Session of 1998
By Representative Shore
            9             AN ACT concerning warranties and warranty claims related to farm, in-
10             dustrial or outdoor power equipment.
12       Be it enacted by the Legislature of the State of Kansas:
13           Section 1. (a) The provisions of this section apply to a warranty claim
14       submitted by a farm equipment, industrial equipment or outdoor power
15       equipment dealer: (1) While the dealer agreement is in effect; or
16           (2) after the termination of the dealer agreement, if the claim is for
17       work performed before the effective date of the termination.
18           (b) Not later than the 30th day after the date a manufacturer or sup-
19       plier receives a warranty claim from a dealer, the manufacturer or sup-
20       plier shall accept or reject the claim. A claim not rejected before that
21       deadline is deemed accepted.
22           (c) Not later than the 30th day after the date the claim is accepted
23       or rejected, the manufacturer or supplier shall: (1) Pay an accepted claim;
24       or
25           (2) send the dealer written notice of the grounds for rejection of a
26       rejected claim.
27           (d) A manufacturer or supplier that pays a claim, including a manu-
28       facturer or supplier of an electric engine or motor, may not pay less than
29       the hourly labor rate and other expenses involved in the work that the
30       dealer regularly charges to a retail customer who does not assert a war-
31       ranty and the dealer's net price plus 15% for parts. The number of hours
32       of labor claimed may not exceed 1 1/2 times the manufacturer's or sup-
33       plier's recommended hours for the repair involved.
34           (e) After payment of a claim, a manufacturer or supplier may not
35       charge back, set off or otherwise attempt to recover all or part of the
36       amount of the claim unless: (1) The claim was fraudulent;
37           (2) the work for which the claim was made was not properly per-
38       formed or was unnecessary to comply with the warranty; or
39           (3) the dealer did not substantiate the claim according to the written
40       requirements of the manufacturer or supplier in effect when the claim
41       arose.
42           (f) A dealer, manufacturer or supplier authorized to sell new farm,
43       industrial or outdoor power equipment shall give the purchaser a written

HB 2906


  1       warranty agreement including replacement or cash refund. If the dealer
  2       determines the equipment cannot be made usable, the manufacturer or
  3       supplier is liable to the purchaser for the replacement or cash refund.
  4           (g) The provisions of this act apply only to a warranty claim received
  5       by a manufacturer or supplier on or after the effective date of this act. A
  6       warranty claim received before the effective date of this act is governed
  7       by the law in effect when the claim was received.
  8           Sec. 2. This act shall take effect and be in force from and after its
  9       publication in the statute book.