Delaware Code Title 6 Sec. 2722 – Supplier’s requirement to repurchase
(a) Whenever a contract agreement between a dealer and a supplier is terminated by either party, the supplier shall repurchase the dealer’s inventory as provided in this subchapter unless the dealer chooses to keep the inventory.
Terms Used In Delaware Code Title 6 Sec. 2722
- Contract: A legal written agreement that becomes binding when signed.
- Contract agreement: means a written or oral contract or agreement between a dealer and a supplier by which the dealer is granted the right to sell their equipment and the dealer is required to order and maintain an inventory in excess of $25,000 at current net price from the supplier. See Delaware Code Title 6 Sec. 2720
- Current net price: means the price listed in the supplier's price list in effect at the time the contract agreement is terminated, less any applicable discount allowed. See Delaware Code Title 6 Sec. 2720
- Dealer: means a person, firm or corporation engaged in the business of selling, at retail, construction, farm, industrial or outdoor power equipment and who maintains a total inventory of new equipment and repair parts valued at $50,000 or over and provides repair service for the above-mentioned equipment. See Delaware Code Title 6 Sec. 2720
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Inventory: means the tractors, implements, attachments, equipment and repair parts that the dealer purchased from the supplier. See Delaware Code Title 6 Sec. 2720
- Personal representative: means , as to a natural person, the executor, administrator, guardian, conservator or other legal representative thereof and, as to a person other than a natural person, the legal representative or successor thereof. See Delaware Code Title 6 Sec. 17-101
- Supplier: means a wholesaler, manufacturer or distributor who enters into a contract agreement with a dealer. See Delaware Code Title 6 Sec. 2720
- Year: means a calendar year, and is equivalent to the words "year of our Lord. See Delaware Code Title 1 Sec. 302
(b) If the dealer principal who is a party to a contract agreement dies or becomes incompetent, the supplier shall, at the option of the personal representative or guardian, repurchase the inventory as if the agreement had been terminated. The personal representative or guardian has 1 year from the date of the death or incompetency of the dealer principal to exercise the option under this subchapter.
(c) This subchapter does not apply to a supplier that does not require the dealer to order and maintain an inventory in excess of $25,000 at current net price from the supplier.