Text: HF00445 Text: HF00447 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 446 1 2 1 3 AN ACT 1 4 RELATING TO DEALERSHIP AGREEMENTS, AND PROVIDING FOR THE 1 5 ACT'S APPLICABILITY. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. Section 322F.1, Code 2003, is amended by adding 1 10 the following new subsections: 1 11 NEW SUBSECTION. 0A. "Agricultural equipment" means a 1 12 device, part of a device, or an attachment of a device 1 13 designed to be principally used for an agricultural purpose. 1 14 "Agricultural equipment" includes but is not limited to 1 15 equipment associated with livestock or crop production, 1 16 horticulture, or floriculture. "Agricultural equipment" 1 17 includes but is not limited to tractors; trailers; combines; 1 18 tillage, planting, and cultivating implements; bailers, 1 19 irrigation implements; and all-terrain vehicles. 1 20 NEW SUBSECTION. 1A. "Construction equipment", "industrial 1 21 equipment", or "utility equipment" means a device, part of a 1 22 device, or an attachment to a device designed to be 1 23 principally used for a construction or industrial purpose. 1 24 "Construction equipment", "industrial equipment", or "utility 1 25 equipment" includes equipment associated with earthmoving, 1 26 industrial material handling, mining, forestry, highway 1 27 construction or maintenance, and landscaping. "Construction 1 28 equipment", "industrial equipment", or "utility equipment" 1 29 includes but is not limited to tractors, graders, excavators, 1 30 loaders, and backhoes. 1 31 NEW SUBSECTION. 7A. "Outdoor power equipment" means 1 32 equipment using small motors or engines, if the equipment is 1 33 used principally for outside service, including but not 1 34 limited to aerators, augers, blowers, brush clearers, brush 1 35 cutters, chain saws, dethatchers, edgers, hedge trimmers, lawn 2 1 mowers, pole saws, power rakes, snowblowers, and tillers. 2 2 Sec. 2. Section 322F.1, subsection 2, Code 2003, is 2 3 amended to read as follows: 2 4 2. "Dealer" or "dealership" means a person engaged in the 2 5 retail sale of equipment, if the person sells equipment2 6designed to be principally used for agricultural operations,2 7including but not limited to livestock or crop production or2 8horticulture. 2 9 Sec. 3. Section 322F.1, subsection 4, Code 2003, is 2 10 amended by striking the subsection, and inserting in lieu 2 11 thereof following: 2 12 4. "Equipment" means agricultural equipment, construction 2 13 equipment, industrial equipment, utility equipment, or outdoor 2 14 power equipment. However, "equipment" does not include self- 2 15 propelled machines designed primarily for the transportation 2 16 of persons or property on a street or highway. 2 17 Sec. 4. Section 322F.2, subsection 1, Code 2003, is 2 18 amended to read as follows: 2 19 1. a. A supplier shall terminate a dealership agreement 2 20 for equipment other than outdoor power equipment by 2 21 cancellation, nonrenewal, or a substantial change in 2 22 competitive circumstances only upon good cause and upon at 2 23 least ninety days' prior written notice delivered to the 2 24 dealer by certifiedor registeredmail or restricted certified 2 25 mail. A supplier shall terminate a dealership agreement for 2 26 outdoor power equipment by cancellation or nonrenewal only 2 27 upon good cause and upon at least ninety days' prior written 2 28 notice delivered to the dealer by restricted certified mail or 2 29 hand delivered by a representative of the supplier to the 2 30 dealer or a designated representative of the dealer. 2 31 b.TheA written termination notice must specify each 2 32 deficiency constituting good cause for the action. The notice 2 33 must also state that the dealer has sixty days to cure a 2 34 specified deficiency. If the deficiency is cured within sixty 2 35 days from the date that the notice is delivered, the notice is 3 1 void. However, if the deficiency is based on a dealer's 3 2 inadequate representation of a manufacturer's product relating 3 3 to sales, as provided in section 322F.1, the notice must state 3 4 that the dealer has eighteen months to cure the deficiency. 3 5 If the deficiency based on inadequate representation of a 3 6 manufacturer's product relating to sales is cured within 3 7 eighteen months from the date that notice is delivered, the 3 8 notice is void. 3 9 Sec. 5. Section 322F.3, subsection 1, Code 2003, is 3 10 amended by adding the following new paragraph: 3 11 NEW PARAGRAPH. f. The supplier must pay to the dealer or 3 12 credit the dealer's account with one hundred percent of the 3 13 net cost of all equipment used in demonstrations, including 3 14 equipment leased primarily for demonstration or lease, at the 3 15 equipment's agreed-upon depreciated value, provided that such 3 16 equipment is in new condition and has not been abused. 3 17 Sec. 6. Section 322F.5, Code 2003, is amended to read as 3 18 follows: 3 19 322F.5 DEATH OR INCAPACITY OF DEALER. 3 20 If a dealer or a person holding a majorityshareholder of a3 21corporationinterest in a business entity operating a 3 22 dealership dies or is incapacitated, the rights under this 3 23 chapter may be exercised as an option by the heirs at law if 3 24 the dealer orshareholdermajority interest holder died 3 25 intestate, or by the executor under the terms of the dealer's 3 26 orshareholder'smajority interest holder's will. If the 3 27 heirs or the executor do not exercise this option within 3 28 twelve months from the date of death of the dealer or 3 29shareholdermajority interest holder, the supplier must 3 30 repurchase the equipment as if the supplier had terminated the 3 31 dealership agreement pursuant to section 322F.3. However, 3 32 this section does not entitle an heir, executor, 3 33 administrator, legatee, or devisee of a deceased dealer or 3 34 majorityshareholderinterest holder to continue to operate 3 35 the dealership without the consent of the supplier. 4 1 Sec. 7. Section 322F.7, subsection 7, Code 2003, is 4 2 amended to read as follows: 4 3 7. a.TakesFor a dealership agreement governing 4 4 equipment other than outdoor power equipment, takes action 4 5 terminating, canceling, failing to renew the dealership 4 6 agreement, or substantiallychangingchanges the competitive 4 7 circumstances intended by the dealership agreement, due to the 4 8 results of conditions beyond the dealer's control, including 4 9 drought, flood, labor disputes, or economic recession. 4 10 b. For a dealership agreement governing outdoor power 4 11 equipment, takes action terminating, canceling, or failing to 4 12 renew the dealership agreement due to the results of 4 13 conditions beyond the dealer's control, including drought, 4 14 flood, labor disputes, or economic recession. 4 15 This subsection shall not apply if the dealer is in default 4 16 of a security agreement in effect with the supplier. 4 17 Sec. 8. Section 322F.8, subsection 1, Code 2003, is 4 18 amended to read as follows: 4 19 1. A dealer may bring a legal action against a supplier 4 20 for damages sustained by the dealer as a consequence of the 4 21 supplier's violation of this chapter. A supplier violating 4 22 this chapter shall compensate the dealer for damages sustained 4 23 by the dealer as a consequence of the supplier's violation, 4 24 together with the actual costs of the action, including 4 25 reasonableattorneys'attorney fees. 4 26 a.TheFor a dealership agreement governing equipment 4 27 other than outdoor power equipment, a dealer may be granted 4 28 injunctive relief against unlawful termination, cancellation, 4 29 or the nonrenewal of the dealership agreement, or a 4 30 substantial change of competitive circumstances as provided in 4 31 section 322F.2. 4 32 b. For a dealership agreement governing outdoor power 4 33 equipment, a dealer may be granted injunctive relief against 4 34 unlawful termination, cancellation, or the nonrenewal of the 4 35 dealership agreement as provided in section 322F.2. 5 1 PARAGRAPH DIVIDED. The remedies in this section are in 5 2 addition to any other remedies permitted by law. 5 3 Sec. 9. Section 322F.8, subsection 2, paragraph b, Code 5 4 2003, is amended to read as follows: 5 5 b. If upon termination of a dealership agreement by 5 6 nonrenewal or cancellation, by a dealer or supplier, the 5 7 supplier fails to make payment or credit the account of the 5 8 dealer as provided in this chapter, the supplier is liable in 5 9 a civil action brought by the dealer forone hundred percent5 10of the net costs of the equipmentthe repurchase amount set 5 11 forth in section 322F.3, plus interest as calculated pursuant 5 12 to paragraph "a", and ninety percent of the net price of5 13repair parts, plus interest as calculated pursuant to5 14paragraph "a". 5 15 Sec. 10. Section 322F.9, subsection 2, Code 2003, is 5 16 amended to read as follows: 5 17 2. a. For all dealership agreements other than those 5 18 provided forall-terrain vehicles,in this section, this 5 19 chapter applies to those dealership agreements in effect that 5 20 have no expiration date and all other dealership agreements 5 21 entered into or renewed on or after July 1, 1990. Any such 5 22 dealership agreement in effect on June 30, 1990, which by its 5 23 own terms will terminate on a subsequent date, shall be 5 24 governed by the law as it existed prior to July 1, 1990. 5 25 b. For all dealership agreementsforgoverning all-terrain 5 26 vehicles, this chapter applies to those dealership agreements 5 27 in effect that have no expiration date and all other such 5 28 dealership agreements entered into or renewed on or after July 5 29 1, 2002. Any such dealership agreement in effect on July 1, 5 30 2002, which by its own terms will terminate on a subsequent 5 31 date, shall be governed by the law as it existed prior to July 5 32 1, 2002. 5 33 c. For all dealership agreements governing agricultural 5 34 equipment used principally for floriculture and for all 5 35 dealership agreements governing construction equipment, 6 1 industrial equipment, utility equipment, and outdoor power 6 2 equipment, this chapter applies to those dealership agreements 6 3 in effect that have no expiration date and all other such 6 4 dealership agreements entered into or renewed on or after the 6 5 effective date of this Act. Any dealership agreement in 6 6 effect on the effective date of this Act, which by its own 6 7 terms will terminate on a subsequent date, shall be governed 6 8 by the law as it existed prior to the effective date of this 6 9 Act. 6 10 6 11 6 12 6 13 CHRISTOPHER C. RANTS 6 14 Speaker of the House 6 15 6 16 6 17 6 18 MARY E. KRAMER 6 19 President of the Senate 6 20 6 21 I hereby certify that this bill originated in the House and 6 22 is known as House File 446, Eightieth General Assembly. 6 23 6 24 6 25 6 26 MARGARET THOMSON 6 27 Chief Clerk of the House 6 28 Approved , 2003 6 29 6 30 6 31 6 32 THOMAS J. VILSACK 6 33 Governor
Text: HF00445 Text: HF00447 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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