Senate Bill 2875 Summary

• Adds definitions to Mississippi motor vehicle law including "pre-delivery preparation obligations," "warranty work," "qualified repair," and related terms to clarify dealer compensation requirements.

• Requires manufacturers to specify pre-delivery preparation obligations and compensation schedules to dealers before vehicle delivery, with compensation subject to commission reasonableness determination if challenged.

• Establishes that manufacturers must pay dealers for warranty work at rates no less than dealers charge retail customers, with reasonable and adequate time allowances for diagnosis and performance of warranty work.

• Creates new Section 63-17-86 allowing dealers to establish warranty labor rates and parts markups by submitting qualified repair orders, with submitted rates presumed reasonable unless manufacturer rebuts within 45 days with specific evidence and calculations.

• Prohibits manufacturers from recovering warranty compensation costs through price reductions, price increases, surcharges, or adverse actions against dealers, while allowing dealers to file protests with the commission if disputes arise over submitted rates.