Arizona Laws 44-6704. Surplus parts inventory; credits
A. Unless this section is specifically waived in writing by the dealer, a supplier shall allow a dealer to periodically, or at least once every twelve months, return a portion of the dealer’s surplus parts inventory for credit. The supplier shall notify the dealer of a time period when a dealer may submit the dealer’s surplus parts list and return this inventory. The designated return period shall be at least ninety days. A supplier may stagger return periods for its dealers.
Terms Used In Arizona Laws 44-6704
- dealer: means any person, partnership, corporation, association or other form of business enterprise that is primarily engaged in the retail sale of equipment. See Arizona Laws 44-6701
- Equipment: means machines designed for or adapted and used for agriculture, livestock, grazing, light industrial and utility purposes. See Arizona Laws 44-6701
- Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
- Net price: means the price listed for repair parts in the supplier's price list or catalog minus all applicable discounts allowed by the supplier. See Arizona Laws 44-6701
- Supplier: means any person, partnership, corporation, association or other business enterprise that is engaged in the manufacturing, assembly or wholesale distribution of equipment or repair parts, or both, and includes any successor in interest, including a purchaser of assets or stock, or a surviving corporation that results from a merger, liquidation or reorganization of the original supplier. See Arizona Laws 44-6701
- Writing: includes printing. See Arizona Laws 1-215
B. If a supplier has not notified its dealer of a specific time period for returning surplus parts within the preceding twelve months, it shall allow the dealer to return surplus parts within sixty days of receiving the dealer’s request to make this return.
C. A supplier shall allow surplus parts return on a dollar value of parts equal to ten per cent of the total dollar value of all parts purchased by the dealer from the supplier during either the twelve month period immediately preceding the supplier’s notification to the dealer of the supplier’s return program or, if subsection B applies, the month the dealer makes a return request. The dealer may elect to return a dollar value of the surplus parts equal to less than ten per cent of the total dollar value of the parts the dealer purchased during the preceding twelve months.
D. A dealer may not return obsolete or superseded parts. However, a dealer may return for credit a part found in the supplier’s current returnable parts list or a superseded part that is not the subject of either the supplier’s parts return program as of the date the supplier notifies the dealer or, if subsection B applies, as of the date the equipment dealer made a return request.
E. A dealer shall return only new and unused parts to the supplier of these parts.
F. The minimum credit allowed for returned parts is ninety-five per cent of the net price as listed in the supplier’s current returnable parts list as of the date that the supplier provides notice of its return program or, if subsection B applies, the date that the dealer submits a request for return.
G. A supplier shall issue credit within ninety days after receiving a return part.
H. This section does not prevent a supplier from charging back to the dealer’s account amounts previously paid or credited as a discount incident to the dealer’s purchase of goods.