Basis for reimbursements.

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(a) A manufacturer shall use the criteria established in this section to reimburse an authorized dealer for all approved warranty service work performed by the authorized dealer.

(b) If the technician performing the warranty service work meets the certification standards in the dealership agreement, a manufacturer shall pay to a servicing authorized dealer warranty work labor rates that

(1) are not less than the highest of the following:

(A) the rate the authorized dealer customarily charges to a customer for nonwarranty service work;

(B) the manufacturer's printed flat rate; or

(C) the rate established by a flat rate manual for dealers, if the manual is produced for dealers by a nationally respected industry consultant; and

(2) include time for clean-up, preparation, diagnosis, disassembly, repair, assembly, testing, and final cleaning as needed to provide a quality result and customer satisfaction.

(c) In addition to the payment under (b) of this section, the manufacturer shall reimburse an authorized dealer a minimum of one hour at the authorized dealer's shop standard labor rate for the administration of each warranty claim.

(d) A manufacturer shall reimburse the authorized dealer for product parts in the authorized dealer's inventory at the current manufacturer's full suggested retail price.


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