§ 813 — Vessel preparation, warranty and warranty reimbursement

§ 813. Vessel preparation, warranty and warranty reimbursement. 1. If\na manufacturer or distributor requires or permits a dealer to provide\nparts or to perform labor to satisfy a warranty created by the\nmanufacturer or distributor, the manufacturer or distributor shall:\n (a) properly and promptly fulfill its warranty obligations;\n (b) adequately and fairly compensate the dealer for any parts\nprovided, the shipping costs for parts provided and labor performed by\nthe dealer to satisfy the warranty on a vessel, including the hull,\nmotor/engine, component parts, spars, sails and accessories; and\n (c) have the right to audit the dealer's warranty claims for a period\nof eighteen months following the submission thereof, and to charge back\nto the dealer any amounts paid on false, fraudulent, incorrect or\nunsubstantiated claims.\n 2. Compensation by the manufacturer or distributor for parts provided,\nthe shipping costs for parts provided and labor performed by the dealer\nshall be deemed adequate and fair if:\n (a) the dealer is reimbursed for any parts provided and already in\ninventory and the shipping costs for such parts in an amount equal to\nthe wholesale price, plus forty percent thereof, provided that in no\ncase shall such reimbursement exceed the retail price, and shipping\ncosts of the parts provided to the dealer; and\n (b) the dealer is reimbursed for any labor performed at the following\nrates:\n (i) with respect to the first year of new dealer agreements entered\ninto on or after the effective date of this article, and with respect to\nthe first year of the first renewals of a dealer agreement in effect\nprior to the effective date of this article, when such renewal is\nentered into on or after the effective date of this article, at a rate\nof not less than seventy-five percent of the retail labor rate\ncustomarily charged and posted therefor,\n (ii) with respect to the second year of new dealer agreements entered\ninto on or after the effective date of this article, and with respect to\nthe second year of a renewal of a dealer agreement in effect prior to\nthe effective date of this article, when the first year of such renewal\ncommenced on or after the effective date of this article, at a rate not\nless than ninety percent of the retail labor rate customarily charged\nand posted therefor; and\n (iii) with respect to the third and any subsequent year of new dealer\nagreements entered into on or after the effective date of this article,\nand with respect to the third and any subsequent year of a renewal of a\ndealer agreement in effect prior to the effective date of this article,\nwhen the first year of such renewal commenced on or after the effective\ndate of this article, at a rate not less than one hundred percent of the\nretail labor rate customarily charged and posted therefor.\n Nothing in this paragraph shall be deemed to require or provide for\nthe payment of a lower rate than is provided in a dealer agreement\nentered into prior to the effective date of this article or of a renewal\nof a dealer agreement, when such renewal is entered into prior to the\neffective date of this article.\n 3. To be entitled to compensation for labor at the dealer's retail\nrate, the dealer shall have posted, in a place conspicuous to service\ncustomers, the rate for labor for nonwarranty work.\n 4. Except as provided in this section, no manufacturer or distributor\nmay by agreement make restrictions on reimbursement or otherwise\nrestrict the nature or extent of parts provided or labor performed by a\ndealer if such restriction impairs the dealer's ability to satisfy the\nwarranty of the manufacturer or distributor in accordance with the\ngenerally accepted standards. However, the manufacturer or distributor\nmay provide printed repair manuals detailing standard labor time and\nparts required for a specific repair to establish set requirements if\nsuch manual is provided to the dealer upon entry into a new contract or\nrenewal of a contract. Such standards shall reflect the labor time and\nparts' standards used by the manufacturer on a national level. Any\nrepair or parts required by the manufacturer or distributor that are not\nin repair manuals will be paid in actual billable hours by the\nmanufacturer or distributor.\n 5. A claim by a dealer for compensation for parts provided, the\nshipping costs for parts provided and labor performed to satisfy a\nwarranty, provided that the claim includes all the information\nreasonably necessary by the manufacturer to make a determination upon\nthe validity of the claim, shall be approved or disapproved by the\nmanufacturer or distributor in writing within thirty days of receipt of\nthe claim by the manufacturer or distributor in writing, and if\napproved, shall be paid within thirty days of the approval thereof.\n