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23-112-319. Reimbursement claim by motor vehicle dealer.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-112-319. Reimbursement claim by motor vehicle dealer.
(a)(1) A manufacturer shall compensate its new motor vehicle dealers for all labor and parts required by the manufacturer to perform recall repairs.
(2) The compensation for recall repairs required under subdivision (a)(1) of this section shall be reasonable.
(3) If recall parts or a remedy is not reasonably available to perform a recall service or repair on a used motor vehicle held for sale by a dealer authorized to sell and service new motor vehicles of the same line make of a motor vehicle within thirty (30) days of the manufacturer's issuing the initial notice of recall, and the manufacturer has issued a stop-sale order or do-not-drive order on the used motor vehicle, the manufacturer shall compensate the dealer at a prorated rate of at least one and twenty-five-hundredths percent (1.25%) of the value of the used motor vehicle per month beginning thirty (30) days from the date on which the stop-sale order or do-not-drive order was provided to the dealer until the earlier of:
(A) The date the recall parts or a remedy is made available; or
(B) The date the dealer sells, trades, or disposes of the affected used motor vehicle.
(b) This section applies only to a:
(1) Used motor vehicle subject to a safety or emissions recall in accordance with federal law and regulations and a stop-sale order or do-not-drive order has been issued and repair parts or a remedy remains unavailable for thirty (30) days or longer; and
(2) New motor vehicle dealer having an affected used motor vehicle:
(A) In inventory for sale at the time the stop-sale order or do-not-drive order was issued;
(B) For sale as a used motor vehicle as a consumer trade-in, incident to the purchase of a new motor vehicle from the dealer a
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-112-319
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:23-112-319
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 2d1a664d78a09b8c8050ec6da891227cf72991f4137648a5f0a65908c02624ad
Source location: content.xml paragraph 63239
Stored source content
23-112-319. Reimbursement claim by motor vehicle dealer.
(a)(1) A manufacturer shall compensate its new motor vehicle dealers for all labor and parts required by the manufacturer to perform recall repairs.
(2) The compensation for recall repairs required under subdivision (a)(1) of this section shall be reasonable.
(3) If recall parts or a remedy is not reasonably available to perform a recall service or repair on a used motor vehicle held for sale by a dealer authorized to sell and service new motor vehicles of the same line make of a motor vehicle within thirty (30) days of the manufacturer's issuing the initial notice of recall, and the manufacturer has issued a stop-sale order or do-not-drive order on the used motor vehicle, the manufacturer shall compensate the dealer at a prorated rate of at least one and twenty-five-hundredths percent (1.25%) of the value of the used motor vehicle per month beginning thirty (30) days from the date on which the stop-sale order or do-not-drive order was provided to the dealer until the earlier of:
(A) The date the recall parts or a remedy is made available; or
(B) The date the dealer sells, trades, or disposes of the affected used motor vehicle.
(b) This section applies only to a:
(1) Used motor vehicle subject to a safety or emissions recall in accordance with federal law and regulations and a stop-sale order or do-not-drive order has been issued and repair parts or a remedy remains unavailable for thirty (30) days or longer; and
(2) New motor vehicle dealer having an affected used motor vehicle:
(A) In inventory for sale at the time the stop-sale order or do-not-drive order was issued;
(B) For sale as a used motor vehicle as a consumer trade-in, incident to the purchase of a new motor vehicle from the dealer after the stop-sale order or do-not-drive order was issued; or
(C) For sale that is a line make of a used motor vehicle the dealer is franchised to sell or on which the dealer is authorized to perform recall repairs.
(c)(1) It is a violation of this section for a manufacturer to reduce the amount of compensation otherwise owed to a new motor vehicle dealer because the new motor vehicle dealer has submitted a claim for reimbursement under this section, including without limitation compensation owed through:
(A) A chargeback;
(B) Removal of the dealer from an incentive program; or
(C) A reduction in the amount owed under an incentive program.
(2) However, subdivision (c)(1) of this section does not apply to a reduction in the amount of compensation owed to a new motor vehicle dealer by a manufacturer if the reduction is applied uniformly to all new motor vehicle dealers of the same line make in the state.
(d) A reimbursement claim made by a new motor vehicle dealer for a recall remedy or repair or for compensation when no part or repair is reasonably available and the motor vehicle is subject to a stop-sale order or do-not-drive order:
(1) Is subject to the same limitations and requirements as a warranty reimbursement claim made under § 23-112-313; or
(2) May be compensated to a franchised dealer by a manufacturer under a national recall compensation program if the compensation under the program is equal to or greater than the compensation under subsection (a) of this section or the manufacturer and dealer otherwise agree to the amount of compensation.
(e) A manufacturer may direct the manner and method in which a dealer demonstrates the inventory status of an affected used motor vehicle to determine eligibility for compensation under this section if the manner and method are not unduly burdensome and do not require that the dealer provide information that may be unduly burdensome to obtain.
(f) This section does not require that a manufacturer provide total compensation to a dealer that exceeds the total average trade-in value of the used motor vehicle.
(g) If a recall remedy for a used motor vehicle is available under federal law or federal regulation, a dealer may choose to be compensated under the federal statute or under this section but may not combine the recall remedies.
(h) The value of a used motor vehicle shall be the average trade-in value for used motor vehicles as indicated in an independent third-party guide for the year, make, and model of the affected used motor vehicle.
Cross-references
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-112-313. Warranty agreements — Definition.
(a) Every manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division shall properly fulfill any warranty or recall agreement and adequately and fairly compensate each of its motor vehicle dealers for labor and parts.
(b) The compensation shall not fail to include reasonable compensation for diagnostic work, repair service, labor, and parts.
(c)(1) Time allowances for the diagnosis and performance of warranty or recall work and service shall be reasonable and adequate for the work to be performed.
(2) In the determination of what constitutes reasonable compensation for warranty or recall work and service under this subsection, the principal factor to be considered is the prevailing wage rates, exclusive of routine maintenance, that are being charged by the dealers in the relevant market area in which the motor vehicle dealer is doing business.
(3) The compensation of a motor vehicle dealer for warranty or recall service shall not be less than the rates charged by the motor vehicle dealer for like service to retail customers for nonwarranty service and repairs, provided the rate is comparable to the rate of other same line make dealers in an economically similar area or the dealer's competitive market area.
(d)(1)(A) The pricing for a recalled part shall not be reduced to an amount that is less than the original dealer cost or price for the same part unless the manufacturer obtains a discounted rate for the recalled part from a supplier.
(B) A recalled part is considered the same part if it is substantially the same part regardless of the part number.
(2) A part-by-part analysis is not required to determine the retail rate for parts.
(3)
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-112-313
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-112-313. This identifies an authority to review, not proof of applicability.