Sec. 1. 10 MRSA §1367, as enacted by PL 1993, c. 195, §1, is repealed and the following enacted in its place:

§1367.__Manufacturer's and franchisor's warranty obligations

1.__Obligation to dealers or distributors.__A manufacturer shall honor, in a timely fashion, an obligation to a dealer or distributor to replace goods, reimburse or pay costs and expenses or provide services arising as a result of a warranty, franchise agreement or other agreement subject to this chapter.

2.__Rate of compensation of franchisee.__If a franchisor requires or permits a franchisee to perform labor or provide parts in satisfaction of a warranty created by the franchisor, the franchisor 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 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 customers.__Any claim made by a franchisee for compensation for parts provided or for reimbursement for labor performed in satisfaction of a warranty must be either approved or disapproved within 30 days of its receipt.__Any claim that is approved must be paid within 30 days of its approval.__When a claim is disapproved, the franchisee that submitted it must be notified in writing of its disapproval within the required 30-day period, together with the specific reasons for its disapproval.__If the franchisee brings legal action to collect the disapproved claim and is successful in the action, the court shall award the franchisee the cost of the action together with reasonable attorney's fees.__Reasonable attorney's fees must be 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 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.