1. (a) It is an unfair practice for a manufacturer or distributor to:

   1. (1) fail to pay a claim made by a dealer for compensation for:

      1. (A) delivery and preparation work;
      2. (B) warranty work; and

      3. (C) incentive payments;

         not later than thirty (30) days after the claim is approved;

   2. (2) fail to approve or disapprove a claim not later than thirty (30) days after receipt of the claim; or
   3. (3) disapprove a claim without notice to the dealer in writing of the grounds for disapproval.

2. (b) A manufacturer or distributor may:

   1. (1) audit a claim made by a dealer; or

   2. (2) charge back to a dealer any amounts paid on a false or unsubstantiated claim;

      for up to one (1) year after the date on which the claim is paid. However, the limitations of this subsection do not apply if the manufacturer or distributor can prove fraud on a claim. A manufacturer or distributor shall not discriminate among dealers with regard to auditing or charging back claims.

3. (c) If the motor vehicle dealer has properly submitted the claim in accordance with the manufacturer's or distributor's warranty or incentive program guidelines, a manufacturer or distributor may not deny a claim based solely on a motor vehicle dealer's incidental failure to comply with a specific claim processing requirement, including a clerical error or other administrative technicality that does not call into question the legitimacy of a claim. A motor vehicle dealer may submit an amended or supplemental claim within the time and manner required by the manufacturer for:

   1. (1) sales incentives;
   2. (2) service incentives;
   3. (3) rebates; or

   4. (4) other forms of incentive compensation;

      for up to sixty (60) days from the date on which such a claim was submitted, could have been submitted, or was charged back. For purposes of this section, a failure to obtain a required signature may not be considered to be a clerical error or administrative technicality.

As added by P.L.92-2013, SEC.78. Amended by P.L.167-2016, SEC.3.