Missouri Buy Back Statute

For Farm, Outdoor Power, Lawn & Garden, Industrial and Construction Equipment

(Requires repurchase of farm machinery at 100% of net cost and parts at 95% (plus 5%).)

R.S.Mo. § § 407.850, 407.855, 407.860, 407.865, 407.870, 407.885

(Missouri Farm Equipment Buy Back Statute)

FARM MACHINERY INVENTORY REPURCHASE ON TERMINATION OF DEALERSHIP

407.850 Definitions.—As used in sections 407.850 to 407.885, the following terms mean:

(1) "Current model", a model listed in the wholesaler’s, manufacturer’s or distributor’s current sales manual or any supplements thereto:

(2) "Current net price", the price listed in the wholesaler’s, manufacturer’s or distributor’s price list or catalogue in effect at the time the contract is canceled or discontinued, less any applicable trade and cash discounts;

(3) "Inventory", equipment, implements, machinery, attachments and repair parts;

(4) "Net cost", the price the retailer actually paid for the merchandise to the wholesaler, manufacturer, or distributor, plus freight from the wholesaler’s, manufacturer’s or distributor’s location to the dealer’s location;

(5)  "Retailer", any person, firm or corporation engaged in the business of selling, repairing and retailing:

(a)   Farm implements, machinery, attachments or repair parts;

(b)  Industrial, maintenance and construction power equipment; or

(c)   Outdoor power equipment used for lawn, garden, golf course, landscaping or grounds maintenance;

But retailer shall not include retailers of petroleum and motor vehicles and related automotive care and replacement products normally sold by such retailers.  
(L.1982 H.B.958 § 1, A.L. 1987 S.B. 35)

(1991) Distributor of farm equipment violated statutes by refusing to repurchase retailer’s repair parts inventory upon the retailer’s retirement from business. Lewis G. Moore & Co. v. Massey-Ferguson, Inc., 756 F. Supp. 424 (W.D. Mo.1991)

407.855. Repurchase of farm machinery inventory on termination of dealership— repurchase amount credited to debt of retailers— interest to be paid on credit, when, rate.—

Whenever any retailer enters into a written or oral contract with a wholesaler, manufacturer or distributor wherein the retailer agrees to maintain an inventory and the contract is terminated by the wholesaler, manufacturer, distributor, or retailer, or upon the retailer’s retirement at sixty-two years of age or older, then the retailer may require the repurchase of the inventory as provided for in sections 407.850 to 407.885. In the event of the death of the retailer or the majority stockholder of a corporation operating as a retailer, the wholesaler, manufacturer or distributor shall repurchase the inventory as provided for in section 407.880. If the retailer has any outstanding debts to the wholesaler, manufacturer or distributor, then the repurchase amount may be credited to the retailer’s account. All payments or allowances of credit due retailer shall be paid or credited within sixty days after the return of implements, machinery, attachments or repair parts. After sixty days all payments or allowances shall include interest at the rate stated in section 408.040, RSMo.
(L. 1982 H.B. 958 § 2, A.L. 1985 H.B. 604, A.L. 1987 S.B. 35)

407.860. Inventory qualifying for repurchase— percentage to be paid– cost of transportation to warehouse to be paid by retailer— transferee of manufacturer or distributors, law to apply, when.—

1. The wholesaler, manufacturer or distributor shall repurchase that inventory previously purchased from him and held by the retailer at the date of termination of the contract. The provisions of sections 407.850 to 407.885 shall apply to the transferee of such wholesaler, manufacturer or distributor if such transferee acquired substantially all of the assets of such wholesaler, manufacturer or distributor. The wholesaler, manufacturer or distributor shall pay one hundred percent of the net cost of all new, unsold, undamaged and complete farm implements, machinery, and attachments and ninety-five percent of the current net price of all new, unused and undamaged repair parts. The retailer shall pay the cost of transportation to the nearest warehouse maintained by the wholesaler, manufacturer, or distributor, or to a mutually agreeable site. The wholesaler, manufacturer or distributor shall pay the retailer five percent of the current net price on all new, unused and undamaged repair parts returned to cover the cost of handling, packing and loading. The wholesaler, manufacturer or distributor shall have the option of performing the handling, packing and loading in lieu of paying the five percent for these services. The retailer shall pay the cost of transportation to the nearest warehouse maintained by the wholesaler, manufacturer, or distributor, or to a mutually agreeable site.

2. Upon payment of the repurchase amount to the retailer, the title and right of possession to the repurchased inventory shall transfer to the wholesaler, manufacturer or distributor.
(L.1982 H.B. 958 § 3. A.L. 1987 S.B. 35)

407.865. Repurchase not to affect security interest in inventory and to be subject to bulk sales law.— The provisions of section 407.850 to 407.885 shall not be construed to affect in any way any security interest which any financial institution, person, wholesaler, manufacturer or distributor may have in the inventory of the retailer, and any repurchase under the provisions of sections 407.850 to 407.885 shall be subject to the provisions of the bulk sales law.
(L.1982 H.B. 958 § 4, A.L. 1987 S.B. 35)

   407.870. The provisions of sections 407.850 to 407.885 shall not require the repurchase from a retailer of:

(1) Any repair part which because of its condition is not resalable as a new part without repackaging or reconditioning;

(2) Any inventory for which the retailer is unable to furnish evidence, satisfactory to the wholesaler, manufacturer or distributor, of title, free and clear of all claims, liens and encumbrances;

(3) Any inventory which the retailer desires to keep, provided the retailer has a contractual right to do so;

(4) Any implements, machinery, and attachments which are not in new, unused, undamaged, or complete condition;

(5) Any repair parts which are not in new, unused, or undamaged condition;

(6) Any implements, machinery or attachments which were purchased twenty-four months or more prior to notice of termination of the contract;

(7) Any inventory which was ordered by the retailer on or after the date of notification of termination of the contract;

(8) Any inventory which was acquired by the retailer from any source other than the wholesaler, manufacturer or distributor or transferee of such wholesaler, manufacturer or distributor.  

407.885. Application to existing contracts and future contracts.— The provisions of sections 407.850 to 407.885 shall apply to all valid contracts now in effect which have no expiration date and are continuing contracts, and all other contracts entered into or renewed after September 28, 1987. Any contract in force and effect on September 28, 1987, which by its own terms will terminate on a date subsequent thereto shall be governed by the law as it existed prior to September 28, 1987.
(L. 1982 H.B. 958 § 8, A.L. 1987 S.B. 35)

For more information, contact Jeff Flora.