Bill > HB412

This bill modifies Missouri state law regarding the warranty service obligations between franchisors (manufacturers) and franchisees (dealers). The bill requires franchisors to specify in writing the franchisee's warranty service obligations and provide fair compensation for parts, labor, and service. Key provisions include mandating reasonable compensation for warranty parts and labor, with the primary factor being the retail rates charged for non-warranty services. The bill establishes specific guidelines for how compensation should be calculated, including using industry-standard labor time guides and the dealer's own labor rates. Franchisors must now pay warranty claims within 30 days, approve or disapprove claims within 30 days, and are limited in their ability to audit claims (generally to 12 months after payment). The bill also provides franchisees with a mechanism to file complaints with the administrative hearing commission if they disagree with a franchisor's decision on warranty claim reimbursement. Additionally, the legislation restricts franchisors from requesting documentation in an unduly burdensome manner and ensures that franchisees are fairly compensated for warranty and recall-related repairs and promotional events.

Transportation and Infrastructure

https://house.mo.gov/Bill.aspx?bill=HB412&year=2025&code=R