Nevada § 482.363574 - Compensation to dealer for certain used vehicles subject to recall or other orders; requirements for dealer to file claim with manufacturer; calculation of compensation; limits on compensation; duties and requirements of manufacturers upon receiving compensation claims

§ 482.363574. Compensation to dealer for certain used vehicles subject to recall or other orders; requirements for dealer to file claim with manufacturer; calculation of compensation; limits on compensation; duties and requirements of manufacturers upon receiving compensation claims

1. If a manufacturer issues a recall and either a stop-sale order or a do-not-drive

order on a used vehicle and parts or a remedy are not available to perform a recall

service or repair on the vehicle within 30 days after issuing the recall, a new vehicle

dealer that is franchised to sell and service new vehicles of the manufacturer is

entitled to compensation from the manufacturer and may file a claim with the manufacturer

for each used vehicle subject to the recall which the dealer: (a) Has in its used vehicle inventory on the date on which the stop-sale order or

do-not-drive order is issued; or (b) Takes into its used car inventory as a consumer trade-in related to the sale of

a new vehicle after the date on which the stop-sale order or do-not-drive order is

issued. 2. A claim for compensation that is filed by a new vehicle dealer pursuant to this

section: (a) Must be in a form prescribed by the manufacturer. The manufacturer may prescribe the manner in which a dealer must demonstrate eligibility

for such compensation, including, without limitation, the documentation required to

show the inventory status of a used vehicle, provided that the demonstration of eligibility

or the providing of documentation is not unduly burdensome. (b) Except as otherwise provided in subsection 5, is subject to the provisions of NRS 482.36385 . 3. Except as otherwise provided in subsections 4 and 5, compensation for a used vehicle

pursuant to this section must be calculated at a rate of not less than 1 percent of

the value of the used vehicle per month, beginning 30 days after the date on which

the stop-sale order or do-not-drive order is provided to the dealer and continuing

until the earlier of the date: (a) The parts or a remedy for the recall service or repair are made available to the

dealer; or (b) The dealer sells, trades or otherwise disposes of the used vehicle. 4. Compensation due to a new vehicle dealer pursuant to subsection 1 is limited to

an amount equal to the value of the used vehicle for which the compensation is paid. 5. A manufacturer, in lieu of compensating a new vehicle dealer pursuant to subsection

3, may: (a) Compensate the dealer pursuant to a national recall compensation program, if the

amount of compensation owed to the dealer under the program is not less than the amount

of compensation owed to the dealer pursuant to subsection 3; or (b) Enter into an agreement with the dealer for an alternative form or amount of compensation. 6. A manufacturer may not take any action to offset or reduce the amount of compensation

owed to a new vehicle dealer pursuant to this section, including, without limitation,

through a chargeback program, any reduction in an amount owed to the new vehicle dealer

under an incentive program or the removal of the new vehicle dealer from an incentive

program, if such action is taken, in whole or in part, because the new vehicle dealer

filed a claim for compensation pursuant to this section. This subsection: (a) Does not apply to any action taken by a manufacturer that is applied uniformly

to all new vehicle dealers of the same line and make of vehicles in this State; and (b) Is subject to the audit provisions of subsections 7 and 8 of NRS 482.36385 . 7. Except as otherwise provided in subsection 5 and NRS 482.36385 , any compensation provided to a new vehicle dealer pursuant to this section is exclusive

and may not be combined with any other state or federal recall compensation remedy. 8. As used in this section: (a) “ Do-not-drive order ” means a notification issued by a manufacturer to its dealers or to the registered

owner of a used vehicle or by the National Highway Traffic Safety Administration to

the registered owner of a used vehicle stating that the vehicle is subject to a federal

safety recall for a defect or noncompliance and including an unconditional instruction

to the recipient of the notification to not drive the vehicle until the remedy for

the recall is complete. (b) “ Recall ” means a safety recall of a vehicle in accordance with federal law and any regulations

adopted thereunder. (c) “ Stop-sale order ” means a notification issued by a manufacturer to its dealers stating that a used

vehicle in inventory must not be sold or leased, either retail or wholesale, because

of a federal safety recall for a defect or noncompliance or because of a federal emissions

recall. (d) “ Value of the used vehicle ” means the average trade-in value of the year, make and model of the subject used

vehicle as indicated in an independent third-party guide.