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recover damages incurred as a result of any violation committed by the supplier, including costs and attorney’s fees.
2. A dealer may apply for injunctive relief for the unlawful termination, nonrenewal or substantial change of the terms of a dealer agreement.
3. The remedies provided in this section are in addition to any other remedies provided by law.
(Added to NRS by 2003, 3404)
NRS 597.1177 Warranty work performed by dealer; payment of warranty claim by supplier; audit of claim.
1. Except as otherwise provided in this section, any agreement entered into by a supplier and a dealer concerning reimbursement for work performed under a warranty, including, without limitation, a dealer agreement, must comply with the provisions set forth in this section.
2. A supplier who authorizes a dealer to perform work under a warranty shall reimburse a dealer who submits a warranty claim for such work. A dealer may submit a warranty claim to a supplier:
(a) During the period the dealer agreement is in effect; or
(b) After the termination of a dealer agreement if the warranty claim concerns work performed under a warranty during the period the dealer agreement was in effect.
3. A warranty claim which is submitted to a supplier must be paid within 30 days after the claim is approved by the supplier. The supplier shall approve or disapprove a warranty claim or any part thereof within 30 days after it receives the warranty claim. If the warranty claim is disapproved, the supplier shall, not later than 30 days after it receives the warranty claim, send written notice to the dealer setting forth the reasons for disapproval of the warranty claim. A warranty claim which is not disapproved by the supplier within the prescribed period shall be deemed approved.
4. The amount of a warranty claim must not be less than the amount equal to the sum of:
(a) The reasonable and customary time required by the dealer to complete the work, including diagnostic time, expressed in hours and fractions of hours, multiplied by the dealer’s hourly retail rate for labor;
(b) The dealer’s net price for any repair parts replaced, plus 20 percent of the net price for those parts; and
(c) If a warranty claim concerns repair work for any equipment which is performed by the dealer in accordance with a safety or modification order issued by a supplier, the costs incurred by the dealer to transport to the dealer’s place of business for repair any equipment which is within the dealer’s service area and subject to a safety or modification order.
5. After a supplier has paid a warranty claim, the supplier shall not charge back, set off or otherwise attempt to recover from a dealer any amount of the warranty claim unless:
(a) The warranty claim is fraudulent;
(b) The work was not performed properly or was not necessary to comply with the requirements of the warranty; or
(c) The dealer did not provide the records for the warranty claim as required by the agreement for work performed under the warranty.
6. A supplier shall not require a dealer to pay the costs incurred by the supplier in paying warranty claims by:
(a) Imposing a surcharge;
(b) Reducing any discounts provided to a dealer; or
(c) Imposing additional requirements for the certification of a dealer authorized to perform work under a warranty.
7. Except for a warranty claim where fraud is alleged, a supplier may not audit the records of a dealer relating to a warranty claim more than 1 year after the warranty claim is submitted to the supplier. A supplier may not audit a warranty claim more than once. The provisions of this subsection do not prohibit a supplier from requesting additional information from a dealer if the initial audit of the warranty claim indicates any errors, inconsistencies or fraud.
8. The provisions of this section do not apply to a written dealer agreement which provides compensation to a dealer for any labor required to be performed under a warranty before the labor is performed if the compensation is based on:
(a) A reduction of the price of the equipment sold to the dealer; or
(b) A lump-sum payment of not less than 5 percent of the suggested retail price of the equipment.
9. As used in this section:
(a) “Audit” means an examination by a supplier of the records of a warranty claim submitted by a dealer.
(b) “Net price” means the price a supplier charges a dealer for a repair part.
(c) “Warranty claim” means a request submitted by a dealer to a supplier for payment for work performed under a warranty or a safety or modification order issued by the supplier.
(Added to NRS by 2003, 3404)
NRS 597.118 Right, obligation or liability may not be waived.
1. A person may not waive or modify a right, obligation or liability set forth in the provisions of NRS 597.112 to 597.118, inclusive.
2. A condition, stipulation or provision of a dealer agreement or any other agreement that:
(a) Limits the procedural or substantive rights of a dealer pursuant to the provisions of NRS 597.112 to 597.118, inclusive;
(b) Requires a person to waive a right set forth in the provisions of NRS 597.112 to 597.118, inclusive; or
(c) Relieves a person of an obligation or liability imposed by the provisions of NRS 597.112 to 597.118, inclusive,
is void.
(Added to NRS by 2003, 3406)
ALCOHOLIC BEVERAGES
Franchises Between Liquor Suppliers and Wholesalers
NRS 597.120 Definitions. As used in NRS 597.120 to 597.180, inclusive, unless the context otherwise requires, the words and terms defined in NRS 597.125 to 597.150, inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1973, 1353; A 1995, 1569)
NRS 597.125 “Alcoholic beverage” defined. “Alcoholic beverage” has the meaning ascribed to it in NRS 597.200.
(Added to NRS by 1995, 1567)
NRS 597.130 “Franchise” defined. “Franchise” means a contract or agreement either expressed or implied, whether written or oral, between a supplier and wholesaler, wherein:
1. A commercial relationship of definite duration or continuing indefinite duration is involved; and
2. The wholesaler is granted the right to offer, sell and distribute within this state or any designated area thereof such of the supplier’s brands of packaged malt beverages, distilled spirits and wines, or all of them, as may be specified.
(Added to NRS by 1973, 1353)—(Substituted in revision for NRS 598.300)
NRS 597.133 “Good cause” defined. “Good cause” means:
1. Failure by a wholesaler to comply substantially with essential and reasonable requirements imposed on him by a supplier, or sought to be imposed by a supplier, if the requirements are not discriminatory as compared with requirements imposed on other similarly suited wholesalers either by their terms or in the manner of their enforcement.
2. Bad faith by the wholesaler in carrying out the terms of the franchise agreement.
(Added to NRS by 1995, 1567)
NRS 597.136 “Marketing area” defined. “Marketing area” means the area where a wholesaler sells a product of a supplier pursuant to the terms, provisions and conditions of a franchise.
(Added to NRS by 1995, 1567)
NRS 597.140 “Supplier” defined. “Supplier” means any person, partnership, corporation or other form of business enterprise engaged in business as a manufacturer, distiller, rectifier, brewer, importer, vintner, broker or agent therefor, which distributes any or all of its brands of malt beverages, distilled spirits and wines, or all of them, through licensed wholesalers in this state.
(Added to NRS by 1973, 1353)—(Substituted in revision for NRS 598.310)
NRS 597.150 “Wholesaler” defined. “Wholesaler” means any person, partnership, corporation or other form of business enterprise lic
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