KRS 365.833: Claims by retailers for payment under warranty agreements.

(1) 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.

(2) 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 rejec t 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 whi ch 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.

(3) 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.

(4) 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.

(5) Expenses for all parts used by a ret ailer 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.

(6) The supplier has the right to adjust for errors discovered during audit and, if

necessary, to adjust claims paid in error.

(7) A retailer may accept the manufacturer's reimbursement terms and conditions in lieu

of the other provisions provided by this section.