Lemon Law in North Dakota
North Dakota lemon law states that the motor vehicle consumer has the right to request a refund or replacement of a new motor vehicle if a defect is found. Defects must occur prior to the expiration of the express warranty of the manufacturer.
Unlike other states that allow some used vehicles to qualify for lemon services, North Dakota only permits new motor vehicles to be eligible. Also unlike other states North Dakota does not permit eligibility for motor homes or motorcycles. Refunds, repairs, and replacements may also be made for leased motor vehicles, though some restrictions apply.
Eligibility
In order to qualify for lemon services, a consumer must have purchased an express warranty. While under the warranty the motor vehicle must go under a reasonable number of repair attempts to qualify. A reasonable number of attempts must be for the same recurring defect and usually includes three or four attempts.
Defects must be major defects and cannot include minor defects, such as those to the radio system or paint. Defects that are eligible include those that impede driver or passenger safety and those that impair the motor vehicle’s market value.
Requirements
If a motor vehicle is still under express warranty, or under the time period of one year, and has undergone a reasonable number of repair attempts, the manufacturer is then bound by law to repair the motor vehicle. Repairs must conform the motor vehicle to its express warranty condition. If motor vehicle cannot be conformed to this condition, the manufacturer is then required to refund or replace the motor vehicle.
A consumer who has reported a possible lemon the manufacturer prior to the warranty’s expiration may still receive repair attempts, refund, or replacement after the warranty has expired.
Replacement and refund are possible after the manufacturer’s failed repair attempts. Refunds will include the full purchasing price, and all collateral charges, such as taxes, licensing fees, registration fees, and government fees. The manufacturer is not required to replace additional paint, system additions, or cosmetic additions. A replacement vehicle may instead be provided but must be of the same conditions and make as the lemon motor vehicle.
If the nonconformity to the vehicle is due to neglect, abuse, alteration, or modification, the manufacturer is not required to repair, replace, or refund the motor vehicle.
Settlement
When a consumer participates in a legal informal dispute settlement procedure, the manufacturer is required to submit to all substantive rules towards the federal trade commission. This also includes arbitration, appeals, and mediation. This kind of settlement requires that the consumer report the defect to the manufacturer prior to the express warranty’s expiration and state with proof that the motor vehicle has undergone multiple repair attempts.
Under an informal dispute settlement procedure the consumer may request an oral presentation in front of a board to dispute the defect. North Dakota requires that this hearing take place within state borders. The attorney general will then determine if the situation and defect are eligible for manufacturer, agent, or dealer repair, refund, or replacement.