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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 875
Introduced by Hallstrom, 1.
Read first time January 08, 2026
Committee: Banking, Commerce and Insurance
A BILL FOR AN ACT relating to trade practices; to amend sections 87-7041
and 87-706, Reissue Revised Statutes of Nebraska; to amend the2
Equipment Business Regulation Act; to prohibit certain provisions in3
dealer agreements as prescribed; to remove authorization for a4
dealer to waive an opportunity to return surplus repair parts as5
prescribed; and to repeal the original sections.6
Be it enacted by the people of the State of Nebraska,7
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Section 1. Section 87-704, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
87-704 It shall be a violation of the Equipment Business Regulation3
Act for a supplier: 4
(1) To require a dealer to accept delivery of equipment, repair5
parts, or attachments that the dealer has not voluntarily ordered;6
(2) To require a dealer to order or accept delivery of equipment7
with special features or attachments not included in the base list price8
of such equipment as publicly advertised by the supplier;9
(3) To require a dealer to enter into any agreement, whether written10
or oral, amendatory or supplementary to an existing dealer agreement with11
the supplier unless such amendatory or supplementary agreement is imposed12
on similarly situated dealers; 13
(4) To take action terminating, canceling, failing to renew, or14
substantially changing the competitive circumstances intended by the15
dealer agreement due to the results of conditions beyond the dealer's16
control, including drought, flood, labor disputes, or economic recession.17
This subdivision shall not apply if the dealer is in default of a18
security agreement in effect with the supplier; and19
(5) To condition the renewal or extension of a dealer agreement on20
(a) the dealer's substantial renovation of its place of business or the21
construction, purchase, acquisition, or rental of a new place of business22
by the dealer unless the supplier advises the dealer in writing of its23
demand for such renovation, construction, purchase, acquisition, or24
rental within a reasonable time prior to the effective date of the25
proposed renewal or extension, but in no case less than one year prior to26
such date, or (b) capital construction exceeding the terms of the dealer27
agreement in force and effect on May 2, 1991; . 28
(6) To include any condition, stipulation, or provision in any29
dealer agreement purporting to waive compliance with any provision of the30
Equipment Business Regulation Act or any other provision of state law31
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applying to such agreements; or 1
(7) To include any provision in any dealer agreement restricting2
jurisdiction or venue to a forum outside this state or requiring the3
application of the laws of another state to disputes arising under the4
agreement. 5
Sec. 2. Section 87-706, Reissue Revised Statutes of Nebraska, is6
amended to read: 7
87-706 (1) A supplier shall provide for the availability of repair8
parts throughout the reasonable useful life of any equipment sold.9
(2) A supplier shall at least annually provide dealers an10
opportunity to return surplus repair parts for credit without11
restrictions as follows: 12
(a)(i) The supplier may notify the dealers of a surplus parts return13
program for a time period of at least sixty days in duration during which14
dealers may submit a list of their surplus parts and return the parts to15
the supplier; or 16
(ii) If twelve months have elapsed and the supplier has not notified17
a dealer of a surplus parts return program, the dealer may submit to the18
supplier a request to return surplus parts and the supplier shall allow19
the dealer to return the parts within thirty days after receipt of the20
request; 21
(b) Subject to the other provisions of this section, a supplier22
shall allow a dealer to return parts with a dollar value equal to at23
least six percent of the total dollar value of parts purchased by the24
dealer from the supplier or the supplier's predecessor in interest during25
the twelve-month period immediately preceding either the notification to26
the dealer of the supplier's surplus parts return program or the month27
the dealer's return request is made, whichever is applicable. A dealer28
may elect to return a dollar value of parts equal to less than six29
percent of such total dollar value of parts purchased;30
(c) An obsolete or superseded part may not be returned, except that31
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any part listed in the supplier's current list of returnable parts and1
any superseded part that has not been the subject of a surplus parts2
return program as of the date of notification to the dealer by the3
supplier of the current surplus parts return program or the date of the4
dealer's request to return surplus parts, whichever is applicable, shall5
be eligible for return; 6
(d) To be eligible for return, parts must be in new and unused7
condition and must have been purchased by the dealer from the supplier to8
whom they are returned or the supplier's predecessor in interest;9
(e) The supplier shall allow credit for a returned part of at least10
eighty-five percent of the current price of the part as listed in the11
supplier's effective price list or catalog at the date of the12
notification to the dealer by the supplier of the surplus parts return13
program or the date of the dealer's request to return surplus parts,14
whichever is applicable, or, if there is no effective price list or15
catalog, in the supplier's invoices; 16
(f) The supplier shall issue credit to the dealer within ninety days17
after receipt of the parts returned by the dealer;18
(g) The dealer shall be presumed to have purchased the returned19
parts from the supplier or the supplier's predecessor in interest, and20
the burden shall be on the supplier to prove otherwise;21
(h) The provisions of this section shall be supplemental to any22
agreement between the dealer and the supplier covering the return of23
parts which provides the dealer with greater protection;24
(i) Nothing in this section shall be construed to affect the25
existence or enforcement of a security interest which any person may have26
in the parts of the dealer; and 27
(j) Nothing in this section shall preclude a credit for returned28
parts which is greater than the total amount authorized by this section.29
(3) The annual parts return provided for in subsection (2) of this30
section may be waived by a dealer. If a majority of dealers from a single31
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supplier choose to waive the provisions of such subsection, the supplier1
shall be exempt from such subsection. 2
Sec. 3. Original sections 87-704 and 87-706, Reissue Revised3
Statutes of Nebraska, are repealed. 4
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