Looks very familiar except mine was on the negative side. The post melted like Oprah's knees at a free Krispy Kreme giveaway. I had to end up buying a new battery and I loctited the bolts and it never came loose again.
I just bought a new battery again last Tuesday and on Friday I found out the negative cable was loose again when I saw a wisp of smoke come up from the post after the bike refused to start. Put a little burn on the post but luckily I caught it before itdid anymore damage. I took my tender leads off the battery too. If I need to hook it up I'll just use the alligator clips on it after taking the battery cover off.

 

I agree with Iceman on this. You did say that THE DEALER installed the battery tender cables, and since they installed it incorrectly then they shoul be the ones to replace the battery and cable. No one wants to be without their ride but if it were me I would contact the dealer and tell them what you found just to see what they will do to assist you. Talk to the service manager and the owner

 

I would agree with that as well, but I bought it from a dealer here in Texas. Had the Screamin Eagle first stage put on the 103 motor, which wasn't available on stock Fat Bobs until this year. The tender was actually installed at a dealer in New Jersey. I got a good deal on the bike with only 1100 miles on it. Does the lock-tite work? I would imagine I would want the one that is not permanent. I asked the service mgr about using that, but they said I should not do it. On the other hand, it would be a real hassle to take the battery cover off every time I want to ride. So you have used it with no issues? That would be great.