The proposed legislation, which mandates all farm equipment manufacturers to have a dealer, is not supported by all stakeholders in the industry, including farmers. Those concerned about the impact of the legislation are likely to be confused about what it actually means. As with any piece of legislation, it is possible to terminate a contract or agreement between the manufacturer and dealer. But the Act also protects both parties by requiring all dealers to provide services for farmers, including the repair of equipment.
Shortliners and dealers still have contracts and agreements that can be terminated by mutual agreement
Even if the contracts and agreements between shortliners and dealers are no longer relevant, it is important to understand the process of termination. Although it is a drastic step, a contract termination is often appropriate if either party is unable to meet the terms. If this is the case, a termination can be the best way to avoid any legal ramifications. It is advisable to seek legal advice prior to terminating a contract.
While this method can be beneficial to both parties, it can also be a problem. Even though mutual contract termination involves no monetary consequences, it can cause problems with other contracts, such as warranties or maintenance contracts. Mutual contract terminations must be formally negotiated. The terms and conditions of the agreement can be changed after mutual consent. In some cases, mutual contracts may not be enforceable, so renegotiation of the contract is essential.
Transportation to a dealership is covered by the Act
The Farm Machinery and Equipment Sales Act provides farmers with protection if they purchase machinery from a farm equipment dealership. The Act states that contracts are not legally binding until they are signed by the dealer and delivered to the buyer. The Act does not apply to equipment purchased at an estate sale, auction or receivership. If the machinery is late in delivery or cannot be driven, the farmer has two options. He can cancel the contract or accept it.
Farmers who purchase new farm equipment from a dealership are guaranteed a one-year warranty on all parts and labour. This warranty covers parts of the equipment that are defective and requires repair. Farmers can’t waive their warranty by entering into agreements with dealers, but they can waive the transportation and labour portions of the warranty if they make a specific agreement in the contract. If the dealer is at fault for the purchase, the farmer may cancel the contract.
Requirements for a dealer to forewarn the buyer five days ahead of the delivery date
Requirements for a farm equipment dealership to forewarn the buyer five days before the delivery date vary from state to state. A dealer must warn a buyer of any pending problems five days in advance, but he must also give a five-day window to correct the problem. This window must be at least five days in advance, so the buyer can make arrangements to pick up the equipment or return the surplus parts.
A dealer must also provide the buyer with a copy of the Farm Machinery and Equipment Sales Act (FMEPA) when selling new equipment. This act specifies how to handle the problem if the buyer fails to pick up the equipment or does not accept delivery within the five-day period. If the equipment is late, a dealer must provide a replacement. If the late delivery is due to circumstances outside of the dealer’s control, however, the dealer is not required to provide a replacement.
Costs of complying with the Act
Complying with the Farm Equipment Dealers Act in Winnipeg is important for farmers who purchase and sell equipment. Under this act, dealers are responsible for timely delivery of new farm machinery and repair of used equipment. In addition, they must adhere to certain procedures for lien holders. Listed below are costs of complying with the Act. These costs may vary depending on the equipment and dealer. Read on to learn more about them.
If a lien is taken out on the purchase, the buyer has a number of options to cancel the transaction. For example, if the equipment does not work properly, the buyer may cancel the contract and return the equipment. If the equipment is sold without a lien, the dealer is liable for any shortfalls until the payment is completed. For this reason, a lien must be specified in the Conditional Sales Contract or Lease Agreement.