HB 1285 Summary

• Clarifies definitions of "manufacturer" and "dealer" in Mississippi motor vehicle law by establishing that "manufacturer" includes distributors, wholesalers, factory branches, and distributor branches.

• Adds new grounds for the Motor Vehicle Commission to deny, revoke, or suspend dealer and manufacturer licenses, including manufacturer failure to specify pre-delivery preparation obligations and compensation schedules to dealers.

• Creates Section 63-17-86 establishing procedures for dealers to set warranty labor rates and parts markups based on repair orders, with rates presumed reasonable unless the manufacturer rebuts within 45 days with substantiated evidence.

• Requires manufacturers to pay dealers warranty labor rates and parts markups at least equal to what the dealer charges retail customers, with time allowances for diagnosis and performance to be reasonable and adequate.

• Prohibits manufacturers from recovering warranty compensation costs through price increases, wholesale price adjustments, or other charges, and from taking adverse action against dealers for receiving warranty reimbursement.