North
Dakota Lemon Law
North Dakota Century Code Sections
51-07-16 through 51-07-22
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Summary of Law
North Dakota's lemon law (North
Dakota Century Code Sections 51-07-16
through 51-07-22) gives owners of
new vehicles the right to get a
full refund or a more reliable replacement,
minus a reasonable allowance for
use of the new vehicle. The lemon
law applies only to new vehicle
purchases. It does not apply to
motorcycles or motor homes.
Under North Dakota
law, you have little protection
against defects that surface after
you buy a used car, unless you purchased
an extended warranty or you can
prove the seller lied about the
condition of the vehicle.
Minor problems
with new vehicles which require
continual repairs are not covered
under the lemon law. Your new car's
clock that continually runs 25 minutes
fast or a trunk light that repeatedly
flickers out is annoying, but it
does not make the car a real lemon.
Lemon Aid
North Dakota's
lemon law specifically states what
must happen before your car is determined
to be a true lemon and what you
must do to use the law.
The defect must
be something that "substantially
impairs the use and market value
of the passenger motor vehicle,"
and the dealer must be given a "reasonable
51-07-16. Definitions.
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
lienholder, 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 lienholder,
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.
