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