§ 9-32-13-16 — Contract for uniform warranty reimbursement policy

Indiana § 9-32-13-16

• Jurisdiction: Indiana
• Title 9: MOTOR VEHICLES
• Art. 32: DEALER SERVICES
• Ch. 13: Unfair Practices

Text

(a) A manufacturer or distributor and at least
thirty percent (30%) of its franchisees in Indiana of the same line make
may agree in an express written contract citing this section to a uniform
warranty reimbursement policy to be used by franchisees for the
performance of warranty repairs. The contract must include
reimbursement for parts used in warranty repairs or the use of a
uniform time standards manual, or both. The allowance for diagnosis
within the uniform time standards manual must be reasonable and
adequate for the work and service to be performed. The manufacturer
or distributor:
(1) may have only one (1) contract with regard to each line make;
and
(2) must have a reasonable and fair procedure for franchisees to
request a modification or adjustment of a standard included in the
uniform time standards manual.
(b) A contract described in subsection (a) must meet the following
criteria:
(1) Establish a uniform parts reimbursement rate that must be
greater than the manufacturer's or distributor's nationally
established parts reimbursement rate in effect at the time the
contract becomes effective. A subsequent contract must include
a uniform reimbursement rate that is equal to or greater than the
rate in the immediately prior contract.
(2) Apply to all warranty repair orders written while the
agreement is in effect.
(3) At any time during the period the contract is in effect:
(A) be available to any franchisee of the same line make as the
franchisees that entered into the contract with the manufacturer
or distributor; and
(B) be available to a franchisee of the same line make on the
same terms as apply to the franchisees that entered into the
contract with the manufacturer or distributor.
(4) Be for a term not to exceed three (3) years.
(5) Allow any party to the uniform warranty reimbursement policy
to terminate the policy with thirty (30) days prior written notice
to all parties upon the annual anniversary of the policy, if the
policy is for at least one (1) year.
(6) Remain in effect for the entire original period if the
manufacturer and at least one (1) franchisee remain parties to the
policy.
(c) A manufacturer or distributor that enters into a contract with its
franchisees under subsection (a) shall do the following:
(1) Certify to the secretary under oath, in a writing signed by a
representative of the manufacturer or distributor, that at the time
the contract was entered into at least thirty percent (30%) of the
franchisees of the line make were parties to the contract.
(2) File a copy of the contract with the secretary at the time of the
certification.
(3) Maintain a file that contains the information upon which the
certification required under subdivision (1) is based for three (3)
years after the certification is made.

Legislative History

As added by P.L.92-2013, SEC.78. Amended by P.L.174-2016, SEC.101; P.L.284-2019, SEC.37.