An Act To Clarify Warranty Practices between Manufacturers, Distributors and Dealers of Power Equipment, Machinery and Appliances
Maine Legislature, Session 122, LD 0653
Committee: Business, Research and Economic Development
Sponsors: SAVAGE, SMITH, NUTTING, SNOWE-MELLO, TURNER, WESTON, RICHARDSON
Amends: 10 MRSA §1367

Legislative Document 
No. 653 
S.P.208 
In Senate, February 8, 2005 
An Act To Clarify Warranty Practices between Manufacturers, 
Distributors and Dealers of Power Equipment, Machinery and 
Appliances 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Senator SAVAGE of Knox. 
Cosponsored by Representative SMITH of Monmouth and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: NUTTING of Androscoggin, SNOWE-MELLO of Androscoggin, TURNER of 
Cumberland, WESTON of Waldo, Representative: RICHARDSON of Warren. 
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, §1, is 
repealed and the following enacted in its place: 
§1367. 
Manufacturer's and franchisor's warranty obligations 
1. 
Manufacturer's 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 or 
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 
reguires 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 
rate 
customarily 
charged 
by 
that 
franchisee for the same parts when not provided in satisfaction 
of a warranty. 
The franchisor shall reimburse the franchisee for 
any labor so performed at the retail rate customarily charged by 
that 
franchisee 
for 
the 
same 
labor 
when 
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 by a franchisee for compensation from the franchisor 
for parts provided or for reimbursement from the franchisor for 
labor performed in satisfaction of 
a 
warranty must be either 
approved or disapproved by the franchisor within 30 days of its 
receipt. 
Any claim that is approved must be paid within 30 days 
of its approval. 
When a franchisee's claim is disapproved, the 
franchisor 
shall 
notify 
the 
franchisee 
in 
writing 
of 
the 
disapproval within the reguired 30-day period and include the 
specific reasons for the 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 franchisee. 
A 
franchisor 
may 
not 
by 
agreement, 
by 
restriction 
upon 
reimbursement or by any other method 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 by the franchisor by performing labor in a 
professional manner or by providing parts reguired in accordance 
with generally accepted standards. 
Page l-LR0792 (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 
wi thin 
days 
of 
approval. 
Finally, 
the 
bill 
enables 
franchisees who bring successful legal actions for reimbursement 
to receive costs and legal fees and prohibits agreements that 
would impair the franchisees' ability to perform warranty work in 
a professional manner.