1. This Rule 2.11
and Rules 2.12 and 2.13 of these regulations are based on Section 6A(10) of the
Act.
2. Mandatory REQUIREMENTS OF
ACT: Section 6A(10) of the Act makes it mandatory:
a. The manufacturers adequately and fairly
compensate their dealers for I) the labor they perform, II) the parts they use,
and III) the incidental expenses they incur in connection with their
performance of warranty work; and
b. That manufacturers pay to their dealers
who perform warranty work for them a labor rate per hour for such work not less
than that charged by any such dealer to its retail customers.
3. Determination of adequacy of
compensation for warranty work. Compensation to be paid dealers for performing
warranty work, excluding parts used, shall be deemed prima facie adequate and
fair if arrived at in the following manner:
a. The time allowance for warranty work. Each
manufacturer shall make time studies in determining the time required to
perform each function required of a dealer in performing his warranty work. The
time requirements for each such function shall be expressed in hours or
fractional parts of an hour. The time studies shall be:
i) Conducted by competent persons experienced
in making such studies.
ii) Conducted by
timing mechanics or technicians of average ability and speed;
iii) Conducted under average dealership
conditions using standard hand-tools, recommended special service tools and
standard dealer equipment such as hoists, floor jacks and stands, avoiding
shortcuts or methods which could resulting in poor workmanship and avoiding the
use of special timesaving tools such as impact wrenches.
After the time for each function is thus determined an
additional time allowance of not less then 16% on passenger and light-duty
trucks and not less then 20% on medium and heavy-duty trucks shall be added to
the actual time recorded for each function as an allowance for shop and
mechanic operating variables. No time allowance of less then two-tenths (2/10)
of an hour shall be fixed regardless of the time required in performing the
function involved.
b. Determination of hourly labor rates for
warranty work. Each manufacturer shall determine the labor rate per hour
charged by their dealers to the retail customer of such dealers in the normal
course of business, and it shall be the duty of such dealers to cooperate with
such manufacturers in making this determination. The hourly rate thus
determined shall be both the maximum and minimum rate used in computing the
warranty work, excluding parts used.
c. Computation of compensation. The amount of
compensation to be paid by the manufacturers to their dealers for their
warranty work, excluding parts used, shall be arrived at by multiplying the
time allowance arrived at under the provisions of subsection 3a of this Rule
2.11 times the hourly rate determined under the provisions of subsection 3b of
this Rule 2.11.
d. Parts. The price
to be paid by manufacturers to their dealers who install parts in connection
with the performance of their warranty work shall be the actual cost to such
dealers for said parts plus 25¢ of said actual cost of said
parts.
Miss. Code Ann. §
63-17-69
(Rev.1983).
