Introduced Version




Citations Affected: IC 9-23-3-15.

Synopsis: Warranty repair and sales audit limitation. Provides that a vehicle manufacturer or distributor may audit or charge back certain claims made by a dealer: (1) for up to two years after the claim is paid; or (2) at any time in cases of fraud. Provides that a manufacturer or distributor may not discriminate among dealers when auditing or charging back claims.

Effective: July 1, 2007.


    January 8, 2007, read first time and referred to Committee on Commerce, Public Policy & Interstate Cooperation.


First Regular Session 115th General Assembly (2007)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2006 Regular Session of the General Assembly.


    A BILL FOR AN ACT to amend the Indiana Code concerning motor vehicles.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 9-23-3-15; (07)IN0180.1.1. -->     SECTION 1. IC 9-23-3-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 15. (a) It is an unfair practice for a manufacturer or distributor to:
        (1) fail to pay all claims made by dealers for compensation for delivery and preparation work and warranty work within thirty (30) days after approval;
        (2) fail to approve or disapprove the claims within thirty (30) days after receipt; or
        (3) disapprove a claim without notice to the dealer in writing of the grounds for disapproval.
    (b) A manufacturer or distributor may:
        (1) audit claims made by a dealer; or
        (2) charge back to a dealer any amounts paid on false or unsubstantiated claims;
for up to two (2) years after the date on which a claim is paid. However, the limitations of this subsection do not apply if the manufacturer or distributor can prove fraud on a claim. A

manufacturer or distributor shall not discriminate among dealers with regard to auditing or charging back claims.