2013 Kentucky Revised Statutes
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367.865 Informal dispute resolution system.
Effective January 1, 1983, each motor vehicle manufacturer shall offer to the
buyer a comprehensive informal dispute resolution system. By transacting
business in the Commonwealth of Kentucky, each manufacturer is deemed to
have voluntarily consented to participate in the system. Each system shall
operate pursuant to written rules and procedures which:
(a) Ensure that the system is impartial, accessible to the buyer, and
expeditious, and shall operate at no cost to the buyer;
(b) Provide that if the buyer elects to submit the dispute to the system, the
manufacturer shall not refuse to submit the dispute to the system as long
as the subject of the dispute occurred during the first two (2) years or
twenty-five thousand (25,000) miles, whichever occurs first, of the buyer's
ownership of the motor vehicle involved in the dispute;
(c) Provide that the system shall provide for an oral hearing, unless the buyer
agrees in writing that the system shall render a decision based solely on
documents submitted to it;
(d) Shall include, but is not limited to, procedures for informing the buyer of
the existence of the system, preparing the agreement between the buyer
and the manufacturer whereby the dispute may be submitted to the
system, selecting the members of the decision-making panel, notifying the
parties of the complaint, investigating the complaint, providing for
hearings, rendering a fair and expeditious decision, and informing parties
of the decision.
The decision of the system shall be legally binding on the manufacturer. The
decision of the system shall not be legally binding on the buyer, unless the
manufacturer elects to have its system binding on all buyers who submit their
disputes to the system. If the system is to be binding to both parties, the written
agreement between the buyer and the manufacturer whereby the dispute is
submitted to the system shall include in conspicuous, bold-faced type the
"YOU SHOULD REMEMBER THAT BY ENTERING INTO THIS
AGREEMENT YOU ARE DECIDING TO USE THIS DISPUTE
RESOLUTION SYSTEM TO SETTLE YOUR DISPUTE INSTEAD OF
GOING TO COURT. AFTER A DECISION BY AN ARBITRATOR,
NORMALLY A COURT WILL REFUSE TO HEAR THE FACTS IN A
CASE IN ALL BUT THE MOST UNUSUAL SITUATIONS. YOUR
SIGNATURE IS REQUIRED IMMEDIATELY BELOW TO INDICATE
THAT YOU HAVE READ THIS DISCLOSURE.
SIGNATURE OF BUYER
Before a dispute may be submitted to a system which is legally binding on both
parties, the buyer shall sign the disclosure statement required by subsection
(2) of this section.
Each manufacturer shall take steps reasonably calculated to make the buyer
aware of the existence of the system at the time the dispute arises.
Each manufacturer shall take all steps necessary to ensure that the system is
sufficiently insulated from the manufacturer so that the decisions of the system
are not influenced by the manufacturer. The system's decision-making panel
shall be composed of members at least fifty-one percent (51%) of whom have
no involvement in the manufacture, distribution or sale of motor vehicles. No
member deciding a dispute shall be a party to the dispute; nor shall any
member deciding a dispute be an employee or agent of a party to the dispute,
unless solely for the purpose of impartially deciding disputes.
Nothing herein shall prohibit the manufacturer from participating in a system
sponsored or administered by an impartial third party having no direct
involvement in the manufacture, distribution, sale, or service of motor vehicles.
Each dispute resolution system shall provide to the office of the Attorney
General, upon request, the name and address of each buyer whose complaint
is resolved through its system. The Attorney General shall have the authority to
monitor each dispute resolution system as well as review the records on each
complaint, upon request. An annual report shall be prepared and published by
the office of the Attorney General evaluating the performance, effectiveness,
and benefits of the system, and shall include in this report recommendations
for continuing, modifying, or terminating the requirement of this section.
Effective:July 13, 1984
History: Amended 1984 Ky. Acts ch. 360, sec. 1, effective July 13, 1984. -Created 1982 Ky. Acts ch. 193, sec. 2, effective July 15, 1982.
CHAPTER 367 - CONSUMER PROTECTION
367.865 Informal dispute resolution system.
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