Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                         CHAPTER 155-S.F.No. 71 
           An act relating to commerce; providing for payment to 
          a farm implement retailer by the manufacturer, 
          wholesaler, or distributor who repurchases inventory; 
          requiring the payment of interest on overdue accounts; 
          amending Minnesota Statutes 1984, section 325E.06, 
          subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 325E.06, 
subdivision 1, is amended to read: 
    Subdivision 1.  [OBLIGATION TO REPURCHASE.] Whenever any 
person, firm, or corporation engaged in the business of selling 
and retailing farm implements and repair parts for farm 
implements enters into a written contract, sales agreement or 
security agreement whereby the retailer agrees with any 
wholesaler, manufacturer, or distributor of farm implements, 
machinery, attachments or repair parts to maintain a stock of 
parts or complete or whole machines, or attachments, and 
thereafter the written contract, sales agreement or security 
agreement is terminated, cancelled or discontinued, then the 
wholesaler, manufacturer, or distributor shall pay to the 
retailer or credit to the retailer's account, if the retailer 
has outstanding any sums owing the wholesaler, manufacturer, or 
distributor, unless the retailer should desire and has a 
contractual right to keep such merchandise, a sum equal to 100 
percent of the net cost of all current unused complete farm 
implements, machinery and attachments in new condition which 
have been purchased by the retailer from the wholesaler, 
manufacturer or distributor within the 24 months immediately 
preceding notification by either party of intent to cancel or 
discontinue the contract, including transportation charges which 
have been paid by the retailer, or invoiced to retailer's 
account by the wholesaler, manufacturer or distributor and 80 
percent of the current net prices on repair parts, including 
superseded parts listed in current price lists or catalogs in 
use by the wholesaler, manufacturer or distributor on the date 
of cancellation or discontinuance of the contract, which parts 
had previously been purchased by the retailer from the 
wholesaler, manufacturer, or distributor and are held by the 
retailer on the date of the cancellation or discontinuance of 
the contract or thereafter received by the retailer from the 
wholesaler, manufacturer or distributor.  The wholesaler, 
manufacturer, or distributor shall also pay the retailer or 
credit to his account a sum equal to 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 unless the wholesaler, manufacturer or distributor 
elects to perform inventorying, packing and loading of the parts 
itself.  Upon the payment or allowance of credit to the 
retailer's account of the sum required by this subdivision, the 
title to the farm implements, farm machinery, attachments or 
repair parts shall pass to the manufacturer, wholesaler or 
distributor making the payment or allowing the credit and the 
manufacturer, wholesaler or distributor shall be entitled to the 
possession of the farm implements, machinery, attachments or 
repair parts.  However, this section shall not in any way affect 
any security interest which the wholesaler, manufacturer or 
distributor may have in the inventory of the retailer.  
     Payment required to be made under this subdivision must be 
made not later than 90 days from the date the farm implements, 
machinery, attachments, and repair parts are returned by the 
retailer, and if not by then paid, the amount payable by the 
wholesaler, manufacturer, or distributor bears interest at the 
rate of 1-1/2 percent per month from the date the contract was 
terminated, cancelled, or discontinued until the date payment is 
received by the retailer. 
    Approved May 20, 1985