Lawmakers Consider Dealer-Specific Bills in Louisiana, Oregon

Louisiana: This week the Louisiana State Senate passed SB-263, a bill which modifies present law dealing with relationships between equipment dealers, manufacturers and suppliers.

The bill provides that provisions which currently cover repurchase of farm, industrial, and lawn and garden equipment by the supplier shall also cover forestry equipment.

The bill also provides that remedies provided by law are in addition and supplemental to remedies provided in any dealer agreement. A dealer may elect to pursue its contract remedy, the remedies provided by law, or both.

Proposed law provides that an election by the dealer to pursue remedies as provided in the dealer agreement shall not preclude or prohibit the dealer from exercising his rights to any other remedies provided by law.

Proposed law provides that any provision included in an agreement between an agent and a dealer that attempts to limit or otherwise preclude or prohibit a dealer from exercising any rights or protections provided by law shall be null, void, and unenforceable.

The bill provides that an agent shall bear the burden of proof that it has acted in good faith and that there was good cause for the termination or cancellation of any dealership agreement or contract and expands on the definition of “good cause.”

Finally, the bill provides for the standard indemnification for dealers against any judgment for damages, arising out of complaints, claims or lawsuits, including but not limited to strict liability, negligence, misrepresentation, express or implied warranty, or rescission of sale, if the judgment arises out of an alleged defective or negligent manufacture, assembly, design, or modifications or alterations made by dealer, who was authorized by an agent to make such modifications or alterations, of farm equipment, construction equipment, forestry equipment, material handling equipment, utility equipment, lawn and garden equipment, parts, attachments, or accessories, or other functions by the agent, which are beyond the control of the dealer.

If passed by the Louisiana House of Representatives and signed by the Governor the new provisions would go into effect on August 1.

At this point our Association has taken a neutral position on this bill, but continues to monitor its progress, with any new amendments to the proposed legislation being our major concern. Full information on the bill and status updates are available at FarmEquip.org/SB263.

Oregon: In Oregon last week, the House of Representatives passed HB3164, a bill introduced at the request of the Pacific Northwest Dealer Association.

It changes conditions by which farm implement suppliers may, with good cause, terminate, cancel or not renew retailer agreement or change retailers’ competitive circumstances.

Change in competitive circumstances is defined as an event that has a material detrimental effect on retailers’ ability to compete.

The measure increases from 12 months to 18 months the length of notice suppliers must provide retailers before terminating, canceling or not renewing agreements.

The bill moved to the Oregon Senate this week; it has not been assigned to committee.

The full bill and status updates can be found at FarmEquip.org/Oregon. S