North Dakota Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

North Dakota's lemon law covers new passenger motor vehicles and trucks with a registered gross weight of 10,000 pounds or less, bought or leased mainly for personal, family or household use (motor homes are excluded). If the consumer reports a defect during the express warranty or within one year of delivery, whichever ends first, the manufacturer must repair it. If a defect that substantially impairs the vehicle's use and market value cannot be fixed after a reasonable number of attempts, the manufacturer must replace the vehicle or take it back and refund the full purchase price, including collateral charges, minus a use allowance of no more than 10 cents per mile or 10% of the price, whichever is less. A reasonable number of attempts is presumed when the same defect has been subject to repair more than three times, or the vehicle has been out of service for at least 30 business days, within the warranty term or one year (whichever is less); the manufacturer must first get direct notice and a chance to fix it. If the manufacturer has a qualifying informal dispute program, the consumer must use it first. A lawsuit must be filed within six months after the earlier of the warranty's expiration or 18 months after delivery.

The Attorney General states that North Dakota's lemon law applies only to new cars, not to used cars or other motorized vehicles. When you buy a used car, you buy it "as is" unless a warranty is included in the purchase, and you are responsible for repair costs after you buy it.

A buyer may cancel a personal solicitation sale (a sale of consumer goods or services solicited by phone or in person and agreed to somewhere other than the seller's place of business) until midnight of the third business day after signing a compliant agreement. A buyer 65 or older may cancel a personal solicitation sale of a product priced over $50 until midnight of the 15th business day. The seller must tell the buyer orally of the right to cancel and give a written agreement with a notice of cancellation form; after cancellation, payments and trade-ins must be returned within 10 business days. The Attorney General notes there is no right to cancel a vehicle purchase.

North Dakota's consumer fraud law (Unlawful Sales or Advertising Practices) makes it unlawful to use any deceptive act or practice, fraud, false pretense, false promise or misrepresentation, with the intent that others rely on it, in connection with the sale or advertisement of merchandise, as well as unconscionable practices that cause substantial injury consumers cannot reasonably avoid. The Attorney General enforces it. A person may also sue a business that obtained money or property through an unlawful practice; if the court finds the conduct was knowing, it may award up to three times actual damages and must award costs and reasonable attorney's fees.

Gift certificates and gift cards for use at a specific store or service may not expire, or have a redemption deadline, sooner than six years after purchase, and monthly or annual service or maintenance fees may not be charged. The law does not cover general-use prepaid cards (such as Visa or Mastercard gift cards) usable at many unaffiliated merchants, or promotional cards given away without payment (though restrictions on those must be disclosed in writing). A violation is treated as a violation of the consumer fraud law.

The Attorney General states that a retail store can set its own return policy, which may include a cash refund, store credit, an exchange or no refund at all, and that some retailers have different policies for seasonal, sale or online items, including restocking fees. The Attorney General advises checking the policy before buying.

Debt-settlement providers must be licensed by the Department of Financial Institutions to serve North Dakota residents. They may not charge enrollment, setup, upfront or maintenance fees; a settlement fee is capped at 30% of the savings and may not be collected until a creditor has agreed to a settlement and the funds have been paid. A consumer may cancel at any time before all services are performed and is entitled to a refund (other than any application fee and earned settlement fees) within seven days. A consumer harmed by a violation may sue for restitution or up to $2,000, whichever is greater, plus costs and attorney's fees. Separately, consumer credit counseling (debt management) services must use a written contract based on a written budget analysis and file a surety bond with the Attorney General.

A person must have a state contractor license before working as a contractor on any job whose cost, value or price exceeds $4,000; working without one is a class A misdemeanor, and an unlicensed contractor cannot sue to enforce a claim related to that work. Construction fraud, such as taking payment through deception or willfully abandoning a project, is a crime. The Attorney General advises checking the Secretary of State's licensed contractor list, getting a detailed written contract, and not paying in full until the work is finished; contractors not from the local area also need a Transient Merchant License from the Attorney General.

A business or person that owns or licenses computerized personal information must notify North Dakota residents whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person, in the most expedient time possible and without unreasonable delay (delay is allowed for law enforcement needs). Personal information includes a name combined with items such as a Social Security number, driver's license or state ID number, financial account or card number with its access code, date of birth, mother's maiden name, medical or health insurance information, an employer ID number with access code, or an electronic signature. If a breach affects more than 250 people, the Attorney General must also be told.

North Dakota residents, and people elsewhere with a dispute involving a North Dakota business, can file a complaint with the Attorney General's Consumer Protection Division online or by mailing a printed form. Anonymous complaints are not accepted. If the complaint is within its authority, the division will try to mediate a resolution, and if that fails it may refer the consumer to a private attorney. Consumer Protection: (701) 328-3404 or 1-800-472-2600 (in North Dakota).

1) Report the problem to the manufacturer, its agent or an authorized dealer during the express warranty term or within one year after original delivery, whichever ends first. 2) Direct notice: the presumption that the manufacturer had a reasonable number of repair attempts does not apply unless the manufacturer received prior direct notice from or on behalf of the consumer and an opportunity to fix the defect. 3) Arbitration: if the manufacturer has or takes part in an informal dispute settlement procedure that substantially complies with federal rules (16 C.F.R. part 703), or a consumer-and-industry appeals, arbitration or mediation board whose decisions bind the manufacturer, the consumer must use it first before the refund-or-replacement remedy is available. If the consumer asks for an oral presentation, the hearing must be held in the consumer's home state. On application, the Attorney General decides whether a program qualifies. The law does not create a state-run arbitration program or set a consumer fee. 4) Deadline to sue: a lawsuit must be filed within six months after the earlier of (a) the end of the express warranty term or (b) 18 months after original delivery. A consumer who chooses to proceed under the lemon law gives up other remedies arising from the same facts.