North Dakota Lemon Law

Understanding the North Dakota Lemon Law is crucial for vehicle owners, as it offers protection and recourse in the event that a newly purchased or leased vehicle fails to meet the manufacturer’s warranty standards. This comprehensive guide will provide a detailed overview of the North Dakota Lemon Law, including eligibility requirements, filing deadlines, and the process for pursuing a claim. By being informed, vehicle owners can confidently navigate their rights and protections under this law.

Eligibility Criteria for Vehicles and Consumers North Dakota Lemon Law

The North Dakota Lemon Law applies to “passenger motor vehicles” that are sold or leased within the state. Eligible vehicles include:

1. Motor vehicles designed mainly for transporting people
2. Trucks with a Gross Vehicle Weight Rating (GVWR) of less than 10,000 pounds
3. Vehicles built on a truck chassis with a seating capacity of four or more passengers

It is important to note that the law appears to cover used vehicles as well.

Eligible consumers under the North Dakota Lemon Law include:

1. Purchasers or lessees of passenger motor vehicles for personal, family, or household purposes, excluding resale or lease
2. Individuals who receive the vehicle through a transfer for the same purposes during the warranty period
3. Any person entitled to enforce the warranty according to its terms

Timeframes for Filing Claims and Reporting Issues

Under ND Lemon Law, consumers must file a claim within six months of the earlier of:

1. The expiration of the express warranty term
2. 18 months after the original delivery of the vehicle to a consumer

Consumers must report the first occurrence or notice of the vehicle’s nonconformity within the earlier of the warranty’s expiration or one year after the original delivery of the vehicle.

Refunds for Purchased and Leased Vehicles in North Dakota

When a refund is issued for a purchased vehicle, it consists of:

1. The full purchase price.
2. All collateral charges.
3. A reasonable allowance for the consumer’s use of the vehicle, minus earned finance charges and excise tax.

When a refund is issued for a leased vehicle, the lessor receives:

1. The actual purchase cost, minus payments made by the lessee.
2. The freight cost, if applicable.
3. The cost for dealer- or manufacturer-installed accessories, if applicable.
4. An amount equal to 5% of the actual purchase cost, in lieu of any early termination costs or penalties described in the lease agreement.

The lessee receives:

1. The sum of all payments previously paid to the lessor by the lessee, including all cash payments, security deposits, and trade-in allowance, if any.
2. A reasonable allowance for the consumer’s use of the vehicle, minus excise tax.

Upon the vehicle’s return, the consumer’s lease agreement is terminated, and no penalty for early termination may be assessed.

A reasonable allowance for the consumer’s use is the amount directly attributable to use by the consumer before the consumer’s first report of the nonconformity to the manufacturer, its agent, or dealer, and during any subsequent period when the vehicle is not out of service for repair. The reasonable allowance may not exceed ten cents per mile driven or 10% of the purchase price, whichever is less.

Is there anything else you should know about ND Lemon Law?

Refund of Sales Tax

Sales tax is not specifically referenced. However, North Dakota statutes provide for a refund of excise tax from the state to the consumer (§ 57-40.4-01.1) and a pro rata refund of registration fees from the state to the consumer.