2014 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)
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.
(5)
(6)
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 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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