51-20.2 Franchise Merchandise Return
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<![CDATA[CHAPTER 51-20.2FRANCHISE MERCHANDISE RETURN51-20.2-01. Definitions. As used in this chapter, unless the context requires otherwise:1."Contractual arrangement" means a written franchise or other written agreement, by<br>whatever name such agreement may be called, between a distributor and a dealer<br>by which the dealer agrees to sell at retail and service the distributor's merchandise<br>in a given location or locations, whether or not exclusively with respect to a given<br>geographic area, and the distributor authorizes the dealer to sell, or sell and service,<br>and agrees to supply an inventory of merchandise and, if the dealer is to perform<br>service, an inventory of parts for that merchandise.2."Dealer" means a person, partnership, corporation, limited liability company, or other<br>business entity which sells at retail and services new merchandise and is not<br>engaged in the business of home solicitation sales.3."Distributor" means any manufacturer, wholesaler, or distributor of merchandise who<br>has a contractual arrangement with a dealer for such merchandise.4."Merchandise" includes all new products of inventory intended for resale or retail<br>sale by franchised dealers.51-20.2-02. Dealers may recover value of merchandise or parts from distributor incertain cases.1.Whenever:a.A distributor cancels or discontinues a contractual arrangement; orb.A dealer cancels or discontinues a contractual arrangement because the<br>distributor entered into a contractual arrangement with another dealer to sell in<br>the same geographical area for which the first dealer had an exclusive<br>dealership,the dealer may recover from the distributor the net cost to the dealer of all new and<br>unused merchandise, and parts for such merchandise, held by the dealer at the time<br>of cancellation or discontinuance of the contractual arrangement. The dealer may<br>enforce the right given under this section by civil action commenced in district court<br>in the county where the dealer has the dealer's principal place of business in North<br>Dakota.2.The provisions of this section are supplemental to any contractual rights which the<br>dealer may have with respect to reimbursement for merchandise and parts inventory<br>held by the dealer at cancellation or discontinuance of a contractual arrangement.<br>The dealer may elect to pursue the dealer's rights under the contractual<br>arrangement and under this section, but the dealer's total recovery may not exceed<br>the net cost of the merchandise and parts, plus freight costs for return of the<br>merchandise and parts, remaining in the dealer's hands at the time of cancellation or<br>discontinuance, plus legal costs awarded by the court.51-20.2-03. Exception. The provisions of this chapter do not apply to chapters 51-07,51-19, 51-20, and 51-20.1.Page No. 1Document Outlinechapter 51-20.2 franchise merchandise return]]>