2015 Kentucky Revised Statutes CHAPTER 190A - RECREATIONAL VEHICLE SALES 190A.080 Obligations of warrantor of products sold by new recreational vehicle dealer -- Audits of dealer records -- Warranty claims submission -- Storage of defective warranty parts -- Notification of warrantor if dealer is unable to perform warranty repair -- Approval or disapproval of warranty claim.
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190A.080 Obligations of warrantor of products sold by new recreational vehicle
dealer -- Audits of dealer records -- Warranty claims submission -- Storage of
defective warranty parts -- Notification of warrantor if dealer is unable to
perform warranty repair -- Approval or disapproval of warranty claim.
(1)
(2)
(3)
(4)
(5)
A warrantor has all the following obligations to each new recreational vehicle
dealer engaged in the sale of products that are covered by a warranty from that
warrantor:
(a) To specify in writing to the dealer the obligations of the dealer, if any, for
preparation, delivery, and warranty service on its products;
(b) To compensate the dealer for warranty service required of the dealer by the
warrantor;
(c) To provide the dealer with a schedule of compensation the warrantor will pay
for warranty work and service, and the time allowances of the warrantor for
the performance of that work and service. All of the following conditions
apply to the schedule of compensation required under this paragraph:
1.
Time allowances for the diagnosis and performance of warranty labor
shall be reasonable for the work to be performed;
2.
In the determination of what constitutes reasonable compensation under
this section, the principal factors to be considered are the actual wage
rates paid by the dealer, and the actual retail labor rate charged by
dealers in the community in which the dealer is doing business; and
3.
The compensation of a dealer for warranty labor may not be less than the
lowest retail labor rates actually charged by the dealer for like
nonwarranty labor, as long as those rates are reasonable;
(d) To reimburse the dealer for any warranty part, accessory, or complete
component at actual wholesale cost plus a minimum thirty percent (30%)
handling charge up to a maximum of one hundred fifty dollars ($150) and the
cost, if any, of freight to return such parts, components, or accessories to the
warrantor; and
(e) To deny dealer claims for warranty compensation only for cause, including
but not limited to performance of nonwarranty repairs, material
noncompliance with the published policies and procedures of the warrantor,
lack of material documentation of claims, fraud, or misrepresentation.
A warrantor may conduct audits of the records of a dealer that sells its warranted
products on a reasonable basis.
A dealer shall submit warranty claims to a warrantor within forty-five (45) days
after completing all warranty work on a warranted product.
A dealer is not obligated to store defective warranty parts for more than thirty (30)
days from the time the warranty work is paid by the warrantor, if the defective parts,
components, or accessories are not immediately returned to the warrantor.
A dealer shall immediately notify the warrantor in writing if the dealer is unable to
perform any warranty repair within ten (10) days of receipt of a written complaint
(6)
from a consumer.
A warrantor shall approve or disapprove a warranty claim on a warranted product in
writing within thirty (30) days after the date the dealer submits the claim, if the
claim is submitted in the manner and in the form prescribed by the warrantor. If a
claim that is properly submitted is not specifically disapproved in writing by a
warrantor within the thirty (30) day time period, the claim shall be considered
approved by the warrantor, and the warrantor shall pay the amount of the claim to
the dealer within sixty (60) days after the dealer submitted the claim.
Effective: January 1, 2015
History: Created 2014 Ky. Acts ch. 27, sec. 8, effective January 1, 2015.
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