37-5-5. Cancellation of contract--Recovery of costs and charges by dealer--Transfer of title and possession. If any dealer enters into a written contract; if the dealer maintains a stock of merchandise or repair parts for the merchandise with any wholesaler, manufacturer, or distributor; and if either the wholesaler, manufacturer, or distributor, or their successors, or the dealer, desires to cancel or discontinue the contract; the wholesaler, manufacturer, or distributor, or successor, shall pay to the dealer, unless the dealer should desire to keep the merchandise, a sum equal to one hundred percent of the net cost of all current unused complete merchandise, including transportation and reasonable assembly charges which have been paid by the dealer and ninety-five percent of the current net prices on repair parts, including superseded parts, listed in a current price list or catalog which parts had previously been purchased from the wholesaler, manufacturer, or distributor, or predecessor, and held by the dealer on the date of the cancellation or discontinuance of the contract. The wholesaler, manufacturer, or distributor, or successor, shall also pay the dealer a sum equal to five percent of the current net price of all parts returned for the handling, packing, and loading of the parts back to the wholesaler, manufacturer, or distributor and pay any freight charges that were paid by the dealer. Upon the payment of the sum required by this section, the title to any merchandise or repair parts for the merchandise shall pass to the manufacturer, wholesaler, or distributor making the payment, and the manufacturer, wholesaler, or distributor, is entitled to the possession of the merchandise or the repair parts for the merchandise.

Source: SL 1969, ch 206, § 1; SL 1970, ch 219, § 4; SL 1975, ch 241; SL 1989, ch 336, § 1; SL 1995, ch 228, § 4; SL 2000, ch 201, § 1; SL 2001, ch 212, § 1; SL 2004, ch 254, § 7.