Rule 30-1301-2.11 - Warranty Work1. 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.30 Miss. Code. R. 1301-2.11
Miss. Code Ann. § 63-17-69 (Rev.1983).