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Unless the driver told the Service Manager what he did to blow the Tranny, they had to replace it and I think they still had to honor the warranty. The car was built to be driven.
When a Dealership does warranty work they have to send the defective part to manufacturer for reimbursement. Unless the dealership wants to eat the cost, or you have bought a crap load of vehicles from them and they are willing to help you out... You will pay.
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