Louisiana Passes Law on Machinery Repurchases

Legislators in Louisiana recently passed changes to a law that relates to the repurchase of certain machinery by a wholesaler or manufacturer.

Governor John Bel Edwards signed ACT 359 into law in June.
A manufacturer or wholesaler may violate the ACT if they attempt to “coerce any dealers to accept delivery of equipment parts or accessories which the dealer has not ordered voluntarily, or to seek payment for any such equipment parts or accessories, or their return.”

Violations also may occur in connection with an incentive agreement if:

  • The burden of proof regarding the terms of the agreement, including the establishment of the location of a piece of equipment’s first substantial use.
  • A penalty for the sale of equipment if the first substantial use is in a location outside the dealer’s area of responsibility for agricultural sales, regardless of the location of the seller, or of the customer’s residence, office, or operating base.

If you have any questions regarding this legislation, please contact Membership Services Director Matt Rice at Matt@FarmEquip.org or (314) 720-4234.