Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                         CHAPTER 70-H.F.No. 415 
           An act relating to commerce; regulating farm equipment 
          dealerships; amending Minnesota Statutes 1990, 
          sections 325E.061, subdivisions 2, 4, and 5; 325E.063; 
          325E.064; 325E.068, subdivisions 2, 4, and 5; 
          325E.0682; and 325E.0683. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 325E.061, 
subdivision 2, is amended to read: 
    Subd. 2.  [FARM EQUIPMENT.] "Farm equipment" means 
equipment and parts for equipment including, but not limited to, 
tractors, trailers, combines, tillage implements, balers, skid 
steer loaders, attachments and repair parts for them, and other 
equipment, including attachments and repair parts, used in the 
planting, cultivating, irrigation, harvesting, and marketing of 
agricultural products, excluding self-propelled machines 
designed primarily for the transportation of persons or property 
on a street or highway. 
    Sec. 2.  Minnesota Statutes 1990, section 325E.061, 
subdivision 4, is amended to read: 
    Subd. 4.  [FARM EQUIPMENT DEALER OR DEALERSHIP.] "Farm 
equipment dealer" or "farm equipment dealership" means a person, 
partnership, corporation, association, or other form of business 
enterprise engaged in acquiring farm equipment from a 
manufacturer and reselling the retail sale of farm equipment at 
wholesale or retail. 
    Sec. 3.  Minnesota Statutes 1990, section 325E.061, 
subdivision 5, is amended to read: 
    Subd. 5.  [DEALERSHIP AGREEMENT.] "Dealership agreement" 
means an oral or written agreement of definite or indefinite 
duration between a farm equipment manufacturer and a farm 
equipment dealer which enables the dealer to purchase equipment 
from the manufacturer and provides for the rights and 
obligations of the parties with respect to the purchase or sale 
of farm equipment. 
    Sec. 4.  Minnesota Statutes 1990, section 325E.063, is 
amended to read: 
    325E.063 [VIOLATIONS.] 
    (a) It is a violation of sections 325E.061 to 325E.065 for 
a farm equipment manufacturer to coerce a farm equipment dealer 
to accept delivery of farm equipment, parts, or accessories 
which the farm equipment dealer has not voluntarily ordered. 
    (b) It is a violation of sections 325E.061 to 325E.065 for 
a farm equipment manufacturer to: 
    (1) condition or attempt to condition the sale of farm 
equipment on a requirement that the farm equipment dealer also 
purchase other goods or services; except that 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; 
    (2) coerce or attempt to coerce a farm equipment dealer 
into a refusal to purchase the farm equipment manufactured by 
another farm equipment manufacturer; 
    (3) discriminate in the prices charged for farm equipment 
of like grade and quality sold by the farm equipment 
manufacturer to similarly-situated farm equipment dealers.  The 
clause does not prevent the use of differentials which make only 
due allowance for difference 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; or 
     (4) attempt or threaten to terminate, cancel, fail to 
renew, or substantially change the competitive circumstances of 
the dealership agreement if the attempt or threat is based on 
the results of a natural disaster, including a sustained drought 
in the dealership market area, a labor dispute, or other 
circumstance beyond the dealer's control. 
    Sec. 5.  Minnesota Statutes 1990, section 325E.064, is 
amended to read: 
    325E.064 [STATUS OF INCONSISTENT AGREEMENTS.] 
    A term of a dealership agreement either expressed or 
implied, including a choice of law provision, which is 
inconsistent with the terms of sections 325E.061 to 325E.065 or 
that purports to waive a farm equipment manufacturer's 
compliance with sections 325E.061 to 325E.065 is void and 
unenforceable and does not waive any rights which are provided 
to a person by sections 325E.061 to 325E.065. 
    Sec. 6.  Minnesota Statutes 1990, section 325E.068, 
subdivision 2, is amended to read: 
    Subd. 2.  [HEAVY AND UTILITY EQUIPMENT.] "Heavy and utility 
equipment," "heavy equipment," or "equipment" means 
equipment and parts for equipment including but not limited to 
excavators, crawler tractors, wheel loaders, compactors, pavers, 
backhoes, hydraulic hammers, cranes, fork lifts, compressors, 
generators, attachments and repair parts for them, and other 
equipment, including attachments and repair parts, used in all 
types of construction of buildings, highways, airports, dams, or 
other earthen structures or in moving, stock piling, or 
distribution of materials used in such construction, excluding 
self-propelled machines designed primarily for the 
transportation of persons or property on a street or highway. 
    Sec. 7.  Minnesota Statutes 1990, section 325E.068, 
subdivision 4, is amended to read: 
    Subd. 4.  [HEAVY AND UTILITY EQUIPMENT DEALER OR 
DEALERSHIP.] "Heavy and utility equipment dealer" or "heavy and 
utility equipment dealership" means a person, partnership, 
corporation, association, or other form of business enterprise 
engaged in the retail sale of business of acquiring heavy and 
utility equipment from a manufacturer and reselling the heavy 
and utility equipment at wholesale or retail. 
    Sec. 8.  Minnesota Statutes 1990, section 325E.068, 
subdivision 5, is amended to read: 
    Subd. 5.  [DEALERSHIP AGREEMENT.] "Dealership agreement" 
means an oral or written agreement of definite or indefinite 
duration between an equipment manufacturer and an equipment 
dealer that enables the dealer to purchase heavy and utility 
equipment from the manufacturer and provides for the rights and 
obligations of the parties with respect to the purchase or sale 
of heavy and utility equipment. 
    Sec. 9.  Minnesota Statutes 1990, section 325E.0682, is 
amended to read: 
    325E.0682 [VIOLATIONS.] 
    (a) It is a violation of sections 325E.068 to 325E.0684 for 
an equipment manufacturer to coerce an equipment dealer to 
accept delivery of heavy and utility equipment, parts, or 
accessories that the equipment dealer has not voluntarily 
ordered. 
    (b) It is a violation of sections 325E.068 to 325E.0684 for 
an equipment manufacturer to: 
    (1) condition or attempt to condition the sale of equipment 
on a requirement that the equipment dealer also purchase other 
goods or services; except that an equipment manufacturer may 
require the dealer to purchase all parts reasonably necessary to 
maintain the quality of operation in the field of any equipment 
used in the trade area and telecommunications necessary to 
communicate with the equipment manufacturer; 
    (2) coerce an equipment dealer into a refusal to purchase 
the equipment manufactured by another equipment manufacturer; 
    (3) discriminate in the prices charged for equipment of 
like grade and quality sold by the equipment manufacturer to 
similarly situated equipment dealers.  This clause does not 
prevent the use of differentials that make only due allowance 
for difference in the cost of manufacture, sale, or delivery or 
for the differing methods or quantities in which the equipment 
is sold or delivered, by the equipment manufacturer; or 
    (4) attempt or threaten to terminate, cancel, fail to 
renew, or substantially change the competitive circumstances of 
the dealership agreement if the attempt or threat is based on 
the results of a natural disaster, a labor dispute, or other 
circumstance beyond the dealer's control. 
    Sec. 10.  Minnesota Statutes 1990, section 325E.0683, is 
amended to read: 
    325E.0683 [STATUS OF INCONSISTENT AGREEMENTS.] 
    A term of a dealership agreement either expressed or 
implied, including a choice of law provision, that is 
inconsistent with the terms of sections 325E.068 to 325E.0684 or 
that purports to waive an equipment manufacturer's compliance 
with sections 325E.068 to 325E.0684 is void and unenforceable 
and does not waive any rights that are provided to a person by 
sections 325E.068 to 325E.0684. 
    Sec. 11.  [INTENT.] 
    The amendments by sections 1 to 10 are restatements and 
clarifications of the sections they amend and must not be 
construed as modifications of existing law. 
    Sec. 12.  [EFFECTIVE DATE.] 
    Sections 1 to 11 are effective the day after final 
enactment.  The sections apply to all dealership agreements now 
in effect that have no expiration date and to all other 
contracts entered into, amended, or renewed after the day of 
enactment. 
    Presented to the governor May 7, 1991 
    Signed by the governor May 10, 1991, 9:15 a.m.