Indemnification and hold harmless requirements
This law is about car dealers (franchisees) and the car companies (franchisors) that supply them. If a new car gets damaged before it arrives at the dealer, and the car company did not tell the dealer about that damage in writing, the car company has to pay the dealer's legal costs if a customer sues the dealer over that damage. Also, if the damage repair costs more than 6% of the car's suggested price, the dealer can refuse the car or make the car company buy it back within 10 business days — unless the dealer picked the shipping company. When figuring out that 6% limit, the cost to fix glass, tires, bumpers, moldings, and audio equipment does not count.
407.831. and requirements. — 1. the terms of any to the contrary, each , including any of that franchisor, shall each obtaining a new motor vehicle from the franchisor from and against any , including reasonable , expert witness fees, , and other expenses incurred in the , so long as such fees and costs are reasonable, that the franchisee may be subjected to by the purchaser of the vehicle because of damage to the motor vehicle that occurred before of the vehicle to the franchisee and that was not disclosed in writing to the franchisee prior to delivery of the vehicle. This indemnity obligation of the franchisor applies regardless of whether the damage falls below the six percent under 2 of this section. The failure of the franchisor to indemnify and hold harmless the franchisee is a violation of this section.
2. If the cost of repairing damage to a new motor vehicle that occurs before delivery to the franchisee's location exceeds six percent of the , as measured by repair costs, the franchisee may reject or, if has passed to the franchisee, require the franchisor who delivered the vehicle to the vehicle within ten business days after delivery, unless the damage occurred during shipment and the method of transportation, , or transporter of the motor vehicle was by the franchisee. Upon repurchase, the franchisor shall be to all of the franchisee's rights against the carrier or transporter of the motor vehicle regarding damage. The cost of repairing glass, tires, bumpers, moldings, and audio equipment with identical 's original equipment shall not be included in determining the cost of repairing damage under this subsection.
Tap any gold-underlined word to see what it means.
Source & history notes
(L. 2010 H.B. 2198)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.