Ch. 498                                        1994 LAWS OF MARYLAND

1. CONDUCT AN AUDIT OF ANY CLAIM FILED UNDER THIS
SECTION; OR

2. CHARGE BACK FOR ANY CLAIM THAT IS PROVEN TO BE

FRAUDULENT.

(III) AN AUDIT UNDER THIS PARAGRAPH SHALL BE CONDUCTED
ACCORDING TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

15-212.1.

(A)     UPON THE FILING OF A CLAIM, A MANUFACTURER, FACTORY BRANCH,
OR DISTRIBUTOR SHALL COMPENSATE A DEALER FOR ANY INCENTIVE OR
REIMBURSEMENT PROGRAM SPONSORED BY THE MANUFACTURER, FACTORY
BRANCH, OR DISTRIBUTOR. UNDER THE TERMS OF WHICH THE DEALER IS ELIGIBLE
FOR COMPENSATION.

(B)     (1) A CLAIM FILED UNDER THIS SECTION SHALL BE:

(I)       IN THE MANNER AND FORM PRESCRIBED BY THE
MANUFACTURER, FACTORY BRANCH, OR DISTRIBUTOR; AND

(II)     APPROVED OR DISAPPROVED WITHIN 30 DAYS OF RECEIPT.

(2)      A CLAIM NOT APPROVED OR DISAPPROVED WITHIN 30 DAYS OF
RECEIPT SHALL BE DEEMED APPROVED.

(3)      PAYMENT OF A CLAIM FILED UNDER THIS SECTION SHALL BE MADE
WITHIN 30 DAYS OF APPROVAL.                                                                                       

(C) (1) IF A CLAIM FILED UNDER THIS SECTION IS SHOWN BY THE
MANUFACTURER, FACTORY BRANCH, OR DISTRIBUTOR TO BE FALSE OR
UNSUBSTANTIATED, THE MANUFACTURER, FACTORY BRANCH, OR DISTRIBUTOR
MAY CHARGE BACK THE CLAIM WITHIN 24 MONTHS FROM THE DATE THE CLAIM
WAS PAID OR CREDIT ISSUED.                                                                    

(2)      THIS PARAGRAPH DOES NOT LIMIT THE RIGHT OF A
MANUFACTURER, FACTORY BRANCH, OR DISTRIBUTOR TO:

(I)       CONDUCT AN AUDIT OF ANY CLAIM FILED UNDER THIS
SECTION; OR                                                                              

(II)     CHARGE BACK FOR ANY CLAIM THAT IS PROVEN TO BE
FRAUDULENT.

(3)      AN AUDIT UNDER THIS PARAGRAPH SHALL BE CONDUCTED
ACCORDING TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1994.

Approved May 26, 1994.

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