International Trade Expert Comments on Manufacturing Equipment Importation Suit

This case involves a man in California who worked as an independent dealer for an Asian manufacturer of industrial measuring equipment used in manufacturing for several years. Eventually, the manufacturer of the equipment terminated their relationship with the dealer, and proceeded to sue the man for recovery of unpaid invoices in their country of origin. After a judgement was awarded, the company brought the judgement to the United States in an attempt to collect on it. In response, the dealer sued the manufacturing company, claiming that the manufacturer had wrongfully terminated their relationship and had treated him unfairly by withholding discounts that were extended to other dealers.

Question(s) For Expert Witness

1. Please describe your familiar with the California's Equipment Dealers Act.

2. Could you determine if this dealer's business falls under the California's Equipment Dealers Act?

Expert Witness Response E-120357

I do not believe that the dealer would be covered under this legislation, based on definitions of what's covered under this rule. As the rule states: "The Legislature finds and declares that the retail distribution, sales, and rental of agricultural, construction, utility, industrial, mining, outdoor power, forestry, and lawn and garden equipment, utilizing independent dealers operating under contract with the supplier vitally affects the general economy of the state, the public interest, and the public welfare. Therefore, the Legislature has determined that it is necessary to regulate the business relations between the dealers and suppliers as described in this chapter (j) (1) "Equipment" means all-terrain vehicles and other machinery, equipment, implements, or attachments used for, or in connection with,any of the following purposes: (A) Lawn, garden, golf course, landscaping, or grounds maintenance. (B) Planting, cultivating, irrigating, harvesting, and producing agricultural or forestry products. (C) Raising, feeding, tending to, or harvesting products from, livestock and any other activity in connection with those activities. (D) Industrial, construction, maintenance, mining, or utility activities or applications, including, but not limited to, material handling equipment. (2) Self-propelled vehicles designed primarily for the transportation of persons or property on a street or highways are specifically excluded from the definition of equipment."