N.Y. GBS Law § 696-F — New York Code / Act GBS / Article 33-A / Section 696-F
Repurchase of equipment upon termination
Status: in_force

§ 696-f. Repurchase of equipment upon termination. 1. Whenever any\ndealer enters into a dealer agreement with a supplier wherein the dealer\nagrees to maintain an inventory of equipment or repair parts and the\ndealer agreement is subsequently terminated, the supplier shall\nrepurchase the inventory as provided in this article. The dealer may\nkeep the inventory if such dealer desires provided the dealer has a\ncontractural right to do so. If the dealer has any outstanding debts to\nthe supplier then part or all of the repurchase amount equal to, but no\nmore than, the total amount of the debts may be credited to the dealer's\naccount.\n  2. If the dealer decides not to keep the inventory, the supplier shall\nrepurchase that inventory previously purchased and held by the dealer on\nthe date of termination of the contract. The supplier shall pay one\nhundred percent of the net cost of all new, unsold, undamaged and\ncomplete equipment which is resalable, less a reasonable allowance for\ndepreciation due to usage by the dealer and deterioration directly\nattributable to weather conditions at the dealer's location and less all\nprograms and discounts previously allowed thereon and eighty-five\npercent of the current net price of all new, unused, undamaged repair\nparts and accessories which are listed in the supplier's effective price\nlist or catalogue less all programs and discounts previously allowed\nthereon by the supplier to the dealer. The supplier shall also pay the\ndealer six percent of the current net price on all new, unused and\nundamaged repair parts returned to cover the cost of handling, packing\nand loading. The supplier shall have the option of performing the\nhandling, packing and loading or paying one hundred percent of the\ncurrent net price of parts in lieu of paying the six percent sum imposed\nherein for these services and in this case the dealer shall make\navailable to the supplier, at the dealer's address or at the places at\nwhich it is located, all equipment previously purchased by the dealer,\nafter receipt by the dealer of the full repurchase amount.\n  3. Upon payment within sixty days of the repurchase amount to the\ndealer, the title and right to possession of the repurchased inventory\nshall transfer or be transferred to the supplier.\n  4. The provisions of this article shall not require the repurchase\nfrom the dealer of:\n  (a) any repair part which has a limited storage life or is otherwise\nsubject to deterioration;\n  (b) any single repair part which is priced as a set of two or more\nitems;\n  (c) any repair part which because of its condition is not resalable as\na new part without repairing or reconditioning;\n  (d) any inventory for which the dealer is unable to furnish evidence\nreasonably satisfactory to the supplier, of good title, free and clear\nof all claims, liens and encumbrances;\n  (e) any inventory which the dealer desires to keep, provided the\ndealer has a contractural right to do so;\n  (f) any equipment which is not in new, unused, undamaged, and complete\ncondition;\n  (g) any equipment which has been used by the dealer or has\ndeteriorated because of weather conditions at the dealer's location\nunless the supplier receives a reasonable allowance for such usage or\ndeterioration;\n  (h) any repair parts which are not in new, unused, undamaged\ncondition;\n  (i) any inventory which was ordered by the dealer on or after the date\nof receipt of the notification of termination of the dealer agreement;\nor\n  (j) any inventory which was acquired by the dealer from any source\nother than the supplier.\n  5. If any supplier shall fail or refuse to repurchase any inventory\ncovered under the provisions of this article within sixty days after\ntermination of a dealer's contract, he shall be civilly liable for a\ntotal amount of one hundred fifteen percent of the current net price of\nthe inventory plus any freight charges paid by the dealer plus all cost\nof financing such repurchase, including courts costs and reasonable\nattorneys' fees allowed by the court.\n