Newsletter #235 (View other news stories)
California law now includes forklift industry
SACRAMENTO, CA, United States
Thursday, 17 Nov 2005
by US correspondent Roger Renstrom
A Californian equipment dealer law that sets guidelines on contractual relationships between dealers and manufacturers of almost all off-road equipment now includes forklifts.
The law earlier omitted mention of the materials handling industry.
Two forklift dealers have applauded the change.
"The new law calls for full retail labour rate reimbursement for warranty work at reasonable times and stronger parts and freight reimbursement than most manufacturers were paying," said Joe Hensler, president of Sacramento-based Clarklift-West Inc, which trades as Team Power Forklifts.
Hensler said the legislation "encourages manufacturers to make their product fault free. Most products have improved dramatically in the last few years, but there was a time where we felt some manufacturers shipped poorly assembled products as they could be fixed in the field at discounted rates".
Jay Waugh, head of Graylift Inc, in Fresno, said: "We are still reviewing the legislation but are pleased it specifically includes materials handling dealers...The warranty reimbursement and annual parts return provisions are reasonable and long overdue."
Waugh credited the Far West Equipment Dealers’ Association (FWEDA), of Dixon, California, for shepherding the bill through the legislative process. FWEDA contract lobbyist Louie Brown, a Sacramento lawyer, praised dealers for pressing their elected state legislators and helping secure passage.
Among its provisions, the law expands the definition of businesses covered by the law, adding construction, all-terrain vehicles, mining and forestry businesses and materials handling.
Under sections 4 and 6 of the new law, a supplier may not coerce or compel a dealer to refuse to buy equipment from another supplier or penalise a dealer who purchases equipment or parts from another supplier. Dealers have a minimum of one year to cure performance deficiencies with major lines.
Governor Arnold Schwarzenegger signed the bill on October 7 and the Fair Practices of Equipment Manufacturers, Distributors, Wholesalers & Dealers Act is now effective.
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