Lemon Law Basics: North Dakota Lemon Laws
Summary of North Dakota Lemon Law
What vehicles are covered under North Dakota lemon law?
North Dakota lemon law applies to new and used passenger vehicles, which
include vehicles designed to transport people, trucks whose gross vehicle
weight is 10,000 pounds or less, and vehicles with a truck chassis that
can seat at least four people. Leased vehicles are also covered by North
Dakota lemon law.
What protections do I have under North Dakota lemon law?
According to the North Dakota lemon law, if a consumer reports that their
vehicle has a serious defect that is covered by the warranty, the manufacturer
has the obligation to repair the nonconformity. This report must be made
within the warranty period or within the first year of possession of the
vehicle, whichever comes first. A serious nonconformity is one that negatively
affects the vehicle's use or value. The manufacturer has no liability
if the nonconformity was caused by abuse or modification by the consumer.
If the manufacturer has had a reasonable chance to repair the nonconformity
and the problem persists, the manufacturer must repurchase or replace
the vehicle.
What must occur before seeking settlement under the North Dakota lemon
law?
North Dakota lemon law stipulates that a manufacturer is presumed to have
had a reasonable chance to repair the nonconformity after three unsuccessful
attempts to repair the same nonconformity or after the vehicle has been
out of commission for repairs for at least 30 business days. These attempts
must be made within the warranty period or the first year of vehicle possession,
whichever comes first.
Filing a claim under North Dakota lemon law
According to North Dakota lemon law, the consumer must attempt to settle
the issue with an informal arbitration board before bringing the case
to the judicial system in order to be eligible for repurchase or replacement
of a lemon vehicle. This arbitration board can belong to the manufacturer,
or it can be another industry board approved by the Attorney General.
The claim must be filed within six months of the expiration of the warranty
or 24 months after receiving possession of the vehicle, whichever comes
first.
What are the settlement details under North Dakota lemon law?
If an owned vehicle is repurchased under North Dakota lemon law, the manufacturer
must pay a sum which includes the full purchase price and all collateral
charges, minus a reasonable offset for the consumer's use of the vehicle.
Collateral charges include finance charges, a portion of the excise tax,
and a prorated portion of registration fees paid for the vehicle. The
offset is calculated as an amount not more than $0.10 per mile driven
or 10% of the vehicle's purchase price, whichever is less.
If a leased vehicle is repurchased under North Dakota lemon law, the
manufacturer must pay the lessor a sum which includes 105% of the vehicle's
full purchase price, any freight charges, and installed options, minus
all payments received by the lessee. The manufacturer must also pay a
sum to the lessee that includes any deposits or payments made to the lessor
and portions of the excise taxes and registration fees paid, minus a reasonable
usage offset as described above. No early termination fees can be charged
to the lessee.
If a vehicle is replaced under North Dakota lemon law, the new vehicle
must be comparable to the original, and no usage offset may be charged.
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