Current through Pa Acts 2024-53, 2024-56 through 2024-95
Section 818.307a - Vehicle recalls.(a) General rule.--A manufacturer shall compensate its new vehicle dealers for all labor and parts required by the manufacturer to perform recall repairs. Compensation for recall repairs shall be in the same manner as warranty parts and labor compensation under section 307. If parts or a remedy are not reasonably available to perform a recall service or repair on a used vehicle held for sale by a new vehicle dealer of the same line-make within 30 days of the manufacturer issuing the initial notice of recall, and the manufacturer has issued a stop-sale order or a do-not-drive order on the vehicle, the manufacturer shall compensate the dealer at a prorated rate of at least 1.5% of the value of the vehicle per month, beginning on the date that is 30 days after the date on which the stop-sale or do-not-drive order was provided to the dealer, until the earlier of the date the recall or remedy parts are made available or the date the dealer sells, trades or otherwise disposes of the affected used vehicle. The following shall apply: (1) The value of a used vehicle shall be the average trade-in value for used vehicles as indicated in an independent third-party guide for the year, make, model and mileage of the recalled vehicle at the time of the announcement of the stop-sale order or the do-not-drive order.(2) This section shall only apply to used vehicles subject to safety or emissions recalls pursuant to and recalled in accordance with Federal law and regulations and where a stop-sale order or a do-not-drive order has been issued. Further, this section shall only apply to new vehicle dealers holding used vehicles for sale that are a line-make that the dealer is franchised to sell or on which the dealer is authorized to perform recall repairs :(i) in inventory at the time the stop-sale or do-not-drive order was issued; or(ii) which were taken into the used vehicle inventory of the dealer as a lease return vehicle or consumer trade-in incident to the purchase of a new vehicle from the dealer after the stop-sale or do-not- drive order was issued.(3) Nothing in this section shall require a manufacturer to provide total compensation to a dealer which would exceed the total average trade-in value of the affected used motor vehicle as originally determined under paragraph (1).(b)Violation.--It is a violation of this section for a manufacturer to reduce the amount of compensation otherwise owed to a new vehicle dealer because the new vehicle dealer has submitted a claim for reimbursement under this section or was otherwise compensated for a vehicle subject to a recall where a stop-sale order or a do-not-drive order has been issued. This subsection applies regardless of whether the reduction in the amount of compensation owed to a new vehicle dealer is through a chargeback, removal from an incentive program, reduction in amount owed under an incentive program or any other means.(c)Procedure.--A reimbursement claim made by new vehicle dealers under this section for recall remedies or repairs, or for compensation where no part or repair is reasonably available and the used vehicle is subject to a stop-sale order or a do-not-drive order, shall be subject to the same limitations and requirements as a warranty reimbursement claim made under section 307. A claim shall be either approved or disapproved within 30 days after the claim is submitted to the manufacturer in the manner and on the forms the manufacturer reasonably prescribes. A claim shall be paid within 30 days of approval of the claim by the manufacturer. A claim not specifically disapproved in writing within 30 days after the manufacturer receives a submitted claim shall be deemed to be approved.(d) Alternative compensation.--As an alternative to the compensation provided for under subsection (a): (1) a manufacturer may compensate its new vehicle dealers under a national recall compensation program if the compensation under the program is equal to or greater than that provided under subsection (a); or(2) the manufacturer and dealer otherwise agree to equal or greater compensation than that provided under subsection (a).(e) Exclusive remedy.--Any compensation provided to a new vehicle dealer pursuant to this section is exclusive and may not be combined with any other Federal or State recall compensation remedy. (f)Disclosure.-- (1) A new or used vehicle dealer shall disclose in writing to used vehicle retail purchasers at the time of sale the existence of any open, unremedied recalls. By providing to the used vehicle retail purchaser a report obtained from the publicly accessible Internet website safercar.gov, or a successor website, based on a vehicle identification number search, the dealer shall be deemed to have complied with the disclosure requirement under this subsection. For the purpose of this subsection, failure to provide disclosures to multiple vehicle retail purchasers at the time of sale in violation of this subsection constitutes a single offense with a maximum fine of $1,000 under section 328(a).(2) Nothing in this subsection shall be construed to limit any civil actions or remedies available in statute or common law.Amended and Renumbered by P.L. TBD 2018 No. 134, § 10, eff. 10/24/2019.Added by P.L. TBD 2018 No. 59, § 2, eff. 8/27/2018.