Section 696-E. Parts and return of parts

1. Every supplier shall provide
  for the availability of repair parts throughout  the  reasonable  useful
  life of any equipment sold.
    2. Every supplier shall provide to its dealers, on an annual basis, an
  opportunity  to  return  a  portion of their surplus parts inventory for
  credit. The surplus procedure shall be administered as follows:
    (a) The supplier may notify its dealers of a time period, of at  least
  sixty  days duration, during which time dealers may submit their surplus
  parts list and return their surplus parts to the supplier.
    (b) If a supplier has not notified a dealer of a specific time  period
  for  returning surplus parts within the preceding twelve months, then it
  shall authorize and allow the  dealer's  surplus  parts  return  request
  within thirty days after receipt of such request from the dealer.
    (c)  Pursuant  to  the provisions of this subdivision, a supplier must
  allow surplus parts return authority on a dollar value of parts equal to
  six percent of the total dollar value of parts purchased by  the  dealer
  from  the  supplier during the twelve month period immediately preceding
  the notification to the dealer by the  supplier  of  the  surplus  parts
  return  program,  or  the  month  the  dealer's  return request is made,
  whichever is applicable. However, the  dealer  may  elect  to  return  a
  dollar  value  of  the  dealer's  surplus  parts  equal to less than six
  percent of the total dollar value of parts purchased by the dealer  from
  the  supplier  during  the  preceding  twelve  month  period as provided
  herein.
    (d) No obsolete or superceded part, may  be  returned,  but  any  part
  listed in the supplier's current returnable parts list or any superceded
  part  that  has  not  been  the  subject  of the supplier's parts return
  program at the date of notification to the dealer by the supplier of the
  surplus parts return program, or the date of the dealer's  parts  return
  request,  whichever  is applicable, shall be eligible for return and the
  credit specified. However, returned parts must  be  in  new  and  unused
  condition  and  must have been purchased by the dealer from the supplier
  to whom they are returned unless no program for the return of such  part
  has been offered by the supplier.
    (e)  The  minimum lawful credit to be allowed for returned parts shall
  be eighty-five percent of the cost thereof as listed in  the  supplier's
  current  returnable  parts  list  at the date of the notification to the
  dealer by the supplier of the surplus parts return program, or the  date
  of the dealer's parts return request, whichever is applicable.
    (f)  Applicable  credit  hereunder  must be issued or furnished to the
  dealer within sixty days after receipt of the dealer's returned parts by
  the supplier.
    (g) Packing and return freight  expense  incurred  in  any  return  of
  surplus  parts  pursuant to the terms of this subdivision shall be borne
  by the supplier.
    (h) The provisions of  this  section  shall  be  supplemental  to  any
  agreement  between  the  dealer  and the supplier covering the return of
  equipment, attachments and repair parts which provides the  dealer  with
  greater  protection.  The  dealer  can elect to pursue either his or her
  contract remedy or the remedy provided by state law, and an election  by
  the dealer to pursue his or her contract remedy shall not bar his or her
  right  to  the  remedy  provided  herein  as  to  those repair parts not
  affected by the  contract  remedy.  Notwithstanding  anything  contained
  herein,  the rights of a supplier to charge back to the dealer's account
  amounts previously paid or  credited  as  a  discount  incident  to  the
  dealer's   purchase  of  goods  shall  not  be  affected.  Further,  any
  repurchase hereunder shall not be subject to the provisions of the  bulk
  sales law. Additionally, nothing shall preclude a price for return parts

  which  is  greater than the total allowance for parts allowed herein and
  the shipping allowance, in such case the packing, freight  and  handling
  expense charge, shall not be borne by the supplier.