Justices Consider State Law on Dealer Contracts

A legal battle involving manufacturers of farm equipment and equipment dealers has reached the New Hampshire Supreme Court. It is the newest development in a dispute over a state law introduced in 2013.

Attorneys representing Deere and other majors argued before the Supreme Court earlier this month that the Auto Dealers Bill of Rights, or S.B. 126, is unconstitutional and that it undermines the essence of Deere’s existing contracts with its dealers.

The attorney for the state described the law as regulating a relationship. He told justices the new law is a merger of laws that govern automobile manufacturers and farm and tractor manufacturers. It bars manufacturers from terminating contracts with dealers without just cause and places the burden on the manufacturers to justify terminations.

New Hampshire passed the law in 2013. Deere, CNH and AGCO sued to halt its enforcement, and a judge barred the law while the case was pending. In September 2014, a lower court judge ruled in New Hampshire’s favor, saying the law served an important public purpose. The law’s validity is in question, however, until the Supreme Court rules.

Justices did not indicate when they would decide the case. S