28-4451. Product liability; audits
A. Each manufacturer shall file with the director a copy of the delivery and
preparation obligations required to be performed by a dealer before delivery of new motor
vehicles to buyers. These delivery and preparation obligations constitute the dealer's
only responsibility for the product liability as between the dealers and the
manufacturer.
B. Any mechanical, body or parts defects arising from any express or implied
warranties of the manufacturer constitute the manufacturer's product or warranty
liability.
C. The manufacturer shall reasonably compensate an authorized dealer who performs
work to rectify the manufacturer's product or warranty defects or delivery and
preparation obligations.
D. The dealer shall furnish the purchaser of a new vehicle with a signed copy of
the manufacturer's delivery and preparation requirements indicating that all of the
requirements have in fact been performed.
E. The manufacturer shall pay the cost of the manufacturer's delivery, warranty and
preparation requirements.
F. The manufacturer, factory branch, distributor or distributor branch may
reasonably and periodically audit a new motor vehicle dealer to determine the validity of
paid claims for dealer compensation or any charge-backs for warranty parts or service
compensation. Audits shall only be for the one year period immediately following the
date of the payment. This limitation does not apply if the manufacturer reasonably
suspects fraud.
G. The manufacturer, factory branch, distributor or distributor branch shall
reserve the right to reasonable periodic audits to determine the validity of paid claims
for dealer compensation or any charge-backs for consumer or dealer incentives. Audits
shall only be for a two year period immediately following the date of the payment. This
limitation does not apply if the manufacturer reasonably suspects fraud.
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