Missouri HB 412: Modifies provisions relating to franchisors warranty duties to franchisees

Bill Text

FIRSTREGULARSESSION
HOUSEBILLNO.412
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVECASTEEL.
1492H.01IDANARADEMANMILLER,ChiefClerk
ANACT
To repealsection407.828,RSMo,andtoenactinlieuthereofonenewsectionrelatingto
franchisorwarrantyduties.
Be it enactedby the GeneralAssemblyof the state of Missouri,as follows:
SectionA.Section407.828,RSMo,is repealedandonenewsectionenactedin lieu
2thereof,to beknownassection407.828,to readasfollows:
407.828.1.Notwithstandinganyprovisionina  franchisetothecontrary,  each
2franchisorshallspecifyinwritingtoeachofitsfranchiseesinthisstatethefranchisee's
3obligationsfor[preparation,delivery, and]warrantyserviceonitsproducts.Thefranchisor
4shallfairlyandreasonablycompensatethefranchiseeforpreparation,delivery, andwarranty
5servicerequiredofthefranchiseebythefranchisor.[Thefranchisorshallprovidethe
6franchiseewiththescheduleof compensationto bepaidto thefranchiseeforparts,labor, and
7service,andthetimeallowancefortheperformanceofthelaborandserviceforthe
8franchisee'sobligationsforpreparation,delivery, andwarrantyservice.
92.Thescheduleofcompensationshallincludereasonablecompensationfor
10diagnosticwork,aswellasrepairserviceandlaborforthefranchiseeto meetitsobligations
11forpreparation,delivery, andwarrantyservice.Thescheduleshallalsoincludereasonable
12andadequatetimeallowancesforthediagnosisandperformanceof preparation,delivery, and
13warrantyserviceto beperformedin a carefulandprofessionalmanner.  Inthedetermination
14of whatconstitutesreasonablecompensationforlaborandservicepursuantto thissection,the
15principalfactorto begivenconsiderationshallbetheprevailingwageratesbeingchargedfor
16similarlaborandservicebythefranchiseeforsimilarlaborandserviceto retailcustomersfor
17nonwarrantylaborandservice.]Thefranchisorshallcompensatethefranchiseefor
EXPLANATION—Matterenclosedinbold-facedbrackets[thus]intheabovebillis  notenactedandis
intendedto beomittedfromthelaw. Matterinbold-facetypein theabovebillis proposedlanguage.

18warrantyservicepartsandlaborrequired of the franchiseeby the franchisorpursuant
19to the provisionsof thissection.
202.  Compensationfor partsusedin warrantyserviceshallbe reasonable.For
21purposesof thissection,theprimaryfactorin determiningreasonablecompensationforparts
22[underthissection]shallbetheamountchargedbythefranchiseeforsimilarpartsto retail
23customersfornonwarrantyrepairparts.A franchisormayrequestsuchdocumentationas
24is reasonablefrom the franchiseeto substantiatethe amountchargedby the franchisee
25for partsusedin nonwarrantyrepairs,but a franchisorshallnot requestdocumentation
26of a typeor amountthatis undulyor unnecessarilyburdensometo thefranchisee.
27Compensationforlaborusedin warrantyserviceshallbe reasonableandmaybe
28determinedat the electionof the dealeras describedin subsection3 of thissection,in
29lieuof anylaborcompensationscheduleprescribedby the franchisor.
303.Compensationfor warrantylaborshallequalthedealer'slaborratefor
31nonwarrantyrepairsmultipliedby the timeprovidedin whichevergenerallyaccepted
32industrylabortimeguideis usedby the dealerfor nonwarrantycustomer-paidservice
33repairorders.If no timeguideexistsfor a warrantyrepair, compensationfor warranty
34laborshallequalthe dealer'snonwarrantylaborratebeingchargedat the timethe
35repairis completed,multipliedby the timeactuallyspentto completethe repair order
36andshallnot be lessthanthe timechargedto retail customersfor the sameor similar
37workperformed.Compensationfor warrantylaborshallincludeall diagnostictimefor
38repairsperformedunderthissectionincluding,butnotlimitedto, all timespent
39communicatingwiththe manufacturer'stechnicalassistantsor externalmanufacturer
40source in orderto providea warrantyrepair, andshallnot be less thanthe timecharged
41to retail customersfor the sameor similarworkperformed.
424.Afranchisorshallperformallwarrantyobligations,includingrecallnotices;
43includein writtennoticesoffranchisorrecallsto newmotorvehicleownersandfranchisees
44theexpecteddatebywhichnecessarypartsandequipmentwillbeavailableto franchiseesfor
45thecorrectionofthedefects;andcompensateanyofthefranchiseesin thisstateforrepairs
46requiredbytherecall.Compensationforpartsandlaborforrecallrepairsshallbedetermined
47under[subsection2]  the provisionsofthissection.
48[4.]   5.Nofranchisorshallrequirea franchiseeto submita claimauthorizedunderthis
49sectionsoonerthanthirtydaysafterthefranchiseecompletesthe[preparation,delivery, or]
50warrantyservice[authorizingtheclaimforpreparation,delivery, orwarrantyservice].All
51claimsmadebya franchiseeunderthissectionshallbepaidwithinthirtydaysaftertheir
52approval.Allclaimsshallbeeitherapprovedordisapprovedbythefranchisorwithinthirty
53daysaftertheirreceiptona properformgenerallyusedbythefranchisorandcontainingthe
54usuallyrequiredinformationtherein.Anyclaimsnotspecificallydisapprovedinwriting
HB4122

55withinthirtydaysafterthereceiptoftheformshallbeconsidered[tobe]approvedand
56paymentshallbemadeby the franchisorwithinfifteendaysthereafter.  A fr