KB HOME DISASTER
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Chapter IX of the order is specific to the warranty.
KB Federal Trade Commission Consent Order - Article here
It is further ordered, That respondents, in connection with respondents' obligations under Part VII and Part VIII
of this order to take remedial action for defects, shall:
1. Make repairs in accordance with the approved standards;
2. Make repairs in a workmanlike manner, and with materials or components identical to, or of an equal or better
grade or quality than, the materials or components used in the original construction of the particular on-site residential
3. Offer to purchase each past purchaser's unit at the repurchase price if the defects cannot be remedied within a
4. In each instance where a dispute arises between respondents and a past purchaser relating to respondents'
obligations to take remedial action for defects, and such dispute cannot be settled on a mutually agreeable basis within a
reasonable period of time not to exceed forty (40) days from the date such dispute arose, then respondents shall offer in
writing to each such past purchaser and at the same time as respondents finally reject the past purchaser's claim, to submit
such dispute to dispute settlement procedures which are substantially identical to the dispute settlement procedures
described on page 6 of the "HOW warranty" attached hereto as Appendix A and shall include with such offer a form such
as the "Demand for Dispute Settlement" which appears as page 9 of such "HOW warranty"; provided, that no later than
ten (10) business days excluding Saturdays, Sundays and legal holidays from the receipt of such written request for
dispute settlement from past purchasers, respondents shall take action to initiate such dispute settlement proceedings.
5. Specifically perform in good faith and without unreasonable delay or make payments timely in each instance
where the use of the procedures described in subparagraph 4 hereinabove results in a decision in favor of the past
purchaser, subject, however to such rights under law as either purchaser or respondents may have in connection with the
6. Preserve, for a period of no less than three (3) years from the effective date of this order the original document,
or copies thereof as appropriate, and upon reasonable notice provide access to the Commission or its representatives for
the purpose of inspection and copying, all documents, reports and records including all requests for repairs and
correspondence relating to compliance with Part VII and Part VIII of this order.