OK Considers Dealer Legislation

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Oklahoma’s state legislature is considering legislation to strengthen dealer-manufacturer franchise contract law to require a supplier to repurchase new, unused and undamaged repair parts at 90% of the merchandise’s value, up from 85% in current law. Legislation under consideration would also specifically include forestry, construction, industrial, maintenance and paving equipment inventory in the current law that deals with contracts between dealers and manufacturers.

Currently, both the Oklahoma state House and Senate are reviewing dealer franchise legislation. During a February presentation to the House, Tag Webb, regional manager for the Southwestern Assn., a North American Equipment Dealers Assn. affiliate, noted that “There is no such thing as a negotiated contract between manufacturers and dealers. Dealers are offered an agreement on a take-it-or-leave-it basis.”

Scott Eisenhauer, general manager for Deere dealership P&K Equipment, with five stores in Oklahoma, said the bill would help Oklahoma business owners who do not have the ability to truly negotiate a contract with a major manufacturer. News reports state the legislation under consideration resembles language on the books in 46 states.