Inventory qualifying for repurchase
When a contract between a retailer and a wholesaler, manufacturer, or distributor ends, the wholesaler or manufacturer has to buy back unsold inventory from the retailer. They pay 100% of the original cost for new, unsold, undamaged equipment and machinery, and 95% of the current price for new, unused, undamaged repair parts. The retailer covers the shipping cost to the nearest warehouse, but the wholesaler or manufacturer pays the retailer an extra 5% of the parts' price to cover packing and loading — or they can choose to do the packing and loading themselves instead of paying that 5%. Once the retailer is paid, ownership of the inventory goes back to the wholesaler or manufacturer.
407.860. qualifying for — percentage to be paid — cost of transportation to warehouse to be paid by — packing and loading, how paid — of or s, law to apply, when. — 1. The , manufacturer or distributor shall repurchase that inventory previously purchased from him and held by the retailer at the date of . The of sections 407.850 to 407.885 shall apply to the transferee of such wholesaler, manufacturer or distributor if such transferee acquired substantially all of the of such wholesaler, manufacturer or distributor. The wholesaler, manufacturer or distributor shall pay one hundred percent of the of all new, unsold, undamaged and complete equipment, implements, machinery, and attachments and ninety-five percent of the of all new, unused and undamaged . The retailer shall pay the cost of transportation to the nearest warehouse maintained by the wholesaler, manufacturer, or distributor, or to a mutually agreeable site. The wholesaler, manufacturer or distributor shall pay the retailer five percent of the current net price on all new, unused and undamaged repair parts returned to cover the cost of handling, packing and loading. The wholesaler, manufacturer or distributor shall have the option of performing the handling, packing and loading paying the five percent for these services. The retailer shall pay the cost of transportation to the nearest warehouse maintained by the wholesaler, manufacturer, or distributor, or to a mutually agreeable site.
2. Upon payment of the repurchase amount to the retailer, the and right of possession to the repurchased inventory shall to the wholesaler, manufacturer or distributor.
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Source & history notes
(L. 1982 H.B. 958 § 3, A.L. 1987 S.B. 35, A.L. 2002 H.B. 1348 merged with H.B. 2008)
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