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Lemon Law Takes Effect in South Dakota

Purchasers of certain farm equipment in South Dakota are now covered by a recently enacted lemon law. HB 1103 was passed during the 2019 legislative session and took effect July 1. The law covers “nonconforming conditions” which occur within one year after the date of the original delivery of new farm machinery to a consumer. The farm equipment manufacturer or its authorized dealer must make a reasonable attempt to repair the equipment, and if unable to do so, is obligated to replace the equipment or refund the consumer. View SD’s new farm equipment Lemon Law here. Minnesota and North Dakota also have non-conformity laws that cover farm equipment. View Minnesota’s law here (scroll down to “Farm Equipment Warranty Compliance”) and view North Dakota’s law here.

Pioneer EDA President/CEO Matthew Larsgaard remarks that “good” Lemon Laws are beneficial to dealers as they largely remove dealers from the non-conformity equation.

“Lemon Laws protect both consumers and dealers from deficiencies that are attributed to manufacturing,” says Larsgaard. “Another benefit of the lemon law is that it definitively shifts the burden of remedy from the dealer to the manufacturers…..notwithstanding the customer relationship that the dealer must obviously manage. The lemon law is specific to manufacturers’ express warranties….not general merchantability.”

Matthew C. Larsgaard, Pioneer EDA President/CEO

Dealer Protections Legislation Lemon Law Minnesota North Dakota R2R South Dakota