1. A. This section shall apply to a claim for payment for services performed for a customer pursuant to a warranty issued by the dealer's supplier:

   1. 1. While a dealer agreement is in effect which authorizes the dealer to perform services pursuant to a warranty; or
   2. 2. After the termination of a dealer agreement, if the claim is for work performed before the effective date of the termination.
2. B. Not later than thirty (30) days after the date a supplier receives a warranty claim from a dealer, the supplier shall accept or reject the claim. A claim rejected after the deadline is deemed accepted.

3. C. Not later than thirty (30) days after the date a claim is accepted or rejected, the supplier shall:

   1. 1. Pay an accepted claim; or
   2. 2. Send the dealer written notice of the reason for rejection of the claim.
4. D. A supplier who pays a claim may not pay less than the amount the dealer regularly charges for the labor and other expenses involved in performing the same or similar services for a retail customer who does not assert a warranty and the dealer's current net price plus fifteen percent (15%) for parts. The number of hours of labor claimed may not exceed one and three-tenths (1 3/10) times the supplier's recommended hours for the repair involved. Other expenses shall not include items that are expressly excluded under the supplier's warranty to the customer.

5. E. After payment of a claim, a supplier may not charge back, set off, or otherwise attempt to recover all or part of the amount of the claim unless:

   1. 1. The claim was fraudulent;
   2. 2. The services for which the claim was made were not properly performed or were unnecessary to comply with the warranty; or
   3. 3. The dealer did not substantiate the claim according to the written requirements of the supplier in effect when the claim arose.

Added by Laws 1998, SB 1309, c. 82, § 3, eff. November 1, 1998.