Proudly serving the industry for which it was named for more than 50 years, Outdoor Power Equipment provides dealers who sell and service outdoor power equipment with valuable information to succeed in a competitive market.
Issue link: https://read.dmtmag.com/i/59432
COVER STORY By Gary L. Antoniewicz manufacturers. Since then, nearly every state has passed some form of franchise or dealer protection statute. The problem is that dealership protections vary widely from state to state, and protections available in one state may not be available in a neighboring state. Many states have statutes that are very industry specific such as "motor vehicles" or "farm implements." Some statutes deal only with inventory Dealership agreements are two-way streets. Both the manufacturer and dealer are making commitments to each other to distribute a product. repurchase upon termination, while approximately 20 states have dealer statutes requiring "good cause" for termination. Even then, the "good cause" requirement may not apply to every industry or type of product distributed. PROTECTING PROFITABLE (GIE+EXPO) in Louisville. As is typically the case, speaking is also a learning opportunity for me. Through dialogue and questions, I get the chance to hear dealers address what is on their minds. For this, I am thankful, especially as I have now been asked to follow up with an article on topics addressed at GIE+EXPO. While I addressed several legal topics PARTNERSHIPS L ast October, I had the pleasure of speaking to outdoor power equipment dealers at the Green Industry and Equipment Expo in my seminar, which was sponsored by the North American Equipment Dealers Association (NAEDA), I want to concentrate now on the distribution and franchise issues faced by OPE dealers. Historical background on dealer protection Dealer protection statutes are primarily state issues and date back to 1935 when my own home state of Wisconsin passed the first motor vehicle dealer franchise law regulating coercive acts by motor vehicle What you need to know before signing with your suppliers The hodgepodge of state laws has been of limited help to OPE dealers and even when "outdoor power equipment" is specifically enumerated in a statute, there can still be questions as to how it is defined.1 Does OPE include power sports equipment and vice versa? Can some OPE be considered farm implements? The lack of a clear definition of OPE has been a detriment to protection in those states that do not have general across-the-board protection for "dealers" of all products. There are no current federal standards, and dealer rights have to be determined on a state-by-state analysis of the law. 1 See Middle Tennessee Associates v. Leeville Motors (TN, 1991), raising the question of whether lawn and garden equipment are farm implements. Also, Deere & Company v. Ford (MA 2001), where dealer asserted lawn tractors were under the "motor vehicle" dealer law. 16 OUTDOOR POWER EQUIPMENT www.outdoorpowerequipment.com Image ©istockphoto.com/pavlen