NORTH DAKOTA LEMON LAW:
North Dakota Lemon Law
North Dakota Century Code Sections 51-07-16 through 51-07-22
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.
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