Indiana § 9-32-19-24 - Repurchase of inventory by manufacturer

§ 9-32-19-24. Repurchase of inventory by manufacturer

Sec. 24. (a) If a recreational vehicle dealer terminates, cancels, or refuses to renew the recreational vehicle dealer agreement for good cause, the recreational vehicle manufacturer, at the election of the dealer, shall repurchase the inventory of the recreational vehicle dealer not later than forty-five (45) days after the termination, cancellation, or refusal to renew the recreational vehicle dealer agreement as follows:

(1) All new, unused, except for demonstration purposes, and untitled recreational vehicles that have not been altered or damaged and that were acquired from the recreational vehicle manufacturer or recreational vehicle distributor within eighteen (18) months of the date of the notice of termination, cancellation, or nonrenewal, at one hundred percent (100%) of the net invoice cost, including transportation, less applicable rebates, and discounts to the dealer. If a repurchased vehicle is damaged, the amount due to the recreational vehicle dealer shall be reduced by the cost to repair the damaged vehicle. Damage prior to delivery to the recreational vehicle dealer will not disqualify repurchase under this subsection.

(2) One hundred five percent (105%) of the original net price paid to the recreational vehicle manufacturer or recreational vehicle distributor to compensate the recreational vehicle dealer for handling, packing, and shipping costs for all undamaged accessories and proprietary parts sold to the recreational vehicle dealer not more than twelve (12) months before the termination, cancellation, or refusal to renew the recreational vehicle dealer agreement if accompanied by the original invoice.

(3) One hundred percent (100%) of the recreational vehicle dealer's net cost plus freight, destination, delivery, distribution charges, and sales tax for:

(A) properly functioning diagnostic equipment;

(B) special tools;

(C) signs; and

(D) any other equipment and machinery;

if purchased by the recreational vehicle dealer not more than five (5) years before the termination, cancellation, or refusal to renew the recreational vehicle dealer agreement upon the recreational vehicle manufacturer's or recreational vehicle distributor's request that can no longer be used in the normal course of the recreational vehicle dealer's ongoing business.

(b) A recreational vehicle manufacturer or recreational vehicle distributor shall pay in full for inventory repurchased under this section before the recreational vehicle is surrendered by the recreational vehicle dealer. Once the recreational vehicle dealer receives full payment under subsection (a), the recreational vehicle dealer shall immediately surrender the recreational vehicle to the recreational vehicle manufacturer or recreational vehicle distributor.

(c) If the recreational vehicle dealer agreement is terminated, canceled, or not renewed by the recreational vehicle manufacturer or recreational vehicle distributor without good cause, in violation of section 22 of this chapter, then the recreational vehicle manufacturer or recreational vehicle distributor shall repurchase recreational vehicle dealer inventory, equipment, and parts as provided in this section.

(d) A recreational vehicle dealer may sell the remaining inventory that is not repurchased under subsection (a).

(e) A recreational vehicle dealer may:

(1) sell the remaining inventory of a particular line make or model after the recreational vehicle dealer agreement is terminated, canceled, or not renewed by the recreational vehicle manufacturer or recreational vehicle distributor; or

(2) if recreational vehicles of a line make or model that is subject to the terminated, canceled, or not renewed recreational vehicle dealer agreement are not repurchased under subsection (a), continue to sell the recreational vehicles in the recreational vehicle dealer's inventory until the recreational vehicles are no longer in the recreational vehicle dealer's inventory.

As added by P.L.42-2025, SEC.40.