Maryland § 15-1011

§ 15-1011.

    (a)    (1)    Each warrantor shall:

            (i)    Specify in writing each dealer’s obligations for preparation, delivery, and warranty service for the warrantor’s products;

            (ii)    Compensate the dealer for warranty service performed by the dealer that is covered by the warranty; and

            (iii)    Provide the dealer a schedule of compensation to be paid and the reasonable time allowance for the performance of any service and repairs under a warranty.

        (2)    If the schedule of compensation does not include a particular service or repair, a warrantor shall reimburse the dealer a reasonable amount for the service or repair.

    (b)    (1)    A warrantor shall reimburse the dealer for any warranty part at wholesale cost plus a 30% handling charge.

        (2)    The maximum handling charge under this subsection is $300.

        (3)    A warrantor shall reimburse a dealer the cost of freight to return a warranty part, an accessory, or a component to the warrantor, if the return is requested by the warrantor.

    (c)    Warranty audits of dealer records may be conducted by the warrantor on a reasonable basis.

    (d)    (1)    A dealer shall submit a warranty claim within 45 days after completing the work.

        (2)    A warrantor may disapprove warranty claims only in writing within 45 days after the date the warranty claim was submitted by the dealer in the manner prescribed by the warrantor.

        (3)    Claims not disapproved in writing within 45 days shall be deemed to be approved and shall be paid by the warrantor within 60 days.

    (e)    A dealer shall give notice to a warrantor as soon as reasonably possible if the dealer is unable or unwilling to perform material or repetitive warranty repairs.

    (f)    It is a violation of this section for any warrantor to:

        (1)    Fail to perform any of its warranty obligations with respect to its warranted products;

        (2)    Fail to include written notices of factory campaigns to recreational vehicle owners and dealers for the expected date by which parts and equipment will be available to dealers to perform the campaign work;

        (3)    If the carrier is designated by the manufacturer, distributor, or warrantor, fail to compensate a dealer for authorized repairs performed by a dealer for a product damaged in transit to the dealer;

        (4)    Fail to compensate any dealer for authorized warranty service in accordance with the time allowances set forth in the schedule of compensation, if performed in a timely manner;

        (5)    Intentionally misrepresent to purchasers of recreational vehicles that a dealer is a warrantor or co–warrantor; or

        (6)    Require a dealer to make warranties to customers in any manner related to the manufacturing of a recreational vehicle.

    (g)    It is a violation of this section for a dealer to:

        (1)    Fail to perform predelivery inspection functions as specified by the warrantor;

        (2)    Fail to perform warranty service work authorized by the warrantor in a reasonably timely manner on any transient customer’s recreational vehicle of the same line–make;

        (3)    Fail to track actual time expended to perform warranty work not governed by time allowance in the schedule of compensation;

        (4)    Claim an agency relationship with a warrantor; or

        (5)    Misrepresent the terms of a warranty.

    (h)    Unless specified in the terms of a dealer agreement, it is a violation of this section for:

        (1)    A warrantor to fail to indemnify, defend, and hold harmless a dealer against any losses or damages to the extent the losses or damages are caused by the negligence or misconduct of the warrantor; or

        (2)    A dealer to fail to indemnify, defend, and hold harmless a warrantor against any losses or damages to the extent the losses or damages are caused by the negligence or misconduct of the dealer.

    (i)    Indemnification under this subsection shall include court costs, reasonable attorney’s fees, and expert witness fees incurred by the defending party.