Dealers may recover value of merchandise or parts from distributor in certain cases
N.D. Cent. Code § 51-20.2-02
in effect51-20.2-02. Dealers may recover value of merchandise or parts from distributor in
certain cases.
1. Whenever:
a. A distributor cancels or discontinues a contractual arrangement; or
b. A dealer cancels or discontinues a contractual arrangement because the
distributor entered into a contractual arrangement with another dealer to sell in
the same geographical area for which the first dealer had an exclusive
dealership,
the dealer may recover from the distributor the net cost to the dealer of all new and
unused merchandise, and parts for such merchandise, held by the dealer at the time
of cancellation or discontinuance of the contractual arrangement. The dealer may
enforce the right given under this section by civil action commenced in district court in
the county where the dealer has the dealer's principal place of business in North
Dakota.
2. The provisions of this section are supplemental to any contractual rights which the
dealer may have with respect to reimbursement for merchandise and parts inventory
held by the dealer at cancellation or discontinuance of a contractual arrangement. The
dealer may elect to pursue the dealer's rights under the contractual arrangement and
under this section, but the dealer's total recovery may not exceed the net cost of the
merchandise and parts, plus freight costs for return of the merchandise and parts,
remaining in the dealer's hands at the time of cancellation or discontinuance, plus legal
costs awarded by the court.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t51c20-2.pdf#nameddest=51-20p2-02Fetched: 10/16/2026