60-1461.

Warrantor; schedule of compensation; contents; other consumer care; how compensated.

(1) A schedule of compensation that is created or modified by a warrantor shall include the:

(a) Reasonable compensation that will be paid by the warrantor to the dealer for performing consumer care. Such compensation shall not be less than the lowest retail labor rate actually charged by the dealer in the ordinary course of business for like nonwarranty consumer care; and

(b) Reasonable time allowances for the performance of consumer care.

(2)(a) Any particular consumer care that is performed by a dealer and that is not included in a schedule of compensation shall be paid by the warrantor at the actual time expended to complete the consumer care.

(b) A warrantor may dispute a payment required by subdivision (a) of this subsection. A warrantor that disputes any such payment shall:

(i) Demonstrate that the actual time claimed by the dealer to perform the consumer care was not reasonable; and

(ii) Pay the dealer a reasonable sum for the performance of the consumer care.

(c) The burden of proof for any dispute under this subsection lies with the warrantor.