| | The Alberta Farm Implement Act
The Alberta Farm Implement Act (FIA) provides Alberta farmers with warranty protection, legal guidelines on length of warranty, the sources and availability of replacement parts, and minimum stated requirements of sales contracts.
Farm Implement Act Administration
The Alberta Farm Implement Act is administered by the Farmers’ Advocate Office of Alberta. The administration provides farmers with assistance to:
- settle warranty complaints
- mediate disputes arising over farm machinery
- obtain emergency repair parts
- maintain up-to-date information regarding new machinery trends
The Farm Implement Board
The Farm Implement Board (FIB) reports to the Minister of Agriculture and Rural Development and advises the Minister about matters arising from the operation of the Farm Implement Act. . In addition, the FIB also hears applications for compensation (link to form coming soon) and appeals from those affected by the FIA. The FIB is responsible for controlling and reporting on the activities of the Farm Implement Compensation Fund. The Board’s seven-member panel consists of three farmers, three industry representatives and one member appointed by the Minister.
General Questions
What farm implements does the FIA cover?
A "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 anything excluded from the definition of farm implement by the Regulations.
What farm implements are exempt from the FIA? Farm implements exempt are:
- farm implements that have a retail selling price of $4,000 or less;
- motor vehicles as defined in the Traffic Safety Act,
- lawn and garden equipment
- tractors, and their attachments, with a net power capability of 30 hp (22.35 kw) or less
- truck boxes and hoists
- snow vehicles as defined in the Traffic Safety Act, snow plows and snow blowers
- trailers and drill carriers
- dozer blades and scrapers
Are there any more exemptions from the FIA?
Yes. The Alberta Farm Implement Act (FIA) does not apply when a farm implement is sold at public auction, or is sold by a farmer in the ordinary course of farming operations, an executor, or administrator or a public official acting under judicial process.
What protection does the FIA provide?
The FIA sets down as law:
- the minimum term of the warranty when buying new farm machinery or equipment
- the warranty, conditions and timelines in which repair parts will be readily available
Can new farm implements be purchased without warranty?
No. Regardless of anything stated in an agreement or sale’s contract, every new farm implement sold is warranted to be:
- made of good material
- properly constructed as to design and workmanship
- in good working order
- capable of performing under reasonable operating conditions and with proper use and maintenance the work for which it is intended in a satisfactory manner
- designed and constructed to ensure reasonable durability with proper use and maintenance and under reasonable operating conditions.
This warranty applies for at least one year from the date the farm implement is first used in the first normal season of use.
Does the FIA cover lease or lease-purchase agreements?
Yes.
Are implements used by custom operators covered by the warranty provided under the FIA?
The FIA defines a “custom operator” as one who purchases a new farm implement and uses or permits the use of that farm implement for hire or for service to others to the extent of at least 50% per cent of the annual use of the implement. The warranty that would apply is:
- that the implement be made of good material
- that it be properly constructed as to design and workmanship
- that it is in good working order
Must dealers carry out warranty repairs on the farm?
No. The Farm Implement Act does not state where the warranty takes place. Most retail contracts state that the warranty takes place at the selling dealer’s place of business. This means implements are to be delivered to the dealer, and a work order signed with the proper instructions to have the warranty work done.
Where will repairs be made to large equipment such as air seeders, combines and swathers?
If requested, a dealer may come to the farm and perform the repairs in the field. If this happens, the dealer may charge the farmer for mileage and travel time from the dealership to the farm. The repair would be covered by warranty if applicable.
If a new farm implement keeps breaking down, is recourse available other than the standard warranty?
If a new farm implement fails to work properly when it is maintained and used under reasonable operating conditions, send a registered letter to the Administrator of the Farm Implement Act, the distributor and the dealer.
The "notice of failure to perform" letter must:
- state the date that the implement was purchased (include a copy of the retail contract);
- outline the problems experienced with the implement;
- cite Section 7 of the FIA as the authority.
This "notice of failure to perform" must be sent within 10 days of actual use whether or not those days are consecutive, or the first 50 hours of actual use. Upon formal notification, the dealer and distributor have seven working days to correct all the problems.
If all the problems are not corrected, they must, within 48 hours after the expiry of the seven-day period, supply the purchaser with a satisfactory substitute farm implement.
If the dealer and distributor still cannot make the implement perform within a reasonable time after supplying the substitute implement, they must replace the implement under warranty with a farm implement that is acceptable to the purchaser or cancel the sale agreement and refund all monies paid. If a trade-in is involved it would have to be returned if possible or the fair market price of the trade-in paid to the farmer.
Notice of Failure to Perform - found in the Farm Implement Act.
Should a copy of the sale contract be provided when new machinery is purchased?
Yes. The dealer must use a contract or sale agreement that is acceptable under the FIA.
What information must the sale agreement contain?
All machine sales, new or used, must be written on the proper contract and contain: an address for the dealer and distributor; the nature and duration of all warranties; a description of the farm implement including the serial and model numbers.
If you are buying two implements, the agreement must show a purchase price for each one, as well as the purchase price of any attachment.
*A warranty may be stated elsewhere and attached to the sale agreement.
NOTE: The Direct Sales Cancellation Act does not apply to the sale of the farm implement.
Is a sale agreement legally binding if it’s signed only with the sales representative?
No. A sale agreement is legally binding once it has been signed by the dealer or by a representative authorized by the dealer, or upon the farmer’s accepted delivery of the implement under the agreement.
Repair Parts Implied Warranty
Every sale agreement of a new farm implement carries a warranty that repair parts will be made available for 10 years from the date of the agreement and must be available within a time determined by the Farm Implement Act Regulations.
These original equipment manufacturer (OEM) repair parts carry a 90-day warranty stating they are free of defects in material and workmanship from the date the parts are first used in the first normal season of use.
How do I obtain emergency repair service?
Let the dealer’s parts manager know the implement is down and emergency repair parts are required. Most distributors have a machine-down order system. When the order is put under this system the distributors will check all distribution centres in Canada first. If no stock can be found they then check American distribution centres. When the needed parts are found the system will notify the dealer where they are, when they can be shipped and by what carrier.
Is it legal for the distributor or dealer to use anything other than OEM parts when repairing an implement under warranty?
No. The dealer and distributor must use parts that are new and of the standard quality and size prescribed by the manufacturer for that implement. The farmer may waive this requirement by authorizing the substitution in writing.
What happens when a strike, transportation problem or some other factor beyond control of the dealer or distributor, delays delivery of repair parts?
In such a case neither the dealer nor distributor is held responsible.
What binds a dealer or distributor to the Farm Implement Act?
No person shall carry on a business as a dealer without holding a dealer’s license. No person shall carry on a business as a distributor without holding a distributor’s license. Before you buy a machine from a dealer, make sure the company has an Implement Dealer License. These licenses must be renewed every year and run the full calendar year.
Protection is improved for the buyer because each dealer and distributor contributes to a Farm Implement Compensation Fund, which is required when obtaining a dealer or a distributor license. This fund provides a backstop if a dealer refuses warranty or commitments made via the sales agreement.
For further information contact?
Farm Implement Act Administration Office
#305, 7000 - 113th Street
Edmonton AB T6H 5T6
Phone: 310-FARM (3276) or Fax: 780-427-3913
If you live outside the province the phone number is 403-742-7901.
A copy of the Alberta Farm Implement Act and Regulations or The Alberta Farm Implement Dealerships Act may be obtained for a small fee by writing or phoning:
Queen’s Printer
10611-98 Ave
Edmonton AB T5K 2P7
Phone: 780-427-4952 Fax: 780-452-0668 |
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