Province of Alberta FARM IMPLEMENT ACT. Revised Statutes of Alberta 2000 Chapter F-7. Current as of November 1, Office Consolidation

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1 Province of Alberta FARM IMPLEMENT ACT Revised Statutes of Alberta 2000 Current as of November 1, 2010 Office Consolidation Published by Alberta Queen s Printer Alberta Queen s Printer Suite 700, Park Plaza Avenue Edmonton, AB T5K 2P7 Phone: Fax: qp@gov.ab.ca Shop on-line at

2 Copyright and Permission Statement Alberta Queen's Printer holds copyright on behalf of the Government of Alberta in right of Her Majesty the Queen for all Government of Alberta legislation. Alberta Queen's Printer permits any person to reproduce Alberta s statutes and regulations without seeking permission and without charge, provided due diligence is exercised to ensure the accuracy of the materials produced, and Crown copyright is acknowledged in the following format: Alberta Queen's Printer, 20.* *The year of first publication of the legal materials is to be completed. Note All persons making use of this consolidation are reminded that it has no legislative sanction, that amendments have been embodied for convenience of reference only. The official Statutes and Regulations should be consulted for all purposes of interpreting and applying the law. Amendments Not in Force This consolidation incorporates only those amendments in force on the consolidation date shown on the cover. It does not include the following amendments: 2014 c18 s2 repeals and substitutes the title, amends s1, adds title "Part I Farm Implements" after s1, amends ss2(1), 5(1), 6(1), 7, 8, 13, 18, repeals ss23 and 24, amends s26, repeals 30(g), (j) and (n) and s30.1, adds Part 2 ss30.2 to and title "Part 3 General" before section 31, amends s32(1). Regulations The following is a list of the regulations made under the Farm Implement Act that are filed as Alberta Regulations under the Regulations Act Alta. Reg. Amendments Farm Implement Act Farm Implement / /87, 147/91, 246/95, 92/96, 206/2001, 251/2001, 27/2002, 92/2003, 371/2003, 222/2004, 35/2007, 207/2007, 24/2008, 68/2008, 31/2012, 62/2013, 215/2014, 17/2016, 48/2017

3 FARM IMPLEMENT ACT Table of Contents 1 Definitions 2 Exemption from Act 3 Form of agreement 4 Lease, lease-purchase agreement, financial lease or financial lease-purchase agreement 4.1 Financial lease and financial lease-purchase agreement 4.2 Notice to dealer 5 Implied warranty, power 6 Implied warranty, quality 7 Notice of failure to perform 7.1 Warranties enforceable under financial lease 8 Implied warranty, repair parts 9 Repair parts 10 Regulations respecting emergency repair parts 11 Voluntary warranties 12 Waiver prohibited 13 Effective date of sale agreement 14 Copies of sale agreement 15 Inspection of repair parts stock 16 Return of defective repair part 17 Breach of warranty 18 Exception to breach of warranty 19 Arbitration of dispute 20 Powers of inspector 21 Obliteration of serial number 22 New serial number 23 Repurchase by distributor 1

4 Section 1 FARM IMPLEMENT ACT 24 Distributor to furnish information 25 Sale of farm implements 26 Licences 27 Cancellation and suspension 28 Appeal from cancellation, suspension or refusal of licence 29 Application pending appeal 30 Regulations 30.1 Transitional regulations 31 Service of notice 32 Offence and penalty 33 Staff 34 Board established 35 Procedural fairness 36 Board s mandate 37 Application for compensation 38 Hearing 39 Fund 40 Use of Fund 41 Power of Board to enforce assessments 42 Board report 43 Sharing information 44 Liability exemption HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: Definitions 1 In this Act, (a) Board means the Farm Implement Board pursuant to this Act; (a.1) custom operator means a person who purchases a new farm implement and uses or permits the use of that farm implement for hire or for service to others for valuable consideration to the extent of at least 50% of the annual use of that farm implement; (b) dealer means a person who 2

5 Section 1 FARM IMPLEMENT ACT (i) sells or offers for sale farm implements on that person s own account or on account of a distributor, or (ii) leases or offers for lease, with or without the right to purchase, farm implements on that person s own account or on account of a distributor, but does not include a financial institution that has entered into financial leases or financial lease-purchase agreements; (c) distributor means a person, including a manufacturer, who sells, leases, consigns or delivers, or offers for sale, lease, consignment or delivery, farm implements to a dealer for sale or lease; (d) farm implement means any implement, equipment, engine, motor, machine, combine, tractor or attachment used or intended for use in farming operations but does not include any thing excluded from the definition of farm implement by the regulations; (d.01) financial institution means a bank, a treasury branch, a loan corporation, a trust corporation, a credit union and any other institution designated in the regulations as a financial institution if the legislation of the jurisdiction where the institution is incorporated or continued authorizes the institution to enter into financial leases or financial lease-purchase agreements and the institution is not prohibited from entering into financial leases or financial lease-purchase agreements; (d.02) financial lease means a lease between a financial institution and a lessee that, after allowing for the rate of return to the financial institution agreed to by the lessee, is intended to recoup to the financial institution its entire investment in the farm implement, taking into consideration the value of any tax benefits accruing to the financial institution on account of the lease, including tax credits and capital cost allowance claims; (d.03) financial lease-purchase agreement means a financial lease of a farm implement under which the lessee is given the right to purchase the farm implement; (d.1) Fund means the money held by the Board pursuant to this Act; 3

6 Section 2 FARM IMPLEMENT ACT (e) inspector means an inspector appointed under section 33; (f) lease means a lease of a farm implement under which the lessee is not given the right to purchase the farm implement; (g) lease-purchase agreement means a lease of a farm implement under which the lessee is given the right to purchase the farm implement; (g.1) lessee means the lessee under a lease, lease-purchase agreement, financial lease or financial lease-purchase agreement; (h) lessor means the lessor under a lease, lease-purchase agreement, financial lease or financial lease-purchase agreement; (h.1) loss means a direct loss or damage but does not include loss of profits or any other indirect, special or consequential loss or damage; (i) Minister means the Minister determined under section 16 of the Government Organization Act as the Minister responsible for this Act; (i.1) part means a part for a farm implement but does not include any services with respect to installing the part; (j) purchaser means a person who (i) purchases or leases, with or without the right to purchase, a farm implement from a dealer, or (ii) leases, with or without the right to purchase, a farm implement from a financial institution under a financial lease or a financial lease-purchase agreement if the financial institution obtains the farm implement from a dealer at the request of the person; (k) sale agreement means an agreement to purchase a farm implement. RSA 2000 cf-7 s1;2001 c7 s2;2003 c38 s2;2007 c14 s2 Exemption from Act 2(1) This Act does not apply to a sale of a farm implement 4

7 Section 3 FARM IMPLEMENT ACT (a) by a farmer (i) by sale by public auction, or (ii) in the ordinary course of the farmer s farming operations; (b) by an executor or administrator; (c) by a public official acting under judicial process; (d) to a dealer or distributor, except as provided in sections 23 and 24. (2) The Lieutenant Governor in Council may make regulations exempting any farm implement or class of farm implements from this Act or from any of the provisions of this Act. (3) Part 3 of the Fair Trading Act does not apply to the sale of a farm implement, except a farm implement that is exempted from this Act pursuant to subsection (2) cf-4.1 s2;1998 cf-1.05 s193 Form of agreement 3(1) Every sale agreement of a farm implement, whether new or used, (a) shall be in writing, (b) shall contain an address for the dealer and the distributor, (c) shall set out the nature and duration of all warranties given in connection with the farm implement, (d) shall contain a description of the farm implement, including the serial number and model number, if available, by which it may be readily known and distinguished, (e) if the sale agreement relates to more than one farm implement, shall show a purchase price for each farm implement, including any attachment and accessory, (f) if the sale agreement relates to a farm implement that is supplied by one distributor but has an attachment to it supplied by another distributor, shall show separately the purchase price for the attachment, and 5

8 Section 4 FARM IMPLEMENT ACT (g) shall contain any other information prescribed in the regulations. (2) If, with respect to a farm implement that is manufactured with a serial number, the serial number of the farm implement is not available to the dealer at the time the sale agreement, financial lease or financial lease-purchase agreement is entered into, the dealer shall, in writing, advise the purchaser and, if a financial lease or a financial lease-purchase agreement was entered into, the financial institution, of the serial number not later than the date the farm implement is delivered to the purchaser. (3) Notwithstanding subsection (1)(c) or section 5, a warranty may be stated elsewhere than in the sale agreement if the statement (a) is in writing and identifies the farm implement to which the warranty applies, and (b) is delivered to the purchaser not later than the time the purchaser takes delivery of the farm implement under the agreement. RSA 2000 cf-7 s3;2001 c7 s3;2007 c14 s3 Lease, lease-purchase agreement, financial lease or financial lease purchase agreement 4(1) A lease, lease-purchase agreement, financial lease or financial lease-purchase agreement shall set out all the terms and conditions of the agreement. (2) This Act and the regulations apply to a lease, lease-purchase agreement, financial lease or financial lease-purchase agreement as if it were a sale agreement. (3) A lease, lease-purchase agreement, financial lease or financial lease-purchase agreement is assignable by the lessor or an assignee of the lease, lease-purchase agreement, financial lease or financial lease-purchase agreement. (4) A lessor who assigns a lease or lease-purchase agreement continues to be responsible for the warranties under this Act notwithstanding (a) the assignment by the lessor, and (b) any subsequent assignment by an assignee of the lease or lease-purchase agreement. RSA 2000 cf-7 s4;2007 c14 s4 6

9 Section 4.1 FARM IMPLEMENT ACT Financial lease and financial lease-purchase agreement 4.1 When a financial institution acquires a farm implement from a dealer at the request of a purchaser and the financial institution leases the farm implement to the purchaser pursuant to a financial lease or a financial lease-purchase agreement, (a) the purchaser is deemed to have leased the farm implement from the dealer, (b) this Act applies with respect to that farm implement as if the purchaser had leased the farm implement directly from the dealer pursuant to a lease or a lease-purchase agreement with the dealer, (c) the dealer has the same obligations to the purchaser that the dealer would have pursuant to this Act if the purchaser had leased the farm implement directly from the dealer, and (d) the purchaser is entitled to enforce the warranty described in sections 5, 6, 7 and 8 against the dealer and the distributor who provided the farm implement c14 s5 Notice to dealer 4.2(1) When a financial institution acquires a farm implement from a dealer at the request of a purchaser, the financial institution shall provide the dealer with (a) the name and address of the purchaser of the farm implement, and (b) the year, make, model and serial number of the farm implement and all attachments to which the financial lease or financial lease-purchase agreement relates. (2) The failure of a financial institution to provide the information referred to in subsection (1) does not affect the purchaser s rights or the dealer s obligations under section c14 s5 Implied warranty, power 5(1) A sale agreement for a new farm implement that is an engine or motor or has an engine or motor as a composite part of it shall state the net power of the farm implement as shown in the manufacturer s specifications or advertising, and that farm 7

10 Section 6 FARM IMPLEMENT ACT implement is deemed to be warranted as being capable of developing the power as stated in the sale agreement if it is properly used and maintained and used under reasonable operating conditions. (2) The warranty provided for in subsection (1) is deemed to apply for a reasonable period of time not to be less than one year from the date that the farm implement is first used in the first normal season of use by the purchaser. RSA 2000 cf-7 s5;2001 c7 s4 Implied warranty, quality 6(1) Notwithstanding anything contained in an agreement or other document, every new farm implement sold is deemed to be warranted to be (a) made of good material, (b) properly constructed as to design and workmanship, (c) in good working order, (d) capable of performing under reasonable operating conditions and with proper use and maintenance the work for which it is intended in a satisfactory manner, and (e) designed and constructed so as to ensure reasonable durability with proper use and maintenance and under reasonable operating conditions. (2) The warranties provided for by this section are deemed to apply for a reasonable period of time not to be less than one year from the date that the new farm implement is first used in the first normal season of use by the purchaser for its intended purpose. (3) A custom operator does not have the benefit of any of the warranties provided for in subsection (1)(d) and (e) with respect to a farm implement mentioned in section 1(a) that is purchased by the custom operator cf-4.1 s5 Notice of failure to perform 7(1) In this section, (a) trade-in means a farm implement or other property that is purchased by the dealer under a trade-in arrangement; 8

11 Section 7 FARM IMPLEMENT ACT (b) trade-in allowance means the amount shown in a sale agreement as the amount accepted by the dealer as the value of a trade-in under a trade-in arrangement; (c) trade-in arrangement means an agreement or arrangement, whether contained in a sale agreement or made by a separate agreement or arrangement in conjunction with or incidental to a sale agreement, whereby the purchaser agrees to sell the purchaser s own farm implement or other property to the dealer and the farm implement or other property is accepted as the whole or part of the consideration under the sale agreement. (2) When a new farm implement that is properly used and maintained and used under reasonable operating conditions fails to perform the work for which it is intended in a satisfactory manner during (a) any of the first 10 days of actual use of the farm implement, whether or not those days are consecutive, or (b) the first 50 hours of actual use of the farm implement, whether or not that period is continuous, whichever occurs first, from the time the farm implement is first used within the first normal season of use after it is delivered to the purchaser, the purchaser may, within that season, give notice under subsection (3) of the farm implement s failure to perform that work. (3) A notice referred to in subsection (2) must be in writing and must be given to the Minister, the distributor and the dealer as soon as is reasonably possible after the failure occurs. (4) On receiving notice under subsection (3), the dealer or distributor shall, not later than 7 working days during which reasonable operating conditions exist for that farm implement after the date on which the dealer or distributor received the notice, endeavour to make the farm implement perform in a satisfactory manner. (5) If the dealer or distributor fails to make the farm implement perform in a satisfactory manner pursuant to subsection (4), the dealer or distributor shall, within 48 hours after the expiry of the period stated in subsection (4), provide the purchaser with a satisfactory substitute farm implement for the purchaser s use until the purchaser s farm implement is made to perform in a satisfactory manner. 9

12 Section 7 FARM IMPLEMENT ACT (6) If the sale agreement does not contain an address for the distributor, (a) the purchaser is not required to give notice to the distributor under subsection (3), and (b) when the notice is given to the dealer, the dealer shall forthwith notify the distributor of that fact and of the contents of the notice. (7) If, within a reasonable time after providing the substitute farm implement to the purchaser, the dealer or distributor fails to make the purchaser s farm implement perform in a satisfactory manner, the dealer or distributor shall either (a) replace the purchaser s farm implement with a farm implement that is acceptable to the purchaser, or (b) terminate the sale agreement or, if the sale agreement relates to the purchase of more than one farm implement, terminate the sale agreement only as to the farm implement in respect of which notice under subsection (3) was given. (8) If the sale agreement relates to one farm implement and is wholly terminated pursuant to subsection (7)(b), the dealer or distributor shall (a) refund to the purchaser all money paid by the purchaser in connection with the sale agreement, and (b) subject to subsections (9) and (10), return to the purchaser any trade-in, in any case where a trade-in arrangement was made. (9) If the dealer or distributor is required to return a trade-in in accordance with subsection (8)(b) but has, prior to the termination of the sale agreement, incurred costs or performed work in repairing or reconditioning the trade-in, the dealer or distributor may refuse to return the trade-in until the dealer or distributor has been paid for the reasonable costs of the repairs or reconditioning or until arrangements satisfactory to the dealer or distributor have been made for payment of those costs. (10) If the dealer or distributor is unable or refuses to return the trade-in in accordance with subsection (8)(b), the dealer or distributor shall pay to the purchaser an amount equal to the fair market value of the trade-in as of the date the sale agreement was made. 10

13 Section 7 FARM IMPLEMENT ACT (11) If the sale agreement relates to more than one farm implement and is terminated only as to one of the farm implements, called in this subsection the defective farm implement, pursuant to subsection (7)(b), (a) the dealer or distributor shall refund to the purchaser an amount of money that bears the same proportion to the money paid under the sale agreement as the purchase price of the defective farm implement bears to the total purchase price of the defective farm implement and the other farm implements purchased under the agreement, (b) in any case where a trade-in arrangement was made, the dealer or distributor shall, unless the purchaser otherwise agrees, 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 the defective farm implement and the other farm implements purchased under the agreement, and (c) unless the purchaser otherwise agrees, the sale agreement is deemed to be amended so that the trade-in allowance for the farm implement or implements remaining under the agreement is an amount of money that bears the same proportion to the total trade-in allowance that the purchase price of the other farm implement or implements under the agreement bears to the total purchase price of the defective farm implement and those other farm implements. (12) For the purposes of determining the fair market value of a trade-in under subsection (10) or (11), (a) regard may be had to any publication of farm implement prices in general use in the farm implement industry in Canada, and (b) the fair market value of the trade-in may be less than the trade-in allowance, and the dealer or distributor is not estopped from proving that fact. (13) This section does not abrogate or restrict any other remedies of a purchaser against a dealer or distributor. (14) When the sale agreement relates to a farm implement supplied by one distributor but the farm implement has an attachment to it 11

14 Section 7.1 FARM IMPLEMENT ACT supplied by another distributor, the attachment is deemed to be a separate farm implement for the purposes of this section. (15) When the sale agreement relates to more than one farm implement, the return of one of those farm implements to the distributor or dealer following the giving of a notice under subsection (3) does not affect any rights, obligations or liabilities of the manufacturer, distributor, dealer or purchaser under the agreement or this Act with respect to the other farm implements, except as provided in this section. RSA 2000 cf-7 s7;2001 c7 s5 Warranties enforceable under financial lease 7.1 Without limiting the generality of section 4 or 4.1, a purchaser who leases a new farm implement pursuant to a financial lease or a financial lease-purchase agreement is entitled to enforce the warranty described in section 7 against the dealer and distributor who provided the new farm implement and for that purpose (a) the purchaser is deemed to have leased the new farm implement directly from the dealer, and (b) section 7 applies, with any necessary modification, to the purchaser, the dealer, the distributor and the financial institution c14 s6 Implied warranty, repair parts 8(1) Notwithstanding anything contained in the agreement, every sale agreement of a new farm implement is deemed to contain a warranty that a sufficient supply of repair parts for the farm implement will be made available for a period of 10 years from the date of the agreement. (2) Repair parts must be made available to the purchaser within the time determined in accordance with the regulations after a request for them is made to the distributor or dealer but neither the distributor nor the dealer is responsible for any delay in delivering a required part that is due to circumstances beyond the distributor s or dealer s control. (3) New repair parts that are purchased from a dealer and are supplied by the same distributor who supplied the farm implement for which they are intended are deemed to be warranted to be free from defects as to material and workmanship for a period of 90 12

15 Section 9 FARM IMPLEMENT ACT days from the date that the repair part is first used by the purchaser in the first normal season of use cf-4.1 s7;1994 c40 s2 Repair parts 9(1) When a warranty is provided for by this Act and a dealer or distributor makes repairs to a farm implement under that warranty, the dealer or distributor shall use parts that are new and of the standard, quality and size prescribed by the manufacturer for that farm implement. (2) Notwithstanding subsection (1), if a dealer or distributor is authorized by the purchaser in writing to do so, the dealer or distributor may use parts other than new parts in making repairs to a farm implement under a warranty provided for by this Act cf-4.1 s8 Regulations respecting emergency repair parts 10(1) Notwithstanding anything in this Act, the Lieutenant Governor in Council may make regulations (a) imposing duties and obligations on (i) distributors, respecting the selling and supplying of parts to dealers in an emergency, and (ii) other persons, respecting the purchasing and acquiring of parts for farm implements in an emergency; (b) defining emergency for the purpose of this Act and the regulations; (c) generally, governing the selling, purchasing, supplying and acquiring of parts for farm implements in an emergency. (2) A person who suffers loss or damage has a cause of action for damages against a person who does not comply with the regulations or fulfil that person s duties or obligations under the regulations, if that loss or damage is attributable to that person s non-compliance with the regulations or the non-fulfilment of that person s duties or obligations under the regulations cf-4.1 s9 13

16 Section 11 FARM IMPLEMENT ACT Voluntary warranties 11 Nothing in this Act prevents a manufacturer, distributor or dealer from agreeing to be bound by a warranty in respect of a new farm implement that offers greater protection to the purchaser than a warranty deemed by this Act to have been given, or that applies for a longer period of time than the relevant period of time provided for under this Act in respect of that warranty cf-4.1 s10 Waiver prohibited 12(1) Any provision in a sale agreement, order, security instrument or statement of warranties made, taken or given in connection with the sale of a farm implement to the effect that the liability of the manufacturer, dealer or distributor as provided in this Act is limited or modified in any way is void. (2) Subsection (1) does not affect the validity of the remaining provisions of the agreement, order, instrument or statement cf-4.1 s11 Effective date of sale agreement 13 A person who signs an agreement to purchase a farm implement is not bound by the agreement until (a) the agreement is signed by the dealer or by a representative authorized to bind the dealer, or (b) the person has taken delivery of the farm implement under the agreement, whichever occurs first cf-4.1 s12 Copies of sale agreement 14 A dealer shall keep a copy of every sale agreement of a farm implement entered into by the dealer for at least 2 years and, on the request of an inspector, produce the copy and allow the inspector to make copies of it cf-4.1 s13 Inspection of repair parts stock 15 An inspector may inspect the stock of repair parts maintained in Alberta by distributors and their dealers and for that purpose every distributor and every dealer shall give an inspector free 14

17 Section 16 FARM IMPLEMENT ACT access to the distributor s or dealer s premises during usual business hours cf-4.1 s14 Return of defective repair part 16 A defective repair part of a farm implement for which the purchaser claims a replacement under a warranty must be returned not later than the date the defective part is replaced (a) to the dealer at the address stated in the sale agreement, or (b) if no address is stated in the sale agreement, to the distributor or nearest dealer of the distributor, and if a defective part is returned to the distributor or to a dealer who was not the dealer who sold the farm implement to the purchaser, the part must be accompanied with a written statement containing sufficient particulars of the sale transaction to enable the distributor or dealer to identify the transaction cf-4.1 s15 Breach of warranty 17(1) The dealer who sells a farm implement, the distributor who supplies it to the dealer and the manufacturer of it are deemed to give to the purchaser of the farm implement the warranties referred to in sections 5, 6 and 8(1) and are jointly and severally liable to the purchaser to observe, keep and perform those warranties. (2) The dealer who sells a new repair part to which section 8(3) applies and the distributor of it are deemed to give the purchaser of it the warranty referred to in section 8(3) and are jointly and severally liable to the purchaser to observe, keep and perform that warranty. (3) A purchaser may maintain an action against (a) any one or more of the dealer, the distributor and the manufacturer for breach of a warranty referred to in section 5, 6 or 8(1), and (b) the dealer or distributor, or both of them, for breach of the warranty referred to in section 8(3) cf-4.1 s16 15

18 Section 18 FARM IMPLEMENT ACT Exception to breach of warranty 18 Notwithstanding section 17, if pursuant to section 5 a sale agreement states the amount of power that a farm implement is capable of developing and, in breach of the warranty provided by section 5, that farm implement is not capable of developing that amount of power, an action may not be maintained against the dealer who was a party to that sale agreement if that dealer relied in good faith on a written representation of the distributor or manufacturer that the farm implement was capable of developing that amount of power cf-4.1 s17 Arbitration of dispute 19 Any dispute between a purchaser and a dealer, distributor or manufacturer with respect to any obligation imposed on the dealer, distributor or manufacturer by this Act may, at the option of either party, be submitted to 2 arbitrators under the Arbitration Act instead of being settled by action cf-4.1 s18 Powers of inspector 20(1) Without restricting any other remedies available to a purchaser, an inspector may, on the request of a purchaser, inquire into and attempt to resolve any dispute between the purchaser and a dealer, distributor or manufacturer with respect to any obligation imposed on the dealer, distributor or manufacturer by this Act. (2) When an inspector is acting under subsection (1), the inspector may, during normal business hours, request the dealer, distributor or manufacturer to produce any documents and books the inspector considers necessary for the purposes of the inspector s inquiry and, on being so requested, the dealer, distributor or manufacturer shall produce the documents and books and allow the inspector to make copies of them cf-4.1 s19 Obliteration of serial number 21 No person shall (a) obliterate, deface, alter, render illegible or remove the manufacturer s serial number on a farm implement, or (b) buy, sell or otherwise deal in a farm implement if the manufacturer s serial number has been obliterated, defaced, altered, rendered illegible or removed or is not 16

19 Section 22 FARM IMPLEMENT ACT readily recognizable, unless a new number has been stamped on the farm implement in accordance with section cf-4.1 s20 New serial number 22(1) If the manufacturer s serial number on a farm implement has been obliterated, defaced, altered, rendered illegible or removed, the owner may apply to a judge of the Provincial Court to make a recommendation under subsection (3). (2) The judge shall make an inquiry as to the ownership of the farm implement and the circumstances under which the serial number was obliterated, defaced, altered, rendered illegible or removed, and shall hear the testimony given by or on behalf of the applicant and make any other inquiries and receive any other evidence under oath that in the circumstances the judge considers necessary. (3) If the judge is satisfied that the applicant is the owner of the farm implement and that the serial number was not obliterated, defaced, altered, rendered illegible or removed by or on behalf of the applicant for any unlawful or fraudulent purpose, the judge (a) may recommend to the Minister, in writing signed by the judge, that the applicant be authorized to have a new serial number stamped on the farm implement, and (b) shall send the recommendation to the Minister together with all papers and documents produced to the judge in support of the application and a summary of the evidence adduced at the inquiry. (4) The Minister is not bound to follow the recommendation but may make any further inquiries the Minister considers necessary and, if the Minister is satisfied that it is proper to do so, the Minister may issue to the applicant a certificate authorizing the applicant to have stamped on the farm implement the new serial number stated in the certificate, subject to any conditions the Minister may prescribe. (5) On receipt of the certificate, the applicant may cause the new serial number stated in it to be stamped with steel dies on the farm implement in the manner prescribed in the certificate. 17

20 Section 23 FARM IMPLEMENT ACT (6) When a farm implement on which a new serial number has been stamped as provided in subsection (5) is sold, the seller shall deliver to the buyer the certificate issued under subsection (4). (7) The applicant shall pay to the judge who makes an inquiry under this section the fee prescribed in the regulations for all things done by the judge under this section cf-4.1 s21 Repurchase by distributor 23(1) In this section and in section 24, (a) agreement means a written or oral agreement between a dealer and a distributor that is in force on or after October 1, 1970; (b) notice to purchase means the notice to purchase mentioned in subsection (2); (c) unused farm implement means (i) a farm implement that is not a used farm implement, whether or not it has received pre-delivery services, (ii) a farm implement returned to the distributor or dealer under section 7 following the giving of a notice in respect of that farm implement under that section, unless that farm implement was sold to the dealer as a demonstrator and was invoiced and used by the dealer as a demonstrator, and (iii) a farm implement that is not a used farm implement and that is transferred from one dealer to another dealer with the knowledge of the distributor; (d) unused part means a part or parts assembly that has not been used, but does not include (i) a part that has been broken or damaged, (ii) a parts assembly that is incomplete and cannot be completed at reasonable expense as provided for in subsection (9)(a), (iii) a part or parts assembly that has been removed from a farm implement and replaced at no cost to the dealer for parts under a modification or warranty substitution program, or 18

21 Section 23 FARM IMPLEMENT ACT (iv) a seal or hose made of rubber, a gasket made of cork or a composition of materials, a seal made of leather, a liquid chemical that has deteriorated and is of limited use, or paint; (e) used farm implement means (i) a farm implement that was sold to the dealer as a demonstrator and was invoiced to the dealer and used as a demonstrator, and (ii) a farm implement, other than one referred to in clause (c)(ii) or (iii), that has been operated for a distance or for a period of time in excess of that required to deliver it to the dealer and to enable the dealer to service, prepare and operate it for the purposes of sale. (2) A dealer may, within 90 days after the day an agreement expires or is terminated by the dealer or the distributor for any reason, give to the distributor a written or printed notice to purchase containing a request by the dealer that the distributor purchase all the unused farm implements and unused parts obtained from the distributor. (3) If a notice to purchase is given to the distributor in accordance with subsection (2), the distributor shall, subject to this Act and the regulations, purchase from the dealer (a) all the unused farm implements, and (b) all unused parts purchased as parts, obtained by the dealer from the distributor. (4) A distributor shall pay to a dealer (a) for each unused farm implement as listed on the original invoice for that farm implement, an amount equal to the sum of (i) 100% of the invoice price less any discounts allowed by the distributor, and (ii) transportation costs paid by the dealer from the point of manufacture of the farm implement to the dealer s place of business, as evidenced by an invoice of the carrier of the farm implement, 19

22 Section 23 FARM IMPLEMENT ACT and (b) for each unused part (i) 90% of the current net price if the agreement is terminated by the consent of the distributor and the dealer, (ii) 90% of the current net price if the agreement is terminated by the dealer, or (iii) 100% of the current net price if the agreement expires or is terminated by the distributor, together with interest at the rate prescribed in the regulations on any amount payable, calculated from the first day of the 2nd month following the day the amount becomes due and owing. (5) Subject to subsection (6), the amount payable by a distributor for an unused farm implement or an unused part becomes due and owing (a) on the 91st day after the day the distributor receives the notice to purchase, or (b) on the 30th day after the day the distributor removes all the unused farm implements and unused parts from the possession of the dealer, whichever day occurs first. (6) The due date for payment under subsection (5) and the 90-day period referred to in subsection (10)(a)(ii) may be extended (a) by agreement between the distributor and the dealer, or (b) by an order of the Court of Queen s Bench on the application of the distributor returnable on a day not later than 120 days after the day on which the distributor received the notice to purchase, if the Court is satisfied that the distributor s failure to remove all the unused farm implements and unused parts from the possession of the dealer was caused by circumstances beyond the distributor s control or by the fault of the dealer. (7) In addition to any other remedy available to a dealer or distributor, 20

23 Section 23 FARM IMPLEMENT ACT (a) a dealer may recover an amount owing to the dealer under this section by a distributor by deduction from any amount the dealer owes to the distributor, and (b) a distributor may recover an amount owing to the distributor by a dealer by deduction from any amount the distributor owes to the dealer under this section. (8) A distributor is not required to purchase any of the following: (a) an unused part that is not clearly identified either by means of a ticket or tag or box or other container or by an imprint on the part itself; (b) an unused part that (i) is not listed in the distributor s current price list, and (ii) is for use in a farm implement that was manufactured more than 10 years before the expiry or termination of the agreement; (c) an unused part specially ordered by the dealer from the distributor on the understanding, in writing and signed by or on behalf of the dealer, that the part was not returnable to the distributor; (d) an unused farm implement or unused part that is subject to a lien, charge, encumbrance or mortgage in favour of a third party in an amount in excess of the amount that the distributor would otherwise be required to pay to the dealer for it under this section; (e) an unused farm implement or unused part that has not been adequately prepared for shipment in accordance with subsection (10)(b) within the 90-day period referred to in subsection (10)(a)(ii) or any extension under subsection (6); (f) an unused farm implement that was shipped to the dealer on or before the earlier of (i) the date that is 24 months before the expiry or termination of the agreement, or (ii) the commencement date of the first of 2 full seasons of use immediately before the expiry or termination of the agreement 21

24 Section 23 FARM IMPLEMENT ACT unless the agreement is terminated by the distributor or the dealer has ceased to be a dealer; (g) an unused farm implement for which the dealer has paid the distributor in full, unless (i) the agreement is terminated by the distributor, or (ii) the dealer has ceased to be a dealer; (h) an unused part in respect of which the dealer has not made reasonable use of a surplus or obsolete parts return program, if any, offered by the distributor. (9) A distributor may deduct from the amount the distributor is required to pay to the dealer under this section (a) an amount equal to the cost to the distributor of supplying and installing a replacement for any missing or damaged part at the current net price, including a reasonable charge for necessary labour for the installation of the part, and (b) the amount of any liens, charges, encumbrances or mortgages in favour of third parties to which the unused farm implements or unused part or parts are subject. (10) The dealer (a) is responsible for the care and custody of an unused farm implement or unused part that the distributor is required to purchase until (i) the day the distributor removes it from the dealer s possession at the dealer s place of business, (ii) the 91st day after the day the distributor receives the notice to purchase from the dealer, or (iii) if the time period in subclause (ii) has been extended, the day the extension expires, whichever day first occurs, and after that day the distributor is responsible; (b) is responsible for doing the acts necessary (i) to adequately prepare each unused farm implement so that it is acceptable by a carrier for shipment from the dealer s place of business, and 22

25 Section 24 FARM IMPLEMENT ACT (ii) to adequately package, crate or otherwise prepare all unused parts so that they are acceptable by a carrier for shipment from the dealer s place of business. (10.1) A distributor shall pay for transportation costs for the removal of the unused farm implements and unused parts from the possession of a dealer. (10.2) If unused farm implements and unused parts are not removed within the 91-day period referred to in subsection (10)(a)(ii), the distributor shall pay to the dealer reasonable storage costs until the unused farm implements and unused parts are removed. (10.3) Despite subsection (10.2), if the time period referred to in subsection (10)(a)(ii) has been extended, the date for removal of unused farm implements and unused parts is extended to the date the extension expires. (11) This section applies to a distributor and a dealer notwithstanding anything in an agreement or any other contract or arrangement between the distributor and dealer, except that if a provision of the agreement is more advantageous to the dealer than the provision of this section pertaining to the same subject-matter, the provision of the agreement applies. (12) Any waiver or release given by a dealer of the dealer s rights under this section is void. RSA 2000 cf-7 s23;2001 c7 s6;2009 c53 s66 Distributor to furnish information 24 A distributor shall, in accordance with a request of the Minister, furnish the Minister with (a) a copy of each or any agreement or franchise agreement in effect between the distributor and a dealer; (b) particulars of each or any unwritten agreement with any or all of the distributor s dealers; (c) a copy of a written agreement or particulars of an unwritten agreement with any or all of the distributor s dealers with respect to the return of farm implements or parts to the distributor cf-4.1 s23 23

26 Section 25 FARM IMPLEMENT ACT Sale of farm implements 25(1) A dealer shall not (a) sell or offer for sale, or (b) lease or offer for lease, under a lease or lease-purchase agreement, a new farm implement unless the farm implement was obtained by the dealer from or through a distributor licensed under this Act. (1.1) A financial institution shall not lease or offer for lease under a financial lease or a financial lease-purchase agreement a new farm implement unless the farm implement was obtained from a dealer. (2) A distributor shall not (a) sell a farm implement to any person except a dealer licensed under this Act, or (b) supply a farm implement to any person except a dealer licensed under this Act or another person authorized by a dealer to take delivery of a farm implement. RSA 2000 cf-7 s25;2007 c14 s7 Licences 26(1) No person shall (a) sell, offer for sale, lease or offer for lease, lease-purchase or offer for lease-purchase or enter into any sale agreement, lease or lease-purchase agreement respecting a farm implement unless that person holds a dealer s licence, or (b) carry on business as a distributor unless the person holds a distributor s licence issued to that person under this Act. (1.1) The requirement in subsection (1)(a) for a licence does not apply to a purchaser or to a lessee. (1.11) A financial institution is not required to hold a dealer s licence in order to lease a farm implement or offer a farm implement for lease pursuant to a financial lease or a financial lease-purchase agreement if the farm implement is acquired from a dealer at the request of a purchaser. 24

27 Section 26 FARM IMPLEMENT ACT (1.2) A person who wishes to obtain a licence must (a) apply to the Minister in the form provided for in the regulations, (b) pay the licence fee prescribed in the regulations, and (c) on and after January 1, 2004, pay any levy and pay an assessment, if required, for the Fund. (1.3) A licence issued under this Act expires on December 31 of the year in which it is issued. (2) A licence must not be issued under this Act unless the applicant furnishes to the Minister a bond in favour of the Crown in right of Alberta (a) in the form prescribed in the regulations, and (b) in an amount prescribed by the Minister. (2.1) Despite subsection (2), on and after January 1, 2004 a bond is not required for a licence to be issued but the applicant must pay a levy and, if required, must pay an assessment. (2.2) The Minister may impose conditions on a licence that the Minister considers appropriate. (2.3) A licensee must comply with the conditions imposed on the licence. (3) The Minister may at any time before January 1, 2004 require a licensee to furnish a bond in a greater amount than that already furnished under subsection (2). (4) When a bond furnished under this section is forfeited, the proceeds must be used to the benefit of persons who have claims against the licensee that are accepted by the Minister in accordance with the terms of the bond and must be paid out by the surety on the direction of the Minister in accordance with the terms of the bond. (5) A bond furnished to the Minister under subsection (2) terminates on December 31, (6) When a bond is terminated under subsection (5) the bond issuer must pay back to the licensee the premium attributable to the unused portion of the bond, and the bond issuer shall not assess a 25

28 Section 27 FARM IMPLEMENT ACT penalty against the licensee with respect to the termination of the bond. (7) If a claim arises from when a bond was in effect, the claim must be dealt with in accordance with subsection (4). (8) If a dealer or distributor who is required by this section to hold a licence does not hold a licence or the licence is suspended, the Minister may give written notice of that fact to any persons as the Minister considers necessary. (9) A person to whom a written notice has been given pursuant to subsection (8) shall not, while the dealer or distributor remains unlicensed or while the licence is suspended, deliver or cause to be delivered a farm implement to (a) the dealer or distributor, (b) a person designated by the dealer or distributor, or (c) a person seeking to acquire a farm implement through the dealer or distributor. RSA 2000 cf-7 s26;2003 c38 s3;2007 c14 s8 Cancellation and suspension 27(1) The Minister may cancel or suspend a licence issued under this Act if (a) it is in the public interest to do so, (b) the licensee contravenes this Act, the regulations or the conditions imposed on the licence, (c) the person to whom the licence was issued made any false or misleading statement in any documents supplied in support of the application for the licence, (d) the licence was issued as a result of a clerical or administrative error, (e) in the opinion of the Minister, the licensee or, in the case of a corporate licensee, its officers or directors, cannot reasonably be expected to be financially responsible in the conduct of the licensee s business, or (f) the licensee fails to pay any fee, levy, assessment or penalty imposed under this Act, or fees imposed under 26

29 Section 28 FARM IMPLEMENT ACT section 12 of the Government Organization Act with respect to this Act, by the due date. (2) When a licensee (a) applies for a renewal of a licence for the succeeding year before the licensee s existing licence expires, and (b) the application is accompanied with the prescribed documents and fees, the existing licence remains in force until the new licence is issued or until the Minister notifies the licensee that the licensee will not be issued a new licence. RSA 2000 cf-7 s27;2003 c38 s4 Appeal from cancellation, suspension or refusal of licence 28(1) A person (a) who has been refused a licence, or (b) whose licence has been cancelled or suspended may appeal the refusal, cancellation or suspension by giving the Board a notice of appeal within 14 days after being notified in writing of the refusal, cancellation or suspension. (1.1) On receipt of a notice of appeal, the Board must hold a hearing as soon as practicable. (2), (3) Repealed 2003 c38 s5. (4) When the Board hears an appeal under this section, it may, by order, either (a) confirm the refusal, cancellation or suspension, (b) direct that a licence be issued, (c) reinstate a cancelled licence, (d) substitute a suspension for a cancellation or a cancellation for a suspension, or (e) remove or vary a suspension. 27

30 Section 29 FARM IMPLEMENT ACT (5) A decision of the Board is final and there is no appeal from or review of the decision except on a question of jurisdiction or on a question of law. (6), (7) Repealed 2003 c38 s5. RSA 2000 cf-7 s28;2003 c38 s5 Application pending appeal 29(1) A person whose licence has been cancelled or suspended and who has, in respect of that cancellation or suspension, commenced an appeal under section 28, may apply to the Court of Queen s Bench for an order reinstating the cancelled licence or removing the suspension, as the case may be, pending the determination of the appeal. (2) The Court may hear an application made under this section not less than 2 days after the application has been served on the Board. (3) On hearing an application made under this section, the Court may, subject to any conditions it considers proper, reinstate the cancelled licence or remove the suspension, as the case may be, pending the determination of the appeal under section 28. RSA 2000 cf-7 s29;2003 c38 s6;2009 c53 s66 Regulations 30 The Lieutenant Governor in Council may make regulations (a) governing applications for dealers licences and distributors licences and renewals and the requirements to be met by the applicants; (b) prescribing the fees to be paid for the issue or renewal of a licence; (c) designating the persons who may issue licences on behalf of the Minister; (d) governing the issue or renewal of licences and the duration of licences; (e) prescribing the duties of and services to be performed by holders of licences; (f) prescribing the duties of the holder of a licence that has been suspended or cancelled or has terminated and not been renewed; 28