Download as PDF
365.833 Claims by retailers for payment under warranty agreements.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Claims filed by a retailer for payment under warranty agreements shall be
approved or disapproved within thirty (30) days of receipt by the supplier. All
claims for payment shall be paid within thirty (30) days of their approval. If any
claim is disapproved, the supplier shall notify the retailer within thirty (30) days
stating the specific grounds upon which the disapproval is based. If a claim is
not specifically disapproved within thirty (30) days of receipt, it shall be deemed
approved and payment by the supplier shall be within thirty (30) days.
If, after termination of a retail agreement contract, a retailer submits a claim to
the supplier for warranty work performed prior to the effective date of the
termination, the supplier shall accept or reject the claim within thirty (30) days
of receipt. All claims for payment shall be paid within thirty (30) days of their
acceptance. If any claim is rejected, the supplier shall notify the retailer within
thirty (30) days stating the specific grounds upon which the rejection is based.
If a claim is not specifically rejected within thirty (30) days of receipt, it shall be
deemed accepted and payment by the supplier shall be within thirty (30) days.
Warranty work performed by a retailer shall be compensated in accordance
with the reasonable and customary amount of time required to complete the
work, expressed in hours and fractions of hours, multiplied by the retailer's
established customer hourly retail labor rate, which shall have previously been
made known to the supplier.
Expenses expressly excluded under the supplier's warranty to the customer
shall not be included nor required to be paid on requests for compensation
from a retailer for warranty work performed.
Expenses for all parts used by a retailer in performing warranty work shall be
paid to the retailer in the amount equal to the retailer's net price for parts used,
plus a minimum of fifteen percent (15%). The percentage additive is to
reimburse the retailer for reasonable costs of doing business in performing
warranty service on the supplier's behalf, including but not limited to freight and
handling costs incurred.
The supplier has the right to adjust for errors discovered during audit and, if
necessary, to adjust claims paid in error.
A retailer may accept the manufacturer's reimbursement terms and conditions
in lieu of the other provisions provided by this section.
Effective:April 21, 2004
History: Created 2004 Ky. Acts ch. 144, sec. 12, effective April 21, 2004.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.