(a) On the cancellation or nonrenewal of a dealership agreement by a manufacturer without satisfying the requirements under AS 45.27.020, the manufacturer shall repurchase from the authorized dealer's inventory

(1) each new and unused product of the manufacturer that is a current product model, or the product model from the previous year; and

(2) each product part that

(A) was purchased from the manufacturer by the authorized dealer;

(B) is listed in the manufacturer's parts price books in the previous two years; and

(C) has not been damaged or substantially altered to the prejudice of the manufacturer while in the possession of the authorized dealer.

(b) Within 90 days after the effective date of the cancellation or nonrenewal, the authorized dealer shall return the property required by (a) of this section to be repurchased to the manufacturer at the manufacturer's expense. The manufacturer shall pay the compensation for the property within 60 days after the tender of inventory and other items if the authorized dealer has clear title to the property and is in a position to convey that title to the manufacturer. If the property is subject to a security interest, the manufacturer may make the payments jointly to the authorized dealer and the holder of the security interest, and the manufacturer may offset the payment.

(c) The amount of a repurchase required by (a) of this section must be based on the authorized dealer's landed cost, subject to adjustments to landed costs for quarterly or annual purchase rebates and credits given to the authorized dealer on the products or product parts.