Lemon Law - North Dakota
Lemon Law
Lemon Law - "Lemon
law" is that body of state law which defines an automobile
owners rights when the manufacturer is not able to repair the
automobile within the limits specified. In
such cases, the automobile is referred to as a "lemon",
and is subject to the conditions of the state lemon law.
Your Lemon Law:
Disclaimer:
These pages are created to inform and educate the public about lemon
law and under the lemon law in your state. They are not and
should not be considered legal opinions or advice as to whether you
have rights under lemon law or whether you should pursue "a
lemon law case". If after reading this information,
you believe you qualify, you should seek the advice and counsel of
an attorney specializing in lemon law in your state. Remember
that each state's lemon laws vary.
As used in sections 51-07-16
through 51-07-22, and unless the context otherwise requires:
1. "Consumer"
means the purchaser or lessee, other than for purposes of resale or
lease, of a passenger motor vehicle normally used for personal,
family, or household purposes. The term includes any person to whom
the passenger motor vehicle is transferred for the same purposes
during the duration of an express warranty applicable to that
passenger motor vehicle, and any other person entitled by the terms
of the warranty to enforce the obligations of the warranty.
2. "Passenger motor
vehicle" means a passenger motor vehicle as defined in section
39-01-01 or a truck with registered gross weight of ten thousand
pounds [4536 kilograms] or less which is sold or leased in this
state. The term does not include a house car, as defined in section
39-01-01.
51-07-17 Duty of manufacturer to
repair defective passenger motor vehicles.
If a new passenger motor vehicle
does not conform to all applicable express warranties, and the
consumer reports the nonconformity to the manufacturer, its agent,
or its authorized dealer during the term of the express warranties
or during the period of one year following the date of original
delivery of the passenger motor vehicle to a consumer, whichever is
the earlier date, the manufacturer, its agent, or its authorized
dealer shall make the repairs necessary to conform the passenger
motor vehicle to the express warranties, notwithstanding the fact
that the repairs might be made after the expiration of the warranty
or one-year period.
51-07-18 Duty to replace
defective passenger motor vehicle or refund price.
Prerequisite of using available
informal dispute settlement process.
1. If the manufacturer, its
agent, or its authorized dealer is unable to make the passenger
motor vehicle conform to any applicable express warranty by
repairing or correcting any defect or condition that substantially
impairs the use and market value of the passenger motor vehicle,
after a reasonable number of attempts, the manufacturer shall
replace that passenger motor vehicle with a comparable passenger
motor vehicle or accept return of the passenger motor vehicle from
the consumer, and refund to the consumer the full purchase price,
including all collateral charges, less a reasonable allowance for
the consumer's use of the vehicle not exceeding ten cents per mile
[1.61 kilometers] driven or ten percent of the purchase price,
whichever is less. Refunds must be made to the consumer, the lessor,
and the lien holder, if any, as their interests may appear. A
reasonable allowance for use is the amount directly attributable to
use by the consumer before the consumer's first report of the
nonconformity to the manufacturer, agent, or dealer, and during any
subsequent period when the vehicle is not out of service for repair.
2. It is an affirmative
defense to any claim under sections 51-07-16 through 51-07-22:
a. That an alleged
nonconformity does not substantially impair the use and market value
of the passenger motor vehicle; or
b. That a nonconformity is
the result of abuse, neglect, or unauthorized modifications or
alterations of the passenger motor vehicle by a consumer.
3. If a manufacturer has
established or participates in an informal dispute settlement
procedure that substantially complies with the substantive rules of
the federal trade commission, 16 CFR 703, or if the manufacturer
participates in a consumer and industry appeals, arbitration, or
mediation appeals board whose decisions are binding on the
manufacturer, the remedy under subsection 1 is not available to a
consumer who has not first resorted to that procedure. If the
consumer requests an oral presentation before the board or dispute
settlement mechanism, the hearing must take place in the state in
which the consumer resides. The attorney general shall, on
application, issue a determination of whether an informal dispute
resolution mechanism qualifies under this subsection.
51-07-18.1 Refunds for leased
passenger motor vehicles.
In any case in which a refund is
tendered by a manufacturer for a leased motor vehicle under section
51-07-18, the refund and rights of the motor vehicle lessor, lessee,
and manufacturer are as follows:
1. The manufacturer shall
provide to the lessee the sum of all payments previously paid to the
motor vehicle lessor by the lessee less a reasonable allowance for
the consumer's use of the vehicle. Payments include all cash
payments, security deposits, and trade-in allowance, if any,
tendered by the lessee to the motor vehicle lessor under the lease
agreement.
2. The manufacturer shall
provide to the motor vehicle lessor the sum of the following:
a. The lessor's actual
purchase cost, less payments made by the lessee;
b. The freight cost, if
applicable;
c. The cost for dealer or
manufacturer installed accessories, if applicable; and
d. An amount equal to five
percent of the lessor's actual purchase cost as provided in
subdivision a. The amount in this subdivision is in lieu of any
early termination costs or penalties described in the lease
agreement.
3. Upon return of the
passenger motor vehicle, the consumer's lease agreement with the
lessor is terminated and no penalty for early termination may be
assessed.
4. Any refund to be paid to
the motor vehicle lessor must be made to the lessor and lien holder,
if any, as their interests may appear.
51-07-19 Presumptions.
1. It is presumed that a
reasonable number of attempts have been undertaken to make a
passenger motor vehicle conform to the applicable express
warranties, if:
a. The same nonconformity
has continued to exist, despite having been subject to repair more
than three times by the manufacturer, its agent, or its authorized
dealer, within the express warranty term or within one year of the
date of original delivery of the passenger motor vehicle to a
consumer, whichever is the earlier date.
b. The passenger motor
vehicle is out of service for repair for a cumulative total of at
least thirty business days during the warranty term or in a year,
whichever is less.
2. The term of an express
warranty, the one-year period, and the thirty-day period, are
extended by any period during which repair services are not
available to the consumer because of war, invasion, strike, fire,
flood, or other natural disaster.
3. The presumption does not
apply against a manufacturer unless the manufacturer has received
prior direct notification from or on behalf of the consumer and an
opportunity to cure the alleged defect.
51-07-20 Exclusive remedy.
A consumer who elects to proceed
under sections 51-07-16 through 51-07-22 is foreclosed from pursuing
any other remedy arising out of the facts and circumstances which
gave rise to the claim under sections 51-07-16 through 51-07-22.
51-07-21. Limitation of actions. An action brought under sections
51-07-16 through 51-07-22 must be commenced within six months after
the earlier of:
1. Expiration of the express
warranty term; or
2. Eighteen months after the
date of original delivery of the passenger motor vehicle to a
consumer.
51-07-22 Resale of returned
passenger motor vehicles - Penalty.
1. A person may not sell or
lease in this state a passenger motor vehicle that was returned to
the manufacturer in accordance with sections 51-07-16 through
51-07-22, unless the manufacturer provides:
a. The same express warranty
it provided to the original purchaser, except the term of the
warranty must be for at least twelve thousand miles or twelve months
after the date of resale, whichever is earlier; and
b. The purchaser a statement
on a separate document that must be signed by the manufacturer and
the purchaser and must be in ten point, capitalized type, in
substantially the following form:
"IMPORTANT: THIS VEHICLE WAS
RETURNED TO THE MANUFACTURER BECAUSE DEFECTS COVERED BY THE
MANUFACTURER'S EXPRESSED WARRANTY WERE NOT REPAIRED WITHIN A
REASONABLE TIME AS PROVIDED BY NORTH DAKOTA LAW".
2. A person may not ship or
deliver for resale or lease in another state a passenger motor
vehicle returned to the manufacturer in accordance with sections
51-07-16 through 51-07-22 unless full disclosure of the reasons for
return is made to any prospective buyer.
3. Violation of this section
is a class B misdemeanor.
