First enacted into law in 1993, the South Dakota lemon law covers new passenger vehicles as well as previously untitled ones, for a period of twelve months or twelve thousand miles, whichever comes first. In addition to automobiles, this law also covers sport utility vehicles, light trucks, vans and motorcycles. Vehicles with a gross weight of more than ten thousand pounds are excluded from coverage.

Please note: some Websites indicate a three year or 36,000 mile period for the South Dakota lemon law. The Website of the state’s Attorney General’s office indicates a twelve month period with a 12,000 mile limit, which the state defines as the “Lemon Law Rights Period.”

Once the manufacturer has been notified during the rights period, the manufacturer must repair the problem even if the rights period has expired. This period could be extended to as long as 24 months or 24,000 miles if the owner notified the manufacturer of the problem during the first year or 12,000 miles of ownership.

The statute defines a “nonconformity” as any condition which does not conform to the written warranty issued by the manufacturer which significantly impairs the use, safety or value of the vehicle in question. This nonconformity must arise during the normal, intended use of the vehicle and not as a result of abuse, neglect or any unauthorized modification.

The manufacturer must be allowed a reasonable number of attempts to repair the problem with a defective vehicle. The state defines this as four or more unsuccessful attempts to repair the problem. The vehicle may also qualify as a lemon if it was unavailable to the owner for a total of 30 days due to unsuccessful attempts to repair the problem. This period may be extended if there were circumstances beyond the manufacturer’s control that prevented them from repairing the vehicle. Examples of this would be fire, flood, war, strike, invasion, or other natural disaster.

South Dakota law does not seem to require that the owner of a defective vehicle submit to arbitration. This is unusual, as most manufacturers provide an arbitration solution in most states. Most states, in turn, require owners to submit to arbitration before seeking other solutions, such as a lawsuit.

Should the manufacturer agree that the vehicle is a lemon, or should this be determined in a court of law, the owner is entitled to one of the following remedies, at the owner’s discretion:

• Replacement of the vehicle with a comparable new motor vehicle.
• Refund of the full purchase price, including charges for undercoating, dealer preparation, transportation charges, any installed options and taxes, licenses, and any registration fees or additional government-imposed charges. This refund will also include compensation for any rental car used by the owner during the time that his or her vehicle was unavailable due to repairs.

Vehicles returned to the manufacturer due to defects may not be resold in the state unless the vehicle has been retitled in the state with the new title indicating its return status. Any dealer selling such a vehicle must also disclose to any prospective buyer, in writing, that the vehicle has previously been returned to the manufacturer as defective.

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