Ch. 753

LAWS OF MARYLAND

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

TITLE 19. EQUIPMENT DEALER CONTRACT ACT

SUBTITLE. 1. DEFINITIONS; GENERAL PROVISIONS

19-101.

(A) IN THIS TITLE, UNLESS THE CONTEXT REQUIRES OTHERWISE,
THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED.

(B)  "CONSTRUCTION", "FARM", "INDUSTRIAL", AND "OUTDOOR
POWER", WHEN USED TO REFER TO TRACTORS, IMPLEMENTS, ATTACHMENTS,
OR REPAIR PARTS, HAVE THE MEANINGS COMMONLY USED AND UNDERSTOOD
AMONG DEALERS AND SUPPLIERS OF THOSE TRADES.

(C)   "CONTRACT" MEANS A WRITTEN OR ORAL CONTRACT OR
AGREEMENT BETWEEN A DEALER AND A SUPPLIER BY WHICH:

(1)  THE DEALER IS GRANTED THE RIGHT TO SELL THE
SUPPLIER'S EQUIPMENT; AND

(2) THE DEALER IS REQUIRED TO ORDER AND MAINTAIN AN
INVENTORY IN EXCESS OF $25,000 AT CURRENT NET PRICE FROM THE
SUPPLIER.

(D) "CURRENT NET PRICE" MEANS, THE PRICE LISTED IN THE
SUPPLIER'S PRICE LIST IN EFFECT AT THE TIME THE CONTRACT
AGREEMENT IS TERMINATED, LESS ANY APPLICABLE DISCOUNT ALLOWED.

(E) "DEALER" MEANS A PERSON:

(1)  ENGAGED IN THE BUSINESS OF SELLING, AT RETAIL,
CONSTRUCTION, FARM, INDUSTRIAL, OR OUTDOOR POWER EQUIPMENT;

(2)  MAINTAINING A TOTAL INVENTORY, VALUED AT OVER
$50,000, OF NEW EQUIPMENT AND REPAIR PARTS; AND

(3) PROVIDING REPAIR SERVICE FOR THE EQUIPMENT SOLD.

(F)  "INVENTORY" MEANS THE TRACTORS, IMPLEMENTS,
ATTACHMENTS, EQUIPMENT, OR REPAIR PARTS THAT A DEALER PURCHASED
FROM A SUPPLIER.

(G)  "NET COST" MEANS THE PRICE THE DEALER PAID THE SUPPLIER
FOR THE INVENTORY, LESS ALL APPLICABLE DISCOUNTS ALLOWED, PLUS
THE AMOUNT THE DEALER PAID FOR FREIGHT COSTS FROM THE SUPPLIER'S
LOCATION TO THE DEALER'S LOCATION, PLUS THE REASONABLE COST OF
ASSEMBLY PERFORMED BY THE DEALER.

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