(a)It is an unfair practice for a manufacturer
or distributor to:
(1)fail to pay a claim made by a dealer for compensation for:
(A)delivery and preparation work;
(C)incentive payments;
not later than thirty (30) days after the claim is approved;
(2)fail to approve or disapprove a claim not later than thirty (30)
days after receipt of the claim; or
(3)disapprove a claim without notice to the dealer in writing of
the grounds for disapproval.
(b)A manufacturer or distributor may:
(1)audit a claim made by a dealer; or
(2)charge back to a dealer any amounts paid on a:
(A)false or fraudulent claim;
(B)claim in which repairs were not properly made;
(C)claim involving work that was not necessary to correct a
defective condition; or
(D)claim that the dealer faile
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(a) It is an unfair practice for a manufacturer
or distributor to:
(1) fail to pay a claim made by a dealer for compensation for:
(A) delivery and preparation work;
(B) warranty work; and
(C) incentive payments;
not later than thirty (30) days after the claim is approved;
(2) fail to approve or disapprove a claim not later than thirty (30)
days after receipt of the claim; or
(3) disapprove a claim without notice to the dealer in writing of
the grounds for disapproval.
(b) A manufacturer or distributor may:
(1) audit a claim made by a dealer; or
(2) charge back to a dealer any amounts paid on a:
(A) false or fraudulent claim;
(B) claim in which repairs were not properly made;
(C) claim involving work that was not necessary to correct a
defective condition; or
(D) claim that the dealer failed to substantiate in accordance
with the manufacturer's written procedures or other reasonable
means;
for up to twelve (12) months after the date on which the claim is paid.
However, the limitations of this subsection do not apply if the
manufacturer or distributor can prove fraud on a claim. A manufacturer
or distributor shall not discriminate among dealers with regard to
auditing or charging back claims.
(c) Except as provided in subsection (d), a manufacturer or
distributor may not deny a claim based solely on a motor vehicle
dealer's incidental failure to comply with a specific claim processing
requirement, including a clerical error or other administrative
technicality that does not call into question the legitimacy of a claim
when the dealer has provided reasonably sufficient documentation of
the dealer's good faith attempt to perform necessary work in
compliance with the written policies and procedures of the
manufacturer.
(d) A manufacturer or distributor shall provide a dealer with written
notification of the specific grounds upon which a claim is being
charged back as a result of an audit. A manufacturer or distributor shall
provide a reasonable appeals process allowing the dealer at least thirty
(30) days after receipt of the notice of charge back to provide
additional supporting documentation or information rebutting the
charge back. If the charge back is based upon noncompliance with
documentation requirements, material claim submission requirements,
or other material clerical errors, the manufacturer or distributor shall
allow the dealer thirty (30) days from the receipt of the notice of charge
back to cure any material noncompliance. A manufacturer's or
distributor's audit or appeals process shall allow a dealer, the dealer's
designated agent, officer, or employee to request, in writing, a meeting
with the manufacturer or distributor via in-person meeting, video
conference, or telephone call or a written explanation of the basis for
a charge back. The manufacturer or distributor shall respond with all
details and specific information supporting the basis for each charge
back. The manufacturer or distributor and the dealer may agree, during
the audit or appeals process, to an extension of time for the dealer to
cure any material noncompliance as necessitated by the volume of the
claim charge backs at issue.
(e) A motor vehicle dealer may submit an amended or supplemental
claim within the time and manner required by the manufacturer for:
(1) sales incentives;
(2) service incentives;
(3) rebates; or
(4) other forms of incentive compensation;
for up to sixty (60) days from the date on which such a claim was
submitted, could have been submitted, or was charged back. For
purposes of this section, a failure to obtain a required signature may not
be considered to be a clerical error or administrative technicality.
(f) A manufacturer or distributor shall compensate a dealer for
assistance requested by a customer whose vehicle is subject to an
over-the-air or a remote repair, or an update to a part, system,
accessory, or function by a manufacturer or distributor that is
performed at a dealership.