2023 New York Laws › GBS - General Business › Article 33-A - Dealer Agreements for the Sale of Farm Equipment › 696-E - Parts and Return of Parts.

§  696-e.  Parts  and return of parts. 1. Every supplier shall provide
for the availability of repair parts throughout  the  reasonable  useful
life of any equipment sold.
2. Every supplier shall provide to its dealers, on an annual basis, an
opportunity  to  return  a  portion of their surplus parts inventory for
credit. The surplus procedure shall be administered as follows:
(a) The supplier may notify its dealers of a time period, of at  least
sixty  days duration, during which time dealers may submit their surplus
parts list and return their surplus parts to the supplier.
(b) If a supplier has not notified a dealer of a specific time  period
for  returning surplus parts within the preceding twelve months, then it
shall authorize and allow the  dealer's  surplus  parts  return  request
within thirty days after receipt of such request from the dealer.
(c)  Pursuant  to  the provisions of this subdivision, a supplier must
allow surplus parts return authority on a dollar value of parts equal to
six percent of the total dollar value of parts purchased by  the  dealer
from  the  supplier during the twelve month period immediately preceding
the notification to the dealer by the  supplier  of  the  surplus  parts
return  program,  or  the  month  the  dealer's  return request is made,
whichever is applicable. However, the  dealer  may  elect  to  return  a
dollar  value  of  the  dealer's  surplus  parts  equal to less than six
percent of the total dollar value of parts purchased by the dealer  from
the  supplier  during  the  preceding  twelve  month  period as provided
herein.
(d) No obsolete or superceded part, may  be  returned,  but  any  part
listed in the supplier's current returnable parts list or any superceded
part  that  has  not  been  the  subject  of the supplier's parts return
program at the date of notification to the dealer by the supplier of the
surplus parts return program, or the date of the dealer's  parts  return
request,  whichever  is applicable, shall be eligible for return and the
credit specified. However, returned parts must  be  in  new  and  unused
condition  and  must have been purchased by the dealer from the supplier
to whom they are returned unless no program for the return of such  part
has been offered by the supplier.
(e)  The  minimum lawful credit to be allowed for returned parts shall
be eighty-five percent of the cost thereof as listed in  the  supplier's
current  returnable  parts  list  at the date of the notification to the
dealer by the supplier of the surplus parts return program, or the  date
of the dealer's parts return request, whichever is applicable.
(f)  Applicable  credit  hereunder  must be issued or furnished to the
dealer within sixty days after receipt of the dealer's returned parts by
the supplier.
(g) Packing and return freight  expense  incurred  in  any  return  of
surplus  parts  pursuant to the terms of this subdivision shall be borne
by the supplier.
(h) The provisions of  this  section  shall  be  supplemental  to  any
agreement  between  the  dealer  and the supplier covering the return of
equipment, attachments and repair parts which provides the  dealer  with
greater  protection.  The  dealer  can elect to pursue either his or her
contract remedy or the remedy provided by state law, and an election  by
the dealer to pursue his or her contract remedy shall not bar his or her
right  to  the  remedy  provided  herein  as  to  those repair parts not
affected by the  contract  remedy.  Notwithstanding  anything  contained
herein,  the rights of a supplier to charge back to the dealer's account
amounts previously paid or  credited  as  a  discount  incident  to  the
dealer's   purchase  of  goods  shall  not  be  affected.  Further,  any
repurchase hereunder shall not be subject to the provisions of the  bulk
sales law. Additionally, nothing shall preclude a price for return parts

which  is  greater than the total allowance for parts allowed herein and
the shipping allowance, in such case the packing, freight  and  handling
expense charge, shall not be borne by the supplier.