CornerStone Dealer Agreement
WHEREAS, for CornerStone established and administered Product Protection Program(s)
(Program[s]), CornerStone grants Dealer authority to issue various contracts on
Approved Vehicles or Crafts (Units) and to sell such contracts to purchasers of Units
from Dealer at prices determined by Dealer.
IT IS HEREBY AGREED between CornerStone and Dealer as follows:
CornerStone grants Dealer authority to issue Contracts pursuant
to Program and Dealer agrees to the terms set forth herein. Dealer
commission shall be the difference between the Net Dealer Cost and the
Retail Selling Price of the Contract as determined by Dealer.
Dealer agrees to sell Contracts to its new and used Unit customers (Purchasers) during the term of this Agreement.
Dealer agrees to follow the guidelines as issued by CornerStone concerning the Program(s).
Such guidelines will determine Unit eligibility for use in the CornerStone Program(s) as well
as, but not limited to, cancellations, transfers, and claims. Dealer may not affect the
coverage on the Contract prior to the date of purchase of the unit from the Dealer.
Dealer agrees to permit CornerStone or its authorized representatives, during normal business hours, to enter Dealer’s
place of business to inspect and examine all records relative to the issuance of Contracts on the subject matter of the
Dealer Agreement until one (1) year following the expiration of such Contract for the purpose of review and audit.
Dealer agrees to remit the cost for each Contract in accordance with CornerStone’s
requirements within forty-five (45) days of Contract’s issue date. CornerStone reserves the
right to refuse/return the Contract to the Dealer and notify the Purchaser of the refusal/return
of the contract and no coverage will be granted for non-timely or incomplete Contract
submission by Dealer
Dealer shall be responsible to refund its proportionate share of the commission based
on the cancellation provisions of the respective Contracts unless one of the following occurs:
If the Contract includes a No Chargeback (NCB) reserve and is cancelled after ninety (90) days and
Dealer charged customer a maximum of three (3) times Net Dealer Cost, Dealer shall be entitled to retain the full
Commission. If Dealer charged in excess of three (3) times Net Dealer Cost, Dealer shall be responsible to
refund its proportionate share of the amount charged in excess of three (3) times Net Dealer Cost.
It the Contract is non-cancellable or non-refundable per the terms of the Contract but the Lienholder
which has financed the purchase price of Contract requests cancellation due to repossession or charge
off, Dealer shall be responsible to refund its proportionate share of the commission to Lienholder.
Dealer agrees that Cornerstone shall have the right to offset any amount CornerStone
may owe Dealer against any sums the Dealer may owe for any obligations of the Dealer to CornerStone.
Dealer warrants that it possesses the experience and expertise to service and repair the types of products
designated and will only undertake repairs on products for which it is factory authorized unless otherwise agreed to by CornerStone.
Dealer agrees to repair or replace, within its capability as a qualified repair facility,
any covered part(s) due to a mechanical breakdown in compliance with the terms and conditions
of the Contract issued. Dealer also agrees to inform CornerStone before initiating any covered
repair, or replacement of any covered part(s), of all circumstances or conditions including, but
not limited to, Purchaser neglect, abuse, failure to perform required services, alteration of
Unit, etc. that might exclude coverage under the terms of the Contract.
CornerStone agrees to compute payments on approved tire and/or wheel claims to Dealer at a maximum of
Dealer’s cost from the lowest cost supplier plus 30%.
CornerStone offers Contracts on various products. The conditions, coverage, exclusions, etc., described in this
Agreement may be superseded by the terms and conditions contained in the various product Contract certificates.
Any representations of the Contract other than the terms therein are not binding on CornerStone, its agents or members,
nor shall they be liable for any incidental or consequential damages.
This Agreement may be terminated at any time by either party upon giving thirty (30) days written notice to the other party.
This Agreement may be terminated immediately without notice for any material breach of this Agreement by Dealer
(including a breach or violation of the procedures set forth above). This Agreement may be terminated automatically
without notice should Dealer fail to submit Contracts for three (3) consecutive months. Unless so terminated, the
Dealer Agreement shall be a continuing Agreement. Upon termination by either party, all obligations hereunder shall
cease; provided however, that CornerStone shall continue its administration and liability for all Contracts sold
and properly registered by the Dealer and administrated by CornerStone prior to the Contract termination date and
for which the Dealer has paid the appropriate wholesale purchase price to CornerStone.
This Agreement shall have no force or effect unless and until such time it is accepted and approved by
CornerStone. This Agreement and any rights or obligations hereunder are personal to the Dealer and shall not
be assignable, subcontracted or transferable in whole or in part without prior written consent of CornerStone.
The parties hereto are independent contractors and nothing in this Agreement will be construed as an
employer-employee relationship. If any provision of this Agreement is held invalid under the law or
regulations of any state where used, such provision shall be deemed not a part of this Agreement in such
state, but shall not invalidate any other provision hereof. This document, together with the Dealer
guidelines as may be later modified by CornerStone, constitutes the full and entire Agreement between
the Dealer and Cornerstone, superseding any prior oral or written arrangements between the parties
relating to the subject matter hereof. Future representations, modifications or agreements must be
made in writing and signed by both parties. This Agreement shall be construed in accordance with
and governed by the laws of the State of North Carolina in the County of Catawba.