LD 1931
pg. 5
Page 4 of 7 An Act to Amend the Franchise Law Page 6 of 7
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LR 2820
Item 1

 
lower actual price than the actual price offered to any other
franchisee or other person for the same parts.

 
In any claim that is disapproved by the manufacturer, and the
dealer brings legal action to collect the disapproved claim and
is successful in the action, the court shall award the dealer the
cost of the action together with reasonable attorney attorney's
fees. Reasonable attorney attorney's fees shall be are determined
by the value of the time reasonably expended by the attorney and
not by the amount of the recovery on behalf of the dealer.

 
A franchisor may periodically audit a franchisee in relation
to warranty claims submitted by the franchisee.__Audits of
warranty claims may be only for the 3-month period immediately
preceding the date the audit is commenced.__A franchisor may not
impose time limits for the submission of claims that limit a
franchisee's right to recover such claims within the time
authorized by section 1183.

 
A claim that has been approved and paid may not be charged
back by the franchisor to the franchisee unless the franchisor
can prove that the claim was false or fraudulent, that the
repairs were not properly made or were unnecessary to correct the
defective condition or that the franchisee failed to minimally
substantiate the claim.__The franchisor has the burden of proving
by clear and convincing evidence that a warranty claim may be
charged back for one of the reasons authorized in this paragraph.

 
It is unlawful for a franchisor, manufacturer, factory branch,
distributor branch or subsidiary to own, operate or control,
either directly or indirectly, a motor vehicle warranty or
service facility located in the State except on an emergency or
interim basis or if no qualified applicant has applied for
appointment as a dealer in a market previously served by a new
motor vehicle dealer of that manufacturer, factory branch,
distributor branch or subsidiary's line make.

 
It is unlawful for a franchisor, manufacturer, factory branch,
distributor branch or subsidiary to authorize or to pay for
warranty repair services to be performed by any person other than
a franchised new motor vehicle dealer of that line make, except
that warranty repair services may be performed by the Federal
Government or any agency of the Federal Government on its own
fleet, by the State or any agency of the State on its own fleet,
or by the owner of a fleet of 15 or more vehicles as long as such
warranty repair services are limited to those vehicles in any
such fleet that are owned by and registered to the person
performing such warranty repair services.


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