1. Each year a supplier shall allow each dealer with whom it has entered into a dealer agreement to return to the supplier for credit a portion of the surplus parts in the dealer’s inventory.

2. A supplier shall notify each dealer of the period it has designated for that dealer to submit a list of the surplus parts the dealer wishes to return and for that dealer to return the surplus parts to the supplier. The period designated for each dealer for the return of surplus parts must not be less than 90 days.

3. If a supplier fails to notify a dealer of the period during which the dealer may return surplus parts within the preceding 12 months, the supplier shall authorize the return of a dealer’s surplus parts within 60 days after the supplier receives a request from the dealer to return the surplus parts.

4. A dealer may return surplus parts equal to not more than 10 percent of the value of the parts purchased by the dealer from the supplier during:

(a) The 12-month period immediately preceding the notice provided to the dealer by the supplier pursuant to subsection 2; or

(b) The month the supplier receives a request from a dealer pursuant to subsection 3 to return surplus parts to the supplier,

whichever is applicable.

5. Any part included in the supplier’s list of returnable parts or any superseded part that is not eligible for return to the supplier on the date the supplier provides notice to the dealer pursuant to subsection 2 or the date the supplier receives the dealer’s request pursuant to subsection 3, whichever is applicable, is eligible for credit as a returned surplus part. A part which is returned must be in new and undamaged condition and must have been purchased by the dealer from the supplier to whom it is returned.

6. The minimum credit allowed for a returned part is 95 percent of the net price, as set forth in the supplier’s list of returnable parts on the date the supplier provides notice to the dealer pursuant to subsection 2 or the date the supplier receives the dealer’s request pursuant to subsection 3, whichever is applicable.

7. All applicable credit for the returned parts must be issued or provided to the dealer within 90 days after the supplier receives the dealer’s returned surplus parts.

8. The provisions of this section:

(a) Do not apply to a supplier that has established a program for its dealers for the return of surplus repair parts if the program provides credit of not less than 85 percent of the net price for the returned repair parts;

(b) Do not prohibit a supplier from charging a dealer’s account for the amounts previously paid or credited by the supplier as a discount incident to the dealer’s purchase of goods; and

(c) Do not require a dealer to return for credit surplus parts to a supplier.

(Added to NRS by 2003, 3401)