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- 2023 Edition
- Title 13. Contracts
- Chapter 8. Illegal and Void Contracts Generally
- Article 2. Regulation of Tractor and Farm Equipment Manufacturers, Distributors, and Dealers
OCGA § 13-8-22 Repurchase of Inventory Upon Termination of Franchise; Payment For Inventory Repurchased; Title to Repurchased Inventory; Exempt Inventory Items; Civil Liability For Failure to Repurchase Inventory
Library | Code of Georgia |
Edition | 2023 |
Currency | Current through 2023-2024 Legislative Session Chapter 353 and 2023 Special Session Chapter 5 |
Year | 2023 |
Citation | OCGA § 13-8-22 |
(a) Whenever any dealer enters into a franchise agreement with a manufacturer, distributor, or wholesaler wherein the dealer agrees to maintain an inventory of equipment or repair parts and the franchise is subsequently terminated, the manufacturer, distributor, or wholesaler shall repurchase the inventory as provided in this article. The dealer may keep the inventory if he or she desires. If the dealer has any outstanding debts to the manufacturer, distributor, or wholesaler, then the repurchase amount may be credited to the dealer's account.
(b) The manufacturer, distributor, or wholesaler shall repurchase that inventory previously purchased from it and held by the dealer on the date of termination of the contract. The manufacturer, distributor, or wholesaler shall pay 100 percent of the actual dealer cost, including freight, of all new, unsold, undamaged, and complete units of equipment which are resalable and 100 percent of the current wholesale price of all new, unused, undamaged repair parts and accessories which are listed in the manufacturer's current parts price list. The manufacturer, distributor, or wholesaler shall pay the dealer 5 percent of the current wholesale price on all new, unused, and undamaged repair parts returned to cover the cost of handling, packing, and loading. The manufacturer, distributor, or wholesaler shall have the option of performing the handling, packing, and loading in lieu of paying the 5 percent sum imposed by this subsection for these services.
(c) Upon payment within a reasonable time of the repurchase amount to the dealer, the title and right of possession to the repurchased inventory shall transfer to the manufacturer, distributor, or wholesaler, as the case may be.
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