Article l. Introduction

An Act requiring certain manufacturers that require or permit a dealer to provide parts or perform labor to satisfy warranty created by a manufacturer to fulfill their warranty obligations and to compensate dealers for parts provided, shipping costs, and labor performed to satisfy the warranty in a certain manner; specifying certain time limits and procedures for approving or disapproving a claim by a dealer for reimbursement for parts provided, shipping costs, and labor performed; prohibiting a manufacturer from restricting the nature or extent of parts provided or labor performed by a dealer under certain circumstances; providing a certain penalty; defining certain terms; and generally relating to compensation of dealers for parts, shipping costs, and labor supplied to satisfy warranties created by certain manufacturers.

Article ll. Definitions

A. In this title the following words have the meanings indicated.

B. "Agreement" means an expressed or implied, oral or written agreement in which:

1. A manufacturer grants a dealer the right to engage in the business of offering or selling vessels, inboard engines, inboard\outdrives, or outboard motors for vessels, or services related to vessels, inboard engines, inboard\outdrives, or outboard motors for vessels, under a marketing plan or system prescribed in substantial part by the manufacturer; and

2. The operation of the business under the marketing plan or system is associated substantially with the trademark, service mark, trade name, logotype, advertising, or other commercial symbol that designates the manufacturer or its affiliate.

C. "Dealer" means any person who:

1. Engages in whole or in part in the business of buying, selling, exchanging, or repairing new and unused vessels or used vessels, or both, or new and unused or used inboard engines, inboard\outdrives, or outboard motors for vessels, or both, either outright or on conditional sale, bailment, lease, chattel mortgage, or otherwise: and

2. Has an established place of business for sale, trade, repair, or display of vessels, inboard engines, inboard\outdrives, or outboard motors.

D. "Manufacturer" means any person engaged in the business of manufacturing or importing new and unused vessels, or new and unused inboard engines, inboard\outdrives, outboard motors, or component parts and accessories for the purpose of sale or trade.

E. 'Vessel" means every description of watercraft, including an iceboat but not including a seaplane, that is used or capable of being used as a means of transportation on water or ice.

F. 'Vessel" includes the hull, motor\engine and component parts, spars, sails, and accessories of a vessel.

G. "Person" means an individual, a partnership, a joint venture, a corporation, a limited liability company, or other entity.

Article Ill. Compensation for Warranty Work

A. If a manufacturer requires or permits a dealer to provide parts or to perform labor to satisfy a warranty created by the manufacturer, the manufacturer shall:

1. Properly and promptly fulfill its warranty obligations;

2. Adequately and fairly compensate the dealer for any parts provided, shipping costsfor parts provided, and labor performed by the dealer to satisfy the warranty on a vessel, its hull, motor\engine and component parts, spars, sails, and accessories.

B. Compensation by the manufacturer for parts provided, shipping costs for parts provided, and labor performed by the dealer shall be deemed adequate and fair under Article III of this Act if.

1. The Dealer is reimbursed for any parts provided and shipping costs for parts provided in an amount equal to 100% of the retail price and shipping costs of the parts to the dealer; and

2. The Dealer is reimbursed for any labor performed at a rate not less than the retail rate customarily charged.

C. To be entitled to compensation for labor at the dealer's retail rate, the dealer must post in a place conspicuous to service customers the rate for labor for nonwarranty work

D. A manufacturer may not, by agreement, by restrictions on reimbursement, or otherwise restrict the nature or extent of parts provided or labor performed by a dealer if such restriction impairs the dealer's ability to satisfy a warranty created by the manufacturer in accordance with generally accepted standards.

E. A claim by a dealer for compensation for parts provided, shipping costs for parts provided, and labor performed to satisfy a warranty must be approved or disapproved by the manufacturer in writing within 30 days of receipt of the claim by the manufacturer in writing within 30 days of receipt of the claim by the manufacturer.

F. A claim that is approved must be paid within 30 days after approval.

G. If a manufacturer disapproves a claim, the written notice of disapproval required by Section

E. of this Article shall contain the specific reasons for disapproval.

Article IV. Penalties

A. If a manufacturer fails to pay a warranty claim within 30 days after the approval, the dealer can charge the manufacturer interest up to the rate of 1.2% per month (18% per annum).

B. A manufacturer shall be liable to the dealer for any financial injury or other damage suffered by the dealer as a result of a violation of this act plus court costs and reasonable attorney's fees.

C. The provisions of this Article are in addition to all legal or equitable remedies available at law and any agreement between the manufacturer and dealer.

D. The manufacturer shall hold harmless the dealer for the costs of any legal action, such as, court costs and reasonable attorney's fees, and fines, brought by an owner against a dealer for a warranty claim.

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