§ 10-1-679.10 - Required specification of obligation for warranty service; compensation; time allowances; reimbursement for warranty parts; denial of claims; violations; damage to new recreational v
               	 		
O.C.G.A.    10-1-679.10   (2010)
    10-1-679.10.    Required specification of obligation for warranty  service; compensation; time allowances; reimbursement for warranty  parts; denial of claims; violations; damage to new recreational vehicles  delivered to dealers 
      (a)  Each  grantor or warrantor, where applicable, shall specify in writing to  each of its recreational vehicle dealers licensed in Georgia the  dealer's obligation for preparation, delivery, and warranty service on  its products; shall compensate the dealer for warranty service required  of the dealer by the grantor or warrantor; and shall provide the dealer  the schedule of compensation to be paid to such dealers for parts, work,  and service in connection with warranty service and the time allowances  for the performance of such work and service. In no event shall such  schedule of compensation fail to include reasonable compensation for  diagnostic work as well as repair service and labor.
(b)  Time  allowances for the diagnosis and performance of warranty work and  service shall be reasonable and adequate for the work to be performed.  In the determination of what constitutes reasonable compensation under  this Code section, the principal factors to be considered shall be the  actual wage rates being paid by the dealer and the actual retail labor  rates being charged by the dealer in the community in which the dealer  is doing business. In no event shall such compensation of a dealer for  warranty labor be less than the retail rates charged by the dealer for  like service to retail customers for nonwarranty labor and repairs as  long as such rates are reasonable.
(c)  A  grantor or warrantor, where applicable, shall reimburse the dealer for  warranty parts at actual wholesale costs plus a minimum 30 percent  handling charge and the cost, if any, of freight to return warranty  parts to the grantor or warrantor. Warranty audits of dealer records may  be conducted by the grantor or warrantor, where applicable, on a  reasonable basis. A grantor or warrantor, where applicable, must  disapprove warranty claims in writing within 30 days of the date of  submission by the dealer in the manner and form prescribed by the  grantor or warrantor. Claims not specifically disapproved in writing  within this 30 day period shall be construed to be approved and shall be  paid within 45 days.
(d)  Dealer claims for  warranty compensation shall not be denied except for good cause, such  as performance of nonwarranty repairs, lack of material documentation,  fraud, or misrepresentation. Claims for dealer compensation must be  submitted within 45 days of completing the work. The dealer must notify  the warrantor verbally or in writing if the dealer is unable to promptly  perform material or repetitive warranty repairs. All claims shall be  paid within 30 days of dealer submission or rejected in writing for  stated reasons.
(e)  It shall be a violation of this article for any grantor or warrantor, where applicable, to:
      (1)  Fail  to perform any of its warranty obligations with respect to a  recreational vehicle and recreational vehicle components;
      (2)  Fail to assume all responsibility for any liability resulting from structural or production defects;
      (3)  Fail  to include written notices of factory recalls to vehicle owners and  dealers and the expected date by which necessary parts and equipment  will be available to dealers for the correction of such defects. The  grantor or warrantor, where applicable, may ship parts in quantity to  the dealer to effect such campaign work, and if such parts are in excess  of the dealer's requirements, the dealer may return unused parts to the  grantor or warrantor for credit after completion of the campaign;
      (4)  Fail  to compensate any of its recreational vehicle dealers licensed in  Georgia for repairs effected by such dealer of merchandise damaged in  manufacture or transit to the dealer where the carrier is designated by  the grantor, factory branch, distributor, or distributor branch;
      (5)  Fail  to compensate its recreational vehicle dealers licensed in this state  for warranty parts, work, and service in accordance with the schedule of  compensation provided the dealer pursuant to subsection (a) of this  Code section if performed in a timely and competent manner, or for legal  costs and expenses incurred by such dealers in connection with warranty  obligations for which the grantor or warrantor, where applicable, is  legally responsible or which the grantor or warrantor imposes upon the  dealer;
      (6)  Misrepresent in any way  purchases of recreational vehicles that contain warranties with respect  to the manufacture, performance, or design of the vehicles which are  made by the dealer, either as warrantor or co-warrantor; or
      (7)  Require the dealer to make warranties to customers in any manner related to the manufacture of a recreational vehicle.
(f)  Notwithstanding  the terms of any agreement, it shall be a violation of this article for  any grantor or warrantor, where applicable, to fail to indemnify and  hold harmless its recreational vehicle dealers against any losses or  damages arising out of claims, costs, judgments, and expenses, including  reasonable attorney's fees, or suits relating to the manufacture,  assembly, or design of recreational vehicles, parts, or accessories, or  other functions by the grantor or warrantor beyond the control of the  dealer, including, without limitation, the selection by the grantor or  warrantor, where applicable, of parts or components for the recreational  vehicle or any damages to merchandise occurring in transit to the  dealer where the carrier is designated by the grantor or warrantor. The  dealer shall give notice to the grantor or warrantor of pending suits in  which allegations are made which come within this subsection whenever  reasonably practicable to do so. Any recreational vehicle dealer  franchise agreement issued to, amended, or renewed for recreational  vehicles in Georgia on or after July 1, 2005, shall be deemed to  incorporate provisions consistent with the requirements of this  subsection.
(g)  On any new recreational  vehicle, any uncorrected and significant damage, or any corrected damage  exceeding 5 percent of the manufacturer's suggested retail price or  $500.00 or more in paint damage, must be disclosed to the dealer in  writing prior to delivery. Factory mechanical repair and damage to  glass, tires, and bumpers is excluded from disclosure when properly  replaced by identical manufacturer's or distributor's original equipment  or parts.
(h)  Whenever a new recreational  vehicle is damaged in transit when the carrier or means of  transportation is determined by the manufacturer or distributor or  whenever a recreational vehicle is otherwise damaged prior to delivery  to the recreational vehicle dealer or if a new recreational vehicle is  found to have substantial box or chassis defects upon arrival at the  recreational vehicle dealership, the dealer must notify the grantor or  distributor of such damage or such defects within three business days  from the date of delivery or within a reasonable amount of additional  time or such time as specified in the recreational vehicle dealership  franchise agreement and either:
      (1)  Request  from the grantor, warrantor, or distributor authorization to replace  the components, parts, and accessories damaged or otherwise correct the  damage; or
      (2)  Reject the vehicle within the three day grace period.
      If  the dealer exercises the option to refuse delivery of the vehicle, the  recreational vehicle grantor must immediately repurchase such vehicle.
(i)  If  the grantor, warrantor, or distributor refuses or fails to authorize  repair of such damage within ten days after receipt of notification or  if the dealer rejects a recreational vehicle because of damage,  ownership of the new recreational vehicle shall revert to the grantor or  distributor and the recreational vehicle dealer shall have no  obligations, financial or otherwise, with respect to such recreational  vehicle.
(j)  It shall be a violation of this article for any recreational vehicle dealer to:
      (1)  Fail to perform predelivery inspection functions, if required, in a competent and timely manner;
      (2)  Fail  to perform warranty service work, authorized by the vehicle warrantor,  in a reasonably timely and competent manner on any transient customer's  vehicle of the same line-make, whether sold by that dealer or not;
      (3)  Intentionally misrepresent the terms of any warranty.
(k)  All  grantors, warrantors, and distributors of recreational vehicle  components shall be subject to the provisions of this article.