2020 California Code
Vehicle Code - VEH
DIVISION 2 - ADMINISTRATION
CHAPTER 6 - New Motor Vehicle Board
ARTICLE 4 - Hearings on Franchise Modification, Replacement, Termination, Refusal to Continue, Delivery and Preparation Obligations, and Warranty Reimbursement
Section 3065.4.
(a) If a franchisor fails to comply with Section 3065.2, or if a franchisee disputes the franchisor’s proposed adjusted retail labor rate or retail parts rate, the franchisee may file a protest with the board for a declaration of the franchisee’s retail labor rate or retail parts rate. In any protest under this section, the franchisor shall have the burden of proof that it complied with Section 3065.2 and that the franchisee’s determination of the retail labor rate or retail parts rate is materially inaccurate or fraudulent.
(b) Upon a decision by the board pursuant to subdivision (a), the board may determine the difference between the amount the franchisee has actually received from the franchisor for fulfilled warranty obligations and the amount that the franchisee would have received if the franchisor had compensated the franchisee at the retail labor rate and retail parts rate as determined in accordance with Section 3065.2 for a period beginning 30 days after receipt of the franchisee’s initial submission under subdivision (a) of Section 3065.2. The franchisee may submit a request to the franchisor to calculate the unpaid warranty reimbursement compensation and the franchisor shall provide this calculation to the franchisee within 30 days after receipt of the request. The request for the calculation will also be deemed a request for payment of the unpaid warranty reimbursement compensation.
(c) If the franchisor fails to make full payment within 30 days after the franchisee submits a request for payment, the franchisee may file an action in superior court for injunctive and other appropriate relief to enforce the determination or order of the board. The franchisee may also recover in superior court its actual reasonable expenses in bringing and maintaining an enforcement action in superior court.
(d) Either the franchisor or the franchisee may seek judicial review of the board’s determination pursuant to Section 3068.
(Added by Stats. 2019, Ch. 796, Sec. 15. (AB 179) Effective January 1, 2020.)
