22 (1) If, within the twelve months following its delivery to the purchaser, a new farm implement that is properly operated and maintained and used under reasonable operating conditions fails to perform to the manufacturer’s specifications during its first ten days or first 100 hours of actual use, whichever occurs first, the purchaser may give notice of the farm implement’s failure to perform.  R.S.O. 1990, c. F.4, s. 22 (1). Notice (2) The notice referred to in subsection (1) shall be given in writing as soon as possible after the failure occurs, and in any event within ten days of the failure, (a) to the selling dealer; or (b) if the selling dealer is no longer in business, to the Director, and the dealer or the Director shall notify the distributor forthwith of the notice and its contents.  R.S.O. 1990, c. F.4, s. 22 (2); 1999, c. 12, Sched. A, s. 11 (11). Repair (3) The dealer or distributor shall endeavour to make the defective farm implement perform to the manufacturer’s specifications within four working days after the dealer or distributor receives notice of the failure, or as soon as possible thereafter when reasonable operating conditions exist for the farm implement.  R.S.O. 1990, c. F.4, s. 22 (3). Substitute (4) If the dealer or distributor fails to make the defective farm implement perform to the manufacturer’s specifications, the dealer or distributor shall forthwith provide the purchaser with a satisfactory substitute for the purchaser’s use until the defective farm implement is made to perform to the manufacturer’s specifications or is replaced or until the sale agreement is terminated under clause (5) (b).  R.S.O. 1990, c. F.4, s. 22 (4). Replacement or termination (5) If, within fourteen working days after providing the substitute farm implement to the purchaser, the dealer or distributor fails to make the defective farm implement perform to the manufacturer’s specifications, (a) the distributor shall replace the defective farm implement with a farm implement that is satisfactory to the purchaser; or (b) the dealer shall terminate the sale agreement in so far as it relates to the defective farm implement.  R.S.O. 1990, c. F.4, s. 22 (5). Refund and return of trade-in (6) Subject to subsections (7), (8) and (9), when a sale agreement is terminated under clause (5) (b), (a) the distributor shall refund to the purchaser through the dealer the amount remitted to the distributor for the defective farm implement; and (b) the dealer shall refund to the purchaser the balance of the amount paid for the defective farm implement and shall return any trade-in made in connection with the sale.  R.S.O. 1990, c. F.4, s. 22 (6). Deduction for repairs to trade-in (7) The dealer or distributor may deduct from the amount owing to the purchaser, (a) the reasonable costs of repairing or reconditioning the trade-in that were incurred before the termination of the sale agreement; and (b) a reasonable amount of compensation for the actual use of the farm implement by the purchaser.  R.S.O. 1990, c. F.4, s. 22 (7). Where trade-in not returned (8) If the dealer does not return the trade-in, the dealer shall pay to the purchaser an amount equal to the fair market value of the trade-in.  R.S.O. 1990, c. F.4, s. 22 (8). Sale agreement for more than one farm implement (9) If the defective farm implement was purchased under a sale agreement that relates to more than one farm implement and includes a trade-in arrangement, the dealer or distributor may, unless the purchaser agrees otherwise, (a) keep the trade-in and pay to the purchaser an amount of money that bears the same proportion to the fair market value of the trade-in as the purchase price of the defective farm implement bears to the total purchase price of all the farm implements purchased under the agreement; or (b) return the trade-in and refund to the purchaser the part of the total purchase price that was paid in respect of the defective farm implement.  R.S.O. 1990, c. F.4, s. 22 (9). Obligations re financing agreement (10) If the purchase of the defective farm implement is financed in whole or in part through a financing agreement with a third party and the sale agreement relating to it is terminated under clause (5) (b), the distributor shall be liable, (a) to satisfy the payment obligations under the financing agreement that relate to the defective farm implement, including any penalty for accelerated payment; and (b) to discharge any registrations against the farm implement or against the purchaser in connection with that farm implement under the Bank Act (Canada) and the Personal Property Security Act.  R.S.O. 1990, c. F.4, s. 22 (10). Reimbursement by manufacturer (11) If the distributor of a defective farm implement is not the manufacturer of it, the manufacturer shall reimburse the distributor for the costs that the distributor incurs to comply with the requirements that this section imposes on the distributor.  2005, c. 19, s. 5. Section Amendments with date in force (d/m/y) 1999, c. 12, Sched. A, s. 11 (11) - 22/12/1999 2005, c. 19, s. 5
- 13/06/2005 Buy-back Provisions