Maine Code § 10-1197

Warranty
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1. Parts or labor; satisfaction of warranty. If a franchisor requires or permits a franchisee to
perform labor or provide parts to satisfy a warranty created by the franchisor, the franchisor shall
properly and promptly fulfill its warranty obligations and:
A. Reimburse the franchisee at the retail rate customarily charged for all parts used by the
franchisee to satisfy the warranty. If the franchisor provides a part to the franchisee for a specific
warranty repair, the franchisor shall compensate the franchisee for the difference between the cost
of the part to the franchisee and the full retail price of the part, which may not exceed 100% of the
total reimbursement cost under paragraph B of the labor required to perform the repair; and [PL
2025, c. 284, §1 (AMD).]
B. Reimburse the franchisee for actual labor performed by the franchisee to satisfy the warranty,
which must be reasonable and supported by the franchisee's records. Reimbursement for labor may
not be less than the retail rate customarily charged by that franchisee for the same labor when not
performed to satisfy a warranty. To be entitled to reimbursement under this section, a franchisee
must post in a place conspicuous to service customers the rate for labor not performed to satisfy a
warranty. [PL 2025, c. 284, §1 (AMD).]
[PL 2025, c. 284, §1 (AMD).]
2. Restrictions prohibited. A franchisor may not, by agreement, by restriction upon
reimbursement or otherwise, restrict the nature or extent of labor performed or parts provided if such a
restriction impairs the franchisee's ability to satisfy a warranty created by the franchisor by performing
labor competently or by providing parts in accordance with generally accepted standards.
[PL 1991, c. 631 (NEW).]
3. Claim. A claim by a franchisee for compensation for parts provided or for reimbursement for
labor performed to satisfy a warranty must be approved or disapproved within 30 days of receipt by the
franchisor. A claim that is approved must be paid within 30 days of its approval. If a franchisor
disapproves a claim, it shall notify the franchisee that submitted the claim within 30 days of disapproval
of the specific reasons for disapproval.
[PL 1991, c. 631 (NEW).]
4. Costs; fees. If a franchisee brings a legal action to collect a disapproved claim and is successful
in that action, the court shall award the franchisee the cost of the action and reasonable attorney's fees.
Reasonable attorney's fees must be determined by the value of the time reasonably expended by the
attorney and not by the amount of the recovery on behalf of the franchisee.

[PL 1991, c. 631 (NEW).]

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