Indiana § 9-32-19-29 - Warrantor obligations; reimbursement; claims

§ 9-32-19-29. Warrantor obligations; reimbursement; claims

Sec. 29. (a) A warrantor shall do the following:

(1) Provide a list of the warrantor's obligations to the recreational vehicle dealer for the preparation, delivery, and warranty service for products.

(2) Compensate the recreational vehicle dealer for warranty services performed by the recreational vehicle dealer covered by the warrantor.

(3) Provide the recreational vehicle dealer with a schedule of compensation to be paid and the time allowances to perform diagnostic work and warranty services on a recreational vehicle.

(b) The schedule of compensation under subsection (a)(3) must include reasonable compensation for diagnostic work as well as warranty labor. If the schedule of compensation required by this section does not include a particular repair, the warrantor shall reimburse the recreational vehicle dealer for warranty service for the actual time worked, unless the warrantor demonstrates that the actual time worked was unreasonable. In such event, the recreational vehicle dealer shall be paid a reasonable sum.

(c) Time allowances to perform diagnostic work and warranty services must be reasonable.

(d) Compensation of a recreational vehicle dealer for warranty services may not be less than the lowest retail labor rate charged by the recreational vehicle dealer in the ordinary course of business for substantially similar labor that is not a warranty service.

(e) A warrantor shall reimburse the recreational vehicle dealer for:

(1) a warranty part at wholesale cost;

(2) at least thirty percent (30%) of the wholesale cost as a handling charge; and

(3) the cost of freight to return the part to the warrantor if the return is required by the warrantor.

(f) If a warranty part is sent to the recreational vehicle dealer at no cost, the recreational vehicle dealer is entitled to payment of thirty percent (30%) of the wholesale cost of the warranty part from the warrantor as a handling charge. The handling charge for a warranty part may not exceed three hundred dollars ($300). A recreational vehicle dealer may return unused parts to the warrantor for credit after completion of the warranty services if the parts are in excess of what the recreational vehicle dealer requires.

(g) A warrantor may conduct a warranty audit of a recreational vehicle dealer's records on a reasonable basis.

(h) A warrantor may not deny a claim for warranty compensation by a recreational vehicle dealer except for good cause. Good cause includes:

(1) performing nonwarranty repairs;

(2) material noncompliance with the warrantor's published policies and procedures;

(3) lack of material documentation; and

(4) fraud or misrepresentation on the part of the recreational vehicle dealer.

(i) A recreational vehicle dealer shall submit a warranty claim not later than forty-five (45) days after completing the diagnostic work or warranty service.

(j) A recreational vehicle dealer shall notify the warrantor verbally or in writing as soon as is reasonably possible if the recreational vehicle dealer is unable or unwilling to perform a warranty repair.

(k) A warrantor shall disapprove a warranty claim in writing not later than forty-five (45) days after the warranty claim is submitted by the recreational vehicle dealer in a manner and form prescribed by the warrantor. A warranty claim not disapproved under this subsection is approved and must be paid not later than sixty (60) days after receiving the submitted warranty claim from the recreational vehicle dealer.

(l) A warrantor may ship parts to the dealer to affect the campaign work, and, if such parts are in excess of the dealer's requirements, the dealer may return unused parts to the warrantor for credit after completion of the campaign.

(m) A warrantor may not:

(1) fail to perform warranty obligations;

(2) fail to include the expected date by which parts and equipment will be available to the recreational vehicle dealer to perform warranty services in the written notice of factory campaigns to recreational vehicle owners and recreational vehicle dealers;

(3) fail to compensate a recreational vehicle dealer for authorized repairs performed by the recreational vehicle dealer of merchandise damaged during the manufacturing process or in transit to the recreational vehicle dealer, if the carrier is designated by the warrantor;

(4) fail to compensate a recreational vehicle dealer for authorized warranty service in accordance with the time allowances set in the schedule of compensation if performed in a timely and competent manner;

(5) intentionally misrepresent to purchasers of recreational vehicles that warranties with respect to the manufacture, performance, or design of the recreational vehicle are made by the recreational vehicle dealer as a warrantor or a cowarrantor; or

(6) require the recreational vehicle dealer to make warranties to customers in any manner related to the manufacture of the recreational vehicle.

(n) A recreational vehicle dealer may not:

(1) fail to perform predelivery inspection functions, as specified by the warrantor, in a competent and timely manner;

(2) fail to perform warranty services authorized by the warrantor in a reasonably competent and timely manner on a transient customer's recreational vehicle of the same line make unless the recreational vehicle dealer determines that the customer is acting in a manner detrimental to the recreational vehicle dealer's business;

(3) fail to track actual time worked to perform warranty services not governed by time allowances in the schedule of compensation;

(4) claim an agency relationship with a warrantor, a recreational vehicle manufacturer, or a recreational vehicle distributor; or

(5) misrepresent the terms of a warranty.

As added by P.L.42-2025, SEC.40.