Sec 28-4451. Product liability; audits; vehicle exports

A. Each manufacturer shall file with the director a copy of the delivery and preparation obligations required to be performed by a dealer before delivery of new motor vehicles to buyers. These delivery and preparation obligations constitute the dealer's only responsibility for the product liability as between the dealers and the manufacturer.

B. Any mechanical, body or parts defects arising from any express or implied warranties of the manufacturer constitute the manufacturer's product or warranty liability.

C. The manufacturer shall reasonably compensate an authorized dealer who performs work to rectify the manufacturer's product or warranty defects or delivery and preparation obligations.

D. The dealer shall furnish the purchaser of a new vehicle with a signed copy of the manufacturer's delivery and preparation requirements indicating that all of the requirements have in fact been performed.

E. The manufacturer shall pay the cost of the manufacturer's delivery, warranty and preparation requirements.

F. The manufacturer, factory branch, distributor or distributor branch may reasonably and periodically audit a new motor vehicle dealer to determine the validity of paid claims for dealer compensation or any charge-backs for warranty parts or service compensation. Audits shall only be for the six month period immediately following the date of the payment. This limitation does not apply if the manufacturer reasonably suspects fraud.

G. The manufacturer, factory branch, distributor or distributor branch shall reserve the right to reasonable periodic audits to determine the validity of paid claims for dealer compensation or any charge-backs for consumer or dealer incentives. Audits shall only be for a one year period immediately following the date of the payment. This limitation does not apply if the manufacturer reasonably suspects fraud.

H. If a dealer sells or leases a vehicle to a customer who exports the vehicle to a foreign country, unless the manufacturer proves that the dealer knew or reasonably should have known that the vehicle would be exported, a manufacturer shall not do any of the following:

1. Refuse to sell, allocate or deliver new motor vehicles to the dealer.

2. Charge back to or withhold payments or other things of value from the dealer that the dealer otherwise would be eligible for under an incentive program or contest.

3. Prevent a dealer from participating in any sales promotion or program.

4. Take an adverse action against a dealer, including reducing vehicle allocations or terminating or threatening to terminate a dealer.

I. There is a rebuttable presumption that the dealer described in subsection H did not know or should not have reasonably known that the vehicle described in subsection H would be exported. The presumption may be rebutted by a preponderance of the evidence that the dealer knew or should have reasonably known that the vehicle was to be exported.