2016 North Dakota Century Code
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FARM EQUIPMENT NONCONFORMITY REMEDIES
As used in this chapter:
1. "Collateral charges" means those additional charges to a consumer not directly
attributable to a manufacturer's suggested retail price label for farm machinery.
2. "Comparable farm machinery" means an identical or reasonably equivalent piece of
3. "Consumer" means the purchaser, other than for the purposes of resale of new farm
machinery primarily used for agricultural purposes; any person to whom the new farm
machinery is transferred for the same purposes during the duration of an express
warranty applicable to that new farm machinery; and any other person entitled by the
terms of the warranty to enforce the obligations of the warranty.
4. "Express warranty" means any written affirmation of fact or promise made by a
manufacturer to a consumer in connection with the sale of new farm machinery which
relates to the nature of the material or workmanship or will meet a specified level of
performance over a specified period of time. The term does not include an implied
5. "Farm machinery" means any self-propelled equipment or machinery used for
agricultural purposes being transferred for the first time from a manufacturer,
distributor, or new farm machinery dealer which has not been registered or titled and
which is offered for sale, barter, or exchange by a dealer who is franchised to sell,
barter, or exchange that particular make of new farm machinery. The term includes
farm machinery propelled by power other than muscular power but does not include
off-road vehicles other than self-propelled equipment and machinery used for
6. "Manufacturer" means any person engaged in the manufacturing or assembling of new
farm machinery as a regular business.
7. "Nonconformity" means any condition of the farm machinery which makes it impossible
to use for the purpose for which it was intended.
8. "Reasonable allowance for consumer use" means:
a. That amount attributable to use by the consumer before the consumer's first
report of the nonconformity to the manufacturer or its authorized dealers;
b. That amount attributable to use by the consumer during any period subsequent to
the first report of nonconformity when the farm machinery is not out of service by
reason of repair of the reported nonconformity; and
c. That amount attributable to use by the consumer of the farm machinery provided
by the manufacturer or its authorized dealer while the machine is out of service
by reason of repair of the reported nonconformity, but not less than the fair rental
value of the farm machinery.
51-26-02. Law applicable to breach of new farm machinery warranties - Report of
nonconformity required - Repairs - Duty of manufacturer or agent.
Notwithstanding any other provision of law, a sale of new farm machinery is governed by
this chapter. For the purposes of this chapter, if new farm machinery does not conform to all
applicable express warranties and the consumer reports the nonconformity to the manufacturer
or its agent during the term of the express warranties or during the period of one year following
the date of original delivery of the new farm machinery to the consumer, whichever period
expires earlier, the manufacturer or its agent shall make any necessary repairs to conform the
new machinery to the express warranties, notwithstanding the fact that the repairs are made
after the expiration of the term or the one-year period.
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51-26-03. Replacement of farm machinery or refund of purchase price - Allowance
deducted for consumer's use - Refund.
If the manufacturer or its agent cannot conform the new farm machinery to any applicable
express warranty by repairing or correcting any default or condition that substantially impairs the
use or market value of the new farm machinery to the consumer after a reasonable number of
attempts, the manufacturer shall give the consumer the option of having the manufacturer either
replace the new farm machinery with a comparable new farm machinery acceptable to the
consumer, or take title of the machine from the consumer and refund to the consumer the full
purchase price, including all reasonably incurred collateral charges, less a reasonable
allowance for the consumer's use of the machine. The subtraction of a reasonable allowance for
use shall apply when either a replacement or refund of the new farm machinery occurs. Refunds
must be made to the consumer and lienholder of record, if any, as their interests may appear.
51-26-04. Affirmative defenses.
1. It is an affirmative defense to any claim under this chapter that:
a. An alleged nonconformity does not substantially impair the use, market value, or
safety of the farm machinery;
b. A nonconformity is the result of abuse, neglect, or unauthorized modifications or
alterations of farm machinery by a consumer;
c. A claim by a consumer was not filed in good faith; or
d. Any other affirmative defense allowed by law.
2. It is presumed that a reasonable number of attempts have been undertaken to
conform new farm machinery to the applicable express warranties if within the terms,
conditions, or limitations of the express warranty, or during the period of one year
following the date of original delivery of the new farm machinery to a consumer,
whichever expires earlier, either:
a. The same nonconformity has been subject to repair five or more times by the
manufacturer or its agents and the nonconformity continues to exist; or
b. The new farm machinery is out of service by reason of repair of the
nonconformity by the manufacturer or its agents for a cumulative total of thirty or
more working days, exclusive of downtime for routine maintenance as prescribed
by the manufacturer, since delivery of the new farm machinery to the consumer.
The thirty-day period may be extended by a period of time during which repair
services are not available to the consumer because of conditions beyond the
control of the manufacturer or its agents.
51-26-05. Information on remedies to be furnished consumer - Notice of complaint to
manufacturer required - Manufacturer's duties.
1. The manufacturer shall provide information for consumer complaint remedies with
each new farm machinery. Before taking action under this chapter, a consumer shall
give written notification to the manufacturer of the need for the repair of the
nonconformity to allow the manufacturer an opportunity to cure the alleged defect. The
manufacturer immediately shall notify the consumer of a reasonably accessible repair
facility of a franchised new farm machinery dealer to conform the new farm machinery
to the express warranty. After delivery of the new farm machinery to an authorized
repair facility by the consumer, the manufacturer shall conform the new farm
machinery to the express warranty within thirty calendar days in appropriate
seasonable use times and within sixty days in other times. The agriculture
commissioner shall designate appropriate seasonal use times for all machinery
covered by this chapter. Upon notification from the consumer that the new farm
machinery has not been conformed to the express warranty, the manufacturer shall
inform the consumer if an informal dispute settlement procedure has been established
by the manufacturer. If prior notice by the manufacturer of an informal dispute
settlement procedure has been given, no further notice is required. If any repair that
may be required under any warranty takes more than fourteen working days to
complete, the manufacturer shall supply at no cost a like piece of farm machinery for
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use by the consumer if requested by the consumer during the time of repair. The
manufacturer shall reimburse any costs incurred by a dealer under this chapter.
An action brought under this chapter must be commenced within six months following
expiration of the terms, conditions, or limitations of the express warranty or within
eighteen months following the date of original delivery of the new farm machinery to a
consumer, whichever is earlier. However, if a consumer resorts to an informal dispute
settlement procedure, any action must be commenced within ninety days following the
final action of any panel established pursuant to the procedure. If an action is brought
under this chapter, the prevailing party may recover any court costs and reasonable
51-26-06. Application - Not to affect prior contracts - Dealers reimbursed for labor.
This chapter applies to any new farm machinery sold after July 31, 2001, and does not
invalidate, impair, or otherwise infringe upon the specific requirements of any contract between
a dealer and a manufacturer entered before August 1, 2001. However, if warranty repair work is
performed for a consumer by a farm equipment dealer under a manufacturer's express
warranty, the manufacturer shall reimburse the dealer at an hourly labor rate that is the same or
greater than the hourly labor rate the dealer currently charges consumers for nonwarranty repair
work. The dealer may accept the manufacturer's or supplier's warranty labor reimbursement
terms and conditions in lieu of the above.
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Title 51 Sales and Exchanges
Chapter 51-26 Farm Equipment Nonconformity Remedies
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