An Act To Regulate Business Practices between Manufacturers, Distributors and Dealers of Power Equipment, Machinery and Appliances
Maine Legislature, Session 121, LD 0498
Committee: Judiciary
Sponsors: CARPENTER, DUNLAP, DAVIS, KNEELAND, LEMONT, WESTON
Amends: 10 MRSA §1367

12lst MAINE LEGISLATURE 
Legislative Document 
No. 498 
S.P.171 
In Senate, February 5, 2003 
An Act To Regulate Business Practices between Manufacturers, 
Distributors and Dealers of Power Equipment, Machinery and 
Appliances 
Reference to the Committee on Judiciary suggested and ordered printed. 
Presented by Senator CARPENTER of York. 
Cosponsored by Representative DUNLAP of Old Town and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: DAVIS of Piscataquis, KNEELAND of Aroostook, LEMONT of York, SA V AGE of 
Knox, WESTON of Waldo. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10 MRSA §1367, as enacted by PL 1993, c. 195, §L 
IS 
repealed and the following enacted in its place: 
§1361. 
Manufacturer's and franchisor's warranty obligations 
1. 
Obligation to dealers or distributors. 
A manufacturer 
shall honor, in a timely fashion, an obligation to a dealer or 
distributor to replace goods, reimburse or pay costs and expenses 
or provide services arising as a result of a warranty, franchise 
agreement or other agreement subject to this chapter. 
2. 
Rate of compensation of franchisee. 
If a 
franchisor 
requires or permits a 
franchisee to perform labor or provide 
parts in satisfaction of a warranty created by the franchisor, 
the franchisor shall reimburse the franchisee for any parts so 
provided 
at 
the 
retail 
I'ate 
customarily 
charged 
by 
that 
franchisee for the same parts when not provided in satisfaction 
of 
a 
warranty. 
Further, 
the 
franchisor 
shall 
reimburse 
the 
franchisee 
for 
any 
labor 
so 
performed 
at 
the 
retail 
rate 
customarily charged by that franchisee for the same labor "hen 
not performed in satisfaction of 
a 
warranty as 
long as 
the 
franchisee's rate for labor not performed in satisfaction of a 
warranty is routinely posted in 
a 
place 
conspicuous 
to its 
service 
customers. 
Any 
claim 
made 
J2.Y.-
a 
franchisee 
for 
compensation for parts providec1 
Qt' for reimbursement for labor 
performed in satisfaction of a warranty must be either approved 
or disapproved within 30 days of its receipt. 
Any claim that is 
approved must be paid wi thin 30 days of its approval. 
When 
a 
claim is disapproved, the franchisee that submitted it must be 
notified in writing of its disapproval within the required 30-day 
period, together with the specific reasons for its disapproval. 
If the franchisee brings legal action to collect the disapproved 
claim and is successful in the action, the court shall award the 
franchisee 
the 
cost 
of 
the 
action 
together 
with 
reasonable 
attorney's fees. 
Reasonable attorney's fees must be determined 
by the value of the time reasonably expended by the attorney and 
not by the amount of the recovery on behalf of the dealer. 
A 
franchisor 
may 
not, 
by 
agreement, 
by 
restriction 
upon 
reimbursement or otherwise, 
restrict the nature or extent of 
labor 
performed 
or 
parts 
provided 
so 
that 
such 
restriction 
impairs the franchisee's ability to satisfy a warranty created Qy 
the franchisor by performing labor in a professional manner or by 
providing parts required in accordance wi th 
generall~cepted 
standards. 
Page l-LR1329(1} 
SUMMARY 
This bill requires that franchisors 
of 
power 
equipment, 
machinery 
and 
appliances 
reimburse 
franchisees 
at 
the 
franchisees' 
retail 
rates 
for 
parts 
or 
labor 
supplied 
in 
satisfaction of 
the 
franchisors' 
warranties. 
The 
bill 
also 
requires 
that 
franchisors 
approve 
or 
disapprove 
franchisees' 
reimbursement claims within 30 days of submission and pay claims 
within 
days 
of 
approval. 
Finally. 
the 
bill 
enables 
franchisees who bring successful legal actions for reimbursement 
to receive costs and legal fees and prohibits certain agreements 
that would impair the franchisees' ability to perform warranty 
work in a professional manner.