CHAPTER 317

S.P. 208 - L.D. 653

An Act To Improve Warranty Practices for Farm Machinery

Dealerships

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 10 MRSA §1293, sub-§1, ¶¶A and B are enacted to read:

A.__A dealer that performs warranty work as provided for in this section must be compensated for the dealer's labor in an amount that is not less than the reasonable and customary amount of time required to complete such work, expressed in hours and fractions of hours, multiplied by the dealer's established hourly labor rate.__Prior to filing a claim for warranty work, the dealer shall notify the supplier of the dealer's hourly retail labor rate.

B.__A dealer that performs warranty work as provided for in this section must be compensated for parts used in fulfilling such warranty work in an amount that is not less than the dealer's costs for such parts plus 15%, including all freight and handling charges applicable to such parts,

to reimburse the dealer's reasonable costs of doing business and providing such warranty service on behalf of the supplier.__If the warranty work is provided on behalf of the supplier on a product sold by a nonservicing dealer, the compensation for parts used in fulfilling such warranty work must be at an amount that is not less than the supplier's suggested list price or dealer's cost plus 30%, whichever is greater, plus freight and handling charges applicable to such parts.