§ 51-07-18 — Duty to replace defective passenger motor vehicle or refund price - Prerequisite of using available informal dispute settlement process

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.
2. It is an affirmative defense to any claim under sections 51-07-16 through 51-07-22:
a. That an alleged nonconformity does not substantially impair the use and market
value of the passenger motor vehicle; or
b. That a nonconformity is the result of abuse, neglect, or unauthorized
modifications or alterations of the passenger motor vehicle by a consumer.
3. If a manufacturer has established or participates in an informal dispute settlement
procedure that substantially complies with the substantive rules of the federal trade
commission, 16 CFR 703, or if the manufacturer participates in a consumer and
industry appeals, arbitration, or mediation appeals board whose decisions are binding
on the manufacturer, the remedy under subsection 1 is not available to a consumer
who has not first resorted to that procedure. If the consumer requests an oral
presentation before the board or dispute settlement mechanism, the hearing must take
place in the state in which the consumer resides. The attorney general shall, on
application, issue a determination of whether an informal dispute resolution
mechanism qualifies under this subsection.