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A Consumer's Guide to the Arkansas Farm Machinery (Arkansas Attorney General)

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A Consumer's

Guide to the

Arkansas Farm

Machinery

Lemon Law

A Consumer's

Guide to the

Arkansas Farm

Machinery

Lemon Law

INTRODUCTION

The Consumer Protection Division of the Office of the Attorney General prepared this guide in

accordance with Ark. Code Ann. § 4-96-303(b)(1) to explain the rights and obligations of the

consumer under the Arkansas New Farm Machinery Quality Assurance Act (commonly known

as “The Farm Machinery Lemon Law”), Ark. Code Ann. §§ 4-96-301–308.

This guide is for informational purposes only and should not be considered or relied upon as

legal advice.

The Farm Machinery Lemon Law applies to new farm machinery purchased or leased on or after

January 1, 2020, that exhibits at least one nonconformity during the farm machinery quality

assurance period. If after following the required and specified process, the manufacturer,

distributor, or authorized dealer is unable to repair the nonconformity, the consumer is entitled

to choose either a comparable replacement or the repurchase of the farm machinery.

IMPORTANT: Consumers should consult with an attorney regarding any questions about how

this law may apply to the consumer's particular circumstances.

Farm Machinery Lemon Law Terminology

The following are definitions for key terms used in the Farm Machinery Lemon Law.

Farm machinery

is defined under this law as new self-propelled equipment or machinery

over 25 horsepower typically used for agricultural purposes that is purchased or leased for

the first time from a manufacturer, distributor, or an authorized dealer.

Farm machinery as defined under this law does NOT include the following types of

machinery or equipment:

•

All-terrain vehicles (ATVs)

•

Lawn mowers

•

Lawn tractors

•

Manually-propelled equipment

•

Off-road vehicles

•

Any other machinery/equipment under 25 horsepower

A malfunction, defect, or other such problem that "does not conform" to the express warranty

issued by the manufacturer and significantly impairs the use, value, or safety of the farm

machinery is called a

nonconformity

. A nonconformity must not be the result of abuse,

neglect, or a failure to properly operate or maintain by the consumer.

The

Farm Machinery Quality Assurance Period

is the time period during which the

consumer must provide a notice of the nonconformity to the manufacturer, distributor, or

authorized dealer.

This period is the earlier of either:

•

The first 12 months from the date that the farm machinery was first delivered to the

consumer, OR

•

The first 600 hours of operation of the farm machinery after the date of delivery.

IMPORTANT: Coverage under this law is limited to the engine, transmission and powertrain

notice of the nonconformity

is a written statement by the consumer detailing any

nonconformity exhibited by the farm machinery. The notice

must be sent by certified mail

to the manufacturer, distributor, or authorized dealer at the address stated on the notice

provided by the seller demanding that the nonconformity be corrected or repaired.

The

seller

means a retail seller of the farm machinery as evidenced by the purchase order

or lease agreement, that may be a dealer, distributor, manufacturer, or manufacturer’s

agent.

The

consumer

means a purchaser or lessee of farm machinery, other than for purposes of

resale, or a person entitled to enforce the obligations of the warranty during the duration of

the farm machinery quality assurance period.

Farm Machinery Lemon Law Procedures

The procedure for the application of the Arkansas Farm Machinery Lemon Law is as follows:

FIRST, the seller is required to provide to the consumer at the time of sale or acquisition of the

farm machinery the following three items:

• A copy of this guide, A Consumer's Guide to the Arkansas Farm Machinery Lemon Law,

which explains the rights and obligations of the consumer;

• An acknowledgement for the consumer to sign that the consumer received a copy of this

guide; and

• A notice that clearly and prominently displays the address and phone number of the

manufacturer, distributor, or authorized dealer to which the consumer must send a

notification of the nonconformity by certified mail

SECOND, if the farm machinery exhibits one or more nonconformities during the term of the

applicable express warranty or during the farm machinery quality assurance period, whichever

period expires earlier, the consumer MUST send a notification of the nonconformity by certified

mail to the seller demanding that the nonconformities be corrected or repaired.

THIRD, after the Notice of the Nonconformity is provided, the manufacturer, distributor, or

authorized dealer has the right to repair or correct the nonconformity, subject to any of the

following conditions:

• The manufacturer, distributor, or authorized dealer has made three (3) unsuccessful

attempts to repair the same nonconformity AND the cost of repairs is equal to at least

thirty percent (30%) of the total purchase price of the farm machinery; OR

• The farm machinery has been out of service for thirty (30) days* for the same

issue AND the cost of repairs equals thirty percent (30%) of the total purchase price of

the farm machinery; OR

• There have been five (5) unsuccessful attempts by the manufacturer, distributor, or

authorized dealer to repair all nonconformities AND the cost of repairs is equal to at least

fifty percent (50%) of the total purchase price of the farm machinery; OR

• The farm machinery has been out of service for sixty (60) days

for all issues AND the

cost of repairs equals fifty percent (50%) of the total purchase price of the farm machinery.

IMPORTANT: The law requires that the notice of the nonconformity be sent by certified mail. It is

suggested that the certified mail receipt (green card) be kept in a safe place as proof of the date

notification was provided.

FOURTH, if the nonconformity is not repaired or corrected after the allotted number of repair

attempts, then within 30 days of the last required repair attempt, the manufacturer or distributor

shall at the consumer's option:

• Replace the farm machinery with comparable farm machinery that is acceptable to the

consumer; OR

• Repurchase the farm machinery, which means the refund of the full purchase or lease

price originally paid by the consumer, LESS the fair lease value of the farm machinery

and an offset for any physical damage sustained while in the ownership of the consumer.

*The days that the manufacturer, distributor, or authorized dealer provides comparable farm machinery to use while

the consumer's farm machinery is being repaired do not count toward days out of service in determining the dealer's

failure to repair the nonconformity.

IMPORTANT: It is suggested that consumers obtain a dated, detailed statement for each repair

attempt from the service provider that includes any charges for parts and labor, a general description

of the problem, and a list of all work performed, along with the date the farm machinery was brought

in for repair and the date it was returned to the consumer. These statements should be kept together

in a file as a record of the repair attempts.

IMPORTANT: A replacement or refund shall also include payment to the consumer of all collateral

charges and reasonably incurred incidental charges.

Farm Machinery Lemon Law Claim Disputes

The manufacturer, distributor, or authorized dealer may dispute the consumer's claims and may

assert any defense allowed by law, including, but not limited to, the following:

• The nonconformity does not substantially impair the use, value, or safety of the

machinery;

• The manufacturer, distributor, or authorized dealer has not yet made the specified number

of unsuccessful attempts to repair the nonconformity;

• The nonconformity is due to accident, abuse, neglect, or unauthorized modification of the

farm machinery by a person other than the manufacturer, agent of a manufacturer,

distributor, or authorized dealer;

• The claim was not submitted in good faith; or

• The consumer failed to notify the manufacturer, distributor, or authorized dealer of the

nonconformities in the time or manner required by the law.

The consumer may also disagree with any determination by the manufacturer, distributor, or

authorized dealer, including but not limited to, the following:

• Whether the farm machinery lemon law applies in the particular circumstance;

• The type and amount of relief the consumer may be entitled to receive;

• Whether the replacement farm machinery is comparable;

• The amount offered for repurchase of the farm machinery; or

• Any other matter applicable under this law.

However, before a consumer may file a lawsuit under this law, the consumer and the

manufacturer, distributor, or authorized dealer MUST first attempt to resolve any differences by

engaging in mediation with a mediator who is certified by the Arkansas Alternative Dispute

Resolution Commission.

www.arcourts.gov/administration/adr/certified-mediators

IMPORTANT: The law requires that the consumer AND the manufacturer shall be equally responsible

for mediation cost. If after mediation the matter is still not resolved, the consumer may file a lawsuit in

the appropriate court and within the statute of limitations. If the seller did not provide the consumer

with the appropriate written statement explaining the consumer's rights and obligations at the time of

sale, then the consumer is not required to seek mediation before filing suit.

CONTACT INFORMATION FOR NOTICE OF NONCONFORMITY

In order to be eligible for a refund or replacement of the farm machinery as a result of a

claim made under the Arkansas New Farm Machinery Quality Assurance Act, a written

notice of nonconformity must be sent by certified mail to:

Name of Manufacturer/Distributor/Authorized Dealer:

Mailing Address:

City:

State:

ZIP:

Phone:

*The seller must provide this information at the time of sale or acquisition of the farm machinery

Sample letters for a Notice of Nonconformity and Demand for Refund or Replacement may be found at:

www.ArkansasAG.gov/LemonLaw

Arkansas New Farm Machinery Quality Assurance Act

CONSUMER ACKNOWLEDGEMENT

I, ____________________________________________________________________,

(consumer’s printed name)

ACKNOWLEDGE that on this DATE: _______________ / __________ / __________, I

(month) (day) (year)

 PURCHASED  LEASED

(check one)

the farm machinery described as:

Equipment Type:

Year:

Make:

Model:

Serial/ID #:

from the following retail seller:

Seller’s Name:

Address:

City:

State:

ZIP:

I further ACKNOWLEDGE that I received from the seller this copy of

“A Consumer’s Guide to the Arkansas Farm Machinery Lemon Law.”

Consumer’s Signature Date

The seller must maintain this signed acknowledge for at least the period of coverage of the manufacturer’s warranty.

RECORD OF REPAIRS

DATE

REPAIR FACILITY

PROBLEM(S)

RESULT

DATE

RETURNED

RECORD OF REPAIRS

DATE

REPAIR FACILITY

PROBLEM(S)

RESULT

DATE

RETURNED

For questions or more information about the

Arkansas Farm Machinery Lemon Law, contact:

Office of Arkansas Attorney General

Consumer Protection Division

323 Center Street, Suite 200 • Little Rock, AR 72201

(501) 682-2007 • (800) 482-8982

Consumer@ArkansasAG.gov

ArkansasAG.gov/LemonLaw

REV. 12/19

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