Yup, that's a little low. You may want to spin the tail pipe CCW (from the rear) until it sits up a little closer to the fender. You might catch that on something backing up.

 

AMEN BROTHER!
Messed with it for about 5 minutes then broke out the sawzall and spent a solid 5 more cutting it off! If you're paying to get a T-304 system to replace the original, quit ***** footing around and cut the old one up. You'll never use it again anyway.
Cheers
Mike
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NICE! Turn that last section up a bit. It's going to bottom out on something being that low.
Mike
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you should be able to loosen your clamps and move it closer to the bed. that should be all you will have to do. I have a small magnetic level that you can set on the pipe to get it exactly level if you want

 

Unless they can prove that part caused your other part in warranty question to fail then they can not void your warranty. My suggestion is that if they are hassling you over an exhaust sytem find a new dealer. Our dealer has a dont ask dont tell policy.