Text: SF02033                           Text: SF02035
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Senate File 2034

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 322.14, unnumbered paragraph 3, Code
  1  2 Supplement 1997, is amended to read as follows:
  1  3    The provisions of this section shall not apply to
  1  4 violations under subsection 5 of section 322.3 or under
  1  5 section 322.37.
  1  6    Sec. 2.  NEW SECTION.  322.37  WARRANTY WORK COMPENSATION.
  1  7    1.  As used in this section, unless a different meaning
  1  8 appears from the context:
  1  9    a.  "Completed vessel" means a vessel which does not
  1 10 require any additional manufacturing operations to perform its
  1 11 intended function except minor finishing operations or the
  1 12 addition of readily attachable equipment or components.
  1 13    b.  "Distributor" means a person, resident or nonresident,
  1 14 who in whole or in part, sells or distributes motor vehicles
  1 15 or vessels to motor vehicle or vessel dealers, or who
  1 16 maintains distributor representatives.
  1 17    c.  "Manufacturer" means any person engaged in the business
  1 18 of fabricating or assembling motor vehicles or vessels.
  1 19 "Manufacturer" does not include a person who converts,
  1 20 modifies, or alters a completed motor vehicle or vessel
  1 21 manufactured by another person.  "Manufacturer" includes a
  1 22 person who uses a completed motor vehicle manufactured by
  1 23 another person to construct a class "B" motor home as defined
  1 24 in section 321.124.
  1 25    d.  "Vessel" means every description of watercraft, other
  1 26 than a seaplane, used or capable of being used as a means of
  1 27 transportation on water or ice.  Ice boats are watercraft.
  1 28 "Vessel" includes the hull, motor, engine, component parts,
  1 29 spars, sails, and accessories of a vessel.
  1 30    e.  "Watercraft" means any vessel which through the
  1 31 buoyance of water floats upon the water and is capable of
  1 32 carrying one or more persons.
  1 33    2.  When a motor vehicle or vessel dealer makes repairs to
  1 34 any motor vehicle or vessel pursuant to any warranty
  1 35 provision, the dealer shall receive reasonable compensation
  2  1 from the manufacturer or distributor giving the warranty.
  2  2 Reasonable compensation includes the following:
  2  3    a.  The cost of labor at a rate no less than that posted by
  2  4 the dealer for labor not under warranty.
  2  5    b.  The cost of any part provided and any shipping cost for
  2  6 a part provided in an amount equal to one hundred percent of
  2  7 the retail price and shipping cost of the part to the dealer.
  2  8    3.  A claim for compensation by a dealer for any parts
  2  9 provided, shipping costs for parts provided, or labor
  2 10 performed to satisfy a warranty must be approved or
  2 11 disapproved by the manufacturer or distributor in writing
  2 12 within thirty days of receipt of the claim by the manufacturer
  2 13 or distributor.  Written notice of disapproval shall contain
  2 14 specific reasons for disapproval.
  2 15    4.  An approved claim must be paid by the manufacturer or
  2 16 distributor within thirty days after approval.
  2 17    5.  A motor vehicle or vessel dealer may charge a
  2 18 manufacturer or distributor interest of up to the rate of one
  2 19 and one-half percent per month if the manufacturer or
  2 20 distributor fails to pay a warranty claim within thirty days
  2 21 after approval of the claim by the manufacturer or
  2 22 distributor.
  2 23    6.  A manufacturer or distributor who violates this section
  2 24 is liable to a motor vehicle or vessel dealer for any
  2 25 financial injury or other damage suffered by the dealer as a
  2 26 result of the violation.  The liability provided under this
  2 27 subsection is in addition to any legal or equitable remedy
  2 28 available at law and any agreement between the manufacturer or
  2 29 distributor and the dealer.  
  2 30                           EXPLANATION
  2 31    This bill requires a motor vehicle or vessel manufacturer
  2 32 or distributor to provide reasonable compensation to a dealer
  2 33 when the dealer makes repairs to a motor vehicle or vessel
  2 34 pursuant to any warranty provision given by the manufacturer
  2 35 or distributor.  Reasonable compensation includes labor costs
  3  1 no less than that charged by the dealer for labor not under
  3  2 warranty and the cost of parts and shipping equal to 100
  3  3 percent of the retail price and shipping costs of the parts to
  3  4 the dealer.
  3  5    The bill provides that a claim for compensation must be
  3  6 approved or disapproved by the manufacturer or distributor in
  3  7 writing within 30 days of receipt of the claim.  Written
  3  8 notice of disapproval shall contain specific reasons for
  3  9 disapproval.  An approved claim must be paid within 30 days
  3 10 after approval.  If a manufacturer or distributor fails to pay
  3 11 a warranty claim within 30 days after the claim was approved,
  3 12 the dealer may charge the manufacturer or distributor interest
  3 13 of up to the rate of one and one-half percent per month.  A
  3 14 manufacturer or distributor is liable to the dealer for any
  3 15 financial injury or other injury suffered by the dealer as a
  3 16 result of a violation of any of the provisions in the bill.  
  3 17 LSB 3226XS 77
  3 18 tm/sc/14
     

Text: SF02033                           Text: SF02035
Text: SF02000 - SF02099                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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