(1) (a) A franchisee is solely liable for damage to a new motor vehicle after delivery by and acceptance from the carrier. (b) A delivery receipt or bill of lading, or similar document, signed by a franchisee is evidence of a franchisee's acceptance of a new motor vehicle. (2) A franchisor is liable for all damage to a motor vehicle before delivery to and acceptance by the franchisee, including that time in which the vehicle is in the control of a carrier or transporter. (3) (a) A franchisor shall disclose to the franchisee any repairs made prior to delivery, except a recreational vehicle franchisor shall disclose to a recreational vehicle franchisee any repair made to the vehicle prior to delivery only if: (i) the cost of the repair exceeds 3% of the manufacturer's wholesale price, as measured by retail repair costs; or (ii) the repair is to the exterior sidewalls or roof of the vehicle, and repairs total over $500. (b) Replacement of a recreational vehicle's glass, tires, wheels, audio equipment, in-dash components, instrument panels, appliances, furniture, and components other than built- in cabinetry contained in the vehicle's living quarters, is not considered a repair under this subsection if the component replaced has been replaced with original manufacturers parts and materials. (4) Notwithstanding Subsections (1), (2), and (3), the franchisee is liable for damage to a new motor vehicle after delivery to the carrier or transporter if the franchisee selected: (a) the method and mode of transportation; and (b) the carrier or transporter.
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