(1) Every distribution contract shall contain clauses permitting the dealer to cancel the contract:
(a) At any time and for any reason within the term of ninety (90) days after the signature thereof, and/or
(b) at any time upon showing noncompliance with any of the essential obligations of the distribution contract on the part of the multi-level distribution company or any act or omission by the latter affecting adversely the interests of the dealer in the development of the market of the properties or services.
(2) The notice of cancellation shall be made in writing and shall be sent to the company by registered mail.
(3) At the time of the cancellation of the contract, the multi-level distribution company shall be bound to perform the following:
(a) Reacquire the total of the products acquired by the dealer which are in his possession and in good condition at a price of not less than ninety percent (90%) of their original net cost.
(b) Return to the dealer not less than ninety percent (90%) of the original net cost of any services acquired by him.
(c) Return to the dealer not less than ninety percent (90%) of any sum paid by him for the purpose of participating in the business.
History —June 5, 1973, No. 96, p. 409, § 3.