LD 1931
pg. 4
Page 3 of 7 An Act to Amend the Franchise Law Page 5 of 7
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LR 2820
Item 1

 
conditions or reasonable business considerations justify
exclusive facilities is on the franchisor;

 
Sec. 5. 10 MRSA §1176, as amended by PL 1997, c. 521, §25, is
further amended to read:

 
§1176. Warranty

 
If a motor vehicle franchisor requires or permits a motor
vehicle franchisee to perform labor or provide parts in
satisfaction of a warranty created by the franchisor, the
franchisor shall properly and promptly fulfill its warranty
obligations, in the case of motor vehicles over 10,000 pounds
gross vehicle weight rating, shall adequately and fairly
compensate the franchisee for any parts so provided and, in the
case of all other motor vehicles, and shall reimburse the
franchisee for any parts so provided at the retail rate
customarily charged by that franchisee for the same parts when
not provided in satisfaction of a warranty. Further, the
franchisor shall reimburse the franchisee for any labor so
performed at the retail rate customarily charged by that
franchisee for the same labor when not performed in satisfaction
of a warranty; provided that, as long as the franchisee's rate
for labor not performed in satisfaction of a warranty is
routinely posted in a place conspicuous to its service customer.
A franchisor is not required to pay the price charged by the
dealer to retail customers for parts of systems, appliances,
furnishings, accessories and fixtures of a motor home as defined
in Title 29-A, section 101, subsection 40 that are designed, used
and maintained primarily for nonvehicular residential purposes.
Any claim made by a franchisee for compensation for parts
provided or for reimbursement for labor performed in satisfaction
of a warranty must be paid within 30 days of its approval. All
the claims must be either approved or disapproved within 30 days
of their receipt. Any claim that is not disapproved is considered
to have been approved after 30 days. When any such claim is
disapproved, the franchisee that submitted it must the claim must
be notified in writing of its disapproval within that period,
together with the specific reasons for its disapproval. No A
franchisor may not, by agreement, by restriction upon
reimbursement, or otherwise, restrict the nature or extent of
labor performed or parts provided so that such restriction
impairs the franchisee's ability to satisfy a warranty created by
the franchisor by performing labor in a professional manner or by
providing parts required in accordance with generally accepted
standards. A franchisor may not recover its cost for reimbursing
any franchisee for parts or labor provided in satisfaction of a
warranty except that a franchisor may recover those costs by
increasing the cost of its parts to franchisees.__A franchisor
may not offer to sell or sell to any franchisee any parts at a


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