§ 31-5.1-6 - Warranty agreement.
SECTION 31-5.1-6
§ 31-5.1-6 Warranty agreement. – (a) Every manufacturer shall properly fulfill any warranty agreement andadequately and fairly compensate each of its motor vehicle dealers for laborand parts. In no event shall that compensation fail to include reasonablecompensation for diagnostic work, as well as repair service and labor. Allclaims made by motor vehicle dealers for labor and parts shall be paid inaccord with the provisions of subsection (b) of this section. Any delay inpayment after approval or disapproval that is caused by conditions beyond thereasonable control of the manufacturer shall not constitute a violation of thissection. Reimbursement for warranty repairs or diagnostic work shall be at thedealer retail rate in effect at the time the warranty repair or diagnostic workis performed.
(b) A claim filed under this section by a dealer with amanufacturer or distributor shall be:
(1) In the manner and form prescribed by the manufacturer ordistributor; and
(2) Approved or disapproved within (30) days of receipt.
(ii) A claim not approved or disapproved within thirty (30)days of receipt shall be deemed approved.
(iii) Payment of or credit issued on a claim filed under thissection shall be made within thirty (30) days of approval.
(3) If a claim filed under this section is shown by themanufacturer or distributor to be false or unsubstantiated, the manufacturer ordistributor may charge back the claim within twelve (12) months from the datethe claim was paid or credit issued.
(ii) This subdivision does not limit the right of amanufacturer or distributor to charge back for any claim that is proven to befraudulent.