322D.2  Franchisee's rights to payment.

1.  A franchisee who enters into a written franchise with a franchiser to maintain a stock of parts, attachments, farm implements, or motorcycles has the following rights to payment, at the option of the franchisee, if the franchise is terminated:

a.  One hundred percent of the net cost of new unused complete farm implements or motorcycles, including attachments, which were purchased from the franchiser, and in addition, transportation charges on the farm implements or motorcycles which have been paid by the franchisee.

b.  Eighty-five percent of the net prices of any repair parts, including superseded parts, which were purchased from the franchiser and held by the franchisee on the date of the termination of the franchise.

c.  Five percent of the net prices of the parts resold under paragraph "b" for handling, packing, and loading of the parts except that this payment shall not be due to the franchisee if the franchiser elects to perform the handling, packing, and loading.

2.  Upon receipt of the payments due under subsection 1, the franchiser is entitled to possession of and title to the farm implements, motorcycles, attachments, or parts.

3.  The cost of farm implements, motorcycles, or attachments and the price of repair parts shall be determined by reference to the franchiser's price list or catalog in effect at the time of the franchise termination.

Section History: Recent form

  84 Acts, ch 1087, § 2; 85 Acts, ch 26, § 1; 85 Acts, ch 47, § 5-7

Internal References

  Referred to in § 322D.8

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