<br />
         		<a id="pl.2.19"></a><var>2.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Proposed outdoor sport equipment dealer.</b> "Proposed outdoor sport <br />
         		<a id="pl.2.20"></a><var>2.20</var>equipment dealer" or "proposed dealer" means a person who has an application for a new <br />
         		<a id="pl.2.21"></a><var>2.21</var>dealership agreement pending with a manufacturer or distributor. Proposed dealer does <br />
         		<a id="pl.2.22"></a><var>2.22</var>not include a person whose dealership agreement is being renewed or continued.<br />
         		<br />
         		<a id="bill.0.2.0"></a><a id="pl.2.23"></a><var>2.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. <b>[80G.02] DEALERSHIP AGREEMENT AND COMPLIANCE </b><br />
         		<a id="pl.2.24"></a><var>2.24</var><b>REQUIRED FOR SALE OR PURCHASE OF OUTDOOR SPORT EQUIPMENT.</b><br />
         		<a id="pl.2.25"></a><var>2.25</var>&nbsp;&nbsp;&nbsp;&nbsp;A manufacturer or distributor shall not offer for sale to a new outdoor sport <br />
         		<a id="pl.2.26"></a><var>2.26</var>equipment dealer, and a new or proposed new outdoor sport equipment dealer shall not <br />
         		<a id="pl.2.27"></a><var>2.27</var>offer to purchase from a manufacturer, new outdoor sport equipment without first entering <br />
         		<a id="pl.2.28"></a><var>2.28</var>into a written dealership agreement and complying with all other applicable provisions of <br />
         		<a id="pl.2.29"></a><var>2.29</var>this act. The written agreement may provide for certain types of routine transactions to <br />
         		<a id="pl.2.30"></a><var>2.30</var>be done orally.<br />
         		<br />
         		<a id="bill.0.3.0"></a><a id="pl.2.31"></a><var>2.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. <b>[80G.03] CONTENTS OF DEALERSHIP AGREEMENT.</b><br />
         		<a id="pl.2.32"></a><var>2.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Each dealership agreement shall include, but is not limited to, all of the following:<br />
         		<a id="pl.2.33"></a><var>2.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the territory or market area;<br />
         		<a id="pl.2.34"></a><var>2.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the period of time covered by the dealership agreement;<br />
         		<a id="pl.3.1"></a><var>3.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) performance and marketing standards;<br />
         		<a id="pl.3.2"></a><var>3.2</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) notice provisions for termination, cancellation, or nonrenewal;<br />
         		<a id="pl.3.3"></a><var>3.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) obligations in the preparation and delivery of product and warranty service;<br />
         		<a id="pl.3.4"></a><var>3.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) disposition obligations upon termination, cancellation, or nonrenewal relating to <br />
         		<a id="pl.3.5"></a><var>3.5</var>inventory, equipment, furnishings, special tools, and required signs acquired within the 18 <br />
         		<a id="pl.3.6"></a><var>3.6</var>months immediately prior to the date of termination, cancellation, or nonrenewal; and<br />
         		<a id="pl.3.7"></a><var>3.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) dispute resolution procedures.<br />
         		<br />
         		<a id="bill.0.4.0"></a><a id="pl.3.8"></a><var>3.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. <b>[80G.04] SALE, TRANSFER, EXCHANGE OF DEALERSHIP; </b><br />
         		<a id="pl.3.9"></a><var>3.9</var><b>CONSENT; CRITERIA; PROHIBITED CONDUCT.</b><br />
         		<a id="pl.3.10"></a><var>3.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) A manufacturer or distributor shall not unreasonably withhold consent to the <br />
         		<a id="pl.3.11"></a><var>3.11</var>sale, transfer, or exchange of a dealership to a person who meets the criteria, if any, set <br />
         		<a id="pl.3.12"></a><var>3.12</var>forth in the dealership agreement.<br />
         		<a id="pl.3.13"></a><var>3.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Failure by a manufacturer or distributor to respond within 60 days after receipt of <br />
         		<a id="pl.3.14"></a><var>3.14</var>a written request by the dealer to the manufacturer or distributor for consent to the sale, <br />
         		<a id="pl.3.15"></a><var>3.15</var>transfer, or exchange of a dealership shall be considered consent to the request.<br />
         		<br />
         		<a id="bill.0.5.0"></a><a id="pl.3.16"></a><var>3.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. <b>[80G.05] INABILITY OF DESIGNATED SUCCESSOR TO SUCCEED </b><br />
         		<a id="pl.3.17"></a><var>3.17</var><b>OUTDOOR SPORT EQUIPMENT DEALER.</b><br />
         		<a id="pl.3.18"></a><var>3.18</var>&nbsp;&nbsp;&nbsp;&nbsp;If a designated successor is not able to succeed the outdoor sport equipment dealer <br />
         		<a id="pl.3.19"></a><var>3.19</var>because of the designated successor's death or legal incapacity, the dealer may, at any time <br />
         		<a id="pl.3.20"></a><var>3.20</var>after that death or incapacity, execute and deliver to the manufacturer or distributor a new <br />
         		<a id="pl.3.21"></a><var>3.21</var>document nominating a designated successor.<br />
         		<br />
         		<a id="bill.0.6.0"></a><a id="pl.3.22"></a><var>3.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. <b>[80G.06] DESIGNATED SUCCESSOR OF DECEASED OR </b><br />
         		<a id="pl.3.23"></a><var>3.23</var><b>INCAPACITATED SPORT EQUIPMENT DEALER; NOTICE OF INTENT; </b><br />
         		<a id="pl.3.24"></a><var>3.24</var><b>EXISTING DEALERSHIP AGREEMENT; PERSONAL AND FINANCIAL DATA; </b><br />
         		<a id="pl.3.25"></a><var>3.25</var><b>NOTICE OF REFUSAL TO APPROVE SUCCESSION.</b><br />
         		<a id="pl.3.26"></a><var>3.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) A designated successor of a deceased or incapacitated new sport equipment <br />
         		<a id="pl.3.27"></a><var>3.27</var>dealer may succeed the dealer in the ownership or operation of the dealership under <br />
         		<a id="pl.3.28"></a><var>3.28</var>the existing dealership agreement if the designated successor gives the manufacturer <br />
         		<a id="pl.3.29"></a><var>3.29</var>or distributor written notice of the designated successor's intention to succeed to the <br />
         		<a id="pl.3.30"></a><var>3.30</var>dealership within 60 days after the dealer's death or incapacity and agrees to be bound by <br />
         		<a id="pl.3.31"></a><var>3.31</var>all of the terms and conditions of the dealership agreement. A manufacturer or distributor <br />
         		<a id="pl.3.32"></a><var>3.32</var>may refuse to honor the existing dealer agreement with the designated successor for good <br />
         		<a id="pl.3.33"></a><var>3.33</var>cause or on the basis of criteria agreed to in the existing dealership agreement.<br />
         		<a id="pl.4.1"></a><var>4.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The manufacturer or distributor may request from a designated successor the <br />
         		<a id="pl.4.2"></a><var>4.2</var>personal and financial data necessary to determine whether the existing dealership <br />
         		<a id="pl.4.3"></a><var>4.3</var>agreement should be honored with the designated successor. Upon request, the designated <br />
         		<a id="pl.4.4"></a><var>4.4</var>successor shall supply the personal and financial data.<br />
         		<a id="pl.4.5"></a><var>4.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Within 60 days after receiving the notice of the designated successor's intent <br />
         		<a id="pl.4.6"></a><var>4.6</var>to succeed the dealer in the ownership and operation of the dealership or within 60 <br />
         		<a id="pl.4.7"></a><var>4.7</var>days after receiving the requested personal and financial data, whichever occurs last, if <br />
         		<a id="pl.4.8"></a><var>4.8</var>a manufacturer or distributor believes that good cause or other criteria agreed to in the <br />
         		<a id="pl.4.9"></a><var>4.9</var>existing dealership agreement exist for refusing to honor the succession, the manufacturer <br />
         		<a id="pl.4.10"></a><var>4.10</var>or distributor may provide written notice to the designated successor of its refusal to <br />
         		<a id="pl.4.11"></a><var>4.11</var>approve the succession.<br />
         		<br />
         		<a id="bill.0.7.0"></a><a id="pl.4.12"></a><var>4.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. <b>[80G.07] CANCELLATION AND ALTERATION OF DEALERSHIPS.</b><br />
         		<a id="pl.4.13"></a><var>4.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Termination by manufacturer or distributor.</b> (a) No manufacturer <br />
         		<a id="pl.4.14"></a><var>4.14</var>or distributor, directly or through any officer, agent, or employee, may terminate, cancel, <br />
         		<a id="pl.4.15"></a><var>4.15</var>or fail to renew a dealership agreement without good cause.<br />
         		<a id="pl.4.16"></a><var>4.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The burden of proving good cause is on the manufacturer or distributor.<br />
         		<a id="pl.4.17"></a><var>4.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of this section, "good cause" means:<br />
         		<a id="pl.4.18"></a><var>4.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) failure by the dealer to comply substantially with essential and reasonable <br />
         		<a id="pl.4.19"></a><var>4.19</var>requirements imposed or sought to be imposed by the manufacturer or distributor, <br />
         		<a id="pl.4.20"></a><var>4.20</var>which requirements are not discriminatory as compared to requirements imposed by the <br />
         		<a id="pl.4.21"></a><var>4.21</var>manufacturer or distributor on other similarly situated dealers, either by the terms or in <br />
         		<a id="pl.4.22"></a><var>4.22</var>the manner of their enforcement;<br />
         		<a id="pl.4.23"></a><var>4.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) a substantial breach of the dealership agreement that the dealer has not cured <br />
         		<a id="pl.4.24"></a><var>4.24</var>within a reasonable time after notice of the breach by the manufacturer;<br />
         		<a id="pl.4.25"></a><var>4.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) without the consent of the outdoor sport equipment manufacturer, who shall not <br />
         		<a id="pl.4.26"></a><var>4.26</var>withhold consent unreasonably:<br />
         		<a id="pl.4.27"></a><var>4.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the outdoor sport equipment dealer has transferred an interest in the outdoor <br />
         		<a id="pl.4.28"></a><var>4.28</var>sport equipment dealership;<br />
         		<a id="pl.4.29"></a><var>4.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) there has been a withdrawal from the dealership of an individual proprietor, <br />
         		<a id="pl.4.30"></a><var>4.30</var>partner, major shareholder, or the manager of the dealership; or<br />
         		<a id="pl.4.31"></a><var>4.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) there has been a substantial reduction in interest of a partner or major <br />
         		<a id="pl.4.32"></a><var>4.32</var>stockholder;<br />
         		<a id="pl.4.33"></a><var>4.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) the outdoor sport equipment dealer has filed a voluntary petition in bankruptcy or <br />
         		<a id="pl.4.34"></a><var>4.34</var>has had an involuntary petition in bankruptcy filed against it that has not been discharged <br />
         		<a id="pl.4.35"></a><var>4.35</var>within 30 days after the filing, there has been a closeout or other sale of a substantial part <br />
         		<a id="pl.5.1"></a><var>5.1</var>of the dealer's assets related to the outdoor sport equipment business, or there has been a <br />
         		<a id="pl.5.2"></a><var>5.2</var>commencement of dissolution or liquidation of the dealer;<br />
         		<a id="pl.5.3"></a><var>5.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) there has been a change without the prior written approval of the manufacturer, <br />
         		<a id="pl.5.4"></a><var>5.4</var>in the location of the dealer's principal place of business under the dealership agreement;<br />
         		<a id="pl.5.5"></a><var>5.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) the outdoor sport equipment dealer has defaulted under a chattel mortgage <br />
         		<a id="pl.5.6"></a><var>5.6</var>or other security agreement between the dealer and the outdoor sport equipment <br />
         		<a id="pl.5.7"></a><var>5.7</var>manufacturer, or there has been a revocation or discontinuance of a guarantee of the <br />
         		<a id="pl.5.8"></a><var>5.8</var>dealer's present or future obligations to the outdoor sport equipment manufacturer;<br />
         		<a id="pl.5.9"></a><var>5.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) the outdoor sport equipment dealer has failed to operate in the normal course of <br />
         		<a id="pl.5.10"></a><var>5.10</var>business for seven consecutive days or has otherwise abandoned the business;<br />
         		<a id="pl.5.11"></a><var>5.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) the outdoor sport equipment dealer has pleaded guilty to or has been convicted of <br />
         		<a id="pl.5.12"></a><var>5.12</var>a felony affecting the relationship between the dealer and manufacturer;<br />
         		<a id="pl.5.13"></a><var>5.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) the outdoor sport equipment dealer has engaged in conduct that is injurious or <br />
         		<a id="pl.5.14"></a><var>5.14</var>detrimental to the dealer's customers or to the public welfare; or<br />
         		<a id="pl.5.15"></a><var>5.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) the outdoor sport equipment dealer, after receiving notice from the manufacturer <br />
         		<a id="pl.5.16"></a><var>5.16</var>of its requirements for reasonable market penetration based on the manufacturer's <br />
         		<a id="pl.5.17"></a><var>5.17</var>experience in other comparable marketing areas, fails to meet the manufacturer's market <br />
         		<a id="pl.5.18"></a><var>5.18</var>penetration requirements.<br />
         		<a id="pl.5.19"></a><var>5.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Termination by dealer.</b> A dealer shall not terminate, cancel, or fail to <br />
         		<a id="pl.5.20"></a><var>5.20</var>renew a dealership agreement except on 90 days written notice to the manufacturer or <br />
         		<a id="pl.5.21"></a><var>5.21</var>distributor, unless a shorter period is agreed upon by the parties. This prohibition does not <br />
         		<a id="pl.5.22"></a><var>5.22</var>apply to a termination, cancellation, or failure to renew due to the death of the dealer or <br />
         		<a id="pl.5.23"></a><var>5.23</var>the death of an individual who is at least a 50 percent owner of the dealership.<br />
         		<br />
         		<a id="bill.0.8.0"></a><a id="pl.5.24"></a><var>5.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. <b>[80G.08] REPURCHASE OF INVENTORY REQUIRED.</b><br />
         		<a id="pl.5.25"></a><var>5.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) If a manufacturer or distributor terminates a dealer agreement as a result of any <br />
         		<a id="pl.5.26"></a><var>5.26</var>action, except for good cause under section 80G.07, the manufacturer or distributor shall <br />
         		<a id="pl.5.27"></a><var>5.27</var>repurchase the inventory as provided in this section. The dealer may keep part or all of the <br />
         		<a id="pl.5.28"></a><var>5.28</var>inventory if it desires to do so, and the manufacturer agrees in writing. If the dealer has an <br />
         		<a id="pl.5.29"></a><var>5.29</var>outstanding debt to the manufacturer or distributor, then the repurchase amount may be <br />
         		<a id="pl.5.30"></a><var>5.30</var>adjusted by the manufacturer to take into account those unpaid debts.<br />
         		<a id="pl.5.31"></a><var>5.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) After written notice by the dealer to the manufacturer or distributor in person <br />
         		<a id="pl.5.32"></a><var>5.32</var>or by registered or certified mail or by a commercial delivery service, return receipt <br />
         		<a id="pl.5.33"></a><var>5.33</var>requested, provided by the dealer within 30 days after termination of the dealer agreement, <br />
         		<a id="pl.5.34"></a><var>5.34</var>the manufacturer or distributor shall, within 30 days after receiving the notice, repurchase <br />
         		<a id="pl.6.1"></a><var>6.1</var>that inventory previously purchased from the manufacturer or distributor as provided in <br />
         		<a id="pl.6.2"></a><var>6.2</var>this section except as otherwise provided in paragraph (a).<br />
         		<a id="pl.6.3"></a><var>6.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon payment within a reasonable time of the repurchase amount to the dealer, <br />
         		<a id="pl.6.4"></a><var>6.4</var>the title, if any, and the right of possession to the repurchased inventory transfers to the <br />
         		<a id="pl.6.5"></a><var>6.5</var>manufacturer or distributor.<br />
         		<a id="pl.6.6"></a><var>6.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) The repurchase amount for the inventory must be at least the amount the dealer <br />
         		<a id="pl.6.7"></a><var>6.7</var>paid for the inventory.<br />
         		<br />
         		<a id="bill.0.9.0"></a><a id="pl.6.8"></a><var>6.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. <b>[80G.09] WARRANTIES.</b><br />
         		<a id="pl.6.9"></a><var>6.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Application.</b> This section applies to all warranty claims submitted <br />
         		<a id="pl.6.10"></a><var>6.10</var>by a dealer to an outdoor sport equipment manufacturer in which the outdoor sport <br />
         		<a id="pl.6.11"></a><var>6.11</var>equipment dealer has complied with the policies and procedures contained in the outdoor <br />
         		<a id="pl.6.12"></a><var>6.12</var>sport equipment manufacturer's warranty.<br />
         		<a id="pl.6.13"></a><var>6.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Prompt payment.</b> Claims filed for payment under warranty agreements <br />
         		<a id="pl.6.14"></a><var>6.14</var>must be approved or disapproved within 30 days after receipt by the outdoor sport <br />
         		<a id="pl.6.15"></a><var>6.15</var>equipment manufacturer. Unless the outdoor sport equipment dealer agrees to a later date, <br />
         		<a id="pl.6.16"></a><var>6.16</var>approved claims for payment must be paid within 30 days after approval.  When a claim is <br />
         		<a id="pl.6.17"></a><var>6.17</var>disapproved, the outdoor sport equipment manufacturer shall notify the dealer within the <br />
         		<a id="pl.6.18"></a><var>6.18</var>30-day period stating the specific grounds on which the disapproval is based.  Any claim <br />
         		<a id="pl.6.19"></a><var>6.19</var>not specifically disapproved within 30 days of receipt is deemed approved and must be <br />
         		<a id="pl.6.20"></a><var>6.20</var>paid within 30 days after the deemed approval.<br />
         		<a id="pl.6.21"></a><var>6.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Post-termination claims.</b> If, after termination of a dealership agreement, a <br />
         		<a id="pl.6.22"></a><var>6.22</var>dealer submits a warranty claim for warranty work performed before the effective date <br />
         		<a id="pl.6.23"></a><var>6.23</var>of the termination, the outdoor sport equipment manufacturer shall handle the claim as <br />
         		<a id="pl.6.24"></a><var>6.24</var>provided in subdivision 2.<br />
         		<a id="pl.6.25"></a><var>6.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Compensation for warranty work.</b> Warranty work performed by the <br />
         		<a id="pl.6.26"></a><var>6.26</var>dealer must be compensated in accordance with the reasonable and customary amount <br />
         		<a id="pl.6.27"></a><var>6.27</var>of time required to complete the work, expressed in hours and fractions of hours <br />
         		<a id="pl.6.28"></a><var>6.28</var>multiplied by the dealer's established customer hourly retail labor rate, which the dealer <br />
         		<a id="pl.6.29"></a><var>6.29</var>shall communicate to the outdoor sport equipment manufacturer before performing the <br />
         		<a id="pl.6.30"></a><var>6.30</var>warranty work.<br />
         		<a id="pl.6.31"></a><var>6.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Expenses.</b> Expenses expressly excluded under the outdoor sport equipment <br />
         		<a id="pl.6.32"></a><var>6.32</var>manufacturer's warranty to the customer must not be included in claims and are not <br />
         		<a id="pl.6.33"></a><var>6.33</var>required to be paid on requests for compensation from the dealer for warranty work <br />
         		<a id="pl.6.34"></a><var>6.34</var>performed.<br />
         		<a id="pl.7.1"></a><var>7.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Compensation for parts.</b> Payment for all parts used by the dealer in <br />
         		<a id="pl.7.2"></a><var>7.2</var>performing warranty work must be paid to the dealer in the amount equal to the dealer's <br />
         		<a id="pl.7.3"></a><var>7.3</var>net price for the parts, plus a minimum of 15 percent to reimburse the dealer for reasonable <br />
         		<a id="pl.7.4"></a><var>7.4</var>costs of doing business in performing warranty service on the outdoor sport equipment <br />
         		<a id="pl.7.5"></a><var>7.5</var>manufacturer's behalf, including, but not limited to, freight and handling costs.<br />
         		<a id="pl.7.6"></a><var>7.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Adjustment for errors.</b> The outdoor sport equipment manufacturer may <br />
         		<a id="pl.7.7"></a><var>7.7</var>adjust for errors discovered during audit, and if necessary, adjust claims paid in error.<br />
         		<a id="pl.7.8"></a><var>7.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Alternate terms and conditions.</b> A dealer may choose to accept alternate <br />
         		<a id="pl.7.9"></a><var>7.9</var>reimbursement terms and conditions in lieu of the requirements of subdivisions 2 to 7, <br />
         		<a id="pl.7.10"></a><var>7.10</var>provided there is a written dealership agreement between the outdoor sport equipment <br />
         		<a id="pl.7.11"></a><var>7.11</var>manufacturer and the dealer providing for compensation to the dealer for warranty labor <br />
         		<a id="pl.7.12"></a><var>7.12</var>costs either as:<br />
         		<a id="pl.7.13"></a><var>7.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) a discount in the pricing of the equipment to the dealer; or <br />
         		<a id="pl.7.14"></a><var>7.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) a lump-sum payment to the dealer.<br />
         		<a id="pl.7.15"></a><var>7.15</var>The discount or lump sum must be no less than five percent of the suggested retail price <br />
         		<a id="pl.7.16"></a><var>7.16</var>of the equipment.  If the requirements of this subdivision are met and alternate terms <br />
         		<a id="pl.7.17"></a><var>7.17</var>and conditions are in place, subdivisions 2 to 7 do not apply and the alternate terms and <br />
         		<a id="pl.7.18"></a><var>7.18</var>conditions are enforceable.<br />
         		<a id="pl.7.19"></a><var>7.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Warranty work on units not sold by the dealer.</b> Upon request of the <br />
         		<a id="pl.7.20"></a><var>7.20</var>manufacturer or distributor, the dealer shall perform warranty repair work on units that <br />
         		<a id="pl.7.21"></a><var>7.21</var>were not sold by the dealer. Compensation for that work must be on the same terms and <br />
         		<a id="pl.7.22"></a><var>7.22</var>conditions otherwise required in this section.<br />
         		<br />
         		<a id="bill.0.10.0"></a><a id="pl.7.23"></a><var>7.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. <b>[80G.10] STATUS OF INCONSISTENT AGREEMENTS.</b><br />
         		<a id="pl.7.24"></a><var>7.24</var>&nbsp;&nbsp;&nbsp;&nbsp;A term of a dealership agreement either expressed or implied, including a choice <br />
         		<a id="pl.7.25"></a><var>7.25</var>of law provision that is inconsistent with sections 
         <statute_ref>80G.01</statute_ref> to 
         <statute_ref>80G.11</statute_ref> or that purports to <br />
         		<a id="pl.7.26"></a><var>7.26</var>waive an outdoor sport equipment manufacturer's or distributor's compliance with sections <br />
         		<a id="pl.7.27"></a><var>7.27</var><statute_ref>80G.01</statute_ref> to 
         <statute_ref>80G.11</statute_ref> is void and unenforceable and does not waive any rights provided to <br />
         		<a id="pl.7.28"></a><var>7.28</var>a person by sections 80G.01 to 
         <statute_ref>80G.11</statute_ref>.<br />
         		<br />
         		<a id="bill.0.11.0"></a><a id="pl.7.29"></a><var>7.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. <b>[80G.11] REMEDIES.</b><br />
         		<a id="pl.7.30"></a><var>7.30</var>&nbsp;&nbsp;&nbsp;&nbsp;If either party to a dealership agreement violates any provision of sections 
         <statute_ref>80G.01</statute_ref> <br />
         		<a id="pl.7.31"></a><var>7.31</var>to 
         <statute_ref>80G.11</statute_ref>, the other party may bring an action against the alleged violator in a court <br />
         		<a id="pl.7.32"></a><var>7.32</var>of competent jurisdiction for damages sustained by the allegedly wronged party as a <br />
         		<a id="pl.7.33"></a><var>7.33</var>consequence of the violation, and the allegedly wronged party may also be granted <br />
         		<a id="pl.8.1"></a><var>8.1</var>injunctive relief against any action or inaction prohibited under sections 80G.01 to 80G.11. <br />
         		<a id="pl.8.2"></a><var>8.2</var>The remedies in this section are in addition to any other remedies permitted by law.<br />
         		<br />
         		<a id="bill.0.12.0"></a><a id="pl.8.3"></a><var>8.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. <b>[80G.12] APPLICABILITY.</b><br />
         		<a id="pl.8.4"></a><var>8.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sections 
         <statute_ref>80G.01</statute_ref> to 
         <statute_ref>80G.11</statute_ref> are effective August 1, 2008, and apply to all dealership <br />
         		<a id="pl.8.5"></a><var>8.5</var>agreements entered into, amended, or renewed on or after that date. Any dealership <br />
         		<a id="pl.8.6"></a><var>8.6</var>agreement in force and effect on August 1, 2008, that has a stated expiration date after <br />
         		<a id="pl.8.7"></a><var>8.7</var>that date and is not renewed or amended on or after August 1, 2008, is not subject to <br />
         		<a id="pl.8.8"></a><var>8.8</var>sections 80G.01 to 80G.11. Sections 80G.01 to 80G.11 apply as of August 1, 2008, to any <br />
         		<a id="pl.8.9"></a><var>8.9</var>dealership agreement then in effect that has no stated expiration date.<br />
         		
      </div>