§ 35-38-111 — Warranties

(1) A supplier shall provide a fair and reasonable
warranty agreement on any new equipment that it sells and shall fairly compensate
each dealer for parts and labor used in fulfilling such warranty agreement.

(2) Any claim made by a dealer related to a warranty agreement shall be:

(a) Approved or disapproved within sixty days after receipt by the supplier;
and

(b) Paid within thirty days after approval by the supplier.

(3) For disapproval of any warranty claim submitted by a dealer, such dealer
shall be notified in writing of the specific reasons for the disapproval and of any
action necessary for approval of the claim and shall be given a reasonable time
period in which to complete such action.

(4) Warranty work performed by a dealer pursuant to this section shall be
compensated at a reimbursement rate that is reasonable and customary to the
industry.

(5) The supplier shall have the right to adjust for errors discovered during an
audit and to adjust any claims collected in error.

Legislative History

Source: L. 95: Entire article R&RE, p. 372, � 1, effective July 1.