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, and
amendments 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, and
amendments thereto.
(4) "Equipment" includes farm equipment, as defined in K.S.A. 16-1202, and
amendments thereto, outdoor power equipment, as defined in K.S.A. 16-1302, and
amendments thereto, or equipment, as defined in K.S.A. 16-1402, and amendments
thereto.
(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 or
16-1402, and amendments thereto.
(b) With respect to any equipment sold on or after July 1, 2000, any warranty
repair work performed for a consumer by a dealer under the provisions of a
manufacturer's express warranty, shall require the manufacturer to reimburse
the dealer at an hourly labor rate which is the same as the hourly
labor rate the dealer currently charges consumers for nonwarranty repair work.
(c) Nothing in this act shall apply to, or operate or be construed to
invalidate, impair or otherwise infringe upon the specific requirements of any
contract or dealership agreement between a dealer and a manufacturer entered
into prior to the effective date of this act, if such contract or dealership
agreement is in effect on the effective date of this act.
(d) The provisions of this section shall not apply to a manufacturer who
provides in a written dealer agreement for compensation to a dealer for
warranty labor costs either as (1) a discount in the pricing of the equipment
to the dealer or, (2) a lump sum payment to the dealer, provided such payment
is not less than 5% of the suggested retail price of the equipment.
History: L. 2000, ch. 83, § 1; July 1.