KRS 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) 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 d ealer 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 compensati on 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 all owances 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 charge d 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 maxi mum 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.

(2) A warrantor may conduct audits of the records of a dealer that sells its war ranted

products on a reasonable basis.

(3) A dealer shall submit warranty claims to a warrantor within forty -five (45) days

after completing all warranty work on a warranted product.

(4) 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) 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.

(6) 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 writ ing 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.