§ 56:10-35 — Recall service, repair, insufficient part or parts necessary, compensation.

4. a. If a part or the parts necessary to perform a recall service are not reasonably available to perform a recall service or repair on a used motor vehicle held for sale by a motor vehicle franchisee authorized to sell and service new motor vehicles of the same line-make within 30 days of the motor vehicle franchisor issuing the initial recall notice, and the motor vehicle franchisor has issued a stop-sale notice or do-not-drive notice on the motor vehicle, the motor vehicle franchisor shall compensate the motor vehicle franchisee at a prorated rate of at least 1.5 percent of the value of the used motor vehicle per month beginning 30 days after the motor vehicle franchisor issued the stop-sale notice or do-not-drive notice to the motor vehicle franchisee until the earlier of either: (1) the date that the recall parts or parts necessary to perform recall service are made available; or (2) the date that the motor vehicle franchisee sells, trades, or otherwise disposes of a used motor vehicle that is subject to a stop-sale notice or do-not-drive notice. b. The value of a used motor vehicle shall be the average trade-in value for used motor vehicles as indicated in an independent third-party guide for the year, make, and model of the recalled motor vehicle. c. Subject to the provisions of section 3 of P.L.1977, c.84 (C.56:10-15), it shall be a violation of this section for a motor vehicle franchisor to reduce the amount of compensation otherwise owed to a motor vehicle franchisee through a chargeback, the removal of the motor vehicle franchisee from an incentive program, or a reduction in the amount owed under an incentive program because the motor vehicle franchisee has submitted a claim for reimbursement pursuant to this section. Nothing in this subsection shall prohibit a motor vehicle franchisor from discontinuing an incentive program. d. All reimbursement claims made by motor vehicle franchisees pursuant to this section for recall remedies or repairs, or for compensation where no part or repair is reasonably available and the motor vehicle is subject to a stop-sale notice or do-not-drive notice, shall be subject to the same limitations and requirements as a warranty reimbursement claim made under section 3 of P.L.1977, c.84 (C.56:10-15). As an alternative, a motor vehicle franchisor may compensate its motor vehicle franchisees under a national recall compensation program, provided that: (1) compensation under the program is equal to or greater than the compensation provided pursuant to this section; or (2) the motor vehicle franchisor and motor vehicle franchisee otherwise agree. e. A motor vehicle franchisor may direct the manner and method in which a motor vehicle franchisee is required to demonstrate the inventory status of an affected used motor vehicle to determine eligibility under this section. However, the manner and method shall not be unduly burdensome and shall not require information that is unduly burdensome to provide. f. Nothing in this section shall require a motor vehicle franchisor to provide total compensation to a motor vehicle franchisee, which compensation would exceed the total average trade-in value of the affected used motor vehicle as originally determined pursuant to subsection b. of this section. g. Any remedy provided to a motor vehicle franchisee under this section is exclusive and shall not be combined with any other State or federal recall compensation remedy. L.2025, c.140, s.4.