North Dakota Lemon Law
Chapter 51-07, Sections 16 - 22, Sales And Exchanges,
North Dakota Lemon Law51-07-16 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
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.
North Dakota Lemon Law 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
North Dakota Lemon Law 51-07-18 Duty to replace defective
passenger motor vehicle or refund price.
Prerequisite of using available informal dispute settlement
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.
North Dakota Lemon Law 51-07-18.1 Refunds for leased passenger
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
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
b.The freight cost, if applicable;
c.The cost for dealer or manufacturer installed accessories, if
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
North Dakota Lemon Law 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
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
North Dakota Lemon Law 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.
North Dakota Lemon Law 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
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
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
3.Violation of this section is a class B misdemeanor.