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HIGHLIGHTS
12
•
Requires a franchisor to identify with specificity the
reason for rejecting or rebutting a dealer’s declaration
of the retail rate.
•
Provides a dealer with the opportunity to resubmit,
within 60 days, a full and corrected declaration
addressing any alleged error. Requires a franchisor to
response to a resubmission within 60 days. Stays the
requirement of submitting repair orders within 180
days of completing a repair from the date of initial
submission of a claim.
•
Places on the franchisor the burden of proving the
unreasonableness of declared retail rate and the
reasonableness of any adjustment.
•
Requires franchisors to approve or disapprove warranty
or sales incentive claims within thirty (30) days of their
submission.
Warranty and Sales Incentive Audits and
Chargebacks – 465(3)-(7)
•
Restricts the franchisor from auditing or charging back
any warranty payment, or any sales, advertising or
marketing incentive payment more than one year after
the date of payment, unless there is fraud.
•
Requires franchisors to provide dealers with notice
of a chargeback, or some system that allows dealers
to access information about errors or problems with
their warranty, sales, advertising or marketing incentive
claims.
•
Protects dealers from chargebacks of all warranty claims
in a single submission where a dealer fails to properly
document only one repair job.
•
Prohibits manufacturers from denying a claim solely
due to a dealer’s incidental failure to comply with a
specific claim processing requirement, a clerical error,
or other administrative technicality, provided the claim
is legitimate and the dealer corrects the claim.
•
Requires franchisors to meet with or call their dealers
to explain any chargeback and to allow dealers to
explain their position.
page 46-47
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