No supplier shall:

(1) Coerce any dealer to accept delivery of inventory, parts or accessories that the dealer has not ordered voluntarily, except as required by any applicable law, or unless parts or accessories are safety parts or accessories required by the supplier;

Terms Used In Tennessee Code 47-25-1905

  • Dealer: means any person engaged in the business of selling and retailing inventory, who enters into a retail agreement, and who, under the terms of the agreement receives inventory from the supplier. See Tennessee Code 47-25-1902
  • Inventory: means motorcycles, off-road vehicles, attachments and repair parts. See Tennessee Code 47-25-1902
  • Retail agreement: means an agreement, including a franchise agreement that meets the requirements of a retail agreement, whether express, implied, oral, or written, between two (2) or more persons:
    (A) By which a person receives the right to:
    (i) Sell or lease inventory or services at retail or wholesale. See Tennessee Code 47-25-1902
  • Supplier: includes a:
    (A) Wholesaler. See Tennessee Code 47-25-1902
  • Terminate: includes the failure to renew. See Tennessee Code 47-25-1902
(2) Condition the sale of additional inventory to a dealer upon a requirement that the dealer also purchase other goods or services, except that a supplier may require the dealer to purchase those parts reasonably necessary to maintain the quality of operation in the field of the inventory used in the trade area;
(3) Coerce a dealer into refusing to purchase inventory manufactured by another supplier; or
(4) Terminate, cancel or fail to renew or substantially change the competitive circumstances of the retail agreement based on the results of a natural disaster, including a sustained drought or high unemployment in the dealership market area, labor dispute or other similar circumstances beyond the dealer’s control.
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