FARM IMPLEMENT ACT FARM IMPLEMENT ACT
Chapter F‑7
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
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
(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;
(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
(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).
1982 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
(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
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.
2007 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 4.1.
2007 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 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.
1982 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;
(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.
(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.
(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 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.
2007 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 days from the date that the repair part is first used by the purchaser in the first normal season of use.
1982 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.
1982 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.
1982 cF‑4.1 s9
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.
1982 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.
1982 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.
1982 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.
1982 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 access to the distributor’s or dealer’s premises during usual business hours.
1982 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.
1982 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).
1982 cF‑4.1 s16
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.
1982 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.
1982 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.
1982 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 readily recognizable, unless a new number has been stamped on the farm implement in accordance with section 22.
1982 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.
(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.
1982 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
(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,
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,
(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
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
(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.
1982 cF‑4.1 s23
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.
(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, 2003.
(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 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 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.
(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;
(g) prescribing forms of bonds for the purposes of section 26;
(h) requiring distributors to file with the Minister or a person designated in writing by the Minister statements showing
(i) the names and addresses of all dealers who obtain or are likely to obtain farm implements or parts from or through the distributor, and
(ii) the names and addresses of all manufacturers represented by the distributor,
at the times and in the manner set out in the regulations;
(i) authorizing the Minister to require any distributor to furnish to the Minister on request
(i) information relating to the farm implements manufactured or supplied by the distributor,
(ii) lists, by category or group, of parts maintained in stock in Alberta for the distributor’s farm implements,
(iii) a statement or true copy of the current published suggested retail prices for its farm implements and parts, and
(iv) any other specified information pertaining to the distributor’s farm implement business in Alberta;
(j) prescribing the rate of interest for the purposes of section 23(4);
(j.1) designating institutions as financial institutions;
(k) governing the form of lease, lease‑purchase, financial lease, financial lease‑purchase and sale agreements of farm implements;
(l) governing the contents of lease, lease‑purchase, financial lease, financial lease‑purchase and sale agreements of farm implements;
(m) prescribing the fee payable to a judge in respect of an application under section 22;
(n) governing any matter in connection with or incidental to section 23 or 24;
(o) determining the time within which repair parts are to be made available for the purposes of section 8(2);
(p) respecting exclusions from the definition of farm implement;
(q) respecting the membership and organization of the Board and any matter relating to the powers, duties, functions and operation of the Board;
(r) respecting the assessing of risk and the setting of levies and assessments;
(s) respecting applications for compensation from the Fund;
(t) respecting the practices and procedures of the Board, including the holding of appeals and hearings;
(u) respecting the payment of money to and from the Fund and how money in the Fund is held and invested;
(v) respecting the giving of notices and service of documents under this Act;
(w) respecting penalties set by the Board under this Act;
(x) respecting the payment of levies, assessments and penalties and the collection of them on behalf of the Board.
RSA 2000 cF‑7 s30;2001 c7 s7;2003 c38 s7;2007 c14 s9
Transitional regulations
30.1(1) The Lieutenant Governor in Council may make regulations
(a) respecting the termination of bonds under section 26(5);
(b) providing for the transition from bonds to levies and assessments;
(c) despite section 39, setting levies and assessments to be paid in 2004;
(d) respecting any other matter necessary to give effect to sections 34 to 42 in accordance with their intent or to supply any deficiency in them.
(2) A regulation made under subsection (1) may be made retroactive to the extent set out in the regulation.
(3) A regulation made under subsection (1) is repealed on the earliest of
(a) the coming into force of an amendment that adds the subject‑matter of the regulation to this Act;
(b) the coming into force of a regulation that repeals the regulation made under subsection (1);
(c) 2 years after the regulation comes into force.
(4) The repeal of a regulation under subsection (3)(b) or (c) does not affect anything done, incurred or acquired under the authority of the regulation before the repeal of the regulation.
2003 c38 s8
Service of notice
31(1) Any notice required to be given under this Act or the regulations by a person to a dealer or distributor is sufficiently given if delivered personally to the place of business of the dealer or distributor or sent by registered mail to the latest address of that dealer or distributor according to the records of the Minister.
(2) Notwithstanding subsection (1), a notice to a corporation may be given in the manner permitted under section 308 of the Companies Act or section 256 of the Business Corporations Act, as the case may be.
(3) Notwithstanding subsection (1), a notice to a cooperative may be given in the manner permitted under section 347 of the Cooperatives Act.
RSA 2000 cF‑7 s31;2001 cC‑28.1 s452
Offence and penalty
32(1) A person who contravenes this Act or the regulations is guilty of an offence and liable on summary conviction to a fine of not more than $50 000.
(2) A prosecution for a contravention of this Act or the regulations may be commenced within one year after the date on which the offence is alleged to have been committed, but not afterwards.
RSA 2000 cF‑7 s32;2003 c38 s9
Staff
33 In accordance with the Public Service Act, there may be appointed any inspectors and other employees required for the administration of this Act.
1982 cF‑4.1 s32
Board established
34(1) There is hereby established a corporation known as the Farm Implement Board consisting of 7 members determined in accordance with the regulations.
(2) The members may not be determined in a manner that would make the Board a Provincial corporation or Crown‑controlled organization as those terms are defined in the Financial Administration Act.
(3) The Board has the capacity and, subject to this Act and the regulations, the rights, powers and privileges of a natural person.
(4) The Board may not borrow money or guarantee a loan.
(5) The Minister may provide administrative services to the Board.
(6) The Board may make rules governing, subject to the regulations, the practice and procedure of the Board.
2003 c38 s10
Procedural fairness
35 The Board is bound by the rules of procedural fairness in carrying out its functions under this Act.
2003 c38 s10
Board’s mandate
36 The Board
(a) must hold appeals under section 28 and hearings under section 38,
(b) subject to this Act, must set levies and may set assessments for the Fund,
(c) must hold the Fund, invest the money in the Fund, pay money out of the Fund and report on the Fund in accordance with this Act,
(d) must carry out any duty given to the Board by regulation, and
(e) must notify the Minister of levies, assessments and penalties that are unpaid.
2003 c38 s10
Application for compensation
37(1) Subject to section 26(7), this section applies to a farm implement purchased or leased pursuant to a sale agreement, lease agreement or lease‑purchase agreement on or after January 1, 2003.
(1.1) Subject to section 26(7), this section applies to a farm implement purchased or leased pursuant to a financial lease or a financial lease‑purchase agreement on or after the coming into force of this subsection.
(2) A purchaser, lessee, distributor or dealer may apply to the Board for compensation for loss arising from the breach of a sale agreement, lease, lease‑purchase agreement, financial lease or financial lease‑purchase agreement or of a provision of this Act within one year of the loss.
(3) An application under this section must
(a) be in writing,
(b) state the name and address of the applicant and the name and address of the dealer and the distributor who supplied the farm implement that caused the loss,
(c) describe the loss and how the loss occurred, and
(d) be in the form and manner required by the regulations.
(4) The applicant must give a copy of the application to the dealer and the distributor.
(5) Any defect or inaccuracy in an application under this section does not bar the right to compensation if the Board is of the opinion that the claim to compensation has merit and ought to be allowed.
2003 c38 s10;2007 c14 s10
Hearing
38(1) On receipt of an application under section 37, the Board may, subject to the regulations, conduct a hearing.
(2) The applicant, the dealer, the distributor and any other person the Board allows may make submissions at the hearing.
(3) For the purposes of a hearing the Board may, by giving notice, request any person to provide information, and the person must provide the information on receipt of the notice.
(4) On completion of a hearing, the Board may dismiss the application or award compensation to the applicant.
(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) The Board shall not award compensation to an applicant who has received a judgment from a court for the loss in respect of which compensation is applied for under this Act.
(7) An applicant does not have the right to apply to a court for damages for the same loss for which the applicant has been awarded compensation under this Act.
2003 c38 s10
Fund
39(1) The Farm Implement Compensation Fund consists of the money received by the Board from levies, assessments and penalties in accordance with this Act.
(2) Despite subsection (1), penalties under section 32 do not form part of the Fund.
(3) The Board shall, in each year, by a notice, set the levy to be paid by applicants for licences in any amount, subject to the regulations, that the Board considers sufficient to pay awards of compensation.
(4) Subject to the regulations, in addition to the amounts levied under subsection (3), the Board may order an additional assessment on applicants who did not hold a licence in the preceding year and on licensees with respect to whom the Board has awarded compensation from the Fund, and the Board must set the date by which the assessment must be paid.
(5) The levies, assessments and penalties are due to the Board for deposit in the Fund.
2003 c38 s10
Use of Fund
40(1) The Board may make payments from the Fund for compensation awarded by the Board under section 38.
(2) Despite subsection (1), the Board shall not pay money from the Fund in a greater amount than there is money in the Fund.
(3) If a person who has been awarded compensation does not receive any or full payment from the Fund because there is insufficient money in the Fund, the award does not lapse but is payable in a subsequent year when there is sufficient money in the Fund.
2003 c38 s10
Power of Board to enforce assessments
41(1) A licensee must pay as a penalty for default any percentage, as provided for in the regulations, of the amount owing that remains unpaid after the date an assessment is to be paid.
(2) If a licensee fails to pay an amount owing on or before the date described in subsection (1), the Board may file with the Court of Queen’s Bench a certificate that sets out
(a) the amount owing that remains unpaid at the date of the certificate,
(b) the amount of any penalty imposed pursuant to subsection (1), and
(c) the person from whom the amount owing and penalty are recoverable.
(3) A certificate filed pursuant to this section has the same effect as if it were a judgment obtained in the Court of Queen’s Bench for the recovery of a debt in the amount specified in the certificate, together with any reasonable costs and charges with respect to its filing.
(4) Any money received pursuant to subsection (3) is due to the Board for deposit in the Fund.
2003 c38 s10
Board report
42(1) The Board must prepare a report after each fiscal year on its activities and the activities of the Fund and submit the report to the Minister.
(2) On receiving a report under subsection (1), the Minister must lay the report before the Legislative Assembly if it is then sitting, and if it is not then sitting, within 15 days after the commencement of the next sitting.
2003 c38 s10
Sharing information
43(1) The Board may disclose information, including personal information, to the Minister if it relates to the administration of this Act.
(2) The Minister may disclose information, including personal information, to the Board if it relates to licences under this Act.
(3) The Board and the Minister may collect and use the information that is disclosed pursuant to this section.
2003 c38 s10
Liability exemption
44 No action lies against the Board or the members of the Board for anything done or omitted to be done by any of them in good faith while exercising their powers and performing their duties under this Act.
2003 c38 s10
