The purpose of a warranty, regardless of whether it is between a seller and a customer or from  one seller to another seller, is to give one party the assurance that the other party will provide  goods or services in accordance with specific facts and/or conditions.  

Team PRP encourages members to engage in positive and constructive dialog with fellow  members and customers in order to maintain the goodwill of our members as well as the  customer and to negotiate additional terms, discounts or refunds depending on the individual  circumstances of each transaction and the members’ relationship with each other and with the  customer. The goal is to help increase sales for all Team PRP members and to help sustain a  high and positive image for Team PRP and all its members. In many cases, a financial  adjustment goes a long way toward keeping the other party happy. 

5.1.1. Partner-to-Partner Warranty 

Let’s assume a situation for a sale between Team PRP partners. Member A (the seller)  sells an engine to Member B (the broker) who, in turn, sells the engine to a repairer who  then installs it in the owner’s vehicle. It is assumed that Member B will provide the repairer  and/or vehicle owner with their standard or an optional extended warranty (covered in the  section below), but the key difference is that Member B was not the initial provider of the  engine and may have no way to verify the engine’s condition. Member B will likely assume  that Member A followed quality assurance processes to minimize the chances of engine  failure within the warranty period extended by Member B, otherwise a notation would have  been made to the inventory record or the condition of the part so as to have been included  as part of the sale. 

Since the sale of the part is taking place under the umbrella of Team PRP and following  Team PRP standards defined in this Guide and elsewhere, it is imperative that Team PRP  define the conditions under which the sale is taking place to minimize risk for both  members and to set forth the criteria under which a warranty claim relating to the sale is to be handled so as to be fair to both members as well as the customer and Team PRP (since  the customer may associate the results of the transaction with Team PRP as an  organization). 

5.1.1.1. Terms of the Partner-to-Partner Warranty  

• Unless noted on the invoice or other transaction documents, the minimum length of the  warranty for mechanical parts sold between partners is 6 months, parts only. 
  • If the Seller provides a warranty that is longer than 6 months and this is stated in  transaction documents (i.e., the invoice), then that will be the length of the warranty. 
  • If the Broker has purchased an extended warranty that is specifically listed as a  separate line item on the invoice or there are indications on the invoice or other  transaction documents that the extended warranty is built into the price, and the  length of the extended warranty is longer than the 6 months minimum required by  Team PRP then that will be the length of the warranty. 
  • The warranty covers only the parts purchased and not any associated parts.  
  • The warranty does not cover labor (either by the broker, installer or another party) or  freight costs unless negotiated in advance between the Seller and the Broker.
  • The warranty does not cover any other costs, such as car rental, labor by a third  party or the cost of an inspector to determine the cause of failure. Such costs,  however, could be subject of negotiation between the Seller and the Broker. 
  • The warranty will be in effect provided that the part is installed and maintained by a  qualified person in accordance with the processes and procedures defined by the vehicle’s manufacturer.
  • The warranty is in effect provided the installation is carried out in the US or Canada. 
  • For the warranty to be in effect, the part’s functionality must not be altered other  than as required to be installed and in accordance with the Interchange notes (as in  B fits A by changing some parts). 
• The warranty between partners begins on the date of the invoice unless otherwise  defined on the invoice. This is even if the part is delayed in shipping or there is a lag  before the part is installed. 
• In the event that a part is replaced during the warranty period, the warranty for the  replacement will be the balance of the time left from the original warranty and will not  restart another 6-month warranty period. 
• The warranty covers any part sold from one Team PRP member to another where both  were members in good standing at the time of the sale. 

5.1.1.2. Warranty Inspection 

Team PRP does not require a warranty inspection prior to the filing of a warranty claim  between partners. However, should the partners agree that an inspection is to be made  and have agreed on how to pay for the inspection, Team PRP has preferred vendor  relationships with two inspection services: Warranty Inspection Services and Southwest  Inspections. Both offer preferred rates and benefits to Team PRP members. 

In addition, URG offers a subscriber-based warranty claims program with its dedicated  toll-free number, the use of ASE certified mechanics and support staff, a tracking  mechanism to manage claims and dedicated URG claims software. Contact URG for  details or consult the Warranty Claims Program tools in the URG web site. 

5.1.1.3. Partner-to-Partner Warranty Indemnification 

The only indemnification or compensation REQUIRED by Team PRP is for a credit to be  issued for the net value of a part that was sold with a Partner-to-Partner warranty as  defined in this document and which subsequently failed during the warranty period for  which the brokering member requests a credit. The selling member must approve the  credit and indicate if the part is to be returned or disposed of. 

5.1.2. Team PRP’s Coast to Coast Customer Warranty Policy 

Team PRP members have agreed to abide by the high-quality standards defined in this  Guide and pride themselves in providing the highest level of quality relating to the  recycled OEM parts they sell. Parts are performance-tested using the most current  industry practices and in accordance with the best uniform standards in the industry. This  permeates throughout the process from the purchase of the source vehicle, through  inventory and dismantling, to quality assurance and quality control and to part  preparation, packaging and shipping. However, since each member is independent and  since how the quality standards are carried out varies, the “standard” and extended  warranties each offers vary as well. 

• To professionals (insurers, auto body repairers and mechanical repairers) a customer  warranty is important because their reputation is on the line with every repair they pay for or carry out and failure of a part will likely reflect on their work, their KPI’s, and  will require additional labor to correct. 
• To a consumer, a customer warranty provides confidence when purchasing an OEM  recycled part which, in their mind and regardless of how we as recyclers feel about it,  represents a higher risk than when purchasing new. 
• In short, a superior customer warranty gives Team PRP an opportunity to prove to the  industry and consumers that Team PRP is the very best. 

5.1.2.1. Team PRP Customer Warranty Policy 

Team PRP requires that each of its members: 

• Offer a variety of standard and extended warranties designed to fit virtually any need  and budget. 
• One of the warranties offered must be at no additional cost to the customer. • Their sales staffs must be trained to explain each of the warranties available for the  customer to choose from. 
• Must ensure that the warranty terms are clearly stated on the invoice. • The stated warranty must stipulate a length of time, what is covered under the  customer warranty, what to do in case of failure and any conditions or limitations. • In the event of a customer warranty replacement, the term of the warranty does not  begin again with the replacement part and it is valid until the expiration of the original warranty. 

5.1.2.2. Why does Team PRP Need a Coast-to-Coast Customer  Warranty 

Having a national presence offers Team PRP and its members a strategic advantage  over most other recyclers. With most large insurers having a regional or national  presence and with consolidation in the auto body and mechanical repair business placing  related shops in wide regional areas, a Coast-to-Coast customer warranty offers  assurance that the part has been subject to uniform high quality standards regardless of  its original source and that the supplier(s) will stand behind the part even if the ultimate  customer were to move or be traveling away from home. To achieve this, it is necessary  that all Team PRP members agree with and abide by the standards and criteria defined  by Team PRP in this Guide. 

5.1.2.3. Coast-to-Coast Customer Warranty Claims 

• If a customer warranty claim is made to you and you were the original seller of the  part, you are expected to make every effort to meet or exceed the terms of your  customer warranty. Keep in mind that, compared to the total number of parts sold,  warranty claims represent a minimal number of events. Look at this as an opportunity  to prove to your customers that customer care and ensuring quality is a primary goal  and that a negative image created by the failure of the part could damage your image  and that of Team PRP. 
• As a member of Team PRP there is the possibility that you may be contacted for a  part failure on a part you did not sell. It is one of the strategic advantages of Team  PRP to provide customers with the added assurance that warranty claims will be  honored coast-to-coast. Should such an unlikely event occur, identify the selling  member and contact them proactively to assist in coordinating the necessary  activities to satisfy the needs of the customer and your Team PRP partner.