Manitoba prohibits purity contracts

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Published: August 24, 2000

The Manitoba government last week passed legislative amendments that will benefit implement dealerships and producers, according to the Canada West Equipment Dealers Association.

The amendments to Bill 20 allow farm implement dealerships to carry competing lines of equipment.

The legislative changes put Manitoba on par with other Canadian jurisdictions and will make Bill 20 comparable to protective legislation in the United States, said association president Bill Peterson.

“This bill allows competition within the marketplace and ensures dealers can offer products and services that customers rely on,” Peterson said.

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Amendments to Bill 20 were prompted by concerns about dealer purity, where major manufacturers force dealers to sign contracts that prevent them from carrying competing lines of equipment.

The Canada West Equipment Dealers Association was concerned about what dealer purity would do to markets for short-line equipment, how it would affect rural equipment dealers and what it would do to equipment prices paid by farmers.

John Schmeiser, the association’s executive vice-president, said the changes to Bill 20 are “a win-win for the agriculture industry as a whole. This allows farmers to have more choices in product lines as well as pricing.”

Saskatchewan passed legislation in December banning dealer purity and freeing up farm equipment dealers to sell implements from smaller companies.

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