New York 2025-2026 Regular Session

New York Senate Bill S08360

Introduced
6/5/25  

Caption

Requires every franchisor, including its affiliates and subsidiaries to properly fulfill any warranty agreement and/or franchisor's service contract and to compensate each of its franchised motor vehicle dealers for warranty parts and labor, including but not limited to all warranty repairs, extended service contract repairs, extended warranty repairs, campaigns, service bulletins, policy repairs, component part warranties, factory compensated repairs, recalls, diagnostics, parts and other voluntary stop-sell repairs, and any other franchisor compensated repairs; relates to reimbursement to a motor vehicle dealer from a motor vehicle franchisor.

Impact

The enactment of S08360 is expected to have significant implications for how franchisors operate within the motor vehicle franchise system. By placing a legal requirement on franchisors to reimburse dealers for service-related costs, the bill promotes fairness in the franchisor-dealer relationship. This could lead to increased financial stability for motor vehicle dealers, as they would be assured of receiving compensation for their warranty-related services. Additionally, the requirement for compliance may also foster better adherence to warranty obligations by franchisors, potentially leading to improved customer satisfaction in the long run.

Summary

Bill S08360 mandates that all franchisors, along with their affiliates and subsidiaries, are obligated to fulfil any warranty agreements and service contracts adequately. This is particularly focused on ensuring that franchised motor vehicle dealers are compensated for warranty-related work, which includes parts and labor for a variety of repairs and services, such as warranty repairs, extended service contract repairs, and recalls. The goal of the bill is to enhance the protections for motor vehicle dealers in the franchise relationship, ensuring they are not left without necessary compensation for the services they provide to customers under warranty provisions.

Contention

While the intent of S08360 is to protect the interests of motor vehicle dealers, there may be points of contention surrounding its implementation and effects on franchisors. Critics might argue that imposing such obligations could lead to increased costs for franchisors, which may be passed down to consumers in the form of higher vehicle prices or reduced service options. Furthermore, there might be concerns about how this bill interacts with existing franchise agreements and whether it could lead to disputes over contractual obligations. As stakeholders navigate these potential conflicts, discussions surrounding the bill will likely focus on balancing dealer protections with the operational realities of franchisors.

Companion Bills

NY A08773

Same As Requires every franchisor, including its affiliates and subsidiaries to properly fulfill any warranty agreement and/or franchisor's service contract and to compensate each of its franchised motor vehicle dealers for warranty parts and labor, including but not limited to all warranty repairs, extended service contract repairs, extended warranty repairs, campaigns, service bulletins, policy repairs, component part warranties, factory compensated repairs, recalls, diagnostics, parts and other voluntary stop-sell repairs, and any other franchisor compensated repairs; relates to reimbursement to a motor vehicle dealer from a motor vehicle franchisor.

Previously Filed As

NY A04066

Requires motor vehicle dealer franchisors to fully compensate franchised motor vehicle dealers for warranty service agreements.

NY S05085

Requires motor vehicle dealer franchisors to fully compensate franchised motor vehicle dealers for warranty service agreements.

NY S00357

Requires motor vehicle dealers to search for recalls and make certain repairs prior to selling a used motor vehicle.

NY A06549

Requires motor vehicle dealers to search for recalls and make certain repairs prior to selling a used motor vehicle.

NY S02662

Restricts the rental of safety recalled cars until they are repaired in accordance with the recall; requires disclosure of such recall notices to prospective vehicle renters if such recalled cars have not been repaired.

NY A02585

Restricts the rental of safety recalled cars until they are repaired in accordance with the recall; requires disclosure of such recall notices to prospective vehicle renters if such recalled cars have not been repaired.

NY A04054

Requires the New York city housing authority to repair certain conditions within thirty days of receipt of a written notice requesting such repairs; requires NYCHA to convert from gas to electric appliances when repairing or replacing any such appliances.

NY A00059

Requires motor vehicle repair shops to disclose types of replacement parts used in automobile collision repairs and provides a disclosure form to be signed by the owner consenting to the use of any such parts; forbids use of any other parts except new original equipment manufacturer parts on any vehicle during the first year of its manufacture and for the two years following.

NY S02367

Requires motor vehicle repair shops to disclose types of replacement parts used in automobile collision repairs and provides a disclosure form to be signed by the owner consenting to the use of any such parts; forbids use of any other parts except new original equipment manufacturer parts on any vehicle during the first year of its manufacture and for the two years following.

NY A00546

Prohibits insurers from limiting payment on claims for damage to motor vehicles based on pricing caps for labor, parts, paint or repair materials; prohibits insurers from recommending a particular repair facility.

Similar Bills

NJ S3309

Establishes "Motor Vehicle Open Recall Notice and Fair Compensation Act"; revises motor vehicle franchise agreements.

NJ A4380

Establishes "Motor Vehicle Open Recall Notice and Fair Compensation Act"; revises motor vehicle franchise agreements.

MO SB398

Enacts provisions relating to motor vehicles

NJ A2752

Revises law concerning the rights and responsibilities of motor vehicle franchisees and franchisors.

NJ A1288

Revises law concerning the rights and responsibilities of motor vehicle franchisees and franchisors.

CA AB2107

New Motor Vehicle Board.

CA AB179

New Motor Vehicle Board.

NY A08773

Requires every franchisor, including its affiliates and subsidiaries to properly fulfill any warranty agreement and/or franchisor's service contract and to compensate each of its franchised motor vehicle dealers for warranty parts and labor, including but not limited to all warranty repairs, extended service contract repairs, extended warranty repairs, campaigns, service bulletins, policy repairs, component part warranties, factory compensated repairs, recalls, diagnostics, parts and other voluntary stop-sell repairs, and any other franchisor compensated repairs; relates to reimbursement to a motor vehicle dealer from a motor vehicle franchisor.