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Obsolete Tool Disposition

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Obsolete Tool Disposition

Post by spiindustries » Thu Jan 17, 2019 5:08 pm

Does anybody have knowledge, experience and perhaps a legal template they might share with respect to obsolete tool disposition?

Scenario- We brought a few old tools in for a customer who had a bad rep. We only sampled and everything was COD as we knew there were issues. That customer went out of business and we have no way to contact them. All phone and email is shut down. We would like to scrap out the tools. What steps to we need to take legally? I imagine we can find a home address for the owner.


James Doster
SPI Industries

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Re: Obsolete Tool Disposition

Post by m2p.mwalter » Thu Jan 31, 2019 5:05 pm


Many states have laws regarding disposition of obsolete tooling, and require proper notification to the customer before scrapping the tooling. I'd be happy to share ours with you, but it was written to comply with Illinois law. I suggest that you check with your attorney (our one of the MAPP sponsoring law firms) to determine what the appropriate wording should be for your state.

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Re: Obsolete Tool Disposition

Post by HRothenbuecher2018 » Fri Feb 01, 2019 1:14 pm

Hello James: as Mike indicates, it is state specific. Most states require sending notice to last known place of business and taking out an ad in the local newspaper there (if no response to the letter you sent). Then, if no response after 30 days (sometimes 60 in certain states), you can dispose of the tooling with no further liability.

Happy to discuss further off-line.


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