South Dakota Warranty Reimbursement State Law


Cliff Notes:

S.D. CODIFIED LAWS § 32-6B-58 Timeframes for Approval and Reimbursement of Warranty Claims
• 30 days to approve or reject the claim.
• 30 days to pay after approval.
• Dealer may resubmit rejected claims fixing technical errors; claim deemed approved is to be paid within 30days.
Any claim resubmitted by the vehicle dealer within thirty days after the receipt of the claim shall be considered to be approved and payment shall be made within thirty days.

Reimbursement Rate for PartsS.D. CODIFIED LAWS §§ 32-6B-61:
• Reimbursement for parts used in the performance of warranty repair may not be less than the current retail rate customarily charged by the vehicle dealer for such parts.

Schedule of compensation for warranty work. The schedule of compensation for warranty work shall include reasonable compensation for diagnostic work, as well as repair service, parts, and labor.

Reimbursement Rate for LaborS.D. CODIFIED LAWS §§ 32-6B-61:

• The hourly labor rate paid to the dealer for warranty services may not be less than the rate charged by the dealer for like service to non-warranty customers for non-warranty service

32-6B-58.

Duty of franchisor or manufacturer to fulfill warranty agreements and compensate dealers for labor and parts–Disposition of dealer claims. Every franchisor or manufacturer shall properly fulfill any warranty agreement and compensate, as set forth in § 32-6B-61, each of its vehicle dealers for labor and parts. The franchisor or manufacturer shall pay all claims made by a vehicle dealer for the labor and parts within thirty days following their approval. The franchisor or manufacturer shall either approve or disapprove the claim within thirty days after its receipt. If a claim is disapproved, the vehicle dealer who submitted the claim shall be notified in writing of the claim’s disapproval within the thirty-day period. Any claim rejected for technical reasons may be put into proper form by the vehicle dealer. Any claim resubmitted by the vehicle dealer within thirty days after the receipt of the claim shall be considered to be approved and payment shall be made within thirty days. The franchisor or manufacturer has the right to audit any vehicle dealer claim for a period of one year after the claim is paid to the dealer and to charge back to the new vehicle dealer the amount of any unsubstantiated claim. If there is evidence of fraud by the vehicle dealer, the audit period is two years from the actual or constructive notice of facts constituting the alleged fraud.

Source: SL 1986, ch 250, § 59; SL 1990, ch 245, § 1; SL 1995, ch 177; SL 2005, ch 161, § 1; SL
2010, ch 156, § 13, eff. Mar. 9, 2010.

32-6B-61.
Schedule of compensation for warranty work. The schedule of compensation for warranty work shall include reasonable compensation for diagnostic work, as well as repair service, parts, and labor. Time allowances for diagnosis and performance of warranty work and service shall be adequate for the work to be performed. The hourly labor rate paid to the dealer for warranty services may not be less than the rate charged by the dealer for like service to non-warranty customers for non-warranty service. Reimbursement for parts used in the performance of warranty repair may not be less than the current retail rate customarily charged by the vehicle dealer for such parts. Each manufacturer, in establishing a schedule of compensation for warranty work, shall rely on the vehicle dealer’s written schedule of hourly labor rates and parts and may not obligate any vehicle dealer to engage in unduly burdensome documentation thereof, including, without limitation, obligating vehicle dealers to engage in transaction by transaction calculations.

Source: SL 1990, ch 245, § 2; SL 2010, ch 156, § 14, eff. Mar. 9, 2010.