New York Consolidated Laws, General Business Law - GBS § 696-h. Warranty

2. (a) The minimum basis for compensating said dealer for warranty work as provided for herein shall be calculated for labor, service repair, diagnostic work and parts and shall be adequate for the work to be performed in accordance with the reasonable and customary account of time required to complete such work, including such reasonable time as required by the dealer for the diagnosis of such repair, expressed in hours and fractions of hours multiplied by the dealer's established hourly retail labor rate.  Prior to filing a claim for reimbursement for warranty work, the dealer must notify the supplier of his hourly retail labor rate.  The minimum lawful basis for compensation to the dealer for parts used in fulfilling said warranty work shall be at the dealer's costs thereof, including all freight and handling charges applicable thereto, plus at least twenty percent of said sum to reimburse the dealer's reasonable costs of doing business and providing such warranty service on the supplier's behalf.

(b) Nothing contained in this section shall prohibit a supplier from auditing such warranty claims submitted by such dealers for a period of up to one year following the payment of such claims and further provided that such suppliers may seek reimbursement from the dealers on all warranty claims which were misrepresented.