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Florida Statute 320.696 - Full Text and Legal Analysis
Florida Statute 320.696 | Lawyer Caselaw & Research
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The 2025 Florida Statutes

Title XXIII
MOTOR VEHICLES
Chapter 320
MOTOR VEHICLE LICENSES
View Entire Chapter
320.696 Warranty responsibility.
(1)(a) A licensee shall timely compensate a motor vehicle dealer who performs work to maintain or repair a licensee’s product under a warranty or maintenance plan, extended warranty, certified pre-owned warranty, or a service contract, issued by the licensee or its common entity, unless issued by a common entity that is not a manufacturer; to fulfill a licensee’s delivery or preparation procedures; or to repair a motor vehicle as a result of a licensee’s or common entity’s recall, campaign service, authorized goodwill, directive, or bulletin.
(b) As used in this section, the terms “compensate” and “compensation” shall include all labor and parts included in the work as provided in this section. The term “labor” shall include time spent by employees for diagnosis and repair of a vehicle. The term “parts” shall include replacement parts and accessories. The term “retail customer repair” means work, including parts and labor, performed by a dealer which does not come within the provisions of a licensee’s or its common entity’s warranty, extended warranty, certified pre-owned warranty, service contract, or maintenance plan, and excludes parts and labor described in paragraphs (3)(b) and (4)(c).
(c) Compensation not paid to a motor vehicle dealer within 30 days after receipt of a claim is not timely. A licensee shall not establish or implement a term, policy, or procedure different from those described in this section for any motor vehicle dealer to obtain compensation under this section, and shall not pay a motor vehicle dealer less than amounts due pursuant to this section.
(2) A licensee shall not take or threaten to take adverse action against a motor vehicle dealer who seeks to obtain compensation pursuant to this section. As used in this subsection, the term “adverse action” includes, without limitation, acting or failing to act, other than in good faith; creating or implementing an obstacle or process that is inconsistent with the licensee’s obligations to the dealer under this section; hindering, delaying, or rejecting the proper and timely payment of compensation due under this section to a dealer; establishing, implementing, enforcing, or applying any policy, standard, rule, program, or incentive regarding compensation due under this section other than in a uniform and nondisparate manner among the licensee’s dealers in this state; conducting or threatening to conduct any warranty, retail customer repair, or other service-related audit more frequently than once each calendar year; or denying, reducing, or charging back a warranty claim because of a dealer’s failure to comply with all of the licensee’s requirements for describing or processing a claim.
(3)(a) A licensee shall compensate a motor vehicle dealer for parts used in any work described in subsection (1). The compensation may be an agreed percentage markup over the licensee’s dealer cost, but if an agreement is not reached within 30 days after a dealer’s written request, compensation for the parts is the greater of:
1. The dealer’s arithmetical mean percentage markup over dealer cost for all parts charged by the dealer in 50 consecutive retail customer repairs made by the dealer within a 3-month period before the dealer’s written request for a change in reimbursement pursuant to this section, or all of the retail customer repair orders over that 3-month period if there are fewer than 50 retail customer repair orders in that period. The motor vehicle dealer shall give the licensee 10 days’ written notice that it intends to make a written request to the licensee for a warranty parts reimbursement increase and permit the licensee, within that 10-day period, to select the initial retail customer repair for the consecutive repair orders that will be attached to the written request used for the markup computation, provided that if the licensee fails to provide a timely selection, the dealer may make that selection. No repair order shall be excluded from the markup computation because it contains both warranty, extended warranty, certified pre-owned warranty, maintenance, recall, campaign service, or authorized goodwill work and a retail customer repair. However, only the retail customer repair portion of the repair order shall be included in the computation, and the parts described in paragraph (b) shall be excluded from the computation;
2. The licensee’s highest suggested retail or list price for the parts; or
3. An amount equal to the dealer’s markup over dealer cost that results in the same gross profit percentage for parts used in work done under subsection (1) as the dealer receives for parts used in the customer retail repairs, as evidenced by the average of said dealer’s gross profit percentage in the dealer’s financial statements for the 2 months preceding the dealer’s request.

If a licensee reduces the suggested retail or list price for any replacement part or accessory, it also shall reduce, by at least the same percentage, the cost to the dealer for the part or accessory. The dealer’s markup or gross profit percentage shall be uniformly applied to all of the licensee’s parts used by the dealer in performing work covered by subsection (1).

(b) In calculating the compensation to be paid for parts by the arithmetical mean percentage markup over dealer cost method in paragraph (a), parts discounted by a dealer for repairs made in group, fleet, insurance, or other third-party payor service work; parts used in repairs of government agencies’ repairs for which volume discounts have been negotiated; parts used in special events, specials, or promotional discounts for retail customer repairs; parts sold at wholesale; parts used for internal repairs; engine assemblies and transmission assemblies; parts used in retail customer repairs for routine maintenance, such as fluids, filters and belts; nuts, bolts, fasteners, and similar items that do not have an individual part number; and tires shall be excluded in determining the percentage markup over dealer cost.
(c) If a licensee furnishes a part or component to a motor vehicle dealer at no cost to use in performing repairs under a recall, campaign service action, or warranty repair, the licensee shall compensate the dealer for the part or component in the same manner as warranty parts compensation under this subsection, less the dealer cost for the part or component as listed in the licensee’s price schedule.
(d) A licensee shall not establish or implement a special part or component number for parts used in predelivery, dealer preparation, warranty, extended warranty, certified pre-owned warranty, recall, campaign service, authorized goodwill, or maintenance-only applications if that results in lower compensation to the dealer than as calculated in this subsection.
(4)(a) A licensee shall compensate a motor vehicle dealer for labor performed in connection with work described in subsection (1) as calculated in this subsection.
(b) Compensation paid by a licensee to a motor vehicle dealer may be an agreed hourly labor rate. If, however, an agreement is not reached within 30 days after the dealer’s written request, the dealer may choose to be paid the greater of:
1. The dealer’s hourly labor rate for retail customer repairs, determined by dividing the amount of the dealer’s total labor sales for retail customer repairs by the number of total labor hours that generated those sales for the month preceding the request, excluding the work in paragraph (c); or
2. An amount equal to the dealer’s markup over dealer cost that results in the same gross profit percentage for labor hours performed in work covered by subsection (1) as the dealer receives for labor performed in its customer retail repairs, as evidenced by the average of said dealer’s gross profit percentage in the dealer’s financial statements provided to the licensee for the 2 months preceding the dealer’s written request, if the dealer provides in the written request the arithmetical mean of the hourly wage paid to all of its technicians during that preceding month. The arithmetical mean shall be the dealer cost used in that calculation.

After an hourly labor rate is agreed or determined, the licensee shall uniformly apply and pay that hourly labor rate for all labor used by the dealer in performing work under subsection (1). However, a licensee shall not pay an hourly labor rate less than the hourly rate it was paying to the dealer for work done under subsection (1) on January 2, 2008. A licensee shall not eliminate flat-rate times from or establish an unreasonable flat-rate time in its warranty repair manual, warranty time guide, or any other similarly named document. A licensee shall establish reasonable flat-rate labor times in its warranty repair manuals and warranty time guides for newly introduced model motor vehicles which are at least consistent with its existing documents. As used in this subsection, the terms “retail customer repair” and “similar work” are not limited to a repair to the same model vehicle or model year, but include prior repairs that resemble but are not identical to the repair for which the dealer is making a claim for compensation.

(c) In determining the hourly labor rate calculated under subparagraph (b)1., a dealer’s labor charges for internal vehicle repairs; vehicle reconditioning; repairs performed for group, fleet, insurance, or other third-party payors; discounted repairs of motor vehicles for government agencies; labor used in special events, specials, or express service; and promotional discounts shall not be included as retail customer repairs and shall be excluded from such calculations.
(5) A licensee shall not review, change, or fail to pay a motor vehicle dealer for parts or labor determined under this section unless the dealer has requested a change, or the action is pursuant to the licensee’s written, predetermined schedule for increasing parts or labor compensation that is not contrary to any provision of this section. A dealer may make written requests for changes in compensation for parts or labor performed under this section not more than semiannually. The dealer shall attach supporting documentation to each written request. Any increase in parts or labor reimbursement determined thereafter to be owed to the dealer shall be paid pursuant to this section retroactively for all claims filed by a dealer 15 days after the date of the licensee’s receipt of the dealer’s written request.
(6) A licensee shall not recover or attempt to recover, directly or indirectly, any of its costs for compensating a motor vehicle dealer under this section.
(7) A licensee shall not require, influence, or attempt to influence a motor vehicle dealer to implement or change the prices for which it sells parts or labor in retail customer repairs. A licensee shall not implement or continue a policy, procedure, or program to any of its dealers in this state for compensation under this section which is inconsistent with this section.
(8) If a court determines with finality that any provision of this section is void or unenforceable, the remaining provisions shall not be affected but shall remain in effect.
History.s. 16, ch. 70-424; s. 93, ch. 71-355; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 16, 17, ch. 80-217; ss. 2, 3, ch. 81-318; ss. 16, 20, 21, ch. 88-395; s. 4, ch. 91-429; s. 1, ch. 2007-208; s. 3, ch. 2008-62; s. 4, ch. 2009-93; s. 3, ch. 2017-187.

F.S. 320.696 on Google Scholar

F.S. 320.696 on CourtListener

Amendments to 320.696


Annotations, Discussions, Cases:

Cases Citing Statute 320.696

Total Results: 3  |  Sort by: Relevance  |  Newest First

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Brandon Chrysler Plymouth Jeep Eagle, Inc. v. Chrysler Corp., 898 F. Supp. 858 (M.D. Fla. 1995).

Cited 1 times | Published | District Court, M.D. Florida | 1995 U.S. Dist. LEXIS 13358, 1995 WL 544743

...rsement. 2 In addition to the contractual warranty obligations between the parties, the Florida Automobile Dealer Act, Fla.Stat. § 320.01 et seq. (1998) (“Dealer Act”), also governs certain-aspects of the parties’ relationship. In particular, § 320.696 of the Dealer Act addresses a manufacturer’s warranty reimbursement obligation....
...Plaintiff contends that this statute requires a manufacturer/licensee to compensate dealers for warranty parts at a “retail rate.” 4 Conversely, Defendant denies that it has any duty to reimburse Plaintiff at a retail rate for parts used in warranty repairs or service under the terms of Florida Statute § 320.696....
...its retail prices for *861 warranty parts in the future 6 (D-2, ¶¶ 6-7, 9 and 12). Defendant now seeks summary judgment as a matter of law on both of Brandon’s claims. Plaintiff, however, seeks partial summary judgment specifically as to whether § 320.696 of the Florida Statutes requires the manufacturer to compensate a dealer for parts used in warranty service at a rate not less than the amount charged by the dealer for like work to retail customers for nonwarranty work. The Defendant contends that § 320.696 does not require the manufacturer to reimburse the dealer for “parts” at a “retail rate.” The parties agree that this case presents one determinative issue regarding the interpretation of Florida Statute § 320.696 for warranty parts reimbursement (D-ll, pg....
...from violating or continuing to violate any of the provisions of 320.60-320.70, or from failing or refusing.to comply with the requirements of this law or any rule or regulation adopted hereunder_. In the instant case, the Plaintiff claims that the language of Florida Statute § 320.696 is clear and that the statute on its face requires retail compensation to dealers for warranty parts....
...definition of “reasonable compensation.” This definition provides that compensation “shall not be determined to be less than the amount charged by a dealer for like work to retail customers for nonwarranty repairs and service....” Fla.Stat. § 320.696 (1993)....
...ictionary, 9 case law, and other statutory contexts, is explained in terms of physical acts, not materials, and equates “work” with “labor.” Thus, Defendant contends that “work” can only mean “labor” in the context of Florida Statute § 320.696....
...10 Moreover, Defendant asserts that if the Florida legislature intended for a dealer to be reimbursed for warranty “parts” at a retail rate, it would have specifically used the word “parts” as it did in § 320.63(5) of the Florida Statutes. Fla. Stat. § 320.63 (5) (1993). Upon the Court’s analysis of § 320.696 and the parties’ different interpret tations of the statute, the Court finds that the statutory language is ambiguous....
...Looking at the statute on its face, the Defendant is correct in its assertion that nowhere in the statute does it mention any obligation on the manufacturer to reimburse the dealer for “parts” at a “retail rate.” The word “part” is not used at all in § 320.696. Rather, the statute provides that a manufacturer must compensate a dealer for “work” as to warranty obligations. Section 320.696 further states that “reasonable compensation” shall be paid to the dealer for “warranty repairs or service,” and shall not be “less than the amount charged by the dealer for like work to retail customers for nonwarranty repairs or service” (emphasis added)....
...See Gonzalez, 980 F.2d at 1420 . The Plaintiff has not set forth any such legislative intent, nor is this Court aware of any. The Court further agrees with Defendant’s assertion that if the legislature intended to include “parts” in the scope of § 320.696, it would have specifically stated so....
...ically enumerated in the statute and “parts” was not. See DeSisto, 706 F.Supp. at 1495 . Assuming also that the legislature acted intentionally and purposely when including the word “parts” in Florida Statute § 320.63(5), and omitting it in § 320.696, 12 the Court is not persuaded by the Plaintiffs argument that § 320.696 requires compensation for warranty parts at a retail rate based on the inclusion of the word “parts” in § 320.63(5)....
...nsee to file of an affidavit stating the rates for dealer reimbursement of “parts and labor.” Requiring a man-ufaeturer/lieensee to file an affidavit stating the rates it agrees to reimburse the dealer for warranty parts is not inconsistent with § 320.696 which simply requires reimbursement of labor at a retail rate. While § 320.63(5) implies a duty on the manufacturer to in fact reimburse a dealer for warranty parts, such reimbursement is provided for in the SSA between the parties, and this Court does not find that such practice violates § 320.696 on its face....
...The Kronon court held that the statute does not require the manufacturer to reimburse the dealer for warranty parts at a retail rate. Id. at 341 . The court further commented that, “[i]f dealers want broader protection against the manufacturers, they must seek it from the legislature.” Id. Notably, Florida Statute § 320.696, very closely parallels the Illinois statute. The one significant difference between the two statutes, is that the Illinois statute specifically requires adequate and fair compensation for “labor and parts.” See 815 ILCS 710/6(a). Whereas, Florida Statute § 320.696 requires “reasonable compensation” for “work,” including “warranty repairs or service.” 17 Thereafter, both statutes go on to define “reasonable compensation” in strikingly similar language both concluding with the same sta...
...pairs. Moreover, even in the Illinois statute which specifically mentions compensation for “parts,” the Kronon court concluded that it did not specifically mention “parts” when addressing reimbursement at a retail rate, as in Florida Statute § 320.696....
...Had the legislature intended to establish a *865 rule of parity for parts as well as labor, it could have said so very simply; there would have been no occasion even to mention wage rates; Id. at 340 . 18 Based on the strikingly similar language of Florida Statute § 320.696 to the Illinois warranty reimbursement statute, this Court adopts Kronon’s rationale....
...chise for the same parts when not provided in satisfaction of a warranty.” Acadia, 44 F.3d at 1052 (citing 10 M.R.S.A. § 1176 (1991) (Me.Rev. StatAnn. tit. 10, § 1176 (West Supp.1994)) (emphasis added)). Unlike the Maine statute, Florida Statute § 320.696 does not expressly state reimbursement for “parts” at a retail rate....
...21 The Court thus finds the Northwood case unpersuasive. Notably, the legislatures of other states which have warranty reimbursement statutes in place, provide another source of comparison and instruction for this Court in construing Florida Statute § 320.696....
... or “work” included parts. Obviously, the other states did not make such an assumption in that they expressly provided for “parts.” Likewise, this Court will not make such an assumption. Lastly, Plaintiff argues that even if the Court finds § 320.696 to be ambiguous, such ambiguity should be exercised in favor of the dealer, for whom the statute was designed to protect....
...This Court will not infer legislative intent or policy, nor will it venture into the .domain of the legislature. By finding in favor of the Plaintiff, the Court would be overstepping its bounds of authority. CONCLUSION Having ruled on the statutory interpretation of Florida Statute § 320.696 and finding that the Plaintiff is-not entitled to reimbursement for warranty parts at a retail rate, this Court need not reach the Defendant’s other grounds for its dispositive motion for summary judgment. Thus, based on the Court’s findings as to § 320.696, the Defendant’s arguments that the Plaintiff has failed to preserve its right to compensation under the statute for past reimbursement, as well as Plaintiffs relinquishment of rights based on accord and satisfaction are moot....
...The foregoing portion of this statute was enacted in 1977, and amended to its present form in 1988, by adding the remaining portion of the statute.' . This term refers to a rate not less than the amount charged by the dealer for like work to retail customers for nonwarranty repairs and service. See Fla.Stat. § 320.696 (1993); (D-2, ¶6)....
...698, 703 , 88 L.Ed. 949 (1944). See also Labor. Black’s Law Dictionary 1439 (5th ed. 1979) (emphasis added). . Plaintiff contends that the Defendant's focus on the word “work” is too narrow, and therefore misconstrues its use in the context of § 320.696....
...e's rules have no force); Fla. Stat. § 320.64 (19) (1993) (denies, suspends, or revokes manufacturer's license if any contractual provisions are contrary to §§ 320.60-320.70). .Notably, the Court has attempted to review the legislative history of § 320.696 by investigating the legislative committee’s documentation in drafting the statute. The documentation that was available on § 320.696 with the Florida State Archives is deficient in any relevant information useful in resolving the issue before the Court. . The "Act" refers to the Illinois Motor Vehicle Franchise Act. . The Court notes that § 6(b) of this statute was added by amendment in 1983, four years after § 6(a). See Kronon, 41 F.3d at 340 . . See Fla.Stat. § 320.696, supra at 860....
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All. of Auto. Mfrs., Inc. v. Jones, 897 F. Supp. 2d 1241 (N.D. Fla. 2012).

Cited 1 times | Published | District Court, N.D. Florida | 2012 WL 4841734, 2012 U.S. Dist. LEXIS 136660

statute the Alliance challenges is Fla. Stat. § 320.696(3) and (4) (the “Parts and Labor Reimbursement
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Jagodnik v. Renault, Inc., 328 So. 2d 211 (Fla. Dist. Ct. App. 1976).

Published | District Court of Appeal of Florida | 1976 Fla. App. LEXIS 14803

...At the close of all the evidence, the trial court entered a directed verdict as to Renault Southeast, Inc., upon plaintiffs’ Count IV which sought treble damages together with costs and attorney’s fees pursuant to the provisions of Florida Statutes 320.696 and 320.697 (1971); 1 hence this appeal by plaintiffs....
...ly to the relationship of a motor vehicle dealer with its licensees and to the exclusion of consumers. It is not necessary to resolve this question in view of our conclusion that the trial court was correct in its interpretation that Florida Statute 320.696 (1971) applies solely to written warranties. AFFIRMED. McCORD and SMITH, JJ., concur. . “320.696 Warranty responsibility....

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