GEORGIA LAW ALLOWS TWO ALTERNATIVE METHODS OF WARRANTY REIMBURSEMENT:
IN THE EVENT A MAJORITY OF THE SAME LINE MAKE DEALERS AGREE TO THE ATTACHED UNIFORM WARRANTY REIMBURSEMENT AGREEMENT, DEALERS THAT OPT TO SEEK RETAIL RATE PURSUANT TO O.C.G.A. SECTION 10-1-641 MAY BE SUBJECT TO A COST RECOVERY SURCHARGE ON ALL NEW VEHICLE INVOICES.
History. Code 1981, § 10-1-645 , enacted by Ga. L. 2003, p. 445, § 1; Ga. L. 2005, p. 334, § 4-3/HB 501; Ga. L. 2019, p. 517, § 4/SB 122.
The 2019 amendment, effective July 1, 2019, in subsection (a), rewrote the first sentence, which read: “Any motor vehicle franchisor and at least a majority of its dealers of the same line make may agree in an express written contract, citing this Code section, upon a uniform warranty reimbursement policy used by contracting dealers to perform warranty repairs.”, substituted “agreement” for “policy” near the beginning of the second sentence, and, in the third sentence, substituted “retail rate” for “retail price” and “Code Section 10-1-641” for “Code Section 10-1-644”; added subsection (b); redesignated former subsections (b) through (f) as present subsections (c) through (g), respectively; rewrote former paragraph (b)(1) (now paragraph (c)(1)), which read: “Establish a uniform parts reimbursement rate. The uniform parts reimbursement rate shall be greater than the franchisor’s nationally established parts reimbursement rate in effect at the time the first such agreement becomes effective; however, any subsequent agreement shall result in a uniform reimbursement rate that is greater or equal to the rate set forth in the immediately prior agreement;”; deleted “motor vehicle” preceding “dealer” in paragraph (c)(3); rewrote subsections (d) and (e); and, inserted “manufacturer or” near the beginning of subsection (f).
Editor’s notes.
Ga. L. 2019, p. 517, § 4/SB 122, did not reenact and did not strike “however, any subsequent agreement shall result in a uniform reimbursement rate that is greater or equal to the rate set forth in the immediately prior agreement;” in former paragraph (b)(1) of this Code section.
Structure Georgia Code
Chapter 1 - Selling and Other Trade Practices
Article 22 - Motor Vehicle Franchise Practices
Part 3 - Motor Vehicle Warranty Practices
§ 10-1-642. Risk of Loss for Vehicle in Transit
§ 10-1-643. Payment of Dealer’s Attorney’s Fees by Manufacturer, Distributor, or Warrantor
§ 10-1-644. Exemptions From Part
§ 10-1-645. Uniform Warranty Reimbursement Agreement Amongst Dealers