2005 Idaho Code - 28-24-104B — WARRANTY CLAIMS

                                  TITLE  28
                           COMMERCIAL TRANSACTIONS
                                  CHAPTER 24
               [SUPPLIERS AND DEALERS IN AGRICULTURE EQUIPMENT]
                                   PART 1.
                         AGREEMENTS BETWEEN SUPPLIERS
                        AND DEALERS OF FARM EQUIPMENT
    28-24-104B.  WARRANTY CLAIMS. (1) An equipment dealer may submit a
warranty claim to a supplier if a warranty defect is identified and documented
prior to the expiration of a supplier's warranty:
    (a)  While a dealer agreement is in effect; or
    (b)  After the termination of a dealer agreement if the claim is for work
    performed while the dealer agreement was in effect.
    (2)  A supplier shall accept or reject a warranty claim submitted under
subsection (1) of this section, within thirty (30) days of the date the
supplier received the claim. A warranty claim not rejected within thirty (30)
days of the date the supplier received the claim is considered to be accepted
by the supplier.
    (3)  No later than thirty (30) days after the date a warranty claim is
accepted or rejected under subsection (2) of this section, the supplier shall:
    (a)  Pay an accepted warranty claim; or
    (b)  Send the dealer written notice of the reason the warranty claim was
    rejected.
    (4)  A supplier shall compensate the dealer for the warranty claim as
follows:
    (a)  The dealer's established customer hourly retail labor rate multiplied
    by the reasonable and customary amount of time required to complete such
    work by similarly situated dealers, including diagnostic time, and cleanup
    time, expressed in hours and fractions of an hour;
    (b)  The dealer's current net price on repair parts reimbursed at not less
    than net plus twenty percent (20%) of the cost for warranty service
    performed on behalf of the supplier to compensate for reasonable costs of
    doing business; and
    (c)  Extraordinary freight and handling costs. For purposes of this
    subsection (4)(c), "extraordinary freight and handling costs" means costs
    that are above and beyond the normal reimbursement policy of the supplier
    for warranty repair work;
    (d)  When the repair work is for safety or mandatory modifications ordered
    by the supplier, the supplier shall reimburse the dealer for
    transportation costs incurred by the dealer.
    (5)  After payment of a warranty claim, a supplier may not charge back,
off-set or otherwise attempt to recover from the dealer all or part of the
amount of the claim unless:
    (a)  The warranty claim was submitted in error;
    (b)  The services for which the warranty claim was made were not properly
    performed or were unnecessary to comply with the warranty; or
    (c)  The dealer did not substantiate the warranty claim according to the
    written requirements of the supplier that were in effect when the
    equipment was delivered to the dealer by the customer for warranty
    repairs.
    (6)  If a supplier denies a warranty claim due to a particular item or
part of the claim, the denial shall only affect the items or parts in question
and not the complete warranty claim.
    (7)  A supplier may not pass the cost of covering warranty claims under
this chapter on to a dealer through any means including:
    (a)  Surcharges;
    (b)  Reduction of discounts; or
    (c)  Certification standards.
    (8)  Notwithstanding the provisions of subsection (4) of this section, a
dealer may accept the supplier's reimbursement terms and conditions in lieu of
the terms and conditions set forth in subsection (4) of this section.