Farm Implements Amendment Act, 2001 Barrett, Toby — Bill 76 (37th Parliament, 3rd Session)

Bill 76, 37-3

Ontario — Bills

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Bill 76, Farm Implements Amendment Act, 2001

Barrett, Toby

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[37] Bill 76 Original (PDF)

Bill 76 2001

An Act to ensure fairness,

to foster competition

and consumer choice

and to encourage innovation

in the farm implement sector

Her Majesty, by and with the advice and consent of the Legislative

Assembly of the Province of Ontario, enacts as follows:

(1) The definition of "dealer" in

section

1 of the Farm Implements Act is repealed and the following

substituted:

"dealer" means a person who, in the ordinary course of business, offers

farm implements or parts for sale at retail; ("vendeur")

(2) Section 1 of the Act, as amended by the Statutes of

Ontario, 1999,

chapter 12,

Schedule A,

section 11, is further amended by

adding the following definition:

"dealership agreement" means an agreement that is made between a

distributor and a dealer with respect to the business of the dealer's

offering farm implements or parts for sale at retail and that fixes the legal

rights and obligations of the parties to the agreement; ("contrat de

distribution")

2. Subsection 3 (4) of the Act is repealed and the

following substituted:

Dealership agreement

(4) A dealership agreement shall be in writing, shall contain

the information that is prescribed and shall contain the legal rights and

obligations that are prescribed for the parties to the agreement.

3. Subsection 5 (1) of the Act, as re-enacted by the

Statutes of Ontario, 1999,

chapter 12,

Schedule A,

section 11, is amended by

striking out "dealer or distributor" and substituting "dealer, distributor or

manufacturer".

4. Subsection 18 (7) of the Act is repealed and the

following substituted:

Repair

(7) The distributor shall have the defective farm implements

repaired at the distributor's expense or shall reimburse the dealer for the

cost of repairing the defective farm implements.

Reimbursement

(8) If the distributor reimburses the dealer for the cost of

repairing the defective farm implements, the distributor shall do so in

accordance with the terms to which the parties agree.

Cost of repair

(9) If the parties do not agree on terms for the reimbursement

of the cost of repair, the cost shall include,

(

a) if necessary for doing the repair, the cost of transporting the

implements within the dealer's market area as assigned in the dealership

agreement;

(

b) the cost of travel incurred by the dealer in having the repair

done;

(

c) the cost of labour for doing the repair, based on the dealer's posted

shop rate for labour; and

(

d) the cost of parts used in the repair.

Reimbursement by manufacturer

(10) If the distributor of a new farm implement or a new repair

part is not the manufacturer of it, the manufacturer shall reimburse the

distributor for the costs that the distributor incurs to honour the

warranties under sections 12 (power), 13 (quality), 15 (parts supply) and 16

(quality of parts), for the cost of repairing defects under subsection

(4) and for the cost of notifying purchasers of defects under subsection (6).

Section 22 of the Act, as amended by the Statutes of

Ontario, 1999,

chapter 12,

Schedule A,

section 11, is further amended by

adding the following subsection:

Reimbursement by manufacturer

(11) If the distributor of a defective farm implement is not

the manufacturer of it, the manufacturer shall reimburse the distributor for

the costs that the distributor incurs to comply with the requirements that

this

section imposes on the distributor.

(1) The definition of "agreement" in

subsection 23 (1) of the Act is repealed.

(2) The definition of "current net price" in subsection

23 (1) of the Act is amended by striking out "the agreement" and substituting

"the dealership agreement".

(3) The definition of "new part" in subsection 23

(1) of the Act is repealed and the following substituted:

"new part" means a part or parts assembly that,

(

a) has not been used and has not been removed from a complete farm

implement, and

(

b) the dealer has purchased from the distributor within the previous

10-year period; ("pièce neuve")

(4) Subsection 23 (2) of the Act, as re-enacted by the

Statutes of Ontario, 1999,

chapter 12,

Schedule A,

section 11, is amended by

striking out "an agreement" and substituting "a dealership

agreement".

(5) Subsection 23 (3) of the Act is repealed and the

following substituted:

No contracting out

(3) Subject to subsection (4), sections 24 to 30 apply to a

dealership agreement despite any agreement or waiver to the contrary.

7. Subsection 24 (1) of the Act is amended by striking

out "after an agreement" and substituting "after a dealership

agreement".

8. Subsection 25 (1) of the Act is repealed and the

following substituted:

Repurchase price

(1) The distributor shall pay a repurchase amount to the dealer

equal to,

(a) 100 per cent of the invoice price for each new farm implement;

(b) 85 per cent of the current net price for each new part;

(c) 50 per cent of the latest published price for all mandatory special

tools and equipment that the dealer has purchased within the previous

five-year period and that are unique for use in servicing the distributor's

products; and

(

d) transportation costs paid by the dealer for delivery of the new farm

implement to the dealer's place of business.

Section 27 of the Act is amended by adding the

following clauses:

(

j) a multiple package of new parts where,

(

i) the multiple package does not contain all of the parts that it

contained when the distributor supplied it under the dealership

agreement,

(ii) the parts are not individually packaged within the multiple

package,

(iii) the parts do not have individual part numbers, and

(iv) proof of purchase is not provided upon request;

(

k) a new part that a person other than the distributor has repackaged

unless the distributor has supplied the repackaging material for use in

returning parts to the distributor or as a replacement for damaged

packaging;

(

l) a new part that the distributor identified as non-returnable when the

dealer purchased it from the distributor.

10. The Act is amended by adding the following

section

before the heading to

section 31:

Distributor's right to require repurchase

30.1

(1) In this section,

"current net price", "invoice price", "new farm implement", "new part" and

"used farm implement" have the same meaning as in subsection 23 (1) except

that,

(

a) references to a dealer shall be read as references to a distributor

who is not a manufacturer, and

(

b) references to a distributor shall be read as references to a

manufacturer; ("prix net courant", "prix de facture", "appareil agricole

neuf", "pièce neuve", "appareil agricole usagé")

"distributor agreement" means an agreement between a distributor who is

not a manufacturer and a manufacturer under which the distributor is required

by the manufacturer to maintain a supply of new farm implements and new parts

supplied by the manufacturer. ("contrat du distributeur")

No contracting out

(2) This

section applies to a distributor agreement despite any

agreement or waiver to the contrary, unless the manufacturer and the

distributor agree in writing to repurchase terms that are more favourable to

the distributor than this section.

Right to repurchase

(3) Within 90 days after a distributor agreement has expired or

is terminated, the distributor may by written notice require the manufacturer

to repurchase all or any new farm implements and new parts supplied by the

manufacturer under the agreement.

Election

(4) The notice to repurchase shall state whether the

distributor intends to rely on this

section or the terms of an agreement with

the manufacturer made under subsection (2).

If no election

(5) If the distributor fails to make the election mentioned in

subsection (4), the distributor shall be deemed to have elected to rely on

this section.

Application of other provisions

(6) Sections 25 to 28 and 30 apply to the distributor and the

manufacturer except that,

(

a) references to the dealer shall be read as references to the

distributor; and

(

b) references to the distributor shall be read as references to the

manufacturer.

Bulk Sales Act

(7) The Bulk Sales Act does not apply to a sale to the

manufacturer under this section.

11. Clause 35 (

c) of the Act is repealed and the

following substituted:

(

c) prescribing information to be included in a dealership agreement and

setting out legal rights and obligations for parties to the agreement;

Commencement

12. This Act comes into force on a day to be named by

proclamation of the Lieutenant Governor.

Short title

13. The

short title of this Act is the Farm

Implements Amendment Act, 2001 .

EXPLANATORY NOTE

The Bill amends the Farm Implements Act .

An agreement between a distributor and a dealer with respect to a farm

implement shall contain the legal rights and obligations that are prescribed

by the regulations for the parties to the agreement.

A distributor who is liable under the Act to make repairs to a farm

implement may either make the repairs, as the Act presently allows, or may

reimburse the dealer for making the repairs.

If the distributor of a new farm implement or a new repair

part is not the

manufacturer of it, the manufacturer shall reimburse the distributor for the

costs that the distributor incurs in meeting its obligations under

section 18

of the Act to honour warranties respecting parts supply and quality of parts,

to repair defects and to notify purchasers of defects.

If the distributor of a defective farm implement is not the manufacturer

of it, the manufacturer shall reimburse the distributor for the costs that

the distributor incurs to comply with the requirements that

section 22 of the

Act imposes on the distributor.

If, under the Act, a dealer requires a distributor to repurchase new farm

implements and new parts that the distributor has supplied, the repurchase

amount that the distributor pays to the dealer shall include the amount of 50

per cent of the latest published price for all mandatory special tools and

equipment that the dealer has purchased within the previous five-year period

and that are unique for use in servicing the distributor's products. The

following items are added to the list of items that a distributor is not

required to repurchase: certain cases of a multiple package of new parts that

is incomplete, an improperly repackaged new part and a new part that the

distributor has identified as non-returnable.

A distributor who is not a manufacturer is given the right to have the

manufacturer repurchase farm implements and parts supplied by the

manufacturer, similar to a dealer's right in

section 24 of the Act.

Date Bill stage Activity Committee

December 5, 2001

Ordered carried over from previous session

December 5, 2001

Carried over to next session

June 21, 2001

Ordered referred to Standing Committee

Standing Committee on General Government

June 21, 2001

Second Reading

Carried

June 6, 2001

First Reading

Carried

Debates and Progress

First Reading

June

6, 2001

Second Reading

June

21, 2001

Mr Barrett, Mr Peters, Mr Bisson, Mr Galt, Mr Tascona, Mr

Hastings

Declared Carried and referred to the Standing Committee on

General Government.

Committee: General Government

Third Reading

Royal Assent :

Coming into force :Proclamation

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Document details

Collection	Ontario — Bills
Citation	Bill 76, 37-3
Type	bill
Volume / chapter	p37 s3 bill 76 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	6b028ab8e9c8fc0bfc89489ff9eeb07850b8bf4c

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