16-120. Reimbursement for warranty work.
16-120
16-120. Reimbursement for warranty work.(a) As used in this section:
(1) "Contract" has the meaning provided by K.S.A. 16-1302 or 16-1402, andamendments thereto.
(2) "Dealer" includes farm equipment dealers, as defined in K.S.A. 16-1202,and amendments thereto, or retailers, as defined in K.S.A. 16-1302 or 16-1402,and amendments thereto.
(3) "Dealership agreement" has the meaning provided by K.S.A. 16-1202, andamendments thereto.
(4) "Equipment" includes farm equipment, as defined in K.S.A. 16-1202, andamendments thereto, outdoor power equipment, as defined in K.S.A. 16-1302, andamendments thereto, or equipment, as defined in K.S.A. 16-1402, and amendmentsthereto.
(5) "Manufacturer" includes farm equipment manufacturers as defined in K.S.A.16-1202, and amendments thereto, or suppliers, as defined in K.S.A. 16-1302 or16-1402, and amendments thereto.
(b) With respect to any equipment sold on or after July 1, 2000, any warrantyrepair work performed for a consumer by a dealer under the provisions of amanufacturer's express warranty, shall require the manufacturer to reimbursethe dealer at an hourly labor rate which is the same as the hourlylabor rate the dealer currently charges consumers for nonwarranty repair work.
(c) Nothing in this act shall apply to, or operate or be construed toinvalidate, impair or otherwise infringe upon the specific requirements of anycontract or dealership agreement between a dealer and a manufacturer enteredinto prior to the effective date of this act, if such contract or dealershipagreement is in effect on the effective date of this act.
(d) The provisions of this section shall not apply to a manufacturer whoprovides in a written dealer agreement for compensation to a dealer forwarranty labor costs either as (1) a discount in the pricing of the equipmentto the dealer or, (2) a lump sum payment to the dealer, provided such paymentis not less than 5% of the suggested retail price of the equipment.
History: L. 2000, ch. 83, § 1; July 1.