HRS §481G-7
Returning unsold inventory when a dealership ends
When a dealership ends, the distributor must take back inventory they supplied if it is still in good condition and pay the dealer at least 90% of what the dealer paid, or cancel at least 90% of the debt owed on that inventory. This applies whether the ending was for cause or not.
The statute, as written — Disposition of inventory
Upon termination of a dealership by either the distributor or the dealer, whether or not for cause, the distributor shall at the request of the dealer, take back any inventory from the dealer which was supplied by the distributor and which has not diminished substantially in value and is of similar quality as when originally supplied. The distributor shall reimburse the dealer for not less than ninety per cent of the cost paid by the dealer or shall cancel not less than ninety per cent of any debts owed on account of the inventory.
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