I. Whenever a supplier and dealer part ways, state law may require the supplier to repurchase whole goods, repair parts and specialized tools in the dealer’s inventory.
A. This statutory obligation is applicable across a number of industries, but varies by state.
B. The repurchase mandate often applies irrespective of the reason for termination.
C. Statutory repurchase obligations cannot be waived or contracted around.
D. Repurchase obligations can cost millions when terminating dealers with sizable inventories.
E. Disputes over repurchase obligations can drag an otherwise amicable termination into court.