Sec. 42-133s. Obligations of manufacturers and distributors. Compensation schedule. Dealer's claims. - Connecticut Statutes

      Sec. 42-133s. Obligations of manufacturers and distributors. Compensation schedule. Dealer's claims. (a) Each manufacturer or distributor shall specify in writing to each of its dealers licensed in this state, the dealer's obligations for predelivery preparation and warranty service on its products, shall compensate the dealer for such preparation and service, and shall provide the dealer with a schedule of compensation to be paid the dealer for parts and labor in connection with such preparation and service, and the time allowance for the labor.

      (b) Such schedule of compensation shall include reasonable compensation for diagnostic work, as well as repair service and labor. 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 section, the principal factor considered shall be the prevailing wage rates being paid by dealers in the community in which the dealer is doing business. In no event shall the hourly labor rate paid to a dealer for warranty service be less than the rate charged by such dealer for like service to nonwarranty customers, provided that the rate charged to nonwarranty customers is reasonable.

      (c) Each manufacturer or distributor shall perform all warranty obligations, include in written notices of factory recalls to owners and dealers the expected date by which necessary parts and equipment will be available to dealers for the correction of such defects and compensate dealers for repairs necessitated by such recall.

      (d) All claims by dealers under this section for such labor and parts and all claims for compensation relative to any sales incentive programs shall be paid within thirty days following approval by the manufacturer or distributor, provided that manufacturers or distributors retain the right to audit such claims and to charge-back the dealer for false or unsubstantiated claims for a period of two years following payment. If there is evidence of fraud, the provisions of this subsection shall not limit the right of a manufacturer or distributor to audit a dealer for longer periods of time and charge-back the dealer for any fraudulent claim. Dealers shall be required to maintain defective parts for a period of not longer than ninety days following submission of claims. All such claims shall be either approved or disapproved within thirty days after their receipt on forms, and in the manner specified by, the manufacturer or distributor. Any claim not disapproved in writing or by means of electronic transmission within thirty days after receipt shall be deemed approved and payment shall be made within thirty days.

      (P.A. 82-445, S. 2, 15; P.A. 83-198, S. 2, 11; P.A. 95-245, S. 1, 3.)

      History: P.A. 83-198 applied provisions to distributors; P.A. 95-245 amended Subsec. (d) to require that all claims for compensation re sales incentive programs be paid within 30 days following manufacturer or distributor approval, to provide that if there is evidence of fraud, provisions shall not limit right of manufacturer or distributor to audit dealer for longer periods of time and charge-back for fraudulent claim and to allow disapproval of claims by means of electronic transmission, effective July 1, 1995.