(A) Determining the total charges for parts from the qualified repair orders submitted; and (B) Dividing the total charges under subdivision (c)(5)(A) of this section by the motor vehicle dealer’s total cost of the purchase of those parts, subtracting one (1), and multiplying by one hundred (100) to produce a percentage. (6) (A) As used in this section, “qualified repair order” means a customer pay repair order paid by a retail customer, exclusive of routine maintenance performed on the vehicle. (B) Qualified repair orders used to calculate the labor rate and rate for parts under this section shall be qualified repair orders from the lesser of a: (i) Reasonable look-back period not to exceed one hundred (100) sequential customer pay repair orders with repair dates covering repairs made no more than one hundred eighty (180) days before the submission of the qualified repair order request; or (ii) Ninety-day look-back period with repair dates covering repairs made no more than one hundred eighty (180) days before the submission of the qualified repair order. (C) (i) No repair order shall be excluded from the markup computation solely because it contains repairs using nonoriginal equipment manufacturer parts. (ii) However, only the portion of the repair order that uses original equipment manufacturer parts shall be included in the computation of the motor vehicle dealer’s rate for parts. (7) For the purposes of this section, a motor vehicle dealer shall submit a written request to be compensated under this section. (d) (1) (A) The pricing for a recalled part shall not be reduced to an amount that is less than the original dealer cost or price for the same part unless the manufacturer obtains a discounted rate for the recalled part from a supplier. (B) A recalled part is considered the same part if it is substantially the same part regardless of the part number. (2) A part-by-part analysis is not required to determine the retail rate for parts. (3) The parts mark-up shall not be substituted for a handling allowance or similar pricing amount that results in the reduction of compensation for the dealer. (e) (1) All claims under this section, either original or resubmitted, made by motor vehicle dealers for the labor and parts shall be either approved or disapproved within thirty (30) days following their approval or disapproval. (2) (A) (i) The motor vehicle dealer who submits a claim which is disapproved shall be notified in writing of the disapproval within the same period, and the notice shall state the specific grounds upon which the disapproval is based. (ii) The motor vehicle dealer may correct and resubmit the disapproved claims within thirty (30) days of receipt of disapproval. (B) Any claims not specifically disapproved in writing within thirty (30) days from their submission shall be deemed approved, and payment shall follow within thirty (30) days. (3) (A) A claim shall not be disapproved because a clerical error was made that does not render the amount of the claim incorrect, including without limitation clerical erros that occur as a result of a manufacturer or distributor’s prior approval process. (B) However, a dealer may contest the disapproval through the manufacturer’s appeals process. (4) (A) The manufacturer or franchiser may: (i) Require documentation for claims; (ii) Audit such claims within a one-year period from the date the claim was paid or credit issued by the manufacturer or franchiser; and (iii) Charge back any false or unsubstantiated claims. (B) The audit and charge-back provisions of this subsection also apply to all other incentive and reimbursement programs for a period of twelve (12) months after the date of the transactions that are subject to audit by the franchiser. (C) However, the manufacturer retains the right to charge back any fraudulent claim if the manufacturer establishes in a court of competent jurisdiction in this state that the claim is fraudulent within a period not to exceed two (2) years from the date of the claim in question. (D) (i) A dealer may file an appeal with the Arkansas Motor Vehicle Commission to protest any charge back under this subdivision (e)(4) within ninety (90) days of notification by the manufacturer or distributor. (i) If a dealer files an appeal of the charge back with the Commission, the manufacturer or distributor shall not levy the charge back until the appeal is resolved. The commission shall hold a hearing on the matter no later than one hundred twenty (120) days from the time the appeal is filed unless all parties have otherwise agreed to settle the matter. (ii) An appeal by the licensee under this subdivision (e)(4)(D) shall be in accordance with §23-112-501 et. seq. (f) As used in the section, “routine maintenance” means motor vehicle upkeep not covered under the manufacturer’s warranty, including without limitation tire rotations and the replacement of: (1) Tires; (2) Fluids; (3) Filters; (4) Batteries, other than electric vehicle or hybrid vehicle propulsion batteries; (5) Belts; (6) Windshield wipers; and (7) Brake pads. (g) A manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division shall compensate a motor vehicle dealer that provides assistance requested by a customer whose motor vehicle was subjected to an over-the-air or remote change, repair, or update to any part, system, accessory, or function by the motor vehicle manufacturer or distributor and performed at the motor vehicle dealer’s location or other manufacturer-authorized repair location of the motor vehicle dealer. History. Acts 1997, No. 1154, § 2; 1999, No. 1042, § 7; 2007, No. 746, §§ 1, 2; 2009, No. 756, § 12; 2011, No. 1005, § 9; 2013, No. 1043, § 5; 2015, No. 1055, §§ 4, 5; 2019, No. 924, § 3; 2021, No. 1077, §§ 5,6; 2023, No.515, §§ 1,2. 23-112-314. Civil Penalty. (a) If after request for alternative proceedings or notice and hearing the Arkansas Motor Vehicle Commission finds that any person not holding a license under this chapter is guilty of any violation of this chapter or rules promulgated thereunder, the Commission shall have the power and authority to impose a monetary penalty upon the person not to exceed one thousand dollars ($1,000) per violation. (b) Each day of violation of this chapter or of a rule shall constitute a separate violation subjecting the person to a separate civil penalty. (c) Unless the penalty assessed under this section is paid within fifteen (15) days following the date for an appeal from the order, the Commission shall have the power to file suit in the Pulaski County Circuit Court to obtain a judgment for the amount of the penalty not paid. (d) (1) Repeated violations by any person not holding a license under this chapter shall result in an increase in the penalty assessed by the Commission. (2) The terms “second” and “subsequent” violation as used in this section mean a violation of the same nature as a previously remedied violation that occurs within five (5) years of the remedied violation by any person not holding a license under this chapter. (3) The Commission shall have the power and authority to impose a penalty not to exceed two thousand five hundred dollars ($2,500) for a second violation, with the penalty increasing in increments of two thousand five hundred dollars ($2,500) for each subsequent violation. History. Acts 1999, No. 1042, § 8; 2001, No. 1053, § 13; 2019, No. 315, § 2833. 23-112-315. [Repealed. Motor Vehicle Dealer Documentary Fees - Disclosures.] This section was repealed by Acts 2007, No. 366 § 3. The section was derived from Acts 2001, No. 1600, § 1. Acts 2003, No. 1722; § 1. 23-112-316. Delivery Prior to Sale — Disclosures. (a) As used in this section: (1) (A) “Contract for sale” means the final agreement between a new motor vehicle dealer and a consumer that: (i) Includes all material terms of the sale of a motor vehicle; and (ii) Is binding upon the seller, the buyer, and any necessary third-party financer. (B) “Contract for sale” includes a financing agreement and all material financing terms if the motor vehicle is to be financed; and Arkansas Automobile Dealers Association | 33 ARKANSAS MOTOR VEHICLE COMMISSION ACT
RkJQdWJsaXNoZXIy MTg3NDExNQ==