LD 75
pg. 1
LD 75 Title Page An Act to Amend the Motor Vehicle Franchise Laws Page 2 of 4
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LR 7
Item 1

 
Be it enacted by the People of the State of Maine as follows:

 
Sec. 1. 10 MRSA §1176, as amended by PL 1997, c. 521, §25, is
repealed and the following enacted in its place:

 
§1176.__Warranty

 
1.__Warranty reimbursement.__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 parts
provided and, in the case of all other motor vehicles, shall
reimburse the franchisee for parts 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 labor performed
at the retail rate customarily charged by that franchisee for
the same labor when not performed in satisfaction of a
warranty 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 motor vehicle
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.__A 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. When a claim
is disapproved, the franchisee that submitted it must be
notified in writing of its disapproval within that period,
together with the specific reasons for its disapproval. 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 the 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.

 
2.__Legal actions.__If a claim is disapproved by the
manufacturer and the motor vehicle dealer brings legal action
to collect the disapproved claim and is successful in the
action, the court shall award the motor vehicle dealer the
cost of the action together with reasonable attorney's fees.
Reasonable attorney's fees are determined by the value of the
time


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