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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