CHAPTER 67
HOUSE BILL No. 2660
An Act concerning dealership franchise agreements; relating
to repurchase of machinery,
equipment and parts upon termination; amending K.S.A. 16-1003 and
16-1304 and
K.S.A. 2001 Supp. 16-1404 and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 16-1003 is hereby
amended to read as follows: 16-
1003. (a) The provisions of this act shall not require the
repurchase from
a retailer of:
(1) Any repair part which is in a broken
or damaged package;
(2) any single repair part which is
priced as a set of two or more items;
(3) any repair part which because of its
condition is not resalable as
a new part without repackaging or reconditioning;
(4) any farm implements, machinery,
attachments or repair parts for
which the retailer is unable to furnish evidence, satisfactory to
the whole-
saler, manufacturer or distributor, of clear title, free and clear
of all
claims, liens and encumbrances;
(5) any farm implements, machinery,
attachments or repair parts
which the retailer desires to keep, provided the retailer has a
contractual
right to do so;
(6) any farm implements, machinery and
attachments which are not
current models or which are not in new, unused, undamaged,
complete
condition;
(7) any repair parts which are not in
new, unused, undamaged con-
dition;
(8) any farm implements, machinery or
attachments which were pur-
chased prior to the beginning of the 24-month period immediately
pre-
ceding the date of notification of termination;
(9) any farm implements, machinery,
attachments or repair parts
which were ordered by retailer on or after the date of notification
of
termination; or
(10) any farm implements, machinery,
attachments or repair parts
which were acquired by the retailer from any source other than the
whole-
saler, manufacturer, distributor or transferee of such wholesaler,
manu-
facturer or distributor, unless such farm implements, machinery,
attach-
ments or repair parts were ordered from, invoiced to the
retailer by or
financed to the retailer by the wholesaler, manufacturer or
distributor or
transferee of such wholesaler, manufacturer or
distributor.
(b) Any repair part which is not excluded
from the repurchase obli-
gations established under K.S.A. 16-1002 and 16-1005, and
amendments
thereto, by this section, as amended by this act, and the
repurchase of
which is in dispute on the effective date of this act shall be
subject to the
repurchase obligations established under K.S.A. 16-1002 and
16-1005,
and amendments thereto.
Sec. 2. K.S.A. 16-1304 is hereby
amended to read as follows: 16-
1304. The provisions of K.S.A. 16-1303, and amendments
thereto, shall
not require the repurchase from a retailer of any:
(a) Repair part which is in a broken or
damaged package;
(b) single repair part which is priced as
a set of two or more items;
(c) repair part which, because of its
condition, is not resalable as a
new part;
(d) inventory for which the retailer is
unable to furnish evidence,
satisfactory to the supplier, of title, free and clear of all
claims, liens and
encumbrances;
(e) inventory which the retailer desires
to keep, and for which the
retailer has a contractual right to do so;
(f) machines, equipment, and attachments
which are not in new, un-
used, undamaged, or complete condition;
(g) repair parts which are not in new,
unused, or undamaged condi-
tion;
(h) machines, equipment or attachments
which were purchased 24
months or more prior to notice of termination of the contract;
(i) inventory which was ordered by the
retailer on or after the date
of notification of termination of the contract;
(j) inventory which was acquired by the
retailer from any source other
than the supplier or transferee of such supplier, unless such
inventory
was ordered from, invoiced to the retailer by or financed to the
retailer
by the supplier or transferee of such supplier; or
(k) part that has been removed from an
engine or short block or piece
of equipment or any part purchased separately that has been mounted
or
installed by the retailer on an engine or on equipment.
Sec. 3. K.S.A. 2001 Supp. 16-1404
is hereby amended to read as
follows: 16-1404. The provisions of K.S.A. 16-1403, and
amendments
thereto, shall not require the repurchase from a retailer of
any:
(a) Repair part which is in a broken or
damaged package;
(b) single repair part which is priced as
a set of two or more items;
(c) repair part which, because of its
condition, is not resalable as a
new part;
(d) inventory for which the retailer is
unable to furnish evidence,
satisfactory to the supplier, of title, free and clear of all
claims, liens and
encumbrances;
(e) inventory which the retailer desires
to keep, and for which the
retailer has a contractual right to do so;
(f) machines, equipment, and attachments
which are not in new, un-
used, undamaged, or complete condition;
(g) repair parts which are not in new,
unused, or undamaged condi-
tion;
(h) machines, equipment or attachments
which were purchased 24
months or more prior to notice of termination of the contract;
(i) inventory which was ordered by the
retailer on or after the date
of notification of termination of the contract;
(j) inventory which was acquired by the
retailer from any source other
than the supplier or transferee of such supplier, unless such
inventory
was ordered from, invoiced to the retailer by or financed to the
retailer
by the supplier or transferee of such supplier; or
(k) part that has been removed from an
engine or short block or piece
of equipment or any part purchased separately that has been mounted
or
installed by the retailer on an engine or on equipment.
Sec. 4. K.S.A. 16-1003 and 16-1304
and K.S.A. 2001 Supp. 16-1404
are hereby repealed.
Sec. 5. This act shall take effect
and be in force from and after its
publication in the statute book.
Approved April 15, 2002.
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