407.1338. Warranty service, warrantor to provide written obligations--compensation of dealer for warranty service, submission of warranty claims, procedure.
Warranty service, warrantor to provide writtenobligations--compensation of dealer for warranty service,submission of warranty claims, procedure.
407.1338. 1. Each warrantor shall specify in writing to each of itsRV dealers, obligations, if any, for preparation, delivery and warrantyservice on its products; shall compensate the dealer for warranty servicerequired of the dealer by the warrantor; and shall provide the dealer theschedule of compensation to be paid; and the time allowances for theperformance of such work and service. In no event shall such schedule ofcompensation fail to include reasonable compensation for diagnostic work aswell as warranty labor.
2. Time allowances for the diagnosis and performance of warrantylabor shall be reasonable for the work to be performed. In thedetermination of what constitutes reasonable compensation under thissection, the principal factors to be given consideration shall be theactual wage rates being paid by the dealer, and the actual retail laborrate being charged by the dealers in the community in which the dealer isdoing business. In no event shall such compensation of a dealer forwarranty labor be less than the lowest retail labor rates actually chargedby the dealer for like nonwarranty labor as long as such rates arereasonable.
3. The warrantor shall reimburse the* dealer for warranty parts atactual wholesale cost, plus a minimum thirty-percent handling charge andthe cost, if any, of freight to return warranty parts to the warrantor.
4. Warranty audits of dealer records may be conducted by thewarrantor on a reasonable basis, and dealer claims for warrantycompensation shall not be denied except for cause, such as performance ofnonwarranty repairs, material noncompliance with warrantors' publishedpolicies and procedures, lack of material documentation, fraud, ormisrepresentation.
5. The* dealer must submit warranty claims within thirty days ofcompleting work.
6. The* dealer must notify the warrantor verbally or in writing ifthe RV dealer is unable to perform material or repetitive warranty repairsas soon as reasonably possible.
7. The* warrantor must disapprove warranty claims in writing withinthirty days of the date of submission by the dealer in the manner and formprescribed by the warrantor. Claims not specifically disapproved inwriting within thirty days shall be construed to be approved and shall bepaid within forty-five days.
8. It is a violation of this chapter for any warrantor to:
(1) Fail to perform any of its warranty obligations with respect toits warranted product;
(2) Fail to include in written notices of factory campaigns tovehicle owners and dealers the expected date by which necessary parts andequipment, including tires and chassis or chassis parts, will be availableto dealers to perform the campaign work. The manufacturer may ship partsin quantity to the dealer to effect such campaign work, and if such partsare in excess of the dealer's requirements, the dealer may return unusedparts to the manufacturer for credit after completion of the campaign;
(3) Fail to compensate any of its RV dealers for authorized repairseffected by such dealer of merchandise damaged in manufacture or transit tothe dealer, if the carrier is designated by the manufacturer, factorybranch, distributor or distributor branch;
(4) Fail to compensate its RV dealers for authorized warranty servicein accordance with the schedule of compensation provided the dealerpursuant to** this section, if performed in a timely and competent manner;
(5) Intentionally misrepresent in any way to purchasers of RVs thatwarranties with respect to the manufacture, performance or design of thevehicle are made by the dealer either as warrantor or cowarrantor; or
(6) Require the dealer to make warranties to customers in any mannerrelated to the manufacture of the RV.
9. It is a violation of this chapter for any RV dealer to:
(1) Fail to perform "predelivery inspection" (PDI) functions, ifrequired, in a competent and timely manner;
(2) Fail to perform warranty service work, authorized by thewarrantor, in a reasonably timely and competent manner on any transientcustomer's vehicle whether sold by that dealer or not;
(3) Misrepresent the terms of any warranty.
(L. 2001 H.B. 575)Effective 8-01-02
*Word "the" does not appear in original rolls.
**Word "to" does not appear in original rolls.