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| If a motor vehicle franchisor requires or permits a motor |
| vehicle franchisee to perform labor or provide parts in |
| satisfaction of a warranty created by the franchisor, the |
| franchisor shall properly and promptly fulfill its warranty |
| obligations, in the case of motor vehicles over 10,000 pounds |
| gross vehicle weight rating, shall adequately and fairly |
| compensate the franchisee for any parts so provided and, in the |
| case of all other motor vehicles, shall reimburse the franchisee |
| for any parts so provided at the retail rate customarily charged |
| by that franchisee for the same parts when not provided in |
| satisfaction of a warranty. A franchisor may not otherwise |
| recover its costs for reimbursing a franchisee for parts and |
| labor pursuant to this section.__For purposes of this section, |
| the retail rate customarily charged by the franchisee for parts |
| may be established by submitting to the franchisor 100 |
| sequential nonwarranty customer-paid service repair orders or 60 |
| days of nonwarranty customer-paid service repair orders, |
| whichever is less in terms of total cost, covering repairs made |
| no more than 180 days before the submission and declaring the |
| average percentage markup.__The average percentage markup so |
| declared is the retail rate, which goes into effect 30 days |
| following the declaration, subject to audit of the submitted |
| repair orders by the franchisor and adjustment of the average |
| percentage markup based on that audit.__Only retail sales not |
| involving warranty repairs, not involving state inspection, not |
| involving routine maintenance such as changing the oil and oil |
| filter and not involving accessories may be considered in |
| calculating the average percentage markup.__A franchisor may not |
| require a franchisee to establish the average percentage markup |
| by an unduly burdensome or time-consuming method or by requiring |
| information that is unduly burdensome or time-consuming to |
| provide, including, but not limited to, part-by-part or |
| transaction-by-transaction calculations.__A franchisee may not |
| change the average percentage markup more than 2 times in one |
| calendar year. Further, the franchisor shall reimburse the |
| franchisee for any labor so performed at the retail rate |
| customarily charged by that franchisee for the same labor when |
not performed in satisfaction of a warranty; provided that |
| long as the franchisee's rate for labor not performed in |
| satisfaction of a warranty is routinely posted in a place |
| conspicuous to its service customer. A franchisor is not |
| required to pay the price charged by the dealer to retail |
| customers for parts of systems, appliances, furnishings, |
| accessories and fixtures of a motor home as defined in Title 29- |
| A, section 101, subsection 40 that are designed, used and |
| maintained primarily for nonvehicular residential purposes. Any |
| claim made by a franchisee for compensation for parts provided |
| or for reimbursement for labor performed in satisfaction of a |
| warranty must be paid within 30 days of its approval. All the |
| claims must be either approved or disapproved within 30 days |
