8-2415. Correction of warranty defects; compensation to dealer; promotional allowances or incentive payments.
8-2415
8-2415. Correction of warranty defects; compensation to dealer;
promotional allowances or incentive payments.
(a) A first or second stage manufacturer or distributor shall pay reasonable
compensation to any authorized new vehicle dealer who performs work to rectify
warranty defects in the first or second stage manufacturer's or distributor's
product.
(b) A first or second stage manufacturer or distributor shall pay any
authorized new vehicle dealer all promotional allowances or other incentive
payments submitted by the dealer as provided by the applicable provisions of
such programs subject to the applicable requirements of this act.
(c) In the determination of what constitutes reasonable
compensation for warranty work under
this act, among the factors to be considered shall be: The rate or charge
which the authorized vehicle dealer in good faith is charging other customers
for the same type of service or repair work, the compensation being paid
by other first or second stage manufacturers or distributors to their vehicle
dealers for the same work or service, and the prevailing wage or labor rate
being paid or charged by all vehicle dealers licensed to operate in the
city or community in which said authorized vehicle dealer is doing business.
(d) A first or second stage manufacturer or distributor shall
not require
unreasonable proof to establish compensation under this
section, nor act unreasonably to delay payments or adjustments in the rate
or charge for particular warranty work, promotional allowances or other
incentive payments as circumstances or changes may justify
or require such adjustments.
(e) A claim made by a new motor vehicle dealer for compensation under this
section shall be either approved or disapproved within 30 days after the claim
is
submitted to the first or second stage manufacturer or distributor in the
manner and on the forms the first or second stage manufacturer or distributor
reasonably prescribes. An approved claim shall be paid within 30 days after its
approval. If a claim is not specifically disapproved in writing or by
electronic transmission within 30 days after the date on which the first or
second stage manufacturer or distributor receives it, the claim shall be
considered to be approved and payment shall follow within 30 days. A first or
second stage manufacturer or distributor retains the right to audit claims for
warranty work for
a period of one year after the date on which the claim is paid and to
chargeback any amounts paid on claims that are false or unsubstantiated. A
first or
second stage manufacturer or distributor retains the right to audit claims for
promotional allowances or other incentive payments submitted by the dealer for
a period of two years after the date on which the claim is paid and to
chargeback any amounts paid on claims that are false or unsubstantiated. If
there is
evidence of fraud, this subsection does not limit the right of the manufacturer
to audit for longer periods and chargeback for any fraudulent claim, subject to
the limitation period under paragraph (3) of subsection (a) of
K.S.A. 60-513, and amendments thereto, in addition to any other available
remedy, this section may be enforced pursuant to K.S.A. 8-2411, and amendments
thereto.
History: L. 1980, ch. 36, § 15;
L. 1994, ch. 302, § 7; July 1.