Farm Implements Act

Bills that amended this Act0

No published amendment links yet for this Act.

Sections86

• 1Definitions

  1 In this Act, “dealer” means a person who, in the ordinary course of business, offers farm implements or parts for sale at retail; (“vendeur”) “dealership agreement” means an agreement that is made between a distributor and a dealer with respect to the business of the dealer’s offering farm implements or parts for sale at retail and that fixes the legal rights and obligations of the parties to the agreement; (“entente de distribution”) “Director” means the Director appointed under this Act; (“directeur”) “distributor” means a person, including a manufacturer, who, in the ordinary course of business, sells, consigns or delivers farm implements or parts to a dealer; (“distributeur”) “effective date” means the date determined under section 11; (“date de prise d’effet”) “farm implement” means any equipment or machinery designed and used for agricultural or horticultural use and includes att…

• 1.
• 2Application

  2 (1) This Act does not apply to the sale of a farm implement, (a) by a person in the ordinary course of farming operations; (b) by an executor or administrator; or (c) by a public official acting under judicial process. R.S.O. 1990, c. F.4, s. 2 (1). Idem (2) This Act does not apply to the sale of a farm implement with a manufacturer’s suggested list price that is less than the prescribed amount. R.S.O. 1990, c. F.4, s. 2 (2).

• 2.
• 3Sales of farm implements

  3 (1) A dealer shall not sell or offer for sale a new farm implement unless it was obtained by the dealer from a distributor or another dealer registered under this Act. R.S.O. 1990, c. F.4, s. 3 (1). Transition (2) Subsection (1) does not apply with respect to a new farm implement that was in the dealer’s possession on the 31st day of December, 1989. R.S.O. 1990, c. F.4, s. 3 (2). Sales by distributor (3) A distributor shall not sell a new farm implement to any person except a dealer or another distributor registered under this Act. R.S.O. 1990, c. F.4, s. 3 (3). Dealership agreement (4) A dealership agreement shall be in writing, shall contain the information that is prescribed and shall contain the legal rights and obligations that are prescribed for the parties to the agreement, subject to subsection (5). 2005, c. 19, s. 2. No exclusive dealing (5) A dealership agreement shall not re…

• 3.
• [s3]
• Section Amendments with date in force (d/m/y)

  Section Amendments with date in force (d/m/y) 2005, c. 19, s. 2 - 13/06/2005 2024, c. 28, Sched. 10, s. 1 - 04/12/2024 Director

• 4Director

  4 (1) The Minister may appoint a Director who shall be responsible for the administration and enforcement of this Act and the regulations. 1999, c. 12, Sched. A, s. 11 (4). Powers and duties (2) The Director shall exercise the powers and perform the duties that are conferred or imposed on the Director under this Act. 1999, c. 12, Sched. A, s. 11 (4). Representatives (3) The Director may appoint as his or her representative one or more public servants employed under Part III of the Public Service of Ontario Act, 2006, and the Director may delegate to a representative the powers, duties and functions under this Act that the Director specifies. 2006, c. 35, Sched. C, s. 39. Farm implement safety (4) The Director is responsible for promoting compliance with, (a) the prescribed safety standards for farm implement performance; and (b) the prescribed requirements for dealers respecting safety i…

• 4.
• 5Dispute resolution

  5 (1) On the request of a purchaser, dealer, distributor or manufacturer, the Director may inquire into and attempt to resolve a dispute with respect to any matter, other than a dispute regarding the refusal to renew or termination of a dealership agreement arising from the application of this Act or the regulations. 1999, c. 12, Sched. A, s. 11 (5); 2005, c. 19, s. 3; 2024, c. 28, Sched. 10, s. 3 (1). Repair charges (2) The Director may investigate claims and attempt to resolve disputes regarding the charges made by a dealer for the repair of a farm implement. 1999, c. 12, Sched. A, s. 11 (5). Mediator (3) If a person makes a request to the Director for an inquiry under subsection (1) or an investigation under subsection (2), the Director may appoint a mediator to assist the parties to resolve the dispute. 1999, c. 12, Sched. A, s. 11 (5). Fees (4) The Minister may establish and collect…

• 5.
• [s6]
• Section Amendments with date in force (d/m/y) #6

  Section Amendments with date in force (d/m/y) 1999, c. 12, Sched. A, s. 11 (5) - 22/12/1999 2005, c. 19, s. 3 - 13/06/2005 2024, c. 28, Sched. 10, s. 3 (1-3) - 04/12/2024 Registration of Dealers and Distributors

• 6Registration required

  6 (1) No person shall carry on the business of a dealer or distributor unless the person is registered under this Act. R.S.O. 1990, c. F.4, s. 6 (1). Entitlement to registration (2) An applicant for registration as a dealer or distributor is entitled to registration on submitting a completed application, together with the prescribed fee. R.S.O. 1990, c. F.4, s. 6 (2); 2024, c. 28, Sched. 10, s. 4. Conditions of registration (3) A registration is subject to such conditions to give effect to the purposes of this Act as are prescribed by the regulations. R.S.O. 1990, c. F.4, s. 6 (3). Section Amendments with date in force (d/m/y) 2024, c. 28, Sched. 10, s. 4 - 04/12/2024

• 6.
• 7Refusal to register, revocation

  7 (1) Subject to this section and section 8, the Director may refuse to grant or may suspend or revoke a registration if the applicant or registrant, as the case may be, is in breach of a condition of the registration or a provision of this Act or the regulations, or would be if registered. 1999, c. 12, Sched. A, s. 11 (6); 2024, c. 28, Sched. 10, s. 5 (1). Hearing (2) Before refusing to grant a registration or suspending or revoking a registration, the Director shall conduct a hearing in accordance with the requirements of the Statutory Powers Procedure Act. 1999, c. 12, Sched. A, s. 11 (6); 2024, c. 28, Sched. 10, s. 5 (2). Parties (3) The applicant or registrant, as the case may be, and the other persons whom the Director specifies are parties to the hearing. 1999, c. 12, Sched. A, s. 11 (6). Section Amendments with date in force (d/m/y) 1999, c. 12, Sched. A, s. 11 (6) - 22/12/1999 2…

• 7.
• 8Notice of decision

  8 (1) Upon deciding to refuse to grant a registration or deciding to suspend or revoke a registration, the Director shall serve notice of the decision, together with written reasons, on the applicant or registrant, as the case may be. 1999, c. 12, Sched. A, s. 11 (7); 2024, c. 28, Sched. 10, s. 6 (1). Appeal (2) The notice shall inform the applicant or registrant, as the case may be, that the person may appeal from the decision to the Tribunal in accordance with its rules of practice within 15 days from the day on which the decision was served. 1999, c. 12, Sched. A, s. 11 (7). Certified copies (3) On the request of any person desiring to appeal, the Director shall furnish the person with a certified copy of all proceedings, evidence, reports and papers received in evidence by the Director in dealing with and disposing of the application. 1999, c. 12, Sched. A, s. 11 (7). New hearing (4)…

• 8.
• 9Further applications

  9 A further application for registration may be made upon new or other evidence or where it is clear that material circumstances have changed. R.S.O. 1990, c. F.4, s. 9.

• 9.
• [s11]

  Sale Agreement

• 10Sale agreement

  10 (1) A sale agreement shall be in writing and shall, (a) subject to subsection (2), contain a description of the farm implement, including its serial and model number; (b) show separately the purchase price, (i) for each farm implement to which it relates, and (ii) for each attachment to the farm implement if the attachment and the farm implement are not supplied by the same distributor; (c) include a description of and the allowance for any trade-in; (d) state the date of delivery to the purchaser; (e) contain the name and address of the purchaser, dealer and distributor; (f) in the case of a new farm implement, include a statement of the nature and duration of, (i) the warranties provided under this Act, and (ii) any additional or extended warranties; (g) in the case of a used farm implement, (i) include a statement of the nature and duration of all warranties given in connection wit…

• 10.
• 11Effective date of sale agreement

  11 (1) A sale agreement is not effective until the earlier of the date on which, (a) the agreement is signed by the purchaser and the dealer or the dealer’s authorized agent and a copy of the agreement is delivered to the purchaser; or (b) the purchaser takes delivery of the farm implement under the agreement. R.S.O. 1990, c. F.4, s. 11 (1). Copies of sale agreement (2) A dealer shall keep a copy of a sale agreement for at least two years from its effective date. R.S.O. 1990, c. F.4, s. 11 (2).

• 11.
• [s14]

  Warranties

• 12Warranty as to power

  12 (1) A sale agreement shall state, (a) in the case of a new tractor, its engine horsepower or power takeoff power; and (b) in the case of any other new farm implement that is or has an engine or motor, its engine horsepower. R.S.O. 1990, c. F.4, s. 12 (1). Idem (2) A farm implement is warranted to develop the power stated in the sale agreement if it is properly operated and maintained and used under reasonable operating conditions. R.S.O. 1990, c. F.4, s. 12 (2).

• 12.
• 13Implied warranty as to quality

  13 On the sale of a new farm implement there is an implied warranty that the farm implement, (a) is properly constructed as to material, design and work; and (b) will perform to manufacturer’s specifications the work for which it is intended if it is properly operated and maintained and used under reasonable operating conditions. R.S.O. 1990, c. F.4, s. 13.

• 13.
• 14Duration of warranties under ss. 12 and 13

  14 (1) The warranties provided under sections 12 (power) and 13 (quality) take effect on the date of delivery of the farm implement to the purchaser and continue for the following periods: 1. In the case of tractors, the lesser of one year or 1,000 hours of operation. 2. In the case of combines, the lesser of one year or 500 hours of operation. 3. In all other cases, one year. R.S.O. 1990, c. F.4, s. 14 (1). Alteration of hour meter prohibited (2) Except in the case of an exchange or repair of an hour meter, no person shall alter, adjust or permit any alteration or adjustment to the hour meter on a farm implement in the person’s possession or control so as to cause the total number of hours indicated on the hour meter to be different from the total number of hours that the farm implement has been operated. R.S.O. 1990, c. F.4, s. 14 (2). Exchange or repair of hour meter (3) A person who …

• 14.
• 15Implied warranty as to supply of repair parts

  15 On the sale of a new farm implement there is an implied warranty that a sufficient supply of repair parts for the farm implement will be available to the purchaser for a period of ten years from the effective date. R.S.O. 1990, c. F.4, s. 15.

• 15.
• 16Implied warranty as to quality of repair parts

  16 (1) On the sale of a new repair part there is an implied warranty that the repair part will be free from defects in material or work for a period of ninety days from the date of purchase or, if purchased out of the season of use, ninety days from the date it is first used by the purchaser in the next season of use. R.S.O. 1990, c. F.4, s. 16 (1). Idem (2) The warranty under subsection (1) applies only if the part is purchased from an authorized dealer and supplied by the same distributor who supplied the farm implement for which the part is intended. R.S.O. 1990, c. F.4, s. 16 (2).

• 16.
• 17Further rules re warranties

  17 (1) A distributor or dealer may give a warranty in respect of a farm implement or a repair part that affords greater protection or that has a longer duration than the warranties under this Act. R.S.O. 1990, c. F.4, s. 17 (1). No contracting out (2) The warranties under this Act apply to a sale agreement despite an agreement or waiver to the contrary, and any such agreement or waiver is severable from the sale agreement. R.S.O. 1990, c. F.4, s. 17 (2). Lease financing (3) A person who purchases a farm implement for the purpose of lease financing shall assign the warranties under this Act to the lessee of the farm implement. 1999, c. 12, Sched. A, s. 11 (10). Section Amendments with date in force (d/m/y) 1999, c. 12, Sched. A, s. 11 (10) - 22/12/1999

• 17.
• 18Liability for warranties

  18 (1) The distributor of a new farm implement is liable to the purchaser to honour the warranties under sections 12 (power) and 13 (quality). R.S.O. 1990, c. F.4, s. 18 (1). Idem (2) The dealer and distributor of a new farm implement are jointly and severally liable to the purchaser to honour the warranty under section 15 (parts supply). R.S.O. 1990, c. F.4, s. 18 (2). Idem (3) The distributor who supplies a new repair part is liable to the purchaser to honour the warranty under section 16 (quality of parts). R.S.O. 1990, c. F.4, s. 18 (3). Idem (4) If a farm implement is damaged as a result of a breach of the warranty under section 16 (quality of parts), the distributor of the repair part is liable for the cost of repairing the farm implement. R.S.O. 1990, c. F.4, s. 18 (4). Repairs under warranty (5) A dealer or distributor making repairs to a farm implement under a warranty provided …

• 18.
• [s22]
• Section Amendments with date in force (d/m/y) #22

  Section Amendments with date in force (d/m/y) 2005, c. 19, s. 4 - 13/06/2005 Repair Parts

• 19Emergency repair parts

  19 (1) In this section, “emergency repair parts” means parts required to repair a farm implement where the farm implement breaks down during the season of use within ten years of the effective date and cannot be satisfactorily operated. R.S.O. 1990, c. F.4, s. 19 (1). Obligation of dealer (2) Where a purchaser notifies in writing any dealer of the distributor of a farm implement that the farm implement requires emergency repair parts, the dealer shall forthwith order the emergency repair parts from the distributor. R.S.O. 1990, c. F.4, s. 19 (2). Obligation of distributor (3) Where a distributor receives an order under subsection (2), the distributor shall ensure that the parts are available at the dealer’s place of business within three working days from the day the order was placed, unless delivery of the parts cannot be made within that time because of conditions beyond the distributo…

• 19.
• 20Return of defective repair part

  20 Where a purchaser receives a replacement part under a warranty for a defective repair part of a farm implement, the purchaser shall return the defective repair part to the dealer who supplied the replacement part within ten days after it is replaced. R.S.O. 1990, c. F.4, s. 20.

• 20.
• [s25]

  Failure to Perform

• 21Interpretation of s. 22

  21 (1) For the purposes of section 22, “defective farm implement” means a farm implement in respect of which notice has been given under section 22; (“appareil agricole défectueux”) “fair market value” means fair market value as of the date the sale agreement was made. (“juste valeur marchande”) R.S.O. 1990, c. F.4, s. 21 (1). Determination of fair market value (2) For the purpose of determining the fair market value of a trade-in under subsection 22 (8) or (9), regard may be had to any publication of farm implement prices in general use in the farm implement industry in Canada. R.S.O. 1990, c. F.4, s. 21 (2).

• 21.
• 22Failure to perform

  22 (1) If, within the twelve months following its delivery to the purchaser, a new farm implement that is properly operated and maintained and used under reasonable operating conditions fails to perform to the manufacturer’s specifications during its first ten days or first 100 hours of actual use, whichever occurs first, the purchaser may give notice of the farm implement’s failure to perform. R.S.O. 1990, c. F.4, s. 22 (1). Notice (2) The notice referred to in subsection (1) shall be given in writing as soon as possible after the failure occurs, and in any event within ten days of the failure, (a) to the selling dealer; or (b) if the selling dealer is no longer in business, to the Director, and the dealer or the Director shall notify the distributor forthwith of the notice and its contents. R.S.O. 1990, c. F.4, s. 22 (2); 1999, c. 12, Sched. A, s. 11 (11). Repair (3) The dealer or dist…

• 22.
• [s28]
• Section Amendments with date in force (d/m/y) #28

  Section Amendments with date in force (d/m/y) 1999, c. 12, Sched. A, s. 11 (11) - 22/12/1999 2005, c. 19, s. 5 - 13/06/2005 Buy-back Provisions

• 23Interpretation of ss. 24 to 30

  23 (1) For the purposes of sections 24 to 30, “current net price” means the price listed in the distributor’s price list or catalogue in effect at the time the dealership agreement is terminated; (“prix net courant”) “invoice price” means the price actually paid by the dealer for the new farm implement and, in respect of a new farm implement that has been rented pursuant to a written rental program approved by the distributor, means the price actually paid by the dealer for the new farm implement less the amount of any rental payments submitted to the distributor; (“prix de facture”) “new farm implement” means a farm implement that is not a used farm implement and includes, (a) a farm implement that has been operated by or on behalf of a dealer pursuant to a written demonstration program sponsored by the distributor, and (b) a farm implement that has been rented pursuant to a written ren…

• 23.
• 24Notice to repurchase

  24 (1) Within ninety days after a dealership agreement has expired or is terminated, a dealer may by written notice require the distributor to repurchase all or any new farm implements and new parts supplied by the distributor under the agreement. R.S.O. 1990, c. F.4, s. 24 (1); 2005, c. 19, s. 7. Election (2) The notice to repurchase shall state whether the dealer intends to rely on, (a) the provisions of this section and sections 25 to 30; or (b) the terms of an agreement with the distributor under subsection 23 (4). R.S.O. 1990, c. F.4, s. 24 (2). Where no election made (3) If the dealer fails to make the election under subsection (2), the dealer shall be deemed to have elected to rely on the provisions of this section and sections 25 to 30. R.S.O. 1990, c. F.4, s. 24 (3). Section Amendments with date in force (d/m/y) 2005, c. 19, s. 7 - 13/06/2005

• 24.
• 25Repurchase price

  25 (1) The distributor shall pay a repurchase amount to the dealer equal to, (a) 100 per cent of the invoice price for each new farm implement; (b) 85 per cent of the current net price for each new part; (c) 50 per cent of the latest published price for all mandatory special tools and equipment that the dealer has purchased within the previous five-year period and that are unique for use in servicing the distributor’s products; and (d) transportation costs paid by the dealer for delivery of the new farm implement to the dealer’s place of business. 2005, c. 19, s. 8. Other amounts owing (2) In addition to the amount payable under subsection (1), the distributor shall pay any other amount owing to the dealer by the distributor. R.S.O. 1990, c. F.4, s. 25 (2). Section Amendments with date in force (d/m/y) 2005, c. 19, s. 8 - 13/06/2005

• 25.
• 26Time for payment

  26 (1) The repurchase amount payable to the dealer by the distributor is due on the earlier of, (a) the ninety-first day after the distributor receives the notice of repurchase; and (b) the thirtieth day after the distributor takes possession of the new farm implements and new parts that are the subject of the notice. R.S.O. 1990, c. F.4, s. 26 (1). Interest (2) Interest at the prescribed rate shall be payable on any part of the repurchase amount that is unpaid after the due date. R.S.O. 1990, c. F.4, s. 26 (2). Extension of time (3) The dealer and distributor may agree to extend the time for payment. R.S.O. 1990, c. F.4, s. 26 (3). Set-off (4) A distributor may deduct from the repurchase amount any amount owing to the distributor by the dealer. R.S.O. 1990, c. F.4, s. 26 (4). Deduction for missing part, etc. (5) A distributor may deduct from the repurchase amount the current net price, …

• 26.
• 27Repurchase not required

  27 A distributor is not required to repurchase, (a) a new part that is broken or damaged; (b) a new parts assembly that is incomplete and cannot be completed at reasonable expense; (c) a new part or parts assembly that has been removed from a farm implement and replaced at no cost to the dealer under a modification or warranty substitution program; (d) a new part that is 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) a new part that is not clearly identified, or that is not resaleable as a new part without repackaging or reconditioning; (f) a new part that is not listed in the distributor’s current parts record-keeping system; (g) a new farm implement that is an attachment that, (i) is not identifiable by a whole goods’ invoice, (ii) is not resaleable …

• 27.
• 28Responsibility for care

  28 (1) The dealer is responsible for the care of a new farm implement or new part until the earlier of, (a) the ninety-first day after the distributor receives the notice to repurchase; and (b) the day the distributor takes possession of the new farm implements and new parts,

• 28.
• [s35]

  and thereafter the distributor is responsible. R.S.O. 1990, c. F.4, s. 28 (1). Extension of time (2) Despite clause (1) (a), the dealer and distributor may agree to extend the time during which the dealer is responsible. R.S.O. 1990, c. F.4, s. 28 (2). Preparing implements and parts for shipment (3) The dealer is responsible for preparing or packaging all new farm implements and all new parts so that they are acceptable by a carrier for shipment at the distributor’s expense from the dealer’s place of business. R.S.O. 1990, c. F.4, s. 28 (3).

• 29.
• 29Repealed

  29 Repealed: 2017, c. 2, Sched. 3, s. 3 (1). Section Amendments with date in force (d/m/y) 2017, c. 2, Sched. 3, s. 3 (1) - 22/03/2017

• 30.
• [s37]
• 30Distributor to furnish information

  30 A distributor shall provide to the Director, on request, copies of agreements in effect between the distributor and the dealer respecting the supply or return of new farm implements or new parts. R.S.O. 1990, c. F.4, s. 30; 1999, c. 12, Sched. A, s. 11 (13). Section Amendments with date in force (d/m/y) 1999, c. 12, Sched. A, s. 11 (13) - 22/12/1999

• [s38]
• 30.1Distributor’s right to require repurchase

  30.1 (1) In this section, “current net price”, “invoice price”, “new farm implement”, “new part” and “used farm implement” have the same meaning as in subsection 23 (1) except that, (a) references to a dealer shall be read as references to a distributor who is not a manufacturer, and (b) references to a distributor shall be read as references to a manufacturer; (“prix net courant”, “prix de facture”, “appareil agricole neuf”, “pièce neuve”, “appareil agricole usagé”) “distributor agreement” means an agreement between a distributor who is not a manufacturer and a manufacturer under which the distributor is required by the manufacturer to maintain a supply of new farm implements and new parts supplied by the manufacturer. (“entente du distributeur”) 2005, c. 19, s. 10. No contracting out (2) This section applies to a distributor agreement despite any agreement or waiver to the contrary, un…

• 31.
• 32.
• Section Amendments with date in force (d/m/y) #39

  Section Amendments with date in force (d/m/y) 2005, c. 19, s. 10 - 13/06/2005 2017, c. 2, Sched. 3, s. 3 (1) - 22/03/2017 Miscellaneous Provisions Serial number and safety standards

• 31Alteration of serial number

  31 (1) No person shall, (a) alter or remove the serial number on a farm implement; or (b) buy, sell or otherwise deal in a farm implement if the serial number has been altered or removed, unless authorized to do so by the Director. R.S.O. 1990, c. F.4, s. 31 (1); 1999, c. 12, Sched. A, s. 11 (13). Obligation of dealer (2) Subject to subsection 10 (2), no dealer shall sell or offer for sale a new farm implement unless the serial number is stamped on the implement or affixed thereto. R.S.O. 1990, c. F.4, s. 31 (2). Idem (3) No dealer shall sell or offer for sale a farm implement, (a) unless the farm implement complies with the prescribed safety standards; and (b) unless the dealer provides the purchaser with a statement that indicates compliance with the prescribed safety standards. R.S.O. 1990, c. F.4, s. 31 (3). Section Amendments with date in force (d/m/y) 1999, c. 12, Sched. A, s. 11 (…

• 33.
• 32Service of notice

  32 (1) A notice required to be given to a dealer or distributor may be served personally or sent by registered mail to the address of the dealer or distributor as shown in the records of the Director. R.S.O. 1990, c. F.4, s. 32 (1); 1999, c. 12, Sched. A, s. 11 (13). Deemed receipt (2) A notice that is sent by registered mail shall be deemed to have been received on the fifth day after it is mailed. R.S.O. 1990, c. F.4, s. 32 (2). Section Amendments with date in force (d/m/y) 1999, c. 12, Sched. A, s. 11 (13) - 22/12/1999

• 34.
• 33Rights, etc., preserved

  33 The rights, duties and remedies provided by this Act are in addition to the rights, duties and remedies under any other Act and the common law. R.S.O. 1990, c. F.4, s. 33.

• 35.
• 34Offence and penalty

  34 (1) Every person and every officer or director of a corporation who contravenes a provision of this Act or the regulations is guilty of an offence and on conviction is liable to a fine of not more than $10,000. R.S.O. 1990, c. F.4, s. 34 (1). Corporations (2) Where a corporation is convicted of an offence under subsection (1), the maximum penalty that may be imposed on the corporation is $25,000. R.S.O. 1990, c. F.4, s. 34 (2).

• 35Regulations

  35 The Minister may make regulations, (a) exempting a farm implement or a class of farm implements from any provision of this Act or the regulations; (b) prescribing, for the purposes of section 2, the amount that the manufacturer’s suggested list price of a farm implement must equal or exceed; (c) prescribing information to be included in a dealership agreement and setting out legal rights and obligations for parties to the agreement, subject to subsection 3 (5); (d) prescribing forms and providing for their use; (e) prescribing circumstances for the purposes of subsection 5 (5.2); (f) governing applications for registration and prescribing conditions of registration; (g) requiring the payment of fees for an application for registration and prescribing the amount of the fees; (g.1) exempting classes of persons from the requirement for registration under section 6, in such circumstances …