Effective - 28 Aug 2004
407.1047. Compensation agreements between franchisors and franchisees engaged in sale of motorcycles and ATVs. — 1. The provisions of this section shall apply to franchisors and franchisees engaged in the sale of motorcycles and all-terrain vehicles.
2. Each franchisor shall specify in writing to each of its franchisees in this state the franchisee's obligations for preparation, delivery, and warranty service on its products. The franchisor shall compensate the franchisee for warranty service required of the franchisee by the franchisor.
3. The franchisor shall provide the franchisee with the schedule of compensation to be paid to the franchisee for parts, work, and service, and the time allowance for the performance of the work and service. The schedule of compensation shall include reasonable compensation for diagnostic work, as well as repair service and labor. Time allowances for the diagnosis and performance of warranty work and service shall be reasonable and adequate for the work performed. In the determination of what constitutes reasonable compensation under this section, the principal factor to be given consideration shall be the prevailing wage rates being paid by the franchisees in the community in which the franchisee is doing business, and in no event shall the compensation of a franchisee for warranty labor be less than the rates charged by the franchisee for like service to retail customers for nonwarranty service and repairs, provided that such rates are reasonable.
4. A franchisor shall not:
(1) Fail to perform any warranty obligation;
(2) Fail to include in written notices of franchisor recalls to owners of new motorcycles and all-terrain vehicles the expected date by which necessary parts and equipment will be available to franchisees for the correction of the defects; or
(3) Fail to compensate any of the franchisees in this state for repairs effected by the recall.
5. All claims made by a franchisee pursuant to this section for labor and parts shall be paid within thirty days after their approval. All claims shall be either approved or disapproved by the franchisor within thirty days after their receipt on a proper form generally used by the franchisor and containing the usually required information therein. Any claims not specifically disapproved in writing within thirty days after the receipt of the form shall be considered to be approved and payment shall be made within thirty days. A claim that has been approved and paid may not be charged back to the franchisee unless the franchisor can show that the claim was fraudulent, false, or unsubstantiated, except that a charge back for false or fraudulent claims shall not be made more than two years after payment, and a charge back for unsubstantiated claims shall not be made more than fifteen months after payment. A franchisee shall maintain all records of warranty repairs, including the related time records of its employees, for at least two years following payment of any warranty claim.
6. A franchisor shall compensate the franchisee for franchisor-sponsored sales or service promotion events, programs, or activities in accordance with established guidelines for such events, programs, or activities.
7. All claims made by a franchisee pursuant to subsection 5 of this section for promotion events, programs, or activities shall be paid within twenty-five days after their approval or program close, whichever comes later. All claims except those of the type set forth in subdivisions* (1) and (2) of this subsection shall be either approved or disapproved by the franchisor within thirty days after their receipt on a proper form generally used by the franchisor and containing the usually required information therein. Any claim not specifically disapproved in writing within thirty days after the receipt of this form shall be considered to be approved, and payment shall be made within thirty days. The franchisor has the right to charge back any claim for twelve months after the later of either the close of the promotion event, program, or activity, or the date of the payment. The provisions of this subsection shall not apply to:
(1) Claims related to holdbacks, retail sales bonuses, or similar programs in which the franchisor accrues a certain portion of the vehicle sales price for the franchisee and then at a later point in time pays that amount to the franchisee, in which event the franchisor shall compensate a franchisee no later than forty-five days following the payment date that the franchisor specified in the program;
(2) Claims related to franchisor's use of a "balance forward account" to make reimbursement, in which event the franchisor shall compensate a franchisee no later than seventy-five days following the date that the franchisee properly registered the manufacturer's limited warranty for the vehicle.
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(L. 2004 H.B. 1288)
*Word "subparagraphs" appears in original rolls.
Structure Missouri Revised Statutes
Title XXVI - Trade and Commerce
Chapter 407 - Merchandising Practices
Section 407.005 - Digital electronic equipment definition.
Section 407.010 - Definitions.
Section 407.020 - Unlawful practices, penalty — exceptions.
Section 407.025 - Civil action to recover damages — class actions authorized, when — procedure.
Section 407.030 - Voluntary compliance, assurance made, effect of — violation, penalty.
Section 407.050 - Evidence, when and where produced.
Section 407.070 - Petition to extend return date, when and where filed.
Section 407.105 - Receiver, powers and duties of.
Section 407.110 - Violation of injunction or restitution order, civil penalty.
Section 407.120 - Provisions of this chapter no bar to other civil actions.
Section 407.125 - Chapter not limitation for commissioner of securities.
Section 407.130 - Assessment of court costs.
Section 407.145 - Rulemaking, authority, limitation.
Section 407.200 - Unsolicited merchandise, how disposed of.
Section 407.315 - American Indian art or craft, no sale unless authentic — penalty.
Section 407.325 - Definitions.
Section 407.330 - Contracts, in writing, required provisions — buyer's right to cancel.
Section 407.334 - Contracts, signed by buyer — duration limit — voidable, when — waiver void, when.
Section 407.335 - Holder of contract or note subject to claims and defenses, notice.
Section 407.337 - Assignment of contract, buyer's rights.
Section 407.350 - Definitions.
Section 407.400 - Definitions.
Section 407.415 - Attorney general may obtain injunction, when — bond not required.
Section 407.420 - Penalty — duty to enforce — jurisdiction of attorney general.
Section 407.430 - Citation of law.
Section 407.431 - Attorney general, authority to enforce.
Section 407.432 - Definitions.
Section 407.435 - Card scanner, illegal use of — penalty.
Section 407.436 - Defacing a credit card reader, offense of, penalty.
Section 407.450 - Short title.
Section 407.453 - Definitions.
Section 407.456 - Registration and reports, who shall file, exceptions.
Section 407.466 - Registration by fund-raisers — form — oath — fees.
Section 407.469 - Disclosure of fund-raising costs and use of professional fund-raiser.
Section 407.475 - No additional annual filing or reporting requirements, when — inapplicability.
Section 407.511 - Definitions.
Section 407.516 - Odometer fraud, first degree, penalty.
Section 407.521 - Odometer fraud, second degree, penalty.
Section 407.526 - Odometer fraud, third degree, penalty.
Section 407.542 - Attempt to commit odometer fraud in first or second degree, penalties.
Section 407.543 - Conspiracy to commit odometer fraud in first or second degree, penalty.
Section 407.544 - Prior convictions for odometer frauds, court may increase sentence, penalties.
Section 407.546 - Civil damages for odometer violations — venue.
Section 407.551 - Injunction — action may include suspension or revocation of license.
Section 407.553 - Attorney general or prosecutor to handle actions for violations, exception.
Section 407.560 - Definitions.
Section 407.563 - Law applicable to breach of new motor vehicles warranties.
Section 407.569 - Affirmative defenses.
Section 407.571 - Presumptions of nonconformity — exception.
Section 407.575 - Manufacturer with approved settlement procedure, consumer's duty.
Section 407.577 - Court action by consumer, costs, expenses, attorney's fees, how paid.
Section 407.579 - Consumer's right to other remedies — law to apply, when.
Section 407.583 - Warranty repairs, labor cost compensation to dealer.
Section 407.585 - Definitions.
Section 407.589 - Affirmative defenses.
Section 407.600 - Definitions.
Section 407.630 - Violation of regulations — penalty.
Section 407.635 - Definitions.
Section 407.637 - Credit service organization — exemptions.
Section 407.638 - Prohibited activities.
Section 407.640 - Registration statements, filing, contents, fee.
Section 407.641 - Contract, writing, contents.
Section 407.642 - Contract requirements, cancellation clause.
Section 407.643 - Waiver of buyer's rights void.
Section 407.644 - Actions — damages — penalties.
Section 407.660 - Citation of law.
Section 407.661 - Definitions.
Section 407.663 - Advertisements, requirements.
Section 407.664 - Reinstatement of agreement, when, conditions.
Section 407.670 - Citation of law.
Section 407.671 - Definitions.
Section 407.672 - Cancellation of membership.
Section 407.673 - Contract, requirements, right to cancel.
Section 407.675 - Duration of contract, renewal, terms and limitations.
Section 407.676 - Law not applicable, when.
Section 407.677 - Unlawful practices.
Section 407.678 - Waivers, unenforceable.
Section 407.679 - Violations, penalty — penalty not a bar to civil action.
Section 407.700 - Home solicitation sale defined.
Section 407.710 - Agreement of sale, required statement, exception.
Section 407.715 - Duties of seller after cancellation.
Section 407.720 - Duties of seller after cancellation — lien of buyer, when.
Section 407.730 - Definitions.
Section 407.738 - Actions, unlawful subleasing, who may bring — definitions.
Section 407.742 - Unlawful subleasing, elements of crime.
Section 407.745 - Assignment or transfer of motor vehicle, not unlawful subleasing, when.
Section 407.748 - Violations are unlawful merchandising practices — remedies not exclusive.
Section 407.754 - How to apply to successors in interest — successor in interest defined.
Section 407.755 - Action for damages and costs by retailer for violations — remedy not exclusive.
Section 407.756 - Law, applicability to existing and future contracts.
Section 407.800 - Going-out-of-business sales, requirements, limitations, extension — exceptions.
Section 407.810 - Citation of law.
Section 407.811 - Public policy statement.
Section 407.812 - Compliance with act required — applicability of act.
Section 407.815 - Definitions.
Section 407.817 - Establishment or transfer of an existing franchise, procedures for franchisor.
Section 407.818 - License required.
Section 407.824 - Facility improvements and other changes not required by franchisee, when.
Section 407.825 - Unlawful practices.
Section 407.830 - Franchisor's defenses against action by franchisee.
Section 407.831 - Indemnification and hold harmless requirements.
Section 407.832 - False advertising, prohibition.
Section 407.838 - Definitions.
Section 407.844 - Farm equipment manufacturers, certain acts prohibited.
Section 407.846 - Law applicable to dealer's agreements, when.
Section 407.848 - Damages in civil action or injunction for dealer against manufacturer, when.
Section 407.850 - Definitions.
Section 407.870 - Inventory which does not qualify for repurchase.
Section 407.875 - Liability for failure to repurchase inventory.
Section 407.885 - Application to existing contracts and future contracts.
Section 407.900 - Definitions.
Section 407.904 - Consignment, effect.
Section 407.907 - Waiver of proceeds in trust by artist, requirements.
Section 407.908 - Contracts, prior to August 13, 1984, not affected, exceptions.
Section 407.910 - Violations — punitive damage and costs authorized.
Section 407.911 - Definitions.
Section 407.925 - Definitions.
Section 407.928 - Restrictions on sales of individual packs of cigarettes.
Section 407.932 - Political subdivisions may make more stringent rules.
Section 407.935 - Definitions.
Section 407.940 - Foreclosure consultants, unlawful acts — penalty.
Section 407.941 - Waiver, void — penalty.
Section 407.950 - Definitions.
Section 407.953 - Warranty express or implied, one year required.
Section 407.955 - Nonconformity of assistive device to be repaired at no cost.
Section 407.957 - Nonconformity not repaired within reasonable time, options of consumer.
Section 407.959 - Lease, early termination — reasonable allowance for use, how computed.
Section 407.963 - Resale or lease of returned device, full disclosure required.
Section 407.967 - Action for damages, attorney's fees and costs may be brought by consumer.
Section 407.970 - Rules, procedure to adopt — suspension or revocation of rules, procedure.
Section 407.1025 - Definitions.
Section 407.1028 - Long-arm jurisdiction, motorcycle and all-terrain vehicle (ATV) businesses.
Section 407.1037 - Location of dealerships in City of St. Louis.
Section 407.1040 - License approval in metropolitan areas, minorities.
Section 407.1046 - False advertising prohibited.
Section 407.1049 - Civil action, remedies.
Section 407.1060 - Definitions.
Section 407.1062 - Structured settlement payment transfers, requirements.
Section 407.1064 - Approval by court, notice.
Section 407.1066 - Right to rescind — limitation of liability — limitation of jurisdiction.
Section 407.1068 - Application of law.
Section 407.1070 - Definitions.
Section 407.1073 - Telemarketers, required disclosures — misrepresentations prohibited.
Section 407.1076 - Unlawful telemarketing acts or practices.
Section 407.1079 - Telemarketers required to keep certain records.
Section 407.1082 - Penalties — criminal penalties — civil damages.
Section 407.1085 - Exemptions — attorney general to receive complaints.
Section 407.1090 - Required disclosures for entities soliciting contributions.
Section 407.1095 - Definitions.
Section 407.1098 - Telephone solicitation of member on no-call list prohibited.
Section 407.1120 - Definitions.
Section 407.1135 - Definitions.
Section 407.1138 - Prohibited acts — rulemaking authority, attorney general.
Section 407.1240 - Definitions.
Section 407.1246 - Renewal of registration, procedure, fee.
Section 407.1249 - Right to rescind and cancel, time period allowed.
Section 407.1252 - Complaint procedure — violations, remedy.
Section 407.1320 - Definitions.
Section 407.1326 - Termination notice, requirements, contents.
Section 407.1329 - Repurchase upon termination of agreement.
Section 407.1332 - Change in ownership, notice — rejection of change, notice.
Section 407.1335 - Succession in dealerships, conditions, restrictions and prohibitions.
Section 407.1340 - Violation of dealer agreement.
Section 407.1346 - New RV dealership, restrictions on operation or ownership by a manufacturer.
Section 407.1355 - Social Security numbers, prohibited actions involving.
Section 407.1360 - Definitions.
Section 407.1362 - Dealership agreements, good cause needed to terminate or cancel.
Section 407.1364 - Notice of termination or cancellation, contents.
Section 407.1366 - Change in ownership, notice required.
Section 407.1368 - Repurchase required, when.
Section 407.1370 - Applicability.
Section 407.1380 - Definitions.
Section 407.1384 - Agency liability for failure to comply, damages and equitable relief.
Section 407.1385 - Processing of applications for credit — effect of security freeze.
Section 407.1400 - Processing services agreements, required disclosures — inapplicability, when.
Section 407.1610 - Speculative accumulation of asphalt shingles prohibited.