CHAPTER 51-20 RECREATION VEHICLE FRANCHISES 2

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51-20-01. Definitions

As used in this chapter, unless the context requires otherwise: 1

"Contractual arrangement" means a written franchise or other written agreement, by whatever name such agreement may be called, between a distributor and a dealer by which the dealer agrees to sell at retail and service the distributor's recreation vehicles in a given location or locations, whether or not exclusively with respect to a given geographic area, and the distributor authorizes the dealer to sell, or sell and service, and agrees to supply an inventory of recreation vehicles, and, if the dealer is to perform service, an inventory of parts for those vehicles

"Dealer" means a person, partnership, corporation, limited liability company, or other business entity which sells at retail and services new recreation vehicles

"Distributor" means any manufacturer, wholesaler, or distributor of recreation vehicles who has a contractual arrangement with a dealer in such vehicles

"Recreation vehicle" includes snowmobiles as defined in section 39-24-01, plus trailers for transporting same when those trailers are furnished by the same distributor who furnishes the snowmobiles; off-highway vehicles as defined in section 39-29-01; motorcycles as defined in section 39-01-01; travel trailers, which term means vehicles without motive power designed for recreational use as living or sleeping quarters for people and which do not exceed forty feet [12.19 meters] in length; and motorboats, whether propelled by an inboard or outboard marine engine, plus any outboard marine engines and boat trailers

"Repair parts" includes accessories

51-20-02. Recreation vehicle dealers may recover value of vehicles or parts from distributor in certain cases

If a dealer has entered a written contract with a distributor in which the dealer agrees to maintain a stock of recreation vehicles, repair parts, or both recreation vehicles and repair parts, and either the dealer or the distributor desires to cancel or discontinue the contract, the distributor shall pay to the dealer, unless the dealer desires to keep the recreation vehicles or repair parts, the following amounts: a

A sum equal to one hundred percent of the net cost of all current year, unused, and complete recreation vehicles; Eighty-five percent of the current net prices on repair parts, including the superseded parts listed in current price lists or catalogs, if the superseded parts have previously been purchased from the distributor and were in the dealer's inventory on the date of cancellation or discontinuance of the contract or were thereafter received by the dealer from the distributor; A sum equal to five percent of the current net price of all parts returned as reimbursement for handling, packing, and loading of those parts; and Any freight charges on the equipment or repair parts paid by the dealer

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2. When a distributor has made payment in accordance with this section, title to the recreation vehicles and repair parts must pass to the distributor and the distributor is entitled to possession of the recreation vehicles and repair parts. The provisions of this section are supplemental to any contractual rights which the dealer may have with respect to reimbursement for recreation vehicles and parts inventory held by the dealer at cancellation or discontinuance of a contractual arrangement. The dealer may elect to pursue the dealer's rights under the contractual arrangement and under this section. An election by a dealer to pursue a contractual remedy does not bar the dealer's right to the remedy provided by this section with respect to those pieces of recreation vehicles and repair parts not affected by the contract remedy

This section applies to every contract now in effect which has no stated expiration date and to all other contracts entered after July 31, 2001. Contracts in force and effect on 3

Page No. 1 July 31, 2001, which by their terms will terminate on a date subsequent to July 31, 2001, are governed by the law existing before August 1, 2001

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