Ark. Code Ann. § 4-72-310 (2026)
Violations
- It is a violation of this subchapter for a manufacturer, wholesaler, or distributor to coerce a dealer to accept delivery of parts, accessories, or specialized tools which the dealer has not voluntarily ordered.
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It is a violation of this subchapter for a manufacturer to:
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- Condition or attempt to condition the sale of farm implements, machinery, utility and industrial equipment, lawn and garden outdoor powered machinery and equipment, and attachments on a dealer also purchasing other goods or services, except that a manufacturer may require the dealer to purchase those parts reasonably necessary to maintain the quality of operation in the field of the equipment used in the trade area and to purchase or lease such telecommunication equipment, including computer software, as is substantially and reasonably necessary to communicate with the manufacturer.
- Provided, however, that upon termination, nonrenewal, or cancellation of an equipment dealer franchise, the equipment manufacturer must reimburse the equipment dealer for all telecommunications equipment, including computer software, purchased by the equipment dealer in order to comply with the requirements of the equipment manufacturer that the dealer returns or offers to return to the equipment manufacturer, subject to a reasonable reduction for depreciation;
- Coerce or attempt to coerce a dealer into refusing to purchase the equipment manufactured by another equipment manufacturer;
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- Discriminate in the prices charged for equipment of like grade and quality sold by the equipment manufacturer to similarly situated equipment dealers.
- This does not prevent the use of volume discount or a differential which makes only due allowance for differences in the cost of manufacture, sale, or delivery, or for the differing methods by which or quantities in which the equipment is sold or delivered by the equipment manufacturer; or
- Attempt or threaten to terminate, cancel, fail to renew, or substantially change the competitive circumstances of the dealership agreement based on the result of a natural disaster, including a sustained drought in the dealership market area, labor dispute, or other circumstances beyond the dealer's control.
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History. Acts 1991, No. 996, § 3.
Case Notes
Applicability.
Franchisee was not entitled to relief under subdivision (b)(4) of this section from a franchisor for termination of the parties' franchise agreement because actual termination, cancellation, failure to renew, or substantially changing the circumstances of a dealership agreement were not addressed in subdivision (b)(4). Larry Hobbs Farm Equip., Inc. v. CNH Am., LLC, 375 Ark. 379, 291 S.W.3d 190 (2009).
No liability under subdivision (b)(4) of this section is created when a manufacturer terminates, cancels, fails to renew, or substantially changes the competitive circumstances of a dealership agreement based on re-branding of the product or ceasing to use a particular trade name or trademark for a product while selling it under a different trade name or trademark. Larry Hobbs Farm Equip., Inc. v. CNH Am., LLC, 375 Ark. 379, 291 S.W.3d 190 (2009).
Natural Disaster.
While the law includes “labor disputes” as natural disasters and “other circumstances beyond the dealer's control” is rather broad, defendant's business relationship with plaintiff's unauthorized competitor did not qualify as a natural disaster for the purposes of subdivision (b)(4) of this section. Southern Implement Co. v. Deere & Co., 122 F.3d 503 (8th Cir. 1997).