A product i sold to a customer and they installed it may be faulty. Who would have to pay for the labor?

I manufacture a product for motorcycles. I sold one to a dealer. The dealer sold it to his customer and installed it. The customer took it home and said it failed. So, the dealer took it back and looked at the product and did not find a problem, so the customer took it back and claim there was still a problem. I am willing to any part that may have a problem. The dealer is asking to be reimbursed for his labor. The dealer has sold and installed a lot of this product and has not had any problems like this. Who should pay for the labor now?

I have offered him a credit on his account so on his next order we will take off the cost of labor. He does not want that he wants cash.

The dealer is liable for the labor while you are liable for the cost of the part. It is part of the dealer's cost of doing business. If this is the first time it happens, they can eat that easily. If you repeatedly provide faulty parts, then they will eventually stop buying from you. However, you do not have to reimburse the installation fee, legally speaking, as you do not have any control over the cost of installing the parts by the dealer.

Think of it this way, your ordinary course of business is to manufacture and sell parts. The dealer's ordinary course of business is to replace and install the parts. The dealer is in the business of provide car service, why should you be burdened with their business?

Of course, you should take care of your dealer if you want repeat business. What you are doing is correct, give them credit, tell them it is your company's policy not to refund cash. If they don't like it, TOUGH! They can take you to court, over what? $200? $500? Probably not worth the cost of litigation.

Should probably split it unless you have a clause in your sales contract that specifies who pays.

In law, typically, you'd only be responsible for refunding the price of the defective item that you sold. The governing language, though, would be "what does it say in your warranty?"

If the answer is "I don't have a written warranty policy"...... WRITE ONE! Business goes SO much more smoothly when both sides know up front what their rights and responsibilities are.

As a *business* decision, though, if the dealer sells a lot of your product, isn't it worth the cost of an installation to keep him happy?

Richard

As long as it's not outlandish, I'd recommend taking care of your dealer (remember he's out there pushing your product, and installing it from the sound of things). It's a little unusual for him to charge you for labor, but you can probably work something out with him (an extra point off his next order, or a discount on the shipping etc.).

As far as who's liable for the labor, it depends on whether or not the part failed because it was poorly installed. Since you'd rather not find yourself in a position of bickering with your dealer, I'd recommend forgoeing that investigation, and just paying him off somehow.

you

You are no liable to the decision of the dealer to spend thier time installing the part, you are however responsible for the part.

However if the dealer does sell a lot of your goods as a good will gesture you should work out a solution that you can both live with, perhaps meeting him half way (I personally would do this by offering credit towards the next order to ensure repeat business) Would it cost more to loose the customer or to repay what he is asking?

Legal contracts aside, I would recommend paying for the labour.

It will certainly cement relations with your dealer. Sometimes the fact that someone does the extra that they are not legally obligated to do can make the difference in a successful business with a good reputation, and a mediocre one.

if you did not INSTALLE it then its not your fix if the part is not working rite then you should get them another one and make shure they gave him another one and their not giveing you sone bull S#*t and tell ing you that they fix it and their was nothing rong with it in the first place I would ask to see the repair bill and what was done or to speak with the comster in person just so you know you made it so you would know whats rong with it it seems funny that they did not take it to you to fix if you made it sounds like their bull s#%ting you

agree with what others said about maintaining relationships.

I would add that in exchange for making it right with the dealer, you will need to re-train the dealer in proper installations in order to minimize this issue again.

After all, although you agree to pay for it, ultimately it is agreed it was his installation error that caused the problem.

He might or might not like that, but his reaction will tell you a lot about the kind of business person he is going to be for you. Ultimately even if he does or might react badly, you can finesse it and still get your way.