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.