§ 465. Procedures relating to warranties and sales incentives. 1.\nEvery franchisor shall properly fulfill any warranty agreement and/or\nfranchisor's service contract, including but not limited to all warranty\nrepairs, extended warranty repairs, factory compensated repairs,\nrecalls, diagnostics, parts and other voluntary stop-sell repairs, and\nshall compensate each of its franchised motor vehicle dealers for all\nwarranty, recall, diagnostic labor operations and parts where applicable\nin amounts which reflect reasonable compensation for such work. For\npurposes of this section, reasonable compensation shall be the\nreasonable labor time allowances defined by the retail labor time guide\nreasonably utilized by a franchised motor vehicle dealer for\nnon-warranty customer paid labor operations. All warranty claims and/or\nclaims under a franchisor's service contract made by franchised motor\nvehicle dealers shall be paid within thirty days following their\napproval. For diagnosis work, parts reimbursement, other than\ncomponents, systems, fixtures, appliances, furnishings, accessories and\nfeatures of a house coach that are designed, used and maintained\nprimarily for nonvehicular residential purposes, and for labor\nreimbursement, reasonable compensation shall not be less than the price\nand rate charged by the franchised motor vehicle dealer for like\nservices to non-warranty and/or non-service contract customers. For\npurposes of this section, the price and rate charged by the franchised\nmotor vehicle dealer for parts may be established by submitting to the\nfranchisor one hundred sequential nonwarranty customer-paid service\nrepair orders or the number of sequential nonwarranty customer-paid\nservice repair orders written within a ninety day period, whichever is\nless, covering repairs made no more than one hundred eighty days before\nthe submission, and declaring the price and rate, including average\nmarkup for the franchised motor vehicle dealer as its reimbursement\nrate. The reimbursement rate so declared shall go into effect thirty\ndays following the declaration and shall be presumed to be reasonable,\nhowever a franchisor may rebut such presumption by showing that such\nrate so established is unreasonable in light of the practices of all\nother franchised motor vehicle dealers in the vicinity offering the same\nline make. The franchised motor vehicle dealer shall not request a\nchange in the reimbursement rate more often than once in each calendar\nyear. In establishing the labor reimbursement rate, the franchisor shall\nnot require a franchised motor vehicle dealer to establish said rate by\na methodology, or by requiring information, that is unduly burdensome or\ntime consuming to provide, including, but not limited to, a transaction\nby transaction calculation. For the purposes of this section, the\nfollowing parts or types of repairs shall be excluded from the parts\nand/or labor calculations and the franchisor's reimbursement\nrequirements under this section: (a) parts sold at wholesale; (b) tires;\n(c) routine maintenance not covered under any retail customer warranty\nsuch as fluids, filters and belts not provided in the course of repairs;\n(d) vehicle reconditioning; and (e) batteries replaced as part of a\nroutine maintenance operation. If the franchisor rejects the declaration\nor attempts to rebut the declaration because of an error in the dealer's\nsubmission, the franchisor shall identify with specificity the reason\nfor rejection and identify the error or errors within the submission. In\nthe event the franchisor rejects or rebuts the dealer's initial\ndeclaration, the dealer shall have the opportunity, within sixty days to\nresubmit the full and corrected declaration addressing the alleged error\nor errors identified by the franchisor. The franchisor shall respond\nwithin sixty days. The one hundred eighty day requirement for the repair\norders shall be stayed from the date of initial submission.
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