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| Georgia General Assembly |
HB529.html
01 LC 25 2018
House Bill
529
By: Representatives West of the 101st,
Stallings of the 100th, Walker of the 141st, Hudson of the
156th, Pinholster of the 15th and others
A BILL TO BE
ENTITLED
AN ACT
To amend Chapter 8 of Title 13 of the Official Code of
Georgia Annotated, relating to illegal and void contracts generally, so as to
change certain provisions relating to regulation of farm tractor or farm
equipment manufacturers, distributors, and dealers; to define certain terms; to
regulate sales of certain farm tractors or farm equipment; to regulate the
establishment and relocation of dealerships; to prohibit certain unfair
competition with farm tractor or farm equipment dealers; to make editorial
changes; to provide for applicability; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF
GEORGIA:
SECTION 1.
Chapter 8 of Title 13 of the Official Code of Georgia
Annotated, relating to illegal and void contracts generally, is amended by
striking Article 2 and inserting in lieu thereof the
following:
"ARTICLE
2
13-8-11.
The General Assembly
finds that the distribution of farm tractors and
or farm equipment in the State of Georgia vitally affects the general
economy of the state and the public interest and public welfare and, in the
exercise of its police power, it is necessary to regulate farm tractor
and or farm equipment manufacturers, distributors,
dealers, and their representatives doing business in Georgia in order to prevent
frauds, unfair business practices, unfair methods of competition, impositions,
and other abuses upon its citizens.
13-8-12.
As used in this
article, the term:
(0.1) 'Dealer' means a farm
tractor or farm equipment dealer.
(0.2)
'Dealership' means the business of selling or attempting to effect the sale by a
dealer of new farm tractors or farm equipment or the right conferred by written
or oral agreement with a manufacturer, distributor, or wholesaler, for a
definite or indefinite period of time, to sell or attempt to effect the sale of
new farm tractors or farm equipment.
(1)
'Distributor' or 'wholesaler' means any person, company, or corporation who
sells or distributes new farm tractors and or
farm equipment to farm tractor or farm equipment dealers and who
maintains distributor representatives within the state.
(2) 'Distributor branch' means a branch office
maintained by a distributor or wholesaler which sells or distributes new
farm tractors and or farm equipment to
farm tractor or farm equipment dealers.
(3)
'Distributor representative' means a representative employed by a distributor
branch, distributor, or wholesaler.
(4) 'Factory
branch' means a branch office maintained by a manufacturer which manufactures
and assembles farm tractors and or farm equipment
for sale to distributors or farm tractor or farm equipment dealers or
which is maintained for directing and supervising the representatives of the
manufacturer.
(5) 'Factory representative' means a
representative employed by a manufacturer or employed by a factory branch for
the purpose of making or promoting the sale of farm tractors
and or farm equipment or for supervising, servicing,
instructing, or contracting with farm tractor or farm equipment dealers
or prospective dealers.
(5.1) 'Farm tractors or
farm equipment' means those farm tractors and other farm implements primarily
designed for use in agriculture.
(5.2) 'Farm
tractor or farm equipment dealer' means any person who sells, solicits, or
advertises the sale of new and used farm tractors or farm equipment to the
consuming public, except that such term shall not include (A) receivers,
trustees, administrators, executors, guardians, or other persons appointed by or
acting under judgment, decree, or order of any court; (B) public officers while
performing their duties as such officers; (C) persons making casual sales of
their own farm tractor or item of farm equipment not subject to sales tax under
the laws of the State of Georgia; (D) persons engaged in the auction sale of
farm tractors or farm equipment; (E) dealers in used farm tractors or farm
equipment; or (F) any dealer which does not derive the majority of its revenue
from the sale of farm tractors or farm
equipment.
(6) 'Franchise' means an oral or
written agreement for a definite or indefinite period of time in which a
manufacturer, distributor, or wholesaler grants to a farm tractor or farm
equipment dealer permission to use a trade name, service mark, or related
characteristic, and in which there is a community of interest in the marketing
of farm tractors and or farm equipment or
services related thereto at wholesale, retail, whether by leasing, sale, or
otherwise.
(7) 'Franchisee' means a farm
tractor and or farm equipment dealer to whom a franchise
is offered or granted.
(8) 'Franchisor' means a
manufacturer, distributor, or wholesaler who grants a franchise to a farm
tractor and or farm equipment dealer.
(9) 'Fraud' means, in addition to its normal legal
connotation, the following: a misrepresentation in any manner, whether
intentionally false or arising from gross negligence, of a material fact; a
promise or representation not made honestly and in good faith; or an intentional
failure to disclose a material fact.
(10)
'Manufacturer' means any person engaged in the business of manufacturing or
assembling new and unused farm tractors and or
farm equipment.
(10.1) 'National account customer'
means a user of new farm tractors or farm equipment which has multiple locations
in two or more relevant market areas serviced by dealers of the same product
line or make of such farm tractor or farm equipment and which purchases or
leases new farm tractors or farm equipment directly from a manufacturer,
distributor, wholesaler, distributor branch or division, factory branch or
division, or wholesale branch or division.
(11)
'New farm tractor and or farm equipment' means a
farm tractor or unit of farm equipment which has not been previously sold
to and put into regular use or service by any person except a distributor or
wholesaler or farm tractor and or farm equipment
dealer for resale.
(12) 'Person' means a natural
person, corporation, partnership, trust, or other business entity; and, in case
of a business entity, it shall include any other entity in which it has a
majority interest or effectively controls as well as the individual officers,
directors, and other persons in active control of the activities of each such
entity.
(12.1) 'Relevant market area' means any
county or counties within this state in which a farm tractor or farm equipment
dealer actually sells or solicits or advertises the sale of new or used farm
tractors or farm equipment to the consuming public or the geographic area for
which such dealer is assigned responsibility for selling or soliciting or
advertising the sale of farm tractors or farm equipment under the terms of a
franchise, whichever is greater.
(13) 'Sale' means
the issuance, transfer, agreement for transfer, exchange, pledge, hypothecation,
mortgage in any form, whether by transfer in trust or otherwise, of any
farm tractor or unit of farm equipment or interest therein or of any
franchise related thereto; any option, subscription or other contract, or
solicitation, looking to a sale, or offer or attempt to sell in any form,
whether in oral or written form.
(14) 'Tractors
or farm equipment' means those tractors and other farm implements primarily
designed for use in agriculture.
(15)
'Tractor or farm equipment dealer' means any person who sells, solicits, or
advertises the sale of new and used tractors and farm equipment to the consuming
public. It shall not include (A) receivers, trustees, administrators,
executors, guardians, or other persons appointed by or acting under judgment,
decree, or order of any court; (B) public officers while performing their duties
as such officers; (C) persons making casual sales of their own tractor or item
of farm equipment not subject to sales tax under the laws of the State of
Georgia; (D) persons engaged in the auction sale of tractors and farm equipment;
or (E) dealers in used tractors and farm
equipment.
13-8-13.
Any
person who engages directly or indirectly in purposeful contacts within this
state in connection with the offering or advertising for sale of new farm
tractors and or farm machinery
equipment and parts shall be subject to the provisions of this article
and shall be subject to the jurisdiction of the courts of this state upon
service of process in accordance with the provisions of the laws of the State of
Georgia.
13-8-14.
Unfair
methods of competition and unfair or deceptive acts or practices as defined in
Code Section 13-8-15 are declared to be unlawful.
13-8-15.
(a) It shall be
deemed a violation of Code Section 13-8-14 for any manufacturer, factory branch,
factory representative, distributor, or wholesaler, distributor branch,
distributor representative, or farm tractor and
or farm equipment dealer to engage in any action which is arbitrary, in
bad faith, or unconscionable and which causes damage in terms of law or equity
to any of the parties or to the public.
(b) It shall
be deemed a violation of Code Section 13-8-14 for a manufacturer, a distributor,
a wholesaler, a distributor branch or division, a factory branch or division, or
a wholesale branch or division, or officer, agent, or other representative
thereof, to coerce, or attempt to coerce, any farm tractor
and or farm equipment dealer:
(1) To order or accept delivery of any farm
tractor or unit of farm equipment, parts or accessories therefor, or any other
commodity or commodities which such farm tractor and
or farm equipment dealer has not voluntarily ordered; or
(2) To order or accept delivery of any farm
tractor or farm equipment with special features, accessories, or equipment not
included in the base list price of such farm tractor or farm equipment as
publicly advertised by the manufacturer thereof.
(c)
It shall be deemed a violation of Code Section 13-8-14 for a manufacturer, a
distributor, a wholesaler, a distributor branch or division, a factory branch or
division, or a wholesale branch or division, or officer, agent, or other
representative thereof:
(1) To refuse to deliver in
reasonable quantities and within a reasonable time after receipt of
dealer´s
order to any farm tractor and or farm equipment
dealer having a franchise or contractual agreement for the retail sale of new
farm tractors and or farm equipment sold or
distributed by such manufacturer, distributor branch or division, factory branch
or division, or wholesale branch or division any farm tractor or item of
farm equipment covered by such franchise or contract specifically advertised or
represented by such manufacturer, distributor, wholesaler, distributor branch or
division, factory branch or division, or wholesale branch or division to be
available for immediate delivery; provided, however, that the failure to
deliver any such farm tractor or unit of farm equipment shall not be
considered a violation of this article if such failure is due to prudent and
reasonable restriction on extension of credit by the franchisor to the dealer,
an act of God, work stoppage or delay due to a strike or labor difficulty, a
bona fide shortage of materials, freight embargo, or other cause over which the
manufacturer, distributor, or wholesaler, or any agent thereof, shall have no
control;
(2) To coerce, or attempt to coerce, any
farm tractor and or farm equipment dealer to
enter into any agreement, whether written or oral, supplementary to an existing
franchise with such manufacturer, distributor, wholesaler, distributor branch or
division, factory branch or division, or wholesale branch or division, or
officer, agent, or other representative thereof; or to do any other act
prejudicial to such dealer by threatening to cancel any franchise or any
contractual agreement existing between such manufacturer, distributor,
wholesaler, distributor branch or division, factory branch or division, or
wholesale branch or division, and such dealer; provided, however, that notice in
good faith to any farm tractor and or farm
equipment dealer of such
dealer´s
violation of any terms or provisions of such franchise or contractual agreement
shall not constitute a violation of this article if such notice is in writing
mailed by registered or certified mail or statutory overnight delivery to such
dealer at his or her current business
address;
(3)(A) To terminate or cancel the franchise
or selling agreement of any such dealer without due cause, as defined in
subparagraph (B) of this paragraph. The nonrenewal of a franchise or selling
agreement, without due cause, shall constitute an unfair termination or
cancellation, regardless of the specified time period of such franchise or
selling agreement. Except where the grounds for such termination or cancellation
fall within division (iii) of subparagraph (B) of this paragraph, such
manufacturer, distributor, wholesaler, distributor branch or division, factory
branch or division, or wholesale branch or division, or officer, agent, or other
representative thereof, shall notify a farm tractor and
or farm equipment dealer in writing of the termination or cancellation of
the franchise or selling agreement of such dealer at least 60 days before the
effective date thereof, stating the specific grounds for such termination or
cancellation; and in no event shall the contractual term of any such franchise
or selling agreement expire, without the written consent of the farm
tractor and or farm equipment dealer involved, prior to
the expiration of at least 60 days following such written notice. During the 60
day period, either party may, in appropriate circumstances, petition a court to
modify such 60 day stay or to extend it pending a final determination of such
proceedings on the merits. The court shall have authority to grant preliminary
and final injunctive relief.
(B) As used in this
paragraph, tests for determining what constitutes due cause for a manufacturer
or distributor to terminate, cancel, or refuse to renew a franchise agreement
shall include whether the dealer:
(i) Has
transferred an ownership interest in the dealership without the
manufacturer´s
or
distributor´s
consent;
(ii) Has made a material misrepresentation
in applying for or acting under the franchise agreement;
(iii) Has filed a voluntary petition in bankruptcy or
has had an involuntary petition in bankruptcy filed against the dealer which has
not been discharged within 30 days after the filing, is in default under the
provisions of a security agreement in effect with the manufacturer or
distributor, or is in receivership;
(iv) Has engaged
in an unfair business practice;
(v) Has inadequately
represented the
manufacturer´s
or
distributor´s
products with respect to sales, service, or warranty work;
(vi) Has engaged in conduct which is injurious or
detrimental to the public welfare;
(vii) Has
inadequate sales and service facilities and personnel;
(viii) Has failed to comply with an applicable
licensing law;
(ix) Has been convicted of a crime,
the effect of which would be detrimental to the manufacturer, distributor, or
dealership;
(x) Has failed to operate in the normal
course of business for seven consecutive business days;
(xi) Has relocated the
dealer´s
place of business without the
manufacturer´s
or
distributor´s
consent; or
(xii) Has failed to comply with the
terms of the dealership or franchise agreement;
(4) To
resort to or use any false or misleading advertisement in connection with
his its business as such manufacturer, distributor,
wholesaler, distributor branch or division, factory branch or division, or
wholesale branch or division, or officer, agent, or other representative
thereof;
(5) To offer to sell or to sell any new
farm tractor or unit of farm equipment, or parts or accessories therefor,
to any other farm tractor or farm equipment dealer at a lower actual
price therefor than the actual price offered to any other farm tractor or
farm equipment dealer for the same model farm tractor or farm equipment
identically equipped; or to utilize any device including, but not limited to,
sales promotion plans or programs which result in such lesser actual price;
provided, however, that the provisions of this paragraph shall not apply
to sales to a farm tractor or farm equipment dealer for resale to any
unit of the United States government, the state, or any of its political
subdivisions; and provided, further, that the provisions of this paragraph shall
not apply so long as a manufacturer, distributor, or wholesaler, or any agent
thereof, sells or offers to sell such new farm tractor or farm equipment,
parts, or accessories to all their franchised farm tractor or farm
equipment dealers at an equal price;
(6) To
discriminate willfully, either directly or indirectly, in price, programs, or
terms of sale offered to franchisees, where the effect of such discrimination
may be to lessen competition substantially or to give to one holder of a
franchise any business or competitive advantage not offered to all holders of
the same or similar franchise;
(7) To prevent or
attempt to prevent, by contract or otherwise, any farm tractor or farm
equipment dealer from changing the capital structure of his or her
dealership or the means by or through which he or she finances the
operation of his or her dealership, provided the dealer at all times
meets any reasonable capital standards agreed to between the dealership and the
manufacturer, distributor, or wholesaler and provided such change by the dealer
does not result in a change in the executive management of the
dealership;
(8) To prevent or attempt to prevent, by
contract or otherwise, any farm tractor and or
farm equipment dealer or any officer, partner, or stockholder of any farm
tractor and or farm equipment dealer from selling or
transferring any part of the interest of any of them to any other person or
persons or party or parties; provided, however, that no dealer, officer,
partner, or stockholder shall have the right to sell, transfer, or assign the
franchise or power of management or control thereunder without the consent of
the manufacturer, distributor, or wholesaler, except that such consent shall not
be unreasonably withheld;
(9) To obtain money, goods,
services, anything of value, or any other benefit from any other person with
whom the farm tractor and or farm equipment
dealer does business or employs on account of or in relation to the transactions
between the dealer, the franchisor, and such other person; or
(10) To require a farm tractor
and or farm equipment dealer to assent to a release,
assignment, notation, waiver, or estoppel which would relieve any person from
liability imposed by this article.
(d) It shall be
deemed a violation of Code Section 13-8-14 for a farm tractor
and or farm equipment dealer:
(1) To require a retail purchaser of a new
farm tractor or unit of farm equipment, as a condition of sale and
delivery thereof, also to purchase special features, appliances, equipment,
parts, or accessories not desired or requested by the purchaser; provided,
however, that this prohibition shall not apply to special features, appliances,
equipment, parts, or accessories which are already installed when the
farm tractor or unit of farm equipment is received by the dealer from the
manufacturer, distributor, or wholesaler thereof;
(2)
To represent and sell as new and unused any farm tractor or unit of farm
equipment which has been used and operated for demonstration or other purposes
without stating to the purchaser the approximate amount of use the farm
tractor or unit of farm machinery equipment has
experienced; or
(3) To resort to or use any false or
misleading advertisement in connection with his or her business as such
farm tractor and or farm equipment dealer.
13-8-15.1.
(a)
Any manufacturer, distributor, or wholesaler which intends to establish a new
farm tractor or farm equipment dealership or to relocate a current dealership
for a particular product line or make of farm tractor or farm equipment within
the relevant market area of an existing dealership of the same product line or
make of farm tractor or farm equipment shall give written notice of such intent
by certified mail or statutory overnight delivery to such existing dealership.
The notice shall include:
(1) The specific
location of the additional or relocated
dealership;
(2) The date on or after which the
additional or relocated dealership will commence operation at the new
location;
(3) The identity of all existing
dealerships in whose relevant market area the new or relocated dealership is to
be located; and
(4) The names and addresses of
the dealer and principals in the new or relocated
dealership.
(b) Any existing dealership in
whose relevant market area a manufacturer, distributor, or wholesaler intends to
establish a new dealership or to relocate a current dealership may within 60
days of the receipt of the notice petition a superior court to enjoin or
prohibit the establishment of the new or relocated dealership within the
relevant market area of the existing dealership. The court or other tribunal of
competent jurisdiction shall enjoin or prohibit the establishment of the new or
relocated dealership within the relevant market area of the existing dealership
unless the manufacturer, distributor, or wholesaler can prove by a preponderance
of the evidence that the existing dealership is not providing adequate
representation of the product line or make of farm tractor or farm equipment in
the existing
dealership´s
relevant market area and that the new or relocated dealership is necessary to
provide the public with reliable and convenient sales and service within the
relevant market area. The burden of proof in establishing adequate
representation shall be on the manufacturer, distributor, or wholesaler. In
determining whether the existing dealership is providing adequate representation
and whether the new or relocated dealership is necessary, the court or other
tribunal may consider, but is not limited to considering, the
following:
(1) The impact that the
establishment of the new or relocated dealership will have on consumers, the
public interest, and the existing dealership; provided, however, that financial
impact may be considered only with respect to the existing
dealership;
(2) The size and permanency of
investment reasonably made and the reasonable obligations incurred by the
existing dealership to perform its obligations under the
dealership´s
franchise agreement;
(3) The reasonably
expected market penetration of the product line or make of farm tractor or farm
equipment for the relevant market area involved, after consideration of all
factors which may affect such penetration, including, but not limited to,
demographic factors, product popularity, retail lease transactions, and other
factors affecting sales to consumers in the relevant market
area;
(4) Any actions by the manufacturer,
distributor, or wholesaler in denying its existing dealership of the same
product line or make the opportunity for reasonable growth, market expansion, or
relocation, including the availability of the product line or make of farm
tractor or farm equipment in keeping with the reasonable expectations of the
manufacturer, distributor, or wholesaler in providing an adequate number of
dealerships in the relevant market area;
(5)
Any attempts by the manufacturer, distributor, or wholesaler to coerce the
existing dealership into consenting to an additional or relocated dealership of
the same product line or make in the relevant market
area;
(6) Distance, travel time, traffic
patterns, and accessibility between the existing dealership of the same product
line or make and the location of the proposed new or relocated
dealership;
(7) Whether benefits to consumers
will likely occur from the establishment or relocation of the dealership which
benefits cannot be obtained by other geographic or demographic changes or
expected changes in the relevant market
area;
(8) Whether the existing dealership is in
substantial compliance with its franchise
agreement;
(9) Whether there is adequate
interbrand and intrabrand competition with respect to the product line or make
of farm tractor or farm equipment, including the adequacy of sales and service
facilities;
(10) Whether the establishment or
relocation of the proposed dealership appears to be warranted and justified
based on economic and market conditions pertinent to dealerships competing in
the relevant market area, including anticipated changes;
and
(11) The volume of registrations and
service business transacted by the existing dealership and in which would be the
relevant market area of the proposed
dealership.
(c) Subsections (a) and (b) of this
Code section shall not apply:
(1) To the
addition of a new dealership at a location which is within a three-mile radius
of a former dealership of the same product line or make which has been closed
for less than two years;
(2) To the relocation
of an existing dealership to a new location which is farther away from the
protesting
dealer´s
location than the relocated
dealer´s
prior location; or
(3) To the relocation of an
existing dealership to a new location which is within a three-mile radius of
such
dealership´s
current location and it has been at such current location at least ten
years.
(d)(1) Except as otherwise provided in
this subsection, any manufacturer, distributor, or wholesaler shall not sell or
lease or offer to sell or lease, directly or indirectly, any new farm tractor or
farm equipment to a consumer in this state, except through a new farm tractor or
farm equipment dealer holding a franchise for the product line or make covering
such new farm tractor or farm
equipment.
(2)(A)(i) This subsection shall not
apply to manufacturer, distributor, or wholesaler sales of any new farm tractor
or farm equipment for use within this state to any department, agency, or
authority of federal, state, or local government or any national account
customer, if such farm tractor or farm equipment is prepared for delivery and
serviced by a franchisee the relevant market area of which includes in whole or
in part the geographic area in which the farm tractor or farm equipment is to be
used primarily. The manufacturer, distributor, or wholesaler shall compensate
the dealer reasonably for the preparation and delivery of such farm tractor or
farm equipment and pay to the dealer a commission on the sale or lease of the
farm tractor or farm equipment equal to ten percent of the cost of the equipment
if the dealer had purchased it for sale or lease to its customers. Such
commission shall be compensation for the
dealer´s
direct or indirect investment made and obligations incurred to perform its
duties under the franchise agreement including, without limitation, marketing
and demonstrating new equipment where appropriate, making installation and
necessary mechanical adjustments and repairs, both at the time of delivery and
later as may be desirable, ensuring proper and efficient operation of the new
farm tractor or farm equipment in compliance with standard policies and
practices of such manufacturer, distributor, or wholesaler which are in effect,
maintaining an adequate inventory of parts and trained technical staff in the
dealer´s
relevant market area, fulfilling warranty obligations, and providing all other
necessary postdelivery services as may be required of the dealer. Such
compensation shall be paid or credited in the same manner as that provided in
Code Section 13-8-17.
(ii) Any manufacturer,
distributor, or wholesaler shall not, in connection with any sale of farm
tractors or farm equipment authorized under this subparagraph, offer a discount,
refund, or other similar type of inducement to a dealer without giving notice of
and making the same offer or offers available to all of its dealers which have
relevant market areas encompassing in whole or in part the geographic area in
which the farm tractor or farm equipment is to be used primarily and have
requested notice of any such inducement.
(B)
For purposes of this paragraph, any farm tractor or farm equipment shall be
considered to be used primarily within a
dealer´s
relevant market area if such farm tractor or farm equipment is located or housed
at a
user´s
facility located within such relevant market area. If such farm tractor or farm
equipment is located or housed within the relevant market area of more than one
franchised dealer or not within the relevant market area of any franchised
dealer for such product line or make, the amounts payable pursuant to this
paragraph shall be payable to the franchised dealer having service facilities
closest to the location of such
equipment.
13-8-16.
(a)
Every manufacturer shall specify and every dealer shall provide and fulfill
reasonable predelivery and preparation obligations for its farm tractors
and or farm equipment prior to delivery of same to
retail purchasers.
(b) Every manufacturer shall
provide for repair parts availability throughout the reasonable useful life of
any farm tractor or farm equipment sold.
(c)
Every manufacturer or distributor shall provide to his each
of its dealers, on an annual basis, an opportunity to return a portion of
his such
dealer´s
surplus parts inventory for credit. The surplus parts return procedure shall be
administered as follows:
(1) The manufacturer or
distributor may specify and thereupon notify his its
dealers of a time period of at least 60
days´
duration, during which time dealers may submit their surplus parts
list lists and return their surplus parts to the
manufacturer or distributor;
(2) If a manufacturer
or distributor has not notified a dealer of a specific time period for returning
surplus parts within the preceding 12 months, then he it
shall authorize and allow the
dealer´s
surplus parts return request within 30 days after receipt of such request from
the dealer;
(3) Pursuant to the provisions of this
subsection, a manufacturer or distributor must allow surplus parts return
authority on a dollar value of parts equal to 8 percent of the total dollar
value of parts purchased by the dealer from the manufacturer or distributor
during the 12 month period immediately preceding the notification to the dealer
by the manufacturer or distributor of the surplus parts return program, or the
month the
dealer´s
return request is made, whichever is applicable; provided, however, that the
dealer may, at his or her option, elect to return a dollar value of his
or her surplus parts less than 8 percent of the total dollar value of
parts purchased by the dealer from the manufacturer or distributor during the
preceding 12 month period as provided in this subsection;
(4) No obsolete or superseded part may be returned,
but any part listed in the
manufacturer´s,
wholesaler´s,
or
distributor´s
current parts price list at the date of notification to the dealer by the
manufacturer or distributor of the surplus parts return program, or the date of
a
dealer´s
parts return request, whichever is applicable, shall be eligible for return and
credit as specified in this subsection; provided, however, that returned parts
must be in new and unused condition and must have been purchased from the
manufacturer, wholesaler, or distributor to whom they are returned;
(5) The minimum lawful credit to be allowed for
returned parts shall be 85 percent of the wholesale cost thereof as listed in
the
manufacturer´s,
wholesaler´s,
or
distributor´s
current parts price list at the date of the notification to the dealer by the
manufacturer, wholesaler, or distributor of the surplus parts return program, or
the date of a
dealer´s
parts return request, whichever is applicable;
(6)
Applicable credit pursuant to this subsection must be issued to the dealer
within 30 days after receipt of his or her returned parts by the
manufacturer or distributor; or
(7) Packing and
return freight expense incurred in any return of surplus parts pursuant to the
terms of this Code section shall be borne by the dealer.
13-8-17.
(a) Every
manufacturer, distributor, wholesaler, distributor branch or division, factory
branch or division, or wholesale branch or division shall provide a fair and
reasonable warranty agreement on any new farm tractor or unit of farm
equipment which it sells and shall fairly compensate each of its farm
tractor or farm equipment dealers for labor and parts used in fulfilling such
warranty agreement. All claims for payment under such warranty agreements made
by farm tractor and or farm equipment dealers
under this subsection for such labor and parts shall be paid within 30 days
following their approval. All such claims shall be either approved or
disapproved within 30 days after their receipt; and, when any such claim is
disapproved, the farm tractor or farm equipment dealer who submits it
shall be notified in writing of its disapproval within such period; and each
such notice shall state the specific grounds upon which the disapproval is
based. Any special handling of claims required of the dealer by the
manufacturer, distributor, wholesaler, distributor branch or division, factory
branch or division, or wholesale branch or division, and not uniformly required
of all dealers of that make, may be enforced only after 30
days´
notice in writing to the dealer and upon good and sufficient reason.
(b) The minimum lawful basis for compensating said
dealer for warranty work as provided for in this subsection shall be calculated
for labor in accordance with the reasonable and customary amount of time
required to complete such work, expressed in hours and fractions of hours
multiplied by the
dealer´s
established hourly retail labor rate. Prior to filing a claim for reimbursement
for warranty work, the dealer must notify the applicable manufacturer,
wholesaler, or distributor of his or her hourly retail labor rate. The
minimum lawful basis for compensation to the dealer for parts used in fulfilling
said warranty work shall be at the
dealer´s
costs thereof, including all freight and handling charges applicable thereto,
plus 15 percent of said sum to reimburse the
dealer´s
reasonable costs of doing business and providing such warranty service on the
manufacturer´s
behalf.
(c) It shall be unlawful to deny, delay
payment for, or restrict a claim by a dealer for payment or reimbursement for
warranty service or parts, incentives, hold-backs, or other amounts owed to a
dealer unless the denial, delay, or restriction is the direct result of a
material defect in the claim that affects its
validity.
13-8-17.1.
Any
audit of a dealer by or on behalf of a manufacturer, distributor, or wholesaler
for sales incentives, service incentives, rebates, or other forms of incentive
compensation shall be completed not later than three months after the date of
the termination of such incentive compensation program; provided, however, that
this limitation shall not apply in any case of fraudulent
claims.
13-8-18.
The
provisions of this article shall apply to all written or oral agreements between
a manufacturer, wholesaler, or distributor with a farm tractor or farm
equipment dealer including, but not limited to, the franchise offering, the
franchise agreement, sales of goods, services and advertising, leases or
mortgages of real or personal property, promises to pay, security interests,
pledges, insurance contracts, advertising contracts, construction or
installation contracts, servicing contracts, and all other such agreements in
which the manufacturer, wholesaler, or distributor has any direct or indirect
interest.
13-8-19.
It
shall be unlawful for the manufacturer, wholesaler, distributor, or franchisor,
without due cause, to fail to renew on terms then equally available to all its
farm tractor and or farm equipment dealers, to
terminate a franchise, or to restrict the transfer of a franchise unless the
franchisee shall receive fair and reasonable compensation for the inventory of
the business. As used in this Code section, 'due cause' shall be construed in
accordance with the definition of same as contained in subparagraph (c)(3)(B) of
Code Section
13-8-15.
13-8-20.
(a) In
addition to temporary or permanent injunctive relief as provided in subparagraph
(c)(3)(A) of Code Section 13-8-15, any person who shall be injured in his or
her business or property by reason of anything forbidden in
by or in noncompliance with the requirements of this article may bring an
action therefor in the appropriate superior court of this state and shall
recover the actual damages sustained and the costs of such action, including a
reasonable
attorney´s
fee.
(b) When such action is one of common or
general interest to many persons or when the parties are numerous and it is
impracticable to bring them all before the court, one or more may bring a class
action for the benefit of the whole, including actions for injunctive
relief.
(c) In an action for money damages, if the
jury finds that the defendant acted maliciously, the jury may award punitive
damages as permitted by Georgia law.
13-8-21.
Any contract or
franchise agreement or part thereof or practice thereunder in violation of any
provision of this article shall be deemed against public policy and shall be
void and unenforceable.
13-8-22.
(a) Whenever
any farm tractor or farm equipment dealer enters into a franchise
agreement with a manufacturer, distributor, or wholesaler wherein the dealer
agrees to maintain an inventory of farm tractors, farm 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 him 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 farm
tractors, or other units of farm 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.
(d)
The provisions of this article shall not require the repurchase from a dealer
of:
(1) Any repair part which has a limited storage
life or is otherwise subject to deterioration;
(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 inventory for which the dealer is unable to
furnish evidence, reasonably satisfactory to the manufacturer, distributor, or
wholesaler, of good title, free and clear of all claims, liens, and
encumbrances;
(5) Any inventory which the dealer
desires to keep, provided the dealer has a contractual right to do so;
(6) Any farm tractor or unit of farm equipment
which is not in new, unused, undamaged, complete condition;
(7) Any repair parts which are not in new, unused,
undamaged condition;
(8) Any inventory which was
ordered by the dealer on or after the date of receipt of the notification of
termination of the franchise; or
(9) Any inventory
which was acquired by the dealer from any source other than the manufacturer,
distributor, or wholesaler.
(e) If any manufacturer,
distributor, or wholesaler shall fail or refuse to repurchase any inventory
covered under the provisions of this article within 60 days after termination of
a
dealer´s
contract, he it shall be civilly liable for 100 percent
of the current wholesale price of the inventory plus any freight charges paid by
the dealer, the
dealer´s
reasonable
attorney´s
fees, court costs, and interest on the current wholesale price computed at the
legal interest rate from the sixty-first day after termination.
13-8-23.
In the event of
the death or incapacity of the dealer or the majority stockholder of a
corporation operating as a dealer, the manufacturer, distributor, or wholesaler
shall, at the option of the heirs at law, if the dealer died intestate, or the
devisees or transferees under the terms of the deceased
dealer´s
last will and testament, if said dealer died testate, repurchase the inventory
from said heirs or devisees as aforesaid as if the manufacturer, distributor, or
wholesaler had terminated the contract, and the inventory repurchase provisions
of Code Section 13-8-22 are made expressly applicable hereto. The heirs or
devisees as aforesaid shall have one year from the date of the death of the
retailer or majority stockholder to exercise their option under this article;
provided, however, that nothing in this article shall require the repurchase of
inventory if the heirs or devisees as aforesaid and the manufacturer,
distributor, or wholesaler enter into a new franchise agreement to operate the
retail dealership.
13-8-24.
A manufacturer,
distributor, or wholesaler, as the case may be, will fully indemnify and hold
harmless its dealer against any losses including, but not limited to: court
costs and reasonable
attorney´s
fees or damages arising out of complaints, claims, or lawsuits including, but
not limited to, strict liability, negligence, misrepresentation, express or
implied warranty, or rescission of the sale where the complaint, claim, or
lawsuit relates to the manufacture, assembly, or design of new items covered by
this article, parts or accessories, or other functions by the manufacturer,
distributor, or wholesaler which are beyond the control of the dealer.
13-8-25.
The provisions
of this article shall apply to all contracts now in effect which have no
expiration date and are a continuing contract and all other contracts entered
into or renewed on or after November 1, 1982 July 1,
2001. Any contract in force and effect on November 1, 1982
prior to July 1, 2001, which by its own terms will terminate on a date
subsequent thereto shall be governed by the law as it existed prior to
this article July 1,
2001."
SECTION 2.
All laws and parts of laws in conflict with this Act are
repealed.