Warranty Rate Adjustments State Legislations Oregon

Oregon State Legislation

§ 650.158¹ Predelivery preparation and warranty service • • notice to dealers • • schedule of compensation • • determination • • claims by dealers

(1) Each manufacturer, distributor or importer shall specify in writing to each of the manufacturers, distributors or importers dealers in this state: (a) The dealers obligations for predelivery preparation and warranty service on the manufacturers, distributors or importers motor vehicles; (b) The schedule of compensation the manufacturer, distributor or importer will pay the dealer for parts, work and service in connection with predelivery preparation and warranty service; and (c) The time allowances for performing predelivery preparation and warranty service. (2)(a) A schedule of compensation must include reasonable compensation for diagnostic work, repair service and labor. Time allowances for diagnosing and performing predelivery and warranty service must be reasonable and adequate for the work to be performed. A manufacturer, distributor or importer may not pay an hourly rate to a dealer that is less than the rate the dealer charges non-warranty customers for non-warranty service and repairs. Reimbursement for parts, other than parts used to repair the living facilities of motor homes, that the dealer purchases for use in performing predelivery and warranty service must be the amount the dealer charges non-warranty customers, as long as the amount is not unreasonable. (b)(A) For purposes of this subsection and subject to subparagraphs (B) and (C) of this paragraph, to determine compensation under this subsection, a dealer shall propose an hourly rate and an amount for parts that the dealer charges non-warranty customers by submitting to the manufacturer, distributor or importer copies of 100 sequential non-warranty service repair invoices that customers paid or 90 consecutive days’ worth of non-warranty service invoices that customers paid, whichever is less, for repairs made not more than 180 days before the dealers submission. If the manufacturer, distributor or importer does not contest the dealers proposal and the dealer otherwise complies with the provisions of this paragraph, the dealers proposal is presumed to be fair and reasonable. (B) A manufacturer, distributor or importer may contest the dealers proposal with evidence that the dealers proposal is not accurate or on the basis that the dealers proposal does not reasonably conform with the hourly rate or the amount for parts that other dealers charge non-warranty customers in the same line-make in market areas that are contiguous to the dealers market area or with other relevant evidence. In contesting a dealers proposal based on evidence from other dealers in the contiguous market area, a manufacturer, distributor or importer shall rely on evidence from at least three other dealers in the contiguous market area or three dealers in an economically similar market within the manufacturers, distributors or importers region. (C) A dealer may not include in the dealers proposal:

(i) Repairs for manufacturers, distributors or importers specials, special events or promotional discounts for retail customer repairs; (ii) Parts sold at wholesale; (iii) Routine maintenance that a retail customer warranty does not cover, such as fluids, filters and belts that a dealer uses in performing work other than repairs; (iv) Nuts, bolts, fasteners and similar items that do not have an individual part number; and (v) Vehicle reconditioning. (c) The hourly rate or the amount for parts that a dealer charges non-warranty customers that the dealer proposes under paragraph (b)(A) of this subsection becomes effective 30 days after the manufacturer, distributor or importer approves the hourly rate or the amount for parts. For purposes of this paragraph, a manufacturer, distributor or importer approves the dealers proposal if the manufacturer, distributor or importer does not contest the proposed hourly rate or amount for parts within 30 days after the dealer submits the proposal. (d) If a manufacturer, distributor or importer successfully contests a dealers proposal, the manufacturer, distributor or importer shall propose an adjustment to the dealers proposal not later than 30 days after the dealer submits the dealers proposal. (e) Once per year, a manufacturer, distributor or importer may verify the dealers hourly rate or the amount for parts the dealer charges non-warranty customers. If the manufacturer, distributor or importer finds that the dealers hourly rate or the amount for parts has decreased, the manufacturer, distributor or importer may reduce the dealers compensation under this subsection prospectively. (3) A manufacturer, distributor or importer shall include, in written notices of vehicle recalls to motor vehicle owners and dealers, the expected date by which necessary parts and equipment will be available to the dealers to correct the defect or defects. A manufacturer, distributor or importer shall adequately compensate a dealer for repair service the dealer performs under the recall. (4) A manufacturer, distributor or importer shall: (a) Pay or credit a dealer for labor or parts the dealer claims under this section within 30 days after approving the dealers claim; (b) Approve or disapprove, in the manner the manufacturer, distributor or importer specifies, all claims that a dealer makes for labor or parts within 30 days after receiving the claim; (c) Treat as approved any claim that a manufacturer, distributor or importer did not approve or disapprove within 30 days after the manufacturer, distributor or importer received the claim and pay or credit the dealer for the claim within 60 days after receiving the claim; and (d) Notify the dealer in writing of the manufacturers, distributors or importers grounds for disapproving a claim. [1991 c.609 §3; 1999 c.660 §5; 2013 c.329 §3]