he area where the dealership is located; 3. Prohibit a dealer from purchasing equipment manufactured by another supplier; or 4. Terminate, fail to renew or substantially change the terms of a dealer agreement because of a natural disaster, including a drought in the market area of the dealership, a labor dispute or any other similar circumstances which are beyond the control of the dealer. (Added to NRS by 2003, 3402) NRS 597.1153 Repurchase of inventory and equipment by supplier upon termination of dealer agreement. 1. Except as otherwise provided in this section, upon the termination of a dealer agreement by a supplier or dealer, the supplier shall repurchase the inventory held by the dealer on the date of the termination of the dealer agreement. 2. A supplier who repurchases the inventory of a dealer pursuant to subsection 1 shall: (a) Pay the dealer: (1) One hundred percent of the net price of all new and undamaged inventory; and (2) Ninety-five percent of the net price of new and undamaged superseded repair parts. (b) Except as otherwise provided in this paragraph, pay the dealer an amount equal to 5 percent of the net price of all new and undamaged repair parts returned to the supplier to cover the cost incurred by the dealer for handling, packing and shipping the superseded repair parts to the supplier. If the supplier handles, packs and ships the superseded repair parts, the dealer is not entitled to receive any money for those services which the supplier performed. (c) Purchase, at its depreciated value, any computers, software or telecommunications equipment that the supplier required the dealer to purchase within the previous 5 years. (d) Repurchase, at 75 percent of the net cost, any specialized repair tools purchased if those tools are: (1) Included in the tool catalog of the supplier; (2) Purchased in accordance with the requirements of the supplier; (3) Held by the dealer on the date of the termination of the dealer agreement; and (4) Complete and in resalable condition. (e) Repurchase any inventory which is owned by the supplier and leased, rented or used in demonstrations by the dealer if the supplier receives an allowance based on the use of such inventory. Inventory which is used in demonstrations for not more than a total of 50 hours shall be deemed new inventory. Inventory which is used in demonstrations for more than 50 hours and purchased from the supplier less than 36 months before the termination of the dealer’s agreement must be repurchased at its depreciated value, as determined by the supplier and dealer. 3. If the dealer agreement authorizes the dealer to retain the inventory upon the termination of the dealer agreement, the dealer may retain any portion of the inventory, except any specialized tools described in paragraph (d) of subsection 2 which the supplier wishes to repurchase from the dealer. 4. If the dealer owes any outstanding debts to the supplier, the amount of the repurchase of the inventory may be set off or credited to the account of the dealer. 5. Upon payment to the dealer of the amount for the repurchase of the inventory pursuant to this section, the title and right of possession to the inventory transfers to the supplier. (Added to NRS by 2003, 3402) NRS 597.1157 Requirements regarding dealer’s reserve account for recourse after termination of dealer agreement. 1. At the end of each year after the termination of a dealer agreement, a dealer’s reserve account for recourse, retail sale or lease contracts may not be debited by a supplier or lender for any deficiency unless the dealer is given written notice of at least 7 business days by certified or registered mail, return receipt requested, of any proposed sale of the inventory which was financed and an opportunity to purchase the inventory. 2. The dealer must be given quarterly reports concerning any remaining outstanding recourse contracts. As the recourse contracts are reduced, any money in the reserve account must be returned to the dealer in direct proportion to the liabilities outstanding. (Added to NRS by 2003, 3403) NRS 597.116 Limitations on requirements for supplier to repurchase inventory. The provisions of NRS 597.112 to 597.118, inclusive, do not require a supplier to repurchase from a dealer: 1. Any repair part which is not in new and undamaged condition or, because of its condition, is not resalable as a new part; 2. Any inventory which the dealer retains pursuant to subsection 3 of NRS 597.1153; 3. Any inventory which is not in new, undamaged and complete condition; 4. Any inventory which was ordered by the dealer on or after the date of the termination of the dealer agreement; or 5. Any inventory which was purchased more than 36 months before the notice of the termination of the dealer agreement is provided. (Added to NRS by 2003, 3403) NRS 597.1163 Failure of supplier to repurchase inventory. If a supplier fails or refuses to repurchase and pay a dealer for any inventory the supplier is required to repurchase in accordance with the provisions of NRS 597.112 to 597.118, inclusive, within 60 days after shipment of the inventory to the supplier, the supplier is liable for: 1. An amount equal to 100 percent of the net price of the inventory; 2. Any shipping charges paid by the dealer; 3. Attorney’s fees and court costs; and 4. An amount equal to the interest on the amount of the net price calculated at the legal rate of interest from the 61st day after the date of the shipment of the inventory to the supplier. (Added to NRS by 2003, 3403) NRS 597.1167 Death of dealer or majority shareholder of dealer. 1. Upon the death of a dealer or the majority shareholder of a corporation which operates as a dealer, the supplier shall, upon the approval or request of the devisee or heir of the dealer or majority shareholder, repurchase the inventory of the dealer in the manner prescribed in NRS 597.1153. 2. The devisee or heir shall, within 1 year after the death of the dealer or majority stockholder, notify the supplier whether the supplier will be required to repurchase the inventory of the dealer. 3. A supplier is not required to repurchase the inventory of the dealer if the devisee or heir and the supplier enter into a new dealer agreement to operate the dealership. 4. This section does not authorize any person, including a devisee or heir, to operate a dealership without the written approval of the supplier. 5. An agreement executed by the supplier and dealer that sets forth the rights relating to succession to the operation of the dealership is enforceable without regard to the person who is designated as the successor to the dealership. 6. As used in this section: (a) “Devisee” has the meaning ascribed to it in NRS 132.100. (b) “Heir” has the meaning ascribed to it in NRS 132.165. (Added to NRS by 2003, 3403) NRS 597.117 Security interest of supplier in inventory; inspection of inventory before shipment. The provisions of NRS 597.112 to 597.118, inclusive, do not affect any security interest which a supplier has in the inventory of a dealer. The dealer and supplier shall each provide a representative to inspect the inventory and certify its acceptability when packaged for shipment. The failure of the supplier to provide a representative for the inspection within 60 days shall be deemed acceptance by the supplier of the inventory returned to the supplier. (Added to NRS by 2003, 3404) NRS 597.1173 Enforcement by dealer. 1. A dealer may bring a civil action for damages in a court of competent jurisdiction against a supplier who violates any of the provisions of NRS 597.112 to 597.118, inclusive, and may

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