Contracts and agreements in violation of article deemed void

Any contract or franchise agreement or part thereof or practice thereunder in violation of any provision of this article shall be deemed against 567 13-8-22 public policy and shall be void and unenforceable. (Code 1981, § 13-8-21, enacted by Ga. L. 1993, p. 1585, § 4; Ga. L. 2002, p. 1101, § 1.) Editor’s notes. — Ga. L. 2002, p. 1101, § 1, effective July 1, 2002, reenacted this Code section without change. 13-8-22. Repurchase of inventory upon termination of franchise; payment for inventory repurchased; title to repurchased inventory; exempt inventory items; civil liability for failure to repurchase inventory. (a) Whenever any dealer enters into a franchise agreement with a manufacturer, distributor, or wholesaler wherein the dealer agrees to maintain an inventory of equipment or repair parts and the franchise is subsequently terminated, the manufacturer, distributor, or wholesaler shall repurchase the inventory as provided in this article. The dealer may keep the inventory if he or she desires. If the dealer has any outstanding debts to the manufacturer, distributor, or wholesaler, then the repurchase amount may be credited to the dealer’s account. (b) The manufacturer, distributor, or wholesaler shall repurchase that inventory previously purchased from it and held by the dealer on the date of termination of the contract. The manufacturer, distributor, or wholesaler shall pay 100 percent of the actual dealer cost, including freight, of all new, unsold, undamaged, and complete units of equipment which are resalable and 100 percent of the current wholesale price of all new, unused, undamaged repair parts and accessories which are listed in the manufacturer’s current parts price list. The manufacturer, distributor, or wholesaler shall pay the dealer 5 percent of the current wholesale price on all new, unused, and undamaged repair parts returned to cover the cost of handling, packing, and loading. The manufacturer, distributor, or wholesaler shall have the option of performing the handling, packing, and loading in lieu of paying the 5 percent sum imposed by this subsection for these services. (c) Upon payment within a reasonable time of the repurchase amount to the dealer, the title and right of possession to the repurchased inventory shall transfer to the manufacturer, distributor, or wholesaler, as the case may be. (d) The provisions of this article shall not require the repurchase from a dealer of: (1) Any single repair part which is priced as a set of two or more items; (2) Any repair part which, because of its condition, is not resalable as a new part without repackaging or reconditioning; (3) Any inventory for which the dealer is unable to furnish evidence, reasonably satisfactory to the manufacturer, distributor, or wholesaler, of good title, free and clear of all claims, liens, and encumbrances; 568 13-8-23 (4) Any inventory which the dealer desires to keep, provided the dealer has a contractual right to do so; (5) Any unit of equipment which is not in new, unused, undamaged, complete condition; (6) Any repair parts which are not in new, unused, undamaged condition; (7) Any inventory which was ordered by the dealer on or after the date of receipt of the notification of termination of the franchise; or (8) Any inventory which was acquired by the dealer from any source other than the manufacturer, distributor, or wholesaler. (e) If any manufacturer, distributor, or wholesaler shall fail or refuse to repurchase any inventory covered under the provisions of this article within 60 days after termination of a dealer’s contract, it shall be civilly liable for 100 percent of the current wholesale price of the inventory plus any freight charges paid by the dealer, such dealer’s reasonable attorney’s fees, court costs, and interest on the current wholesale price computed at the legal interest rate from the sixty-first day after termination. (Code 1981, § 13-8-22, enacted by Ga. L. 1993, p. 1585, § 4; Ga. L. 2002, p. 1101, § 1.) 13-8-23. Repurchase of inventory upon death or incapacity of dealer or majority stockholder of corporate dealer. In the event of the death or incapacity of the dealer or the majority stockholder of a corporation operating as a dealer, the manufacturer, distributor, or wholesaler shall, at the option of the heirs at law, if the dealer died intestate, or the devisees or transferees under the terms of the deceased dealer’s last will and testament, if said dealer died testate, repurchase the inventory from said heirs or devisees as aforesaid as if the manufacturer, distributor, or wholesaler had terminated the contract, and the inventory repurchase provisions of Code Section 13-8-22 are made expressly applicable hereto. The heirs or devisees as aforesaid shall have one year from the date of the death of the retailer or majority stockholder to exercise their option under this article; provided, however, that nothing in this article shall require the repurchase of inventory if the heirs or devisees as aforesaid and the manufacturer, distributor, or wholesaler enter into a new franchise agreement to operate the retail dealership. (Code 1981, § 13-8-23, enacted by Ga. L. 1993, p. 1585, § 4; Ga. L. 2002, p. 1101, § 1.) Editor’s notes. — Ga. L. 2002, p. 1101, § 1, effective July 1, 2002, reenacted this Code section without change. 569 T.13, C.8, A.3 13-8-24. Indemnification of dealer for losses relating to manufacture, assembly, design, or functions beyond control of dealer. A manufacturer, distributor, or wholesaler, as the case may be, will fully indemnify and hold harmless its dealer against any losses including, but not limited to: court costs and reasonable attorney’s fees or damages arising out of complaints, claims, or lawsuits including, but not limited to, strict liability, negligence, misrepresentation, express or implied warranty, or rescission of the sale where the complaint, claim, or lawsuit relates to the manufacture, assembly, or design of new items covered by this article, parts or accessories, or other functions by the manufacturer, distributor, or wholesaler which are beyond the control of the dealer. (Code 1981, § 13-8-24, enacted by Ga. L. 1993, p. 1585, § 4; Ga. L. 2002, p. 1101, § 1.) 13-8-25. Applicability of article to existing contracts without expiration dates and to contracts entered or renewed on or after July 1, 2002. The provisions of this article shall apply to all contracts now in effect which have no expiration date and are a continuing contract and all other contracts entered into or renewed on or after July 1, 2002. Any contract in force and effect prior to July 1, 2002, which by its own terms will terminate on a date subsequent thereto shall be governed by the law as it existed prior to July 1, 2002. (Code 1981, § 13-8-25, enacted by Ga. L. 1993, p. 1585, § 4; Ga. L. 2002, p. 1101, § 1.) Editor’s notes. — Ga. L. 2002, p. 1101, § 1, effective July 1, 2002, reenacted this Code section without change. ARTICLE 3 REGULATION OF FARM EQUIPMENT MANUFACTURERS, DISTRIBUTORS, AND DEALERS