Texas Business & Commerce Code - Section 19.43. Return Of Inventory
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Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 19.43. Return Of Inventory
§ 19.43. RETURN OF INVENTORY. (a) If on termination of a
dealer agreement the dealer delivers to the supplier or a person
designated by the supplier the inventory that was purchased from
the supplier and that is held by the dealer on the date of the
termination, the supplier shall pay to the dealer:
(1) the dealer cost of new, unsold, undamaged, and
complete farm tractors, farm implements, utility tractors,
industrial tractors, forklifts, material-handling equipment,
outdoor power equipment, forestry harvesting equipment, off-road
construction equipment, and attachments returned by the dealer;
(2) an amount equal to 85 percent of the current price
of new, undamaged repair parts returned by the dealer; and
(3) an amount equal to an additional five percent of
the current price of new, undamaged repair parts returned by the
dealer, unless the supplier performs the handling, packing, and
loading of the parts, in which case no additional amount is required
under this subdivision.
(b) Before returning inventory under this section and not
later than the 120th day after the effective date of termination,
the dealer shall submit to the supplier a list of the inventory the
dealer intends to return, including to the extent possible each
item's trade name, description, and serial number. Not later than
the 60th day after the date the supplier receives the list, the
supplier shall notify the dealer in writing of:
(1) each item that the supplier claims is not subject
to reimbursement under this section; and
(2) the destination of each item the dealer is to
deliver to a person designated by the supplier.
(c) The supplier may subtract from the sum due under
Subsection (a) of this section the amount of debts owed by the
dealer to the supplier. The supplier and dealer are each
responsible for one-half of the cost of delivering the inventory to
the supplier or to a person designated by the supplier, except that
if the dealer delivers an item to a person designated by the
supplier the dealer is not responsible for an amount that exceeds
the amount for which the dealer would have been responsible if the
item had been delivered to the supplier.
(d) The supplier shall pay the amount due under this section
before the 91st day after the day that the supplier or person
designated by the supplier receives inventory from the dealer and
after the dealer has furnished proof that the inventory was
purchased from the supplier.
(e) On payment of the amount due under this section, title
to the inventory is transferred to the supplier or other person
designated by the supplier.
(f) The supplier and dealer may by agreement alter the time
limits provided by this section.
Added by Acts 1991, 72nd Leg., ch. 119, § 1, eff. May 19, 1991.
Amended by Acts 1995, 74th Leg., ch. 922, § 1, eff. Sept. 1,
1995; Acts 1999, 76th Leg., ch. 725, § 3, eff. Sept. 1, 1999.
Section: 19.24 19.25 19.26 19.27 19.28 19.41 19.42 19.43 19.44 19.45 19.47 20.01 20.02 20.021 20.03
Last modified: August 10, 2007
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