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Texas Business & Commerce Code - Section 19.28. Warranty Claim

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§ 19.28. WARRANTY CLAIM.  (a) This section applies to a 
warranty claim submitted by a dealer:
		(1)  while the dealer agreement is in effect;  or                             
		(2)  after the termination of the dealer agreement, if 
the claim is for work performed before the effective date of the 
termination.
	(b)  Not later than the 30th day after the date a supplier 
receives a warranty claim from a dealer, the supplier shall accept 
or reject the claim.  A claim not rejected before that deadline is 
deemed accepted.
	(c)  Not later than the 30th day after the date the claim is 
accepted or rejected, the supplier shall:
		(1)  pay an accepted claim;  or                                               
		(2)  send the dealer written notice of the grounds for 
rejection of a rejected claim.
	(d)  A supplier that pays a claim, including a supplier of an 
electric engine or motor, may not pay less than the hourly labor 
rate and other expenses involved in the work that the dealer 
regularly charges to a retail customer who does not assert a 
warranty and the dealer's net price plus 15 percent for parts.  The 
number of hours of labor claimed may not exceed 1-1/2 times the 
supplier's recommended hours for the repair involved.
	(e)  After payment of a claim, a supplier may not charge 
back, set off, or otherwise attempt to recover all or part of the 
amount of the claim unless:
		(1)  the claim was fraudulent;                                                
		(2)  the work for which the claim was made was not 
properly performed or was unnecessary to comply with the warranty;  
or
		(3)  the dealer did not substantiate the claim 
according to the written requirements of the supplier in effect 
when the claim arose.
	(f)  A dealer or supplier authorized to sell new farm, 
industrial, or outdoor power equipment shall give the purchaser a 
written warranty agreement including replacement or cash refund.  
If the dealer determines the equipment cannot be made usable, the 
manufacturer is liable to the purchaser for the replacement or cash 
refund.

Added by Acts 1997, 75th Leg., ch. 1223, § 1, eff. Sept. 1, 1997.          

Last modified: August 10, 2007