State Codes and Statutes

Statutes > Nebraska > Chapter60 > 60-1438

60-1438. Manufacturer or distributor; warrantyobligation.(1) Each new motor vehicle manufacturer or distributorshall specify in writing to each of its new motor vehicle dealers licensedin this state the dealer's obligations for preparation, delivery, and warrantyservice on its products. The manufacturer or distributor shall compensatethe new motor vehicle dealer for warranty service which such manufactureror distributor requires the dealer to provide. The manufacturer or distributorshall provide the new motor vehicle dealer with the schedule of compensationto be paid to the dealer for parts, work, and service and the time allowancefor the performance of the work and service.(2) The schedule of compensation shall include reasonable compensationfor diagnostic work, as well as repair service, parts, and labor. Time allowancesfor the diagnosis and performance of warranty work and service shall be reasonableand adequate for the work to be performed. In the determination of what constitutesreasonable compensation under this section, the principal factors to be givenconsideration shall be the prevailing wage rates being paid by dealers inthe community in which the dealer is doing business, and in no event shallthe compensation of the dealer for warranty parts and labor be less than therates charged by the dealer for like parts and service to retail or fleetcustomers, as long as such rates are reasonable.(3) A manufacturer or distributor shall not do any of the following:(a) Fail to perform any warranty obligation;(b) Fail to include in written notices of factory recalls to new motorvehicle owners and dealers the expected date by which necessary parts andequipment will be available to dealers for the correction of the defects;or(c) Fail to compensate any of the new motor vehicle dealers licensedin this state for repairs effected by the recall.(4) All claims made by a new motor vehicle dealer pursuant to this sectionfor labor and parts shall be paid within thirty days after their approval.All claims shall be either approved or disapproved by the manufacturer ordistributor within thirty days after their receipt on a proper form generallyused by the manufacturer or distributor and containing the usually requiredinformation therein. Any claim not specifically disapproved in writing withinthirty days after the receipt of the form shall be considered to be approvedand payment shall be made within thirty days. The manufacturer has the rightto audit the claims for two years after payment and to charge back to thenew motor vehicle dealer the amount of any false or fraudulent claim. A manufacturer may not deny a claim basedsolely on a dealer's incidental failure to comply with a specific claim processingrequirement, such as a clerical error that does not put into question thelegitimacy of the claim. If a claim is rejected for a clerical error, thedealer may resubmit a corrected claim in a timely manner.(5) The warranty obligations set forth in this section shall also applyto any manufacturer of a new motor vehicle transmission, engine, or rear axlethat separately warrants its components to customers. SourceLaws 1984, LB 825, § 21; Laws 1991, LB 393, § 1; Laws 2003, LB 371, § 1; Laws 2010, LB816, § 83.