| 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, 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. A franchisor may not otherwise |
| recover its costs for reimbursing a franchisee for parts and |
| labor pursuant to this section.__For purposes of this section, |
| the retail rate customarily charged by the franchisee for parts |
| may be established by submitting to the franchisor 100 sequential |
| nonwarranty customer-paid service repair orders or 60 days of |
| nonwarranty customer-paid service repair orders, whichever is |
| less in terms of total cost, covering repairs made no more than |
| 180 days before the submission and declaring the average |
| percentage markup.__The average percentage markup so declared is |
| the retail rate, which goes into effect 30 days following the |
| declaration, subject to audit of the submitted repair orders by |
| the franchisor and adjustment of the average percentage markup |
| based on that audit.__Only retail sales not involving warranty |
| repairs, not involving state inspection, not involving routine |
| maintenance such as changing the oil and oil filter and not |
| involving accessories may be considered in calculating the |
| average percentage markup.__A franchisor may not require a |
| franchisee to establish the average percentage markup by an |
| unduly burdensome or time-consuming method or by requiring |
| information that is unduly burdensome or time-consuming to |
| provide, including, but not limited to, part-by-part or |
| transaction-by-transaction calculations.__A franchisee may not |
| change the average percentage markup more than 2 times in one |
| calendar year. 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 |