LD 1294
pg. 5
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LR 1735
Item 1

 
120 days of the dealer's death or, incapacity or retirement
and unless there exists good cause for refusal to honor the
succession on the part of the manufacturer, factory branch,
factory representative, distributor or importer.

 
Sec. 10. 10 MRSA §1176, first ¶, as amended by PL 1995, c. 65, Pt. A,
§16 and affected by §153 and Pt. C, §15, is further amended to
read:

 
If a motor vehicle franchisor requires or permits a motor
vehicle franchisee to perform labor or provide parts in
satisfaction of a warranty created by the franchisor, the
franchisor shall properly and promptly fulfill its warranty
obligations, in the case of motor vehicles over 10,000 pounds
gross vehicle weight rating, shall adequately and fairly
compensate the franchisee for any parts so provided and, in the
case of all other motor vehicles, shall reimburse the franchisee
for any parts so provided at the retail rate customarily charged
by that franchisee for the same parts when not provided in
satisfaction of a warranty. A franchisor may not otherwise
recover its costs for reimbursing a franchisee for parts and
labor pursuant to this section.__For purposes of this section,
the retail rate customarily charged by the franchisee for parts
may be established by submitting to the franchisor 100 sequential
nonwarranty customer-paid service repair orders or 60 days of
nonwarranty customer-paid service repair orders, whichever is
less in terms of total cost, covering repairs made no more than
180 days before the submission and declaring the average
percentage markup.__The average percentage markup so declared is
the retail rate, which goes into effect 30 days following the
declaration, subject to audit of the submitted repair orders by
the franchisor and adjustment of the average percentage markup
based on that audit.__Only retail sales not involving warranty
repairs, not involving state inspection, not involving routine
maintenance such as changing the oil and oil filter and not
involving accessories may be considered in calculating the
average percentage markup.__A franchisor may not require a
franchisee to establish the average percentage markup by an
unduly burdensome or time-consuming method or by requiring
information that is unduly burdensome or time-consuming to
provide, including, but not limited to, part-by-part or
transaction-by-transaction calculations.__A franchisee may not
change the average percentage markup more than 2 times in one
calendar year. Further, the franchisor shall reimburse the
franchisee for any labor so performed at the retail rate
customarily charged by that franchisee for the same labor when
not performed in satisfaction of a warranty; provided that as
long as the franchisee's rate for labor not performed in
satisfaction of a warranty is routinely posted in a place
conspicuous to its service customer. A franchisor is not


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