North Dakota (“ND”) lemon laws are stated in ND Century Code, Title 51, Chapter 51-07 (Miscellaneous Provisions). Under Section 51-07-18, nonconformity of a motor vehicle to the manufacturer’s express warranties is a defect or condition that significantly affects the market value and use of the motor vehicle. The period within which the buyer should notify the nonconformity and the manufacturer should repair the vehicle is either on completing the term specified in the express warranty or one year of vehicle’s operation from the date of delivery, whichever happens earlier.
If the manufacturer is not able to repair the motor vehicle after reasonable attempts, the manufacturer will have to replace the vehicle with a new comparable passenger vehicle or accept return, and refund the price of the vehicle to the buyer. When refunding, the manufacturer should pay the full purchase price which includes all collateral charges relating to a vehicle trade after deducting an amount attributable to the use of vehicle by the buyer before discovering the nonconformity.
N.D. Cent. Code, § 51-07-17 reads: 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 one-year period.
N.D. Cent. Code, § 51-07-18 reads in part:
“51-07-18. Duty to replace defective passenger motor vehicle or refund price — Prerequisite of using available informal dispute settlement process.
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 lienholder, 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.”
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