Bill 83 — Fourth Session, 16Th Legislature, 20 Elizabeth Ii the Legislative Assembly of Alberta Bill 83 An Act To Amend the Farm Implement Act (Legislature 16, Session 4)

L16 S4 4920

Alberta — Bills

1971 Bill 83 Fourth Session, 16th Legislature, 20 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 83

An Act to amend The Farm Implement Act THE MINISTER OF AGRICULTURE First Reading ............ . Second Reading Third Reading ............................. . Printed by L. S. Wall. Queen's Printer, Edmonton

BILL 83 1971

AN ACT TO AMEND THE FARM IMPLEMENT ACT (Assented to ,1971) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: 1. The Farm Implement Act is hereby amended. f.,

Section 2, is, flinended (

a) as to clause (

a) by striking out the words "and who is required to be licensed as 'a farm implement doo1er under The Lice:ns,ing ,of Trades and Busi neslses Act", (

b) by adding after clause (

c) the follow1'ng clause: (cl) "Minister" means the Minister of Agriculture;

Section 3, subsection (1) is amended by striking out clause (

d) and by substituting the following: (

d) except as provided in Isections 22 and 23, to ven dors or dealefis.

Section 4, subsection (1) is amended (

a) by striking out clause (

b) and by substituting tltl~ following: (

b) Ishall >contain an address for ,the vendor , (

b) by adding the following clauses: (

d) shall contain a description of the farm im plement whereby it may be readilv known and di:stingu.ished, which deseriptJion shall include an~ senal number, model number and engine s,erlal number, and (

e) where the~'ale 'agreement relates to more than on~ farm Impl.ement, shall show a purchase prIce for 'each Implement.

Explanatory Notes l. This Bill 'amends ,chapter 13'6 of the Revised Statutes.

Section 2 (

a) reads: (a) "·dealer" means a p'erson operating in the ordinary course of business a retail establishment for the sale or resale of farm implements, repair parts and implement services and who is re quired to be licensed as a farm implem·ent dealer under The Licensing of Trades and Businesses Act; See

section 9 'Of this Bill. 3. Seotion 3 (1) (

d) reads: 3.

(1) This Act does not apply t'O ·sales of farm implements (

d) to vendors Dr dealers. See the proP'Osed sections 22 and 23 to be ,added by 'section 9 of this Bill. 4.

Section 4 (1) reads: 4.

(1) Every sale agreement 'Of a farm implement whether new Dr used, (

a) shall be in writing, (

b) shall state the address of the principal office of the vendor in Alberta, and (

c) shaH set out the nature and duration of all warranUes given in co'nnection with the farm implement.

Section 6 is struck out and the following is substituted: 6.

(1) Where a new farm implement used under reas~n able operating c'Ondi,tions and with proper u~e .an:d maln· tenance fails to perform the work for which It 1'8 .ln~enderl in a satisfactory manner, the purchaser may WIthIn ten days from the date ,the implement is first used give notice, by reg,istered mail, to. the vendor, the dealer and the Minis ,ter of the failure to pe,riorm and the dealer or vendor shall endeavour to make the implement perform in a satisfactory manner (

a) nort later than the seventh day after rece,iving the notke, given rea!So~mble operating conditions, or (b) ,if ,rea,s'Onable operating conditions do not exist following the receipt 'Of the nGtice, then not later than the sevenrth day of reasonable operating con ditions afte,r receipt of the nQtioe, and if the dealer Qr vendor fans to. m,ake the implement perform in a satisfacto.ry manner by the end Qf thQse !S!even days the dealer Qr vendQr shall, within 48 hQurs prQvide the purchaser with a satisfa,cto.ry ,substitute implement for the purchas,er's use until his implement is made to perform in a sati'sfactQry manner.

(2) If the sale agreement does not c'Ontain an address fQr ;the vendor (

a) the purchaser is not required to. give nQtice to the vendQr under subsection (1), and (

b) where the notice is, given to. the dealer, the notice shall be deemed to be given also to. the vendQr.

(3) If, wi,thin a reas'Onable timeaf,ter prQviding the substitute farm implement to. the purcha,ser) the dealer or vendo.r fails to make the purchaser's implement per fQrm in a satisf,actQry manner, ,the deaJ.er Qr vendor shall e,ither (

a) replace the purehase,r's implement wi,th 'an im plement that is acceptable to. the purcha,ser, Qr (

b) terminate the sale agreement, 'Or, where the s,ale agreement relates to. the purchase Qf mo.re than o.ne farm imple'ment, terminate the sale agreement onlya!s to the farm implement ,in respect of which notice under subsection (1) was given.

(4) Where. the sale agree!llent relates to o.ne f.arm im plement and IS whQlly termInated pursuant to. subsection (3), clause (b), the dealer 'Or vendor shall 2 (a) .refund to. the ~urehaser all moneys paid bv him In cQnnectIQn WIth the sale ;agreement, and ~ (

b) subject to. subsection.s (?) and (6), return to the purcha;ser any trade-In, In any case where a trade In arrangement was made.

Section 6 presently reads: 6.

(1) Where a new farm implement used under reasonable operating conditions and with proper use and maintenance fails to p·erform the work for which it is intended in a satisfactory mannQr, the purchaser may within seven days from the date the implement is first used give notice, by registered man, to the vendDr IOf the failure to perform and the dealer ,or vendo.r shall endeavour to make the implement perform in a satisfactory manner (

a) not later than the seventh day after receiving the notice, given reasonable operating conditions, or (

b) if reasonable operating conditions dlO not exist following the receipt of the notice, then not later than the s'eventh day of reasonable operating conditions after receipt of the notice, and if the dealer lOr vendor fails to make the implement perform in a satisfactory manner by the ,end Df thlOse ,seven days the dealer or vendor shall, within 24 hours provide the purchaser with a satisfactory sub stitute implement for the purchaser's use until his implement is made to perform in a satisfactory manner.

(2) If, within a reasonable time after providing the substitute imple ment to the purchaser, the dealer or vendor fails to make the pur chaser's implement perform in a satisfactory manner, the dealer or ven dor shall replace the purchaser's implement wi.th an implement which is acceptable to the purchaser or terminate the sale agreement and refund to the purchaser all mo,neys paid by him in connectilOn therewith.

(3) A purchaser is not obliged to follow the procedure set Dut in sub section (1) and the fact that he does not folllOw it in no way reduces the liability of the dealer or vendor for a breach of warranty. The

section is rewdtten primarily toO spell .out in more detail the procedure that follows the giving ofa notice under subsection (1) by the purchaJser, particulady where a trade-·in arrangement is involved.or when more than one implement is included in the same sale agreement. One major difference in the new subsection (1) is that the purchaser will be required ,to, <give the notice to the farm implement dealer and the Minister of AgricuLture as well as ,to the vend.or, i.e. the manufacturer. 2

(5) Where the dealer or vendor is required to return a trade-in. in accordance with subsection (4), clause (b) ~ut has, pnor to the termination of the sale ,agreement, 111- curredcosts 'Or performed work in r'epairing or recon ditinning the trade-in, the dealer or vendor may refuse to return the trade-in until he na,s been paid for the re.ason ablecos:ts of such repalir'8 or reconditioning or until ar rangements satisfactory to 'the dealer or vendor have heen made for payment of those 'costs.

(6) Where the dealer or vendor is unable or refuses to return the trade-in in accordance with subsection (4), clause (b), the dealer or vendor 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.

(7) Where the sale agreement relates to more than 'One farm implemeIlJt and is ternlinated only as tn 'one of the implements (in this subsection caned the "defective inl plement") pursuant to subsection (3), 'Clause (b), (

a) the vendor or dealer shall refund to the purchaser that portion 'Of the moneys pa,id under the sale agreement that the purchase pr'ice of the defective implement bears rto, the total purchase price of the defective implement and the other farm implp mentis purchased under the agreement, (b) (

c) in any calse where a trade..:in arrangement was made, the vendor 'Or dealer shall pay to the purch aser (unless the purchaser nthe,rwise agrees) a sum of money equal to that portion of the fair market value of Ithe trade-in that the purchase prke of the defective implement bears to the total purcha,se price of the def.ective implemenrt; and the 'Other farm implements under the agreement, and uniesis Ithe purchaser otherwi'se agrees, the sale agrelement shall be deemed to be amended so that the trade-in allowance for the farm implement or implements remaining under the agreement is an amount equal to that portion of the trade-in allow ance that the purchalse prlice of Ithe other farm im plement or implements under the agreement bears to the total purchase prdce of the defective imple ment and those other farm implements.

(8) For the purposes 'Of determining the fair market value of a trade-in under Isubsection (6) or subsection (7)' clause (b) (

a) regard may be had to any publ'ieati'On of farm im plement prices of gene-ral use in the farm imple ment inclus1try in Canada, and (

b) the falir market .value of the trade-in may be less than the trade-In allowance,and the dealer or vendor is not estopped from proving that fa.ct. 3

(9) In Ithis

section (a) "trade-in" means a farm implement or other pro perty which is purchased by the dealer 'Or vendor under a trade-in .arrangement; (b) "trade-in allowance" means the amount shown in a Is'ale agl'leement as the amount accepted by the dealer or vendor as the value of a trade-in under a trade-in ,arrangement; (e) "trade-in arrangement" me:arnsan agreement or arrangement, whether contained in a sale agree ment or made by a separate ,agreement or arrange ment in 'conjunction wUh or inc1idental to a sale agreement, whereby the pur.chaser agrees to sell hi,s 'Own far'm implement 'Or other property to the dealer or vendor and the farm implement or other property is aceep:ned as the whol1e 'Or part of the consideration under the sale agreement.

(10) This

section does not abrogate or restrict any other remedies of a purcha'srer against a deal'er or vendor.

Section 16 is struck out.

Section 18 is struck out and the following is substi tuted: 18. A person wh'O contravenes this Act 'Or the regula tions is guilty of an offence and liable on ,sum'mary convic tion to a fine of not more than $500.

Section 19 is amended by striking out the word "and" at the end of clause (b), by striking out clause (

c) and by substituting the following: 4 (

c) prescribing the f,ee payable to a provincial judge in respect of an application under

section 21 , (

d) governlingany matter in conne0tion with or inci dental to seCition 22 or 23, (

e) reql!iring ve~dors or ~ny class of vendors to be regIstered wIth the MInister, (f) ~overning any ~natte~ peria1ining to the registra tIon of vendors IncludIng the regisltration fe'es pay able to the Minister, (

g) authori~ing the Minister to require any vendor to. furnish to the Minister on request

G. Seotion 16 presently 'reads: 16. Upon the request of the Minister 'Of Agriculture, any vendor selling or offering for sale farm implements in Alherta shall provide the Minister with (

a) lists of all types of farm Implements offered fQr sale, (

b) lists by category or gI'loup of parts maintained in stock by them in Alberta, (

c) a Istatement or true copy of the current published suggested re tail prices for those implements and parts, and (

d) copies of spec1fic sale agreements of farm implements. The content of the

section will be included in ,the regulations made under

section 19 of the Act as amended by

section 7 of this Bill.

Section 18 presently 'readS!: 18. A person who 'contravenes this Act is guilty of an 'Offence and liable on

summary conviction t'O a fine of not more than $100.

Section 19 deals with :the regulation-making powers of the Lieutenant Governor in Council. The amendment will, among other things, enable reguLations tOi be made requiring the reg istration of faTm implement manufacturers and suppliers. 4

(

i) information relarbing to the farm implements manufactured or suppli'ed by the vendor, (ii) information relating to parts fQir the ve?dor's farm implements IDlaintained in stock In A 1- berta, (iii) a staltement or true copy 'Of the current pub lished suggestedreta,il prices for its imple mentsand parts, (iv) copielS of specific slale agreements of farm implements, and (

v) any other specif,i'ed information pertaining to the vendor's business in Alberta, and (

h) respeC'ting any other ma;tter neces1sary to 'carry out this Act. 9. The following sections are added after

section 19,' 20. No person shall (

a) obl,iterate, deface, alter, render illegible, or re move, the manufaCiturer's serial number on a farm implement or on the engine thereof, or (

b) buy, !Sell or otherwi,se deal :in, a farm implement if the manufacturer's serlial number placed there on or on the eng,ine thereof has been obliterated, defaced, altered, rendered illegible, or removed, .or is not readily recognizable unles1s a new number has, on authorizaltion by the Ministe,r, been stamped on the engine as provided in

section 21. 21..

(1) Where the manufacturer's serial number on a farm implement or on the engine thereof has been Qibliter ated, defaced, altered, rendered illegible, .or removed, the owner may apply to a provincial judge to make a rec.om mendation, as provided in subsection (3).

(2) The provincial judge shall make an inquiry as to the 'Ownership of the farm implement and the circumstances under which the serial number or e'ngine number was obliterated, def,a1ced, altered, rendered illegible, or removed, and shall hear the testimony given by or on behalf of the applicant and make such other inquiries and receive such other evidence under oath, as in the circumstances he con siders necessary.

(3) The provincial judge, if he :i1s satisfied that the applicant is the owner. of the farm implement and that the serial number or engIne number was n'Ot obliterated, de- 5

20. Obli,teration of a farm implement serial number. 21. Procedure to obtain a new serial number to replace one that has been obliterated. 5

faced, altered, rendered ~negible or remcved, by or on he half of the applicant for any u~lawful or fraudulent pur pose, (a) (

b) may recommend to the Minister in writing ,signed by him, that the applicant be a~tho.yized to have a new serial numbe.r stamped on the farm imple ment or the engine ther'~of, and .shall send the recommendaction to. the Minister to gether with ~all papers and documents produced to him in support of the application and a

summary of the evidence adduced ,at the inquiry.

(4) The Minister is not bound to follow the recommen dation, but may make Isuch further inquhies as he con siders necessary and if he is satisfied that it is proper to do SIO, he may issue to the applicant a certificate 'authori zling him to hav;e stamped on the farm implement or the engine ther,eof such new serial number as is sta,ted in the certificate, Isubject to such conditions as the Minister may prescribe.

(5) On receipt of the certificate the ,applicant may cause the new serial number stated therein to be stamped with steel dies on the farm implement or engine in the manner prescribed in the ,certificate.

(6) Where 'a frurm i'mplem'ent on which a new serial num'be,r has be'en stamped as provided in subsection (5) is sold, the 'seller Ishall de1iver to the buyer the certificate authoriizing the stamping IOf that new s:edal number.

(7) The ,app1icant shall pay to. the prov,incial judge who makes an inquhy under this s'ection the fee prescribed in the regulations for all things done by him under this section. 22.

(1) In this

section and in

section 23 (a) "agreement" means a written or oral agreement between a dealer and a vendor that is in force on or after October 1, 1970; (b) "'notke to purchase" means the notke to purchase mentioned in subsection (6).

(2) Where an ,agreement expires Dr is otherwise termi nated by the dealer or the vendor for any reason, the ven dor shall, subject to this Act and the regulations, purchase from the dealer all unused farm implements or unused parts or unused farm implements and unusE"d parts ob tained by that dealer from .the vendor. 6

(3) A vendor shall pay to a dealer (

a) foOr each unused farm implemernt and atrtachments thereto as listed on the original invoic'8 for that implement, 10.0 per cent of the invoice price to-

22. Repurchase by manufacture,r of unused farm implements and parts following cancellation of dealers franchise. 6

gether with the transportation cosrts paid by the dealer from the point of manufacture of the farm implement to the dealer's place of business; (

b) for each unused part, 85 per cent of the current net price, together wJth interest on any amount payable, calculated from the first day of the second month following the day the amount becomes due and owing.

(4) The amount payable by a vendor for an unused implement or unused part becomes due and owing (

a) on the day thalt immediately follows the expiry of 90 days after the day the vendor rec'e1ves the notice to purchase from the dealer, or (

b) on the dray that the vendor removes the unused implement or unused part from the possession of the dealer, whichever day fjrst occurs.

(5) In addition to 'any other remedy 'availahle to him (

a) a dealer may recover an am,ount owing to him under tilllS

section by a vendolr by deduction from any amount he owes to the vendor, and (

b) a vendor may recove,r an am'Ount 'Owing to him by a dealer by deduction from any amount he owes to the dealer unde,r this section.

(6) A dealer m'ay, wi1thin 90 days after the day an agreement 'expires or is te1rminated, (

a) personally serve on the vendor or an officer of the vendor, .or (

b) send by prepaid regi1srtered maH to the vendor, a written or printed notke to purchase containing a re queslt by the dealer that the vendor purchase the unused implements or unused parts or unus,ed implements and unused parts obtained from the vendor, and where the dealer has n'Ot eomplied with this subsection the vendor is not required to purcha1se ,the unused implements or unused par:ts or unused implements and unused parts from the dealer.

(7) A vendor is not required to purchase (

a) an unused paDt that is nlOt dearly identified either by means of a tkket or tag or box or other COll tainer or by an imprint IOn the

part itself, or (

b) an unused part that is not listed in a vendor's cur rent pri'ce Hsrt.

(8) A dealer is re!sponsible for the care and custody of an unus,ed implement or unused part until (

a) the day the vendlOr removes it from his possession, or 7

(

b) the day following the expiry of 90 days after the day the vendor receives the notice to purchase fro.m the dealer, whichever day first occurs, and thereafter the vendor is responsible.

(9) The Bulk Sale,s Act do.es not apply to a sale to a vendor under thd.s sectio.n.

(10) This secti'On applies to a vendor and a dealer not withstand,inganything in an agreement or a.ny other con tract or arrangement between the vendo.r 'and dealer.

(11) Any waiver or rel'ease given bya dealer of his rights under this

section is 'aga.inst 'publk policy and void.

(12) In this

section "unused farm implement" includes a farm i\llplement returned to. the vendor or dealer under sectiO'n 6 following the giving 'Of a notice in respect of that implement under that section. 23. A vendor sha.ll, upon the request of the Minister, furnish the Minister :in 'accordance with the request, with (

a) a copy 'Of each O'r any franchise or other agree·· ment in effect between a vendQr ·and a dealer; (

b) parUculars Qf each or any unwritten agreement with any or ,all 'Of his dealers; (

c) a copy of a written agreement or particulars of an unwr,itten agreement with any or all of his dealers with respect to the return of impJtements. or parts to the vendor. 24.

(1) No. person shall after December 31, 1971 carry Qn the busines,s of a dealer unless he is the holder of a licence issued: to him by or on behalf of the Minister under this Act.

(2) A licence shall not be issued under this Act unless the applicant furni,she,s to. the M,inister a bond in favour of the Crown in right of Alberta (

a) in a form acceptable to. the Minister , (

b) in the amount of $10,000 or such greater amount as the regulations require or as the Minister mav in any particular 'case require, 'and < (

c) conditioned. on the payment by the dealer of all ~oneys WhICh the deale~ become's Hable to pay to hIS purchasers under thls Act .or any s:ale agree ments.

(3) The Min~ster may at any time require a liC'ens,ee to furnIsh a bond In a greater 'amount than the bond al nd furnished. . red;. Y 8

23. Information to be supplied by manuf,acturer to the Minister. 24. Licensing and bonding of dealers. 8

(4) Whe're a bond under this

section is forfeited by rea son of a breach of the condition of the bond, the proceeds of the bond may be us,ed for the benefit of purchasers who have daims against the dealer for the payment .of m'One," owing to them by the dealer under this Act.

(5) Notw,ithstand:ing that the Crown in right of Alberta has not suffered any loss or damages, a bond furnished under thils 'section shall he considered as -a penal bond and upon forfeiture the amount owing to the Crown by a per son hound thereby ,shall be dete,rmined as if the Crown suffered such damages a:s would entitle the Crown to be indemnified to the miax,imum amount of liability prescribed by the bond.

(6) Any moneys remaining unexpended after the pay ment of all clalims pUT!suant to the re'gulations shall be re funded to the surety or 'Obligor under the bond. (7) 'The Lieutenant GoV'erno~ in Council may make regulati'Ons (

a) governing applications for dealers' licences or re newals ,thereof and the requirements to be met by applkants therefo~; (

b) pre'serib~ng the fees to be paid upon applications for, Dr for the issue 'Of, a licence or a renewal thereof; (

c) designating the officers of the Department of Agri culture who may issue a licence on behalf of the Minister; (

d) governing the issue of licences and the duration of licences or renewals thereof; (

e) preslCribing the dutie,s of holders of licences; (

f) prescribing the circumstances under which a lieence may be ,suspended or cancelled by the Minis ter or under which a renewal of a Hcence may be refused; (

g) prescribing the duties of the holder of a licence that has been suspended or cancelled or has ter minated and not been ~enewed; (

h) providing for the reinstatement of a licence that has been suspended or cancelled; (

i) providing for (

i) the filing of daims by claimants agains,t the bond furnished by a lic,ensee, (ii) the manner 'Of proving the cl>aim,s, (iii) the conditions on which the proceeds of the bond are to be used to satisfy the :claims filed, and (iv) the pro ra:1Ja payment 'Of claims where the procee?'S of the bond are insufficient to meet all claIms; 9

(

j) p1roviding for any other matterr or procedure per taining to the Heens1ing or bonding of deale~s or the clai'ms of purchasers against bonds furnl1shed by dealel'1s.

(8) An application for a l,icence under this g!ection may not be made until October 1, 1971. 10. Where an agreement to which

section 22 of The Farm Implement Act (as enacted by

section 9 of this Act) applie8, expired or was terminated prior to the day upon which this Act is assented to, the agreement shall be deemed to have expired or to have been terminated for the purposes of the said

section 22 on the day upon which this Act is assented to. 11. The Garagemen's Lien Act is amended as to

section 2, clause (b), subclause (iii) by striking out the words "a tractor used for agricultural purposes, or". 12. This Act comes into force on the day upon which it is assented to and upon so coming into force,

section 3 of this Act and

section 22 of The Farm Implement Art (as enacted by

section 9 of this Act) shall be deemed to have been in force at all times on and after October 1, 1970. 10

10. Transitional provisions re proposed

section 22. II. This sec'tion amends

chapter 1'55 of the Revised Statutes of Alberta 1970. Seotioll1 2,(

b) reads: (b) "motor vehicle" (

i) means a vehicle propelled by any power other than muscular power, and (ii) includes an aeroplane, but (iii) does not include a tractor us,ed for agricultural purposes or a motor vehicle that runs lonly on tracks or rails; The Garagemen's Lien Act will :now apply to farm tractors. At present, a person who furnishes repairs to a farm tractor, on !the basis of his poss'essory lien, can refuse to release the tractor uTIJtil hils bill is paid, resulting oi,ten i!n the loss of use of the tr.ador to the farmer in critieal periods. The amendment will enable the iTactor to be released without an 'automatic loss of the repair man's lien. 10 Title: 1971 (16th, 4th) Bill 83,

An Act to amend The Farm Implement Act

Document details

Collection	Alberta — Bills
Citation	L16 S4 4920
Type	bill
Volume / chapter	L16 S4 4920
Language	en
Format	json
Source	PROVINCIAL
Identifier	46c573adcb21e9b05531fb30593871fac9e9464f

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