US Laws, Codes, Statutes & Cases

     32-6B-58.   Duty of franchisor or manufacturer to fulfill warranty agreements and compensate dealers for labor and parts--Disposition of claims against franchisor or manufacturer by dealers. Every franchisor or manufacturer shall properly fulfill any warranty agreement and compensate, as set forth in § 32-6B-61, each of its vehicle dealers for labor and parts. The franchisor or manufacturer shall pay all claims made by a vehicle dealer for the labor and parts within thirty days following their approval. The franchisor or manufacturer shall either approve or disapprove the claim within thirty days after its receipt. If a claim is disapproved, the vehicle dealer who submitted the claim shall be notified in writing of its disapproval within the thirty-day period. Any claim rejected for technical reasons may be put into proper form by the vehicle dealer. Any claim resubmitted by the vehicle dealer within thirty days after the receipt of the claim shall be considered to be approved and payment shall be made within thirty days. The franchisor or manufacturer has the right to audit vehicle dealer claims for one year after payment and to charge back to the new vehicle dealer the amount of any unsubstantiated claim. If there is evidence of fraud by the vehicle dealer, the audit period is two years from the actual or constructive notice of facts constituting the alleged fraud.

Source: SL 1986, ch 250, § 59; SL 1990, ch 245, § 1; SL 1995, ch 177; SL 2005, ch 161, § 1.