GENERAL ASSEMBLY OF NORTH CAROLINA
1995 SESSION
CHAPTER 156
The General Assembly of North Carolina enacts:
Section 1. G.S. 20-305.1(b) reads as rewritten:
"(b) Notwithstanding the
terms of any franchise agreement, it is unlawful for any motor vehicle
manufacturer, factory branch, distributor, or distributor branch to fail to
perform any of its warranty obligations with respect to a motor vehicle, to
fail to compensate its motor vehicle dealers licensed in this State for
warranty parts other than parts used to repair the living facilities of
recreational vehicles, at the prevailing retail rate according to the factors
in subsection (a) of this section, or, in service in accordance with the
schedule of compensation provided the dealer pursuant to subsection (a) above,
and to fail to indemnify and hold harmless its franchised dealers licensed in
this State against any judgment for damages or settlements agreed to by the
manufacturer, including, but not limited to, court costs and reasonable
attorneys' fees of the motor vehicle dealer, arising out of complaints, claims
or lawsuits including, but not limited to, strict liability, negligence,
misrepresentation, express or implied warranty, or recision or revocation of
acceptance of the sale of a motor vehicle as defined in G.S. 25-2-608, to the
extent that the judgment or settlement relates to the alleged defective
negligent manufacture, assembly or design of new motor vehicles, parts or
accessories or other functions by the manufacturer, factory branch, distributor
or distributor branch, beyond the control of the dealer. Any audit for
warranty parts or service compensation, service incentives, rebates, or
other forms of sales incentive compensation shall only be for the 24-month
12-month period immediately following the date of the claim. payment
of the claim by the manufacturer, factory branch, distributor, or distributor
branch. Any audit for sales incentives, service incentives, rebates, or
other forms of incentive compensation shall only be for the 24-month period
immediately following the date of the payment of the claim by the manufacturer,
factory branch, distributor, or distributor branch. Provided,
however, these limitations shall not be effective in the case of fraudulent
claims."
Sec. 2. This act becomes effective October 1, 1995.
In the General Assembly read three times and ratified this the 1st day of June, 1995.
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Dennis A. Wicker
President of the Senate
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Harold J. Brubaker
Speaker of the House of Representatives