The North Dakota Legislature is considering legislation that relates to “prohibited practices under farm equipment dealership contracts, dealership transfers and reimbursement for warranty repair,” reports the Daily News.
Rep. Cindy Schreiber Beck says the House Agriculture Committee is expected to hear testimony on the bill (Senate Bill 2289) between March 9-10.
According to the article:
It states manufacturers, wholesalers or distributors of farm implements, machinery or repair parts may not require or attempt to require farm equipment dealers to accept the delivery of farm equipment, parts or accessories that the dealer has not voluntarily ordered.
“There’s been rules and laws in place, and this is amending some of the sections of (the Century Code) that exist,” Schreiber Beck said. “They can’t require the farm equipment dealer to maintain or stock a level of equipment, parts or accessories. They can’t require them to purchase a minimum amount of farm equipment as a condition for filling an order for farm equipment. It’s the same for parts and accessories.”
SB 2289 does recognize that farm equipment manufacturers may require a dealer to purchase all parts reasonably necessary to maintain operation quality. There would also be no requirement for dealers to establish or maintain exclusive facilities, personnel or display space with manufacturers, or to abandon an existing relationship with a particular manufacturer to renew, reinstate or enter into a dealership agreement.
A voting date in the House has not yet been determined. You can read the full article here.