§ 51-26-06 — Application - Dealers reimbursed for warranty repair

1. If warranty repair work or service is performed for a consumer by a farm equipment
dealer under a manufacturer's express warranty, the manufacturer shall provide the
dealer with reasonable and adequate compensation for diagnostic work, as well as
repair service, parts, and labor, for warranty work compensation, a product
improvement program, a maintenance plan, an extended warranty, a certified
preowned warranty or a service contract, issued by the manufacturer or distributor or
its common entity. In addition, a manufacturer shall provide reasonable and adequate
time allowances for the diagnosis and performance of warranty work and service for
the work performed and the time allowances may not be less than the average time
spent by the dealer on similar work for nonwarranty customers. The hourly labor rate
and parts reimbursement rate paid by a manufacturer to the dealer under this
subsection may not be less than the average rate charged by the dealer for similar
service or sales to nonwarranty customers. A manufacturer or distributor may not pay
its dealers an amount of money for warranty work, parts, or service that is less than
the average rate charged by the dealer for similar service or sales to nonwarranty
customers. The dealer may accept the manufacturer's or supplier's warranty labor
reimbursement terms and conditions in lieu of the above.
2. The compensation required under subsection 1 includes transportation services,
including labor and equipment, necessary to transport equipment under warranty to
perform the service and to return the equipment to the customer. If transporting the
equipment to the dealership to perform the service is not mechanically or financially
feasible, the compensation required under subsection 1 includes travel to and from the
location of the equipment if the service or repairs are performed at the location of the
equipment. Reimbursement for travel time required under this subsection may not
exceed six hours.
3. A manufacturer shall pay a dealer on a claim made by a dealer under this section
within thirty days of the approval of the claim. The manufacturer shall either approve or
disapprove a claim within thirty days after the claim is submitted to the manufacturer.
The manufacturer may prescribe the manner in which and the forms on which the
dealer must present the claim. A claim not specifically disapproved in writing within
thirty days after the manufacturer receives the claim must be construed to be
approved and the manufacturer shall pay the claim within thirty days.
4. As used in this section, "farm equipment" has the same meaning as in section
51-07-01.2.