2022 Colorado Code
Title 44 - Revenue - Regulation of Activities
Article 20 - Sale of Self-Propelled Vehicles
Part 1 - Motor Vehicle Dealers
§ 44-20-141.6. Fulfillment of Warranty and Recall Obligations - Recreational Vehicles - Definitions

1. Definitions. As used in this section:
   1. "Dealer" means a person licensed or required to be licensed as a motor vehicle dealer that sells recreational vehicles.
   2. "Recreational vehicle" means the category of vehicle primarily designed as temporary living quarters for recreational, camping, or travel use, which either has its own motive power or is mounted on or drawn by another vehicle.
   3. "Warrantor" means a person that gives a warranty in connection with a new recreational vehicle or parts, accessories, or components of a recreational vehicle. The term does not include a person who offers or performs service contracts, insurance, or extended warranties sold for separate consideration by a person who is not:
      1. The manufacturer, distributor, or manufacturer representative; or
      2. Controlled by a manufacturer, distributor, or manufacturer representative.

2. Warranty obligations of recreational vehicle warrantors. Each warrantor shall:
   1. Compensate the dealer for warranty service, including diagnostic work;
   2. Provide the dealer a schedule of compensation to be paid that must be in a flat-rate manual or other written guide;
   3. Provide the dealer a schedule of the time allowances for warranty service that must provide adequate and reasonable time to complete service work and that must be in a flat-rate manual or other written guide;
   4. Reimburse the dealer for warranty service and warranty parts in accordance with the schedule of compensation that is required in subsection (2)(b) of this section;
   5. If the schedule of compensation required in subsection (2)(b) of this section does not include a particular repair, reimburse the dealer for warranty service for the actual time expended if reasonable, and the manufacturer bears the burden to prove that the actual time expended was unreasonable;
   6. Reimburse the dealer for warranty service at not less than the lowest retail labor rate actually charged by the dealer for comparable nonwarranty labor if the rate is reasonable; and
   7. Reimburse the dealer for warranty parts at wholesale price plus:
      1. A minimum thirty percent handling charge; and
      2. Any cost of freight to return warranty parts to the warrantor.

3. The warrantor shall not deny a dealer's claims for warranty compensation without cause, which may include performance of nonwarranty repairs, material noncompliance with the warrantor's published policies and procedures, lack of material documentation, fraud, or misrepresentation.
4. A warrantor shall not:
   1. Fail to compensate a dealer for warranty repairs made to a recreational vehicle or component of a recreational vehicle made by the dealer of merchandise:
      1. Damaged during delivery to the dealer or during manufacturing; or
      2. Defectively built or designed;

   2. Send replacement parts to a dealer at no charge without paying the parts markup required by subsection (2)(g) of this section times the dealer cost of the part;
   3. Fail to fulfill parts orders when parts are available;
   4. Retaliate against a dealer for exercising the dealer's rights under this section; or
   5. Attempt to coerce a dealer to not exercise its rights under this section.

5. The dealer may submit warranty claims involving any component used in the manufacturing of a recreational vehicle to the manufacturer that:
   1. Completes the manufacturing of the recreational vehicle; and
   2. Issues the manufacturer's certificate of origin.

6. Notwithstanding the terms of any manufacturer and dealer agreement:
   1. A warrantor shall indemnify and defend a dealer against any claim for or lawsuit for losses, liability, or damages, including defense costs and attorney fees, to the extent the loss, liability, or damage is caused by the negligence or willful misconduct of the warrantor or any component warrantor whose product is incorporated in the warrantor's product. The warrantor shall not deny the dealer indemnification or defense for failing to discover, disclose, or remedy a defect in the design or manufacturing of a recreational vehicle. To be indemnified or defended, the dealer must provide to the warrantor a copy of any claim in which allegations are made that fall under this subsection (6)(a) within ten days after receiving the claim or suit.
   2. A dealer shall indemnify and defend its warrantor against any claim for or lawsuit for losses, liability, or damages to the extent the loss, liability, or damage is caused by the negligence or willful misconduct of the dealer independent of any manufacturing or design defect. To be indemnified or defended, the warrantor must provide to the dealer a copy of any claim in which allegations are made that fall under this subsection (6)(b) within ten days after receiving the claim or suit.

7. Dispute resolution for recreational dealers and manufacturers.
   1. A dealer or warrantor injured by another party's violation of this section may bring a civil action in state court to recover actual damages. The court shall award attorney fees and costs to the prevailing party in the action. Venue for a civil action authorized by this section must exclusively be in the county where the dealer is located. In an action involving more than one dealer, venue may be in any county where a dealer who is party to the action is located.
   2. 1. To bring an action under this subsection (7):
         1. A person must serve a written demand for mediation upon the alleged violator;
         2. The demand for mediation must be served upon the alleged violator by certified mail at the address stated within the sales, service, and parts agreement between the parties unless subsection (7)(b)(I)(C) of this section applies to the action;
         3. If a civil action is between two dealers, the demand must be mailed to the address on the dealer's license filed with the director;
         4. The demand for mediation must contain a brief statement of the dispute and the relief sought by the party filing the demand.

      2. Within twenty days after the demand for mediation is served, the parties shall mutually select an independent certified mediator and meet with the mediator for the purpose of attempting to resolve the dispute. The meeting place must be in this state in a location selected by the mediator. The mediator may extend the date of the meeting for good cause shown by either party or upon stipulation of both parties.
      3. The service of a demand for mediation under this subsection (7) stays the time for the filing of an action under this subsection (7) until representatives of both parties have met with a mutually selected mediator to attempt to resolve the dispute. If an action is filed before that meeting, the court shall enter an order suspending the proceedings until the meeting has occurred and may, upon written stipulation of all parties to the proceeding that they wish to continue to mediate under this subsection (7), enter an order suspending the proceeding or action for as long a period as the court considers appropriate. A suspension order issued under this subsection (7)(b)(III) may be revoked by the court.
      4. In mediation, the parties to the mediation bear their own costs for attorney fees and divide equally the cost of the mediator.

   3. In addition to the remedies provided in this subsection (7) and notwithstanding the existence of any additional remedy at law, a dealer or manufacturer may apply to a state court for the grant, upon a hearing and for cause shown, of a temporary or permanent injunction restraining a person from violating or continuing to violate this section. The moving party need not post a bond for the injunction to be issued. Mediation is not required prior to seeking injunctive relief. A single act in violation of this section is sufficient to authorize the issuance of an injunction.

Source: L. 2018: Entire section added, (SB 18-219), ch. 330, p. 1980, § 3, effective October 1.

Editor's note: This section was numbered as § 12-6-132.6 in SB 18-219. That section was harmonized with SB 18-030 and relocated to this section.