“But do I have to buy it back?” After more than a decade of providing legal advice to members, this is the distribution attorney Trent Johnson hears most often.
Disagreements between manufacturers and resellers (distributors or dealers) about post-termination equipment repurchase obligations can blossom into full-blown lawsuits, especially when the underlying termination is not mutual. Indeed, they can be the tail that wags the wrongful termination dog.
A reseller displeased with a manufacturer’s response to a repurchase demand can lead to a claim that the manufacturer did not comply with the statutory termination process. And, coupled with the threat of attorneys’ fees, the dollars at stake can be significant.
Given this, and because the pandemic will undoubtedly lead to an uptick in terminations, Johnson offered a few repurchase pointers in the most recent issue of Ag Innovator magazine. See the story here.