{"data":{"id":"us-ky/krs-367.865","jurisdiction":"us-ky","citation":"KRS 367.865","heading":"Informal dispute resolution system.","body":"(1) Effective January 1, 1983, each motor vehicle manufacturer shall offer to the buyer\na comprehensive informal dispute resolution system. By transacting business in the\nCommonwealth of Kentucky, each manufacturer is deemed to have voluntarily\nconsented to participate in the system. Each system shall operate pursuant to written\nrules and procedures which:\n(a) Ensure that the system is impartial, accessible to the buyer, and expeditious,\nand shall operate at no cost to the buyer;\n(b) Provide that if the buyer e lects to submit the dispute to the system, the\nmanufacturer shall not refuse to submit the dispute to the system as long as the\nsubject of the dispute occurred during the first two (2) years or twenty -five\nthousand (25,000) miles, whichever occurs first, o f the buyer's ownership of\nthe motor vehicle involved in the dispute;\n(c) Provide that the system shall provide for an oral hearing, unless the buyer\nagrees in writing that the system shall render a decision based solely on\ndocuments submitted to it;\n(d) Shall include, but is not limited to, procedures for informing the buyer of the\nexistence of the system, preparing the agreement between the buyer and the\nmanufacturer whereby the dispute may be submitted to the system, selecting\nthe members of the decision -making panel, notifying the parties of the\ncomplaint, investigating the complaint, providing for hearings, rendering a fair\nand expeditious decision, and informing parties of the decision.\n(2) The decision of the system shall be legally binding on the man ufacturer. The\ndecision of the system shall not be legally binding on the buyer, unless the\nmanufacturer elects to have its system binding on all buyers who submit their\ndisputes to the system. If the system is to be binding to both parties, the written\nagreement between the buyer and the manufacturer whereby the dispute is\nsubmitted to the system shall include in conspicuous, bold -faced type the following\nstatement:\n\"YOU SHOULD REMEMBER THAT BY ENTERING INTO THIS\nAGREEMENT YOU ARE DECIDING TO USE THIS DIS PUTE\nRESOLUTION SYSTEM TO SETTLE YOUR DISPUTE INSTEAD OF\nGOING TO COURT. AFTER A DECISION BY AN ARBITRATOR,\nNORMALLY A COURT WILL REFUSE TO HEAR THE FACTS IN A\nCASE IN ALL BUT THE MOST UNUSUAL SITUATIONS. YOUR\nSIGNATURE IS REQUIRED IMMEDIATELY BELOW TO IND ICATE\nTHAT YOU HAVE READ THIS DISCLOSURE.\n----------------------------------\"\nSIGNATURE OF BUYER\n(3) Before a dispute may be submitted to a system which is legally binding on both\nparties, the buyer shall sign the disclosure statement required by subsection (2) of\nthis section.\n(4) Each manufacturer shall take steps reasonably calculated to make the buyer aware\nof the existence of the system at the time the dispute arises.\n(5) Each manufacturer shall take all steps necessary to ensure that the system is\nsufficiently insulated from the manufacturer so that the decisions of the system are\nnot influenced by the manufacturer. The system's decision-making panel shall be\ncomposed of members at least fifty -one percent (51%) of whom have no\ninvolvement in the manufacture, distribution or sale of motor vehicles. No member\ndeciding a dispute shall be a party to the dispute; nor shall any  member deciding a\ndispute be an employee or agent of a party to the dispute, unless solely for the\npurpose of impartially deciding disputes.\n(6) Nothing herein shall prohibit the manufacturer from participating in a system\nsponsored or administered by an impartial third party having no direct involvement\nin the manufacture, distribution, sale, or service of motor vehicles.\n(7) Each dispute resolution system shall provide to the office of the Attorney General,\nupon request, the name and address of each buye r whose complaint is resolved\nthrough its system. The Attorney General shall have the authority to monitor each\ndispute resolution system as well as review the records on each complaint, upon\nrequest. An annual report shall be prepared and published by the  office of the\nAttorney General evaluating the performance, effectiveness, and benefits of the\nsystem, and shall include in this report recommendations for continuing, modifying,\nor terminating the requirement of this section.","path":["KRS Chapter 367"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35097","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:06Z","sha256":"5a135245921d630c59edff0eb913e070fdf0ceec4f10f2b67cb609e26876443c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-367.860","next":"us-ky/krs-367.867"},"notice":"GroundRules: Original legal text. Not legal advice."}