Preview Extended Service Contract Sample

Effective 1/11

YAMAHA EXTENDED SERVICE CONTRACT

YAMAHA MOTORCYCLE, ATV, SIDE x SIDE, SCOOTER, SNOWMOBILE, WATERCRAFT, AND GENERATOR

PLEASE READ THIS CONTRACT CAREFULLY. IT CONTAINS THE ENTIRE AGREEMENT BETWEEN YAMAHA MOTOR CORPORATION, U.S.A. AND YOU. THIS CONTRACT TAKES THE PLACE OF ANY OTHER

WRITTEN OR ORAL STATEMENTS MADE TO YOU ABOUT YOUR COVERAGE UNDER THIS CONTRACT. THIS CONTRACT IS NOT AN INSURANCE POLICY. YAMAHA MOTOR CORPORATION, U.S.A. DOES NOT

AUTHORIZE ANYONE TO CREATE FOR IT ANY OBLIGATION THAT IS NOT CONTAINED IN THIS CONTRACT. THE PURCHASE OF THIS Y.E.S. CONTRACT IS NOT REQUIRED TO OBTAIN FINANCING OR TO

PURCHASE OR LEASE THIS VEHICLE.

DEFINITIONS

Definitions of key words used in this Contract (key words appear in bold type):

YAMAHA, GENUINE YAMAHA, WE, US or OUR: Yamaha Motor Corporation, U.S.A.

(Service Provider/Obligor).

Y.E.S. CONTRACT: this Yamaha Extended Service Contract which includes your

name and the information about your Yamaha vehicle.

DECLARATIONS: that portion of the Y.E.S. Contract with information about the

customer and the covered vehicle.

CUSTOMER, YOU, or YOUR: the owner of record of the vehicle shown in the

Declarations registered with Yamaha.

COVERED VEHICLE, IDENTIFIED VEHICLE, VEHICLE or YOUR VEHICLE: the

Motorcycle, ATV, Side x Side, Scooter, Snowmobile, Watercraft, or Generator shown

in the Declarations.

YAMAHA DEALER: the authorized Yamaha Dealer who sold you this Y.E.S.

Contract, or another franchised Yamaha Dealer who is authorized to repair the

covered vehicle.

BREAKDOWN or MECHANICAL BREAK-DOWN: the breakage or failure of a

covered part caused by a defect or faulty workmanship from the manufacturer, making

that covered part incapable of performing the function for which it was designed. The

identified vehicle will be covered only for Mechanical Breakdown(s) which occur(s)

in the United States.

Breakdown or Mechanical Breakdown does not include the gradual reduction in

operating performance caused by wear and tear where a failure has not occurred.

NEW VEHICLE(S): a vehicle with a Yamaha Limited Warranty in effect at the time of

Y.E.S. Contract sale. Refer to the Warranty Statement that came with your purchase.

USED VEHICLE(S): a Motorcycle, ATV, Side x Side, Scooter, Snowmobile, Watercraft,

or Generator sold by the Yamaha Dealer for which the Yamaha Limited Warranty has

expired, and which meets specific eligibility requirements.

LIMITED WARRANTY: the warranty which comes with the new vehicle from Yamaha

at no charge to the customer.

YAMAHA BOAT HULL AND DECK LIMITED WARRANTY: the five (5) year warranty

on the hull and deck of a new Yamaha Boat which comes with the vehicle from

Yamaha at no charge to the customer. Refer to the Warranty Statement that came

with your purchase.

YAMAHA BOAT COMPONENTS LIMITED WARRANTY: the one (1) year warranty

on everything except the hull and deck of a new Yamaha Boat which comes with the

vehicle from Yamaha at no charge to the customer. Refer to the Warranty Statement

that came with your purchase.

PRE-EXISTING CONDITION(S): defects on used vehicles which were present on

the purchase date of the Y.E.S. Contract.

STORAGE: following the procedures outlined in the owner’s manual for the covered

vehicle under the section entitled “STORAGE.”

GENERAL PROVISION

This Y.E.S. Contract governs a specic agreement between Yamaha and the

customer which is applicable exclusively to the covered vehicle. Yamaha will,

without cost to the customer and subject to the conditions and exclusions of this

Y.E.S. Contract, repair or replace parts damaged as a result of a mechanical

breakdown when the covered vehicle is made available for repairs at a Yamaha

Dealer. At Yamaha’s discretion, replacement parts used in covered repairs will

be genuine Yamaha new, genuine Yamaha remanufactured, or parts of like kind

and quality.

CUSTOMER’S RESPONSIBILITY

The customer’s responsibility under this Y.E.S. Contract

shall be to:

1. Operate and maintain the vehicle as specified in the appropriate owner’s

manual. (In Minnesota, if the vehicle was not equipped with an owner’s manual

when you purchased the vehicle, upon your request, and for a fee, Yamaha will

provide you with an owner’s manual which lists the manufacturer’s maintenance

schedule.)

2. Give notice to a Yamaha Dealer of any and all apparent defects within ten (10)

days after discovery, and make the covered vehicle available at that time for

inspection and repairs at such Yamaha Dealer’s place of business.

3. Either (a) use the maintenance log provided with the Y.E.S. Contract and have it

verified by the Yamaha Dealer that performs the services or repairs, or (b) keep

receipts and other records that show the dates, mileage, elapsed hours of use (if

applicable), costs, services, and repairs performed (including storage).

4. Follow Yamaha guidelines for the quality and type of fuel, oil, and lubricants

used. Failure to follow guidelines in the appropriate owner’s manual may result in

denial of certain claims.

5. Follow the guidelines on storage of the vehicle. Failure to properly store your

vehicle may result in denial of engine related mechanical breakdown claims.

YAMAHA’S LIABILITY

Yamaha’s liability under this Y.E.S. Contract shall not exceed the actual cash

value of the vehicle at the time of mechanical breakdown as determined by

standard manuals for establishing vehicle value. THE TOTAL OF ALL CLAIMS

PAID DURING THE TERM OF THE Y.E.S. CONTRACT SHALL IN NO EVENT

EXCEED THE PRICE THE CUSTOMER PAID FOR THE VEHICLE.

Our obligations to you are guaranteed under the Contractual Liability Insurance

Policy (Reimbursement Insurance Policy) # 2699 issued by Virginia Surety

Company, Inc., 175 West Jackson Blvd., Chicago, IL 60604. You may file a claim

with Yamaha’s Y.E.S. Department at (866) 937-3983 or Virginia Surety Company,

Inc. at (800) 209-6206.

California

Performance to you under this Y.E.S. Contract is guaranteed by a California

approved insurance company. You may file a claim with the insurance company,

Virginia Surety Company, Inc., if any promise made in the Y.E.S. Contract has

been denied or has not been honored within sixty (60) days after the date proof of

loss was filed. If you are not satisfied with the insurance company’s response, you

may contact the California Department of Insurance at (800) 927-4357.

Connecticut

The State of Connecticut has established a process to settle disputes between

you and us arising from this Y.E.S. Contract. A written complaint may be mailed

to: State of Connecticut, Insurance Department, P.O. Box 816, Hartford, CT 06142-

0186, attn: Consumer Affairs. The complaint must include a description of the

dispute, the purchase price of this Y.E.S. Contract, the cost of repair, and a copy

of this Y.E.S. Contract.

Indiana

Your proof of payment to the Yamaha Dealer for this Y.E.S. Contract is considered

proof of payment to the insurance company.

Iowa

You may also contact the Iowa Insurance Commissioner at the following address:

Iowa Insurance Department, 6th Floor, Lucas State Office Building, Des Moines,

IA 50319.

Idaho

Coverage afforded under this Agreement is not guaranteed by the Idaho Insurance

Guarantee Association.

Massachusetts

NOTICE TO CUSTOMER: THE COVERAGE YOU ARE BUYING IS NOT

REQUIRED IN ORDER TO REGISTER OR FINANCE A VEHICLE. THE BENEFITS

PROVIDED MAY DUPLICATE EXPRESS MANUFACTURER’S OR SELLER’S

WARRANTIES THAT COME AUTOMATICALLY WITH EVERY SALE. YOU CAN

BE REQUIRED BY THE SELLER OF THIS COVERAGE TO PURSUE THOSE

WARRANTIES WHICH ARE AVAILABLE TO YOU WITHOUT THIS CONTRACT.

Minnesota: Express Warranty Minnesota statue 325F.662 requires that every

used motor vehicle sold by a dealer is covered by an express warranty which the

dealer shall provide to the customer. At a minimum, the express warranty applies

CUSTOMER’S

INITIALS

to the following terms: (1) if the used motor vehicle has less than 36,000 miles, the

warranty must remain in effect for at least sixty (60) days or 2,500 miles, whichever

comes first; (2) if the used motor vehicle has 36,000 miles or more, but less than

75,000 miles, the warranty must remain in effect for at least thirty (30) days or 1,000

miles, whichever comes first. Some coverage afforded under this Y.E.S. Contract

may be covered by the express warranty.

New Hampshire

If you are not satisfied with the insurance company’s response, you may contact

the New Hampshire Department of Insurance, 21 Fruit Street, Concord, NH 03301.

(603) 271-2261.

Oregon

If you are not satisfied with the services provided and/or your claim is not paid

within sixty (60) days after proof of loss was filed, you may file a claim directly with

the insurance company, Virginia Surety Company, Inc., 175 West Jackson Blvd.,

Chicago, IL 60604. (800) 209-6206.

Utah

This service contract is subject to limited regulation by the Utah Insurance

Department. To file a complaint, contact the Utah Insurance Department.

South Carolina

Complaints or questions concerning the regulation of service contracts may be

directed to the South Carolina Department of Insurance, P.O. Box 100105,

Columbia, SC 29201-3105. (803) 737-6160.

Texas

Unresolved complaints or questions concerning the regulation of service contracts

may be directed to the Texas Department of Licensing and Regulation, P.O. Box

12157, Austin, TX 78711. (800) 803-9202.

Wisconsin

This Y.E.S. Contract is subject to limited regulation by the office of the

Commissioner of Insurance.

TRANSFER RIGHTS

This Y.E.S. Contract is transferable.

To transfer the Y.E.S. Contract from you to the subsequent customer, it is required

that a transfer of registration and inspection be performed by a Yamaha Dealer.

A reasonable dealer imposed fee may be charged for this inspection. Transfer of

registration must take place within fifteen (15) days of ownership change. At the

time of transfer of registration, the customer will be required to provide all required

maintenance receipts or the properly completed maintenance log to the new owner.

Although there is no transfer fee to transfer this Y.E.S. Contract, any dealer charges

for performing any inspections necessary will be the customer’s responsibility.

THE TERM OF THE Y.E.S. CONTRACT FOR NEW VEHICLES

The term of the Y.E.S. Contract for your new Yamaha vehicle is the Yamaha

Limited Warranty period plus the number of months of Y.E.S. Contract coverage

purchased. Yamaha Limited Warranty periods vary. The Y.E.S. Contract term

expires on the date shown in the Declarations.

FOR USED VEHICLES

The term of the Y.E.S. Contract for your used Yamaha vehicle is the number of

months of Y.E.S. Contract coverage purchased at the time of used vehicle sale,

and is shown in the Declarations. The used vehicle is eligible only if the Yamaha

Dealer sells (sold) you the used vehicle and the Y.E.S. Contract on the same

day. Yamaha will not provide coverage for used vehicles which are not sold by

the Yamaha Dealer.

The coverage afforded by this Y.E.S. Contract is still available should the Y.E.S.

Contract term lapse while your vehicle is in the custody of the Yamaha Dealer

undergoing a covered repair.

COVERAGE

During the term of the Y.E.S. Contract, any Yamaha Dealer will provide at no cost

to the customer:

1. Repair or replacement of any part determined to be defective by Yamaha as a

result of a mechanical breakdown subject to the General and Specific Exclusions

contained in this Y.E.S. Contract. All parts replaced under this Y.E.S. Contract

become the property of Yamaha.

2. TOWING REIMBURSEMENT: In the event of a mechanical breakdown,

a towing reimbursement of up to fifty dollars ($50.00) per occurrence will be

provided if TOWING IS NOT COVERED BY OTHER INSURANCE OR “MOTOR

CLUB” BENEFIT. This benefit applies during the Limited Warranty period as well as

the Y.E.S. Contract period. To receive towing reimbursement, the customer must

submit valid receipts for the towing expense to the Yamaha Dealer performing the

repair of the mechanical breakdown.

3. TRAVEL AND RECREATION INTERRUPTION PROTECTION (TRIP):Inthe

eventamechanicalbreakdownoccurs,reimbursementofuptotwohundredand

fty dollars ($250.00) per occurrence will be provided for reasonable, legitimate

expensesincurredbecauseofthemechanical breakdown,suchasfood,lodging,

phone calls, replacement vehicle rental, or other transportation. THIS BENEFIT

DOES NOT APPLY TO EXPENSES COVERED BY INSURANCE OR OTHER

BENEFITS. This benet applies during the Limited Warrantyperiod as well as

the Y.E.S. Contract period. To receive TRIP reimbursement the customer must

submit validreceiptsfor eligible expenses to the Yamaha Dealer performingthe

repairofthemechanical breakdown.

GENERAL EXCLUSIONS

General Exclusions from this Y.E.S. Contract shall include any mechanical

breakdown(s) caused by: competition or racing use; installation of parts or

accessories that are not of like kind and quality to genuine Yamaha parts;

abnormal strain, neglect, or abuse; lack of proper maintenance, including storage;

accident or collision damage; contact with foreign materials or submersion;

damage due to growth of marine organisms on surfaces; damage due to improper

transportation; damage due to rust or corrosion; modification to original parts.

SPECIFIC EXCLUSIONS

This Y.E.S. Contract does not cover:

1. NORMAL WEAR AND TEAR ITEMS. Some examples are tires, brake pads or

shoes, brake rotors or drums, cables, clutch plates, hoses, fuses, spark plugs,

final drive chains/belts, final drive sprockets, batteries, replacement filters,

light bulbs, and fluids not required in conjunction with repairing a mechanical

breakdown. Additional examples for Watercraft include the impeller, impeller

liner, intake grille, mats, bumpers, body seals or gaskets, anodes, and control

cables. Additional examples for Snowmobiles include: skis and ski runners; track;

wear strips; suspension wheels, guide wheels, and/or any wheel under the track;

slide runners; sliding frame; shock absorbers; and clutch weights, rollers, pins,

and bushings.

2. Mechanical breakdown caused by improper storage. The customer must

have proof that proper storage procedures have been completed if requested by

Yamaha in relation to a specific mechanical breakdown.

3. If a particular mechanical breakdown is caused by operation or maintenance

other than as shown in the applicable owner’s manual, that mechanical

breakdown will not be covered by this Y.E.S. Contract.

4. Mechanical breakdown(s) caused by parts that have failed due to improper

maintenance.

5. APPEARANCE-RELATED DAMAGE such as scratches, nicks, dents, fading

paint and trim, tears, corrosion, gel coat stress cracks, and growth of marine

organisms on surfaces.

6. AUDIO COMPONENTS.

7. Mechanical breakdown(s) while the vehicle is under the Yamaha Limited

Warranty or the Yamaha Boat Components Limited Warranty or when the

component is covered by a manufacturer’s modification or recall program.

8. For Yamaha Boats: the hull and deck on your new vehicle are covered by the

Yamaha Boat Hull and Deck Limited Warranty for a period of five (5) years.

The Y.E.S. Contract does not provide coverage for the hull and deck.

9. For Snowmobiles: mechanical breakdown(s) caused by operation of the

vehicle when there is not adequate snow.

10. Damage from theft, fire, freezing, vandalism, riot, explosion, flood, hail, lightning,

earthquake, windstorm, water, or collision.

11. Mechanical breakdown or damage to ANY COMPONENT(S) caused by water,

sand and/or corrosion, or impact with any underwater object.

12. Loss which occurs due to failure to maintain proper fluid and/or lubricant levels

as specified by Yamaha or due to improper oil/gas mixture ratios.

13. FAILURE OF FINAL DRIVE CHAINS/ BELTS OR SPROCKETS, DAMAGE DUE

TO FINAL DRIVE CHAIN/BELT BREAKAGE.

14. Damage due to alteration, modification or use of the covered vehicle not

recommended by Yamaha. (In Georgia: this exclusion does not apply to

modifications made prior to vehicle and Y.E.S. Contract purchase.)

15. Damage due to failure of “non-stock” or modified parts.

16. Pre-existing conditions. (Except in Minnesota.)

17. Vehicles used for commercial purposes. Examples of commercial use

are: rental, delivery (except in GA), hauling for hire, police, harbor patrol, or

emergency services. If a vehicle will be used to make a profit, it is considered

commercial usage.

18. NORMAL MAINTENANCE, ADJUSTMENTS, TUNE-UPS, PARTS OR LABOR

NOT REQUIRED TO REPAIR A MECHANICAL BREAKDOWN, OR FLUIDS

NOT REQUIRED IN CONJUNCTION WITH REPAIRING A MECHANICAL

BREAKDOWN.

19. INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY

KIND INCLUDING LOSS OF USE. SOME STATES DO NOT ALLOW THE

EXCLUSION OR LIMITATION OF INCIDENTAL, CONSEQUENTIAL, OR

PUNITIVE DAMAGES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO

YOU.

20. Failure to show proof of servicing may result in the denial of coverage.

21. FOR USED VEHICLES, SEALS AND GASKETS ARE NOT COVERED,

UNLESS THEY ARE REQUIRED TO REPAIR A MECHANICAL BREAKDOWN

OF A PART OTHER THAN THE SEAL AND/OR GASKET.

22. THIS Y.E.S. CONTRACT DOES NOT COVER REPAIR OR REPLACEMENT

OF PISTONS AND/OR RINGS TO IMPROVE ENGINE COMPRESSION WHEN

A MECHANICAL BREAKDOWN HAS NOT OCCURRED. LOSS OF ENGINE

COMPRESSION IS NORMAL WEAR AND TEAR.

CLAIM PROCEDURE

In the event of a mechanical breakdown, the customer must follow these

procedures:

Protect the vehicle to prevent further damage. Continued operation of the vehicle

may result in damage that may not be covered by this Y.E.S. Contract. Return

the vehicle within ten (10) days to the Yamaha Dealer who sold you this Y.E.S.

Contract. If this is not possible, you can have the repairs done at another Yamaha

Dealer. Provide the Yamaha Dealer with receipts for required maintenance or the

validated maintenance log, if needed to authorize the repair.

When necessary, the customer will be required to authorize the Yamaha Dealer

to tear down the vehicle for diagnostic evaluation. If there is not a mechanical

breakdown covered by this Y.E.S. Contract, the customer is responsible for the

costs of diagnosis and teardown.

NOTE: When the repair work is completed, be sure to have your Y.E.S. Contract

and your maintenance records returned to you.

In case of an emergency repair outside of normal business hours, please follow the

claim procedures outlined above or call Yamaha at (800) 962-7926 for further

instructions.

CANCELLATION

Cancellation By The Customer

You may cancel this Y.E.S. Contract at any time. To cancel, you must mail this

Y.E.S. Contract or provide written notice to the Yamaha Dealer who sold you this

Y.E.S. Contract. If you cancel this Y.E.S. Contract within the first thirty (30) days

and you have not incurred a claim, a one hundred percent (100%) refund of the

purchase price will be made less a twenty-five dollar ($25.00) administrative fee.

(In California: If you cancel this Y.E.S. Contract within the first sixty (60) days

and you have not incurred a claim, a one hundred percent (100%) refund of the

purchase price will be made less a twenty-five dollar ($25.00) administrative fee.) If

you cancel this Y.E.S. Contract after thirty (30) days (60 days in California) or you

have incurred a claim, a pro-rata refund will be made based upon the time used,

less an administrative fee of twenty-five dollars ($25.00). For new vehicles, the

original date the Yamaha Limited Warranty went into effect is used to calculate

the elapsed term of the Y.E.S. Contract. All refunds will be paid to you or to the

lienholder, if applicable, by the Yamaha Dealer who sold you this Y.E.S. Contract.

Cancellation By Yamaha

Yamaha may cancel this Y.E.S. Contract for any reason within the first thirty (30)

days. If we cancel this Y.E.S. Contract during the first thirty (30) days and you

have not incurred a claim, a one hundred percent (100%) refund of the purchase

price will be made. After thirty (30) days, Yamaha may cancel this Y.E.S. Contract

for the following reasons:

• if you have not paid for the Y.E.S. Contract;

• if there has been a material misrepresentation or fraud at the time of sale of this

Y.E.S. Contract;

• except in New Hampshire, Nevada, New Mexico and Utah: if you have failed to

maintain your vehicle as prescribed by the manufacturer; or other substantial

breach of duties.

If Yamaha cancels this Y.E.S. Contract after thirty (30) days, a pro-rata refund

will be made based upon the time used. Yamaha will notify you in writing fifteen

(15) days prior to canceling this Contract. For new vehicles, the original date

the Yamaha Limited Warranty went into effect is used to calculate the elapsed

term of the Y.E.S. Contract. All refunds will be paid to you or to the lienholder, if

applicable, by the Yamaha Dealer who sold you this Y.E.S. Contract.

If this Y.E.S. Contract is financed, and your vehicle is a total loss or is

repossessed, you authorize your lienholder to cancel this Y.E.S. Contract and

receive the refund.

This Y.E.S. Contract is amended to comply with the following state requirements:

Alabama, Hawaii, Iowa, Maryland, Nevada, New York, South Carolina, Texas,

Vermont, & Wyoming Cancellation Section is amended to include:

Cancellation During the “Free-Look” Period

If you cancel this Y.E.S. Contract within twenty (20) days of receipt of this Y.E.S.

Contract and have not incurred a claim, this Y.E.S. Contract shall be void and you

will receive a full refund of the Y.E.S. Contract charge. A ten percent (10%) penalty

per month shall be added to a refund that is not made within thirty (30) days of

return of this Y.E.S. Contract to Yamaha. The provisions of this paragraph only

apply to the original purchaser of this Y.E.S. Contract. The refund will be paid to

you, or a person you authorize.

If Yamaha cancels this Y.E.S. Contract, the administrative fee is not applicable

and Yamaha will mail you written notice fifteen (15) days prior to cancellation.

California, Georgia, Illinois, North Carolina, Oklahoma Cancellation Section is

amended to include:

If you cancel this Y.E.S. Contract within the first thirty (30) days, the administrative

fee is twenty-five dollars ($25.00) or ten percent (10%) of the Y.E.S. Contract

charge, whichever is less. If this Y.E.S. Contract is canceled after thirty (30) days,

the administrative fee is twenty-five dollars ($25.00) or ten percent (10%) of the

pro-rata refund, whichever is less.

Georgia

Should Yamaha fail to refund the unearned consideration, you have the right to

receive the refund directly from Virginia Surety Company, Inc.

New Hampshire

Cancellation Section is amended to delete the twenty-five dollar ($25.00)

administrative fee.

SAMPLE CONTRACT ONLY

If you do not receive the actual Y.E.S. Contract within sixty (60) days of purchase, please contact Yamaha at 1-800-962-7926

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