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ACT No. 221
Regular Session, 2011
HOUSE BILL NO. 133
BY REPRESENTATIVE ANDERS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To enact Part I-B of Chapter 2 of Title 51 of the Louisiana Revised Statutes of 1950, to be2
comprised of R.S. 51:501, relative to warranty claims; to require claims to be3
approved or disapproved within thirty days; to require payment of approved claims4
within thirty days; to require notice of disapproval and the grounds for the5
disapproval; to provide for claims not disapproved within thirty days; to provide for6
claims submitted after the termination of a contract; to provide for compensation for7
work performed by a dealer; to provide for excluded expenses; to provide for8
compensation for parts; to provide for a supplier's right to adjust for errors; to9
authorize a dealer to accept a manufacturer's reimbursement terms; to define10
"dealer"; to provide for an effective date; and to provide for related matters.11
Be it enacted by the Legislature of Louisiana:12
Section 1. Part I-B of Chapter 2 of Title 51 of the Louisiana Revised Statutes of13
1950, comprised of R.S. 51:501, is hereby enacted to read as follows: 14
PART I-B. WARRANTY CLAIMS ON FARM, INDUSTRIAL, AND LAWN AND15
GARDEN EQUIPMENT16
ยง501. Warranty claims submitted to a supplier by a dealer17
A. Warranty claims submitted to a supplier by a dealer for payment under18
a warranty agreement shall either be approved or disapproved within thirty days of19
receipt by the supplier. All claims for payment shall be paid within thirty days of20
their approval. When any such claim is disapproved, the supplier shall notify the21
dealer within thirty days stating the specific grounds upon which the disapproval is22 ENROLLEDHB NO. 133
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based. If a claim is not specifically disapproved within thirty days of receipt, it shall1
be deemed approved and payment by the supplier shall be made within thirty days.2
B. If after termination of a contract, the dealer submits a claim to the supplier3
for warranty work performed prior to the effective date of the termination, the4
supplier shall accept or reject the claim within thirty days of receipt.5
C. Warranty work performed by the dealer shall be compensated in6
accordance with the reasonable and customary amount of time required to complete7
the work, expressed in hours and fractions thereof, multiplied by the dealer's8
established customer hourly retail labor rate, which shall have previously been made9
known to the supplier.10
D. Expenses expressly excluded under the supplier's warranty to the11
customer shall not be included nor required to be paid on requests for compensation12
from the dealer for warranty work performed.13
E. All parts used by the dealer in performing warranty work shall be paid to14
the dealer in the amount equal to the dealer's net price for parts used, plus a15
minimum of fifteen percent. The percentage additive shall reimburse the dealer for16
reasonable costs of doing business in performing warranty service on the supplier's17
behalf, including but not limited to freight and handling costs incurred.18
F. The supplier shall have the right to adjust for errors discovered during19
audit and, if necessary, to adjust claims paid in error.20
G. The dealer shall have the right to accept the manufacturer's21
reimbursement terms and conditions in lieu of the provisions of this Section.22
H. For the purposes of this Section, "dealer" shall mean any farm equipment23
dealer, heavy industrial equipment dealer, construction equipment dealer, material24
handling equipment dealer, utility equipment dealer, engines equipment dealer, lawn25
and garden equipment dealer, or retail equipment distributor dealer.26
Section 2. This Act shall become effective upon signature by the governor or, if not27
signed by the governor, upon expiration of the time for bills to become law without signature28
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If29 ENROLLEDHB NO. 133
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vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following such approval.2
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: