Well. the dealer can warranty anything he wants. The difference is whether or not the factory will back the dealer. The dealer can give a 10 year warranty if he wants to.My Dealer has a brand new G5 with a side car settin' on the floor. Add a side car, loose the warranty. However he is on the hook for any warranty that is extended. I am pretty confident he would extend the full two years and take the burden of risk himself. He certainly would have a tough time selling a brand new bike with no warranty.
While I agree a dealer can assume warranty liability BEYOND the factory warranty, in this case he was taking the factory warranty and arbitrarily cutting it in half. Can't do that.