Delaware Code Title 21 Sec. 8405 – Repurchase of inventory
(a) If a new recreational vehicle dealer terminates, cancels, or fails to renew a manufacturer-dealer agreement for good cause as defined in § 8404(e) of this title and the manufacturer fails to cure the claimed deficiencies as provided in § 8404(d) of this title, at the election of the new recreational vehicle dealer and within 45 days after termination, cancellation, or nonrenewal, the manufacturer shall, repurchase:
(1) All new, untitled recreational vehicles and recreational trailers that were acquired from the manufacturer or distributor within 12 months before the effective date of the notice of termination, cancellation, or nonrenewal that have not been used, except for demonstration purposes, and that have not been altered or damaged, at 100% of the net invoice cost, including transportation, less applicable rebates and discounts to the new recreational vehicle dealer. If any of the vehicles repurchased pursuant to this paragraph are damaged, but do not trigger a consumer disclosure requirement, the amount due the new recreational vehicle dealer must be reduced by the cost to repair the vehicle. Damage prior to delivery to the new recreational vehicle dealer that is disclosed at the time of delivery will not disqualify repurchase under this provision.
(2) All undamaged accessories and proprietary parts sold to a new recreational vehicle dealer for resale within the 12 months prior to termination, cancellation, or nonrenewal, if accompanied by the original invoice, at 105% of the original net price paid to the manufacturer or distributor to compensate the new recreational vehicle dealer for handling, packing, and shipping the parts; and
(3) Any properly functioning diagnostic equipment, special tools, current signage, and other equipment and machinery at 100% of the new recreational vehicle dealer’s net cost plus freight, destination, delivery, and distribution charges and sales taxes, if any, if the items were purchased by the new recreational vehicle dealer within 5 years before termination, cancellation, or nonrenewal upon the manufacturer’s or distributor’s request, and can no longer be used in the normal course of the new recreational vehicle dealer’s ongoing business.
Terms Used In Delaware Code Title 21 Sec. 8405
- Distributor: means a person, firm, corporation, or business entity that purchases new recreational vehicles or new recreational trailers from a manufacturer for resale to new recreational vehicle dealers. See Delaware Code Title 21 Sec. 8402
- Manufacturer: means a person, firm, corporation, or business entity that engages in the manufacturing of new recreational vehicles or new recreational trailers. See Delaware Code Title 21 Sec. 8402
- Manufacturer-dealer agreement: means a written agreement or contract entered into between a manufacturer and a new recreational vehicle dealer that fixes the rights and responsibilities of the parties and pursuant to which the new recreational vehicle dealer sells new recreational vehicles or new recreational trailers. See Delaware Code Title 21 Sec. 8402
- New recreational vehicle: means a motorhome which has not been titled. See Delaware Code Title 21 Sec. 8402
- New recreational vehicle dealer: means a person, firm, corporation, or business entity who is engaged in the business of buying, selling, or exchanging new recreational vehicles or new recreational trailers. See Delaware Code Title 21 Sec. 8402
(b) The manufacturer or distributor shall pay the new recreational vehicle dealer within 30 days after receipt of the items returned pursuant to this section.