§ 32-6B-58 — Franchisor, component manufacturer or manufacturer--Warranty agreement fulfillment--Process--Right to audit.

Every franchisor, component manufacturer, or manufacturer shall properly fulfill any warranty agreement and compensate, as set forth in § 32-6B-61 , each of its vehicle dealers for labor and parts. The franchisor, component manufacturer, or manufacturer shall pay all claims made by a vehicle dealer for the labor and parts within thirty days following their approval. The franchisor, component manufacturer, or manufacturer shall either approve or disapprove the claim within thirty days after its receipt. If a claim is disapproved, the vehicle dealer who submitted the claim shall be notified in writing of the claim's disapproval within the thirty-day period. Any claim rejected for technical reasons may be put into proper form by the vehicle dealer. Any claim resubmitted by the vehicle dealer within thirty days after the receipt of the claim shall be considered to be approved and payment shall be made within thirty days. The franchisor, component manufacturer, or manufacturer has the right to audit any vehicle dealer claim for a period of one year after the claim is paid to the dealer and to charge back to the new vehicle dealer the amount of any unsubstantiated claim. If there is evidence of fraud by the vehicle dealer, the audit period is two years from the actual or constructive notice of facts constituting the alleged fraud.

Legislative History

SL 1986, ch 250, § 59; SL 1990, ch 245, § 1; SL 1995, ch 177; SL 2005, ch 161, § 1; SL 2010, ch 156, § 13, eff. Mar. 9, 2010; SL 2023, ch 100, § 4.