2006 Code of Virginia § 29.1-829 - Warranty work; dealers\' requirements; performance of warranty work; disapproval of claims; indemnif...

29.1-829. Warranty work; dealers' requirements; performance of warrantywork; disapproval of claims; indemnification.

A. If a manufacturer requires or permits a dealer to provide parts or toperform labor to satisfy a warranty created by the manufacturer, themanufacturer shall:

1. Properly and promptly fulfill its warranty obligations; and

2. Fairly compensate the dealer for the work and services the dealer isrequired to perform and for other expenses incurred to comply with amanufacturer's warranty. A manufacturer may not pay a dealer a labor rate forwarranty work that is less than the lower amount that is charged by thedealer and that is charged in the relevant marketplace to retail customersfor non-warranty work of the same kind by similar technicians. However, ifthe manufacturer or the distributor has in effect a warranty program in whichthe dealer can comply with reasonable and objective criteria and, as aresult, obtain 100 percent of the dealer's retail labor rate or theprevailing retail labor rate in the relevant marketplace, the labor rate forwarranty work shall be as the terms of the program require, but shall not beless than seventy percent of the dealer's labor rate or the prevailing retaillabor rate in the relevant marketplace.

B. To be entitled to compensation from a manufacturer under this subsection,the dealer shall:

1. Employ watercraft and engine parts expressly authorized by themanufacturer for warranty work;

2. Retain a copy of the manufacturer's then current service literature, ifany;

3. Record the warranty work with the manufacturer within forty-five days ofcompleting the warranty work;

4. Complete and maintain for inspection by the manufacturer, a manufacturer'sdelivery checklist signed by the customer for each watercraft or watercraftengine sold by the dealer;

5. Promptly handle all warranty work in accordance with industry standardsregardless of the location where the watercraft or watercraft engine wassold; and

6. Submit warranty registration cards to the manufacturers on a timely basis.

C. To ensure that warranty work is performed in accordance with industrystandards, the dealer shall:

1. Take reasonable steps to ensure that the warranty work is completed bytechnicians who have received training in servicing the watercraft or enginesfor watercraft manufactured, imported, or distributed by the manufacturer; and

2. Maintain technician training and development programs authorized orprovided by the manufacturer as provided in the dealer's agreement with themanufacturer.

D. A dealer shall not charge a consumer for labor or parts on warranty workwhen the warranty claim has been paid by the manufacturer.

E. All claims by a dealer for warranty work shall be approved or disapprovedand paid, if due, within a reasonable time, but no longer than forty-fivedays from the date on which the manufacturer receives a properly completedclaim form containing all required information.

F. If a manufacturer disapproves a claim, the manufacturer shall provide thedealer with written notice of disapproval within forty-five days from thedate on which the manufacturer receives a properly completed claim formcontaining all required information. The notice of disapproval shall containthe specific reasons for disapproval.

G. A dealer shall hold harmless the manufacturer for any financial injuriesor other damages suffered by the manufacturer and solely as a result of thenegligence of the dealer in performing warranty work, including reasonableattorney's fees. A manufacturer shall hold harmless the dealer for anyfinancial injuries or other damages suffered by the dealer solely as a resultof the negligence of the manufacturer related to the manufacture or design ofthe watercraft, including reasonable attorney's fees.

H. If a dealer brings a legal action to collect a disapproved claim and issuccessful in the action, the court shall award the dealer the cost of theaction and reasonable attorney's fees.

I. The manufacturer shall compensate the dealer for the cost of parts used inthe warranty repair and shipping of the parts to and from the manufacturer,plus a reasonable profit, not less than fifteen percent, on authorized partsstocked by the dealer.

J. Nothing in this article shall inhibit or restrain any manufacturer ordealer from exceeding the minimum requirements of this article.

(1997, c. 13.)