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      RS 51:481     




§481. Applicability of Part

            A. The provisions of this Part shall apply to written contracts or oral agreements of definite or indefinite duration between any person, firm, corporation, partnership, limited liability company, or other business entity engaged in the business of selling, distributing, or retailing farm, construction, forestry, heavy industrial material handling, utility and lawn and garden equipment, engines, implements, machinery, attachments, and repair parts for such equipment and any wholesaler, manufacturer, or distributor of such equipment and repair parts, whereby the retailer agrees with the wholesaler, manufacturer, or distributor to maintain a stock of such parts, or complete equipment or machines, or attachments. Any successor in interest of the manufacturer, wholesaler, or distributor shall include any purchaser of assets or stock, any surviving corporation or other business entity resulting from merger or liquidation, any receiver or assignee, or any trustee of the original equipment manufacturer, wholesaler, or distributor.

            B. For the purposes of this Part, the following words and phrases shall have the following meanings:

            (1) "Agent" means any manufacturer, wholesaler, or wholesale distributor; any purchaser of assets or stock of any surviving corporation or other business entity resulting from a merger or liquidation; any receiver or assignee; or any trustee of the original equipment manufacturer, wholesaler, or distributor.

            (2) "Burden of proof", in the context of an incentive agreement, means that, if a dealer objects to the market statistics provided by the agent in support of a bonus or penalty proposed by the agent pursuant to the agreement, the agent shall provide all of the following information:

            (a) The name of the entity or individual that purchased the contested equipment upon which the amount of the incentive payment or penalty is based.

            (b) Sufficient evidence of the first substantial use of the contested equipment within the dealer's area of responsibility. Sufficient evidence shall consist of either:

            (i) Geospatial telematic data from the reported equipment's hardware.

            (ii) All of the following:

            (aa) Name of the entity or individual that purchased the equipment.

            (bb) City and state to which the equipment was delivered, as indicated on the manufacturer's delivery receipt provided by the dealer to the retail purchaser.

            (cc) PIN, VIN, or serial number of the equipment.

            (dd) Product segment (large ag, mid ag, or small ag) of the equipment.

            (ee) Model class of the equipment.

            (ff) Size class (horsepower) of the equipment.

            (3) "Dealer" means any farm dealer, heavy industrial equipment dealer, construction equipment dealer, forestry equipment dealer, material handling equipment dealer, utility equipment dealer, engines equipment dealer, lawn and garden equipment dealer, or retail equipment distributor dealer.

            (4) "Dealer agreement" means a written or oral agreement between a dealer and an agent that provides for the rights and obligations of the parties with respect to the sale or purchase of equipment or repair parts.

            (5) "Farm equipment", "construction equipment", "forestry equipment", "heavy industrial equipment", "material handling equipment", "utility equipment", and "lawn and garden equipment" includes every vehicle designed or adapted and used exclusively for agricultural, construction, forestry, industrial material handling, utility, or lawn and garden operations, although incidentally operated or used upon the highways.

            (6) "Incentive agreement" means any agreement between the agent and dealer involving the payment of a bonus or incentive payment by the agent to the dealer, or the imposition of a penalty by the agent on the dealer, based upon the dealer's sales within its area of responsibility.

            (7) "Superseded parts" includes any part that will provide the same function as a previously available part and can be purchased from the manufacturer, wholesaler, or distributor on the date of cancellation.

            Acts 1991, No. 627, §1; Acts 2015, No. 466, §1; Acts 2021, No. 359, §1.

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