41-3-210. License holders -- Prohibitions and requirements.
(1) The holder of any license issued under this chapter may not:
(a) intentionally publish, display, or circulate any advertising that is misleading or
inaccurate in any material fact or that misrepresents any of the products sold, manufactured,
remanufactured, handled, or furnished by a licensee;
(b) intentionally publish, display, or circulate any advertising without identifying the
seller as the licensee by including in the advertisement the full name under which the licensee is
licensed or the licensee's number assigned by the division;
(c) violate this chapter or the rules made by the administrator;
(d) violate any law of the state respecting commerce in motor vehicles or any rule
respecting commerce in motor vehicles made by any licensing or regulating authority of the state;
(e) engage in business as a new motor vehicle dealer, special equipment dealer, used
motor vehicle dealer, motor vehicle crusher, or body shop without having in effect a bond as
required in this chapter;
(f) act as a dealer, dismantler, crusher, manufacturer, transporter, remanufacturer, or
body shop without maintaining a principal place of business;
(g) engage in a business respecting the selling or exchanging of new or new and used
motor vehicles for which he is not licensed, including selling or exchanging a new motor vehicle
for which the licensee does not have a franchise, but this Subsection (1)(g) does not apply to a
special equipment dealer who sells a new special equipment motor vehicle with a gross vehicle
weight of 12,000 or more pounds after installing special equipment on the motor vehicle;
(h) dismantle or transport to a crusher for crushing or other disposition any motor vehicle
without first obtaining a dismantling or junk permit under Section 41-1a-1009, 41-1a-1010, or
41-1a-1011;
(i) as a new motor vehicle dealer, special equipment dealer, or used motor vehicle dealer
fail to give notice of sales or transfers as required in Section 41-3-301;
(j) advertise or otherwise represent, or knowingly allow to be advertised or represented
on his behalf or at his place of business, that no down payment is required in connection with the
sale of a motor vehicle when a down payment is required and the buyer is advised or induced to
finance a down payment by a loan in addition to any other loan financing the remainder of the
purchase price of the motor vehicle;
(k) as a crusher, crush or shred a motor vehicle brought to the crusher without obtaining
proper evidence of ownership of the motor vehicle; proper evidence of ownership is a certificate
of title endorsed according to law or a dismantling or junk permit issued under Section
41-1a-1009, 41-1a-1010, or 41-1a-1011;
(l) as a manufacturer or remanufacturer assemble a motor vehicle that does not comply
with construction, safety, or vehicle identification number standards fixed by law or rule of any
licensing or regulating authority;
(m) as anyone other than a salesperson licensed under this chapter, be present on a dealer
display space and contact prospective customers to promote the sale of the dealer's vehicles;
(n) sell, display for sale, or offer for sale motor vehicles at any location other than the
principal place of business or additional places of business licensed under this chapter; this
provision is construed to prevent dealers, salespersons, or any other representative of a dealership
from selling, displaying, or offering motor vehicles for sale from their homes or other unlicensed
locations;
(o) (i) as a dealer, dismantler, body shop, or manufacturer, maintain a principal place of
business or additional place of business that shares any common area with a business or activity
not directly related to motor vehicle commerce; or
(ii) maintain any places of business that share any common area with another dealer,
dismantler, body shop, or manufacturer;
(p) withhold delivery of license plates obtained by the licensee on behalf of a customer
for any reason, including nonpayment of any portion of the vehicle purchase price or down
payment;
(q) issue a temporary permit for any vehicle that has not been sold by the licensee;
(r) alter a temporary permit in any manner;
(s) operate any principal place of business or additional place of business in a location
that does not comply with local ordinances, including zoning ordinances;
(t) sell, display for sale, offer for sale, or exchange any new motor vehicle if the licensee
does not:
(i) have a new motor vehicle dealer's license under Section 41-3-202; and
(ii) possess a franchise from the manufacturer of the new motor vehicle sold, displayed
for sale, offered for sale, or exchanged by the licensee; or
(u) as a new motor vehicle dealer or used motor vehicle dealer, encourage or conspire
with any person who has not obtained a salesperson's license to solicit for prospective purchasers.
(2) (a) If a new motor vehicle is constructed in more than one stage, such as a motor
home, ambulance, or van conversion, the licensee shall advertise, represent, sell, and exchange
the vehicle as the make designated by the final stage manufacturer, except in those specific
situations where the licensee possesses a franchise from the initial or first stage manufacturer,
presumably the manufacturer of the motor vehicle's chassis.
(b) Sales of multiple stage manufactured motor vehicles shall include the transfer to the
purchaser of a valid manufacturer's statement or certificate of origin from each manufacturer
under Section 41-3-301.
(3) Each licensee, except salespersons, shall maintain and make available for inspection
by peace officers and employees of the division:
(a) a record of every motor vehicle bought, or exchanged by the licensee or received or
accepted by the licensee for sale or exchange;
(b) a record of every used part or used accessory bought or otherwise acquired;
(c) a record of every motor vehicle bought or otherwise acquired and wrecked or
dismantled by the licensee;
(d) all buyers' orders, contracts, odometer statements, temporary permit records,
financing records, and all other documents related to the purchase, sale, or consignment of motor
vehicles; and
(e) a record of the name and address of the person to whom any motor vehicle or motor
vehicle body, chassis, or motor vehicle engine is sold or otherwise disposed of and a description
of the motor vehicle by year, make, and vehicle identification number.
(4) Each licensee required by this chapter to keep records shall:
(a) be kept by the licensee at least for five years; and
(b) furnish copies of those records upon request to any peace officer or employee of the
division during reasonable business hours.
(5) A manufacturer, distributor, distributor representative, or factory representative may
not induce or attempt to induce by means of coercion, intimidation, or discrimination any dealer
to:
(a) accept delivery of any motor vehicle, parts, or accessories or any other commodity or
commodities, including advertising material not ordered by the dealer;
(b) order or accept delivery of any motor vehicle with special features, appliances,
accessories, or equipment not included in the list price of the motor vehicle as publicly advertised
by the manufacturer;
(c) order from any person any parts, accessories, equipment, machinery, tools,
appliances, or any other commodity;
(d) enter into an agreement with the manufacturer, distributor, distributor representative,
or factory representative of any of them, or to do any other act unfair to the dealer by threatening
to cancel any franchise or contractual agreement between the manufacturer, distributor,
distributor branch, or factory branch and the dealer;
(e) refuse to deliver to any dealer having a franchise or contractual arrangement for the
retail sale of new and unused motor vehicles sold or distributed by the manufacturer, distributor,
distributor branch or factory branch, any motor vehicle, publicly advertised for immediate
delivery within 60 days after the dealer's order is received; or
(f) unfairly, without regard to the equities of the dealer, cancel the franchise of any motor
vehicle dealer; the nonrenewal of a franchise or selling agreement without cause is a violation of
this subsection and is an unfair cancellation.
(6) A dealer may not assist an unlicensed dealer or salesperson in unlawful activity
through active or passive participation in sales, or by allowing use of his facilities or dealer
license number, or by any other means.
(7) (a) The holder of any new motor vehicle dealer license issued under this chapter may
not sell any new motor vehicle to:
(i) another dealer licensed under this chapter who does not hold a valid franchise for the
make of new motor vehicles sold, unless the selling dealer licenses and titles the new motor
vehicle to the purchasing dealer; or
(ii) any motor vehicle leasing or rental company located within this state, or who has any
branch office within this state, unless the dealer licenses and titles the new motor vehicle to the
purchasing, leasing, or rental company.
(b) Subsection (7)(a)(i) does not apply to the sale of a new incomplete motor vehicle
with a gross vehicle weight of 12,000 or more pounds to a special equipment dealer licensed
under this chapter.
(8) A dealer licensed under this chapter may not take on consignment any new motor
vehicle from anyone other than a new motor vehicle dealer, factory, or distributor who is licensed
and franchised to distribute or sell that make of motor vehicle in this or any other state.
(9) A body shop licensed under this chapter may not assist an unlicensed body shop in
unlawful activity through active or passive means or by allowing use of its facilities, name, body
shop number, or by any other means.
(10) A used motor vehicle dealer licensed under this chapter may not advertise, offer for
sale, or sell a new motor vehicle that has been driven less than 7,500 miles by obtaining a title
only to the vehicle and representing it as a used motor vehicle.
(11) (a) Except as provided in Subsection (11)(c), or in cases of undue hardship or
emergency as provided by rule by the division, a dealer or salesperson licensed under this chapter
may not, on consecutive days of Saturday and Sunday, sell, offer for sale, lease, or offer for lease
a motor vehicle.
(b) Each day a motor vehicle is sold, offered for sale, leased, or offered for lease in
violation of Subsection (11)(a) and each motor vehicle sold, offered for sale, leased, or offered
for lease in violation of Subsection (11)(a) shall constitute a separate offense.
(c) The provisions of Subsection (11)(a) shall not apply to a dealer participating in a
trade show or exhibition if:
(i) there are five or more dealers participating in the trade show or exhibition; and
(ii) the trade show or exhibition takes place at a location other than the principal place of
business of one of the dealers participating in the trade show or exhibition.
(12) For purposes of imposing the sales and use tax under Title 59, Chapter 12, Sales and
Use Tax Act, a licensee issuing a temporary permit under Section 41-3-302 shall separately
identify the fees required by Title 41, Chapter 1a, Motor Vehicle Act.
(13) (a) A dismantler or dealer engaged in the business of dismantling motor vehicles for
the sale of parts or salvage shall identify any vehicles or equipment used by the dismantler or
dealer for transporting parts or salvage on the highways.
(b) The identification required under Subsection (13)(a) shall:
(i) include the name, address, and license number of the dismantler or dealer; and
(ii) be conspicuously displayed on both sides of the vehicle or equipment in clearly
legible letters and numerals not less than two inches in height.
Amended by Chapter 322, 2007 General Session
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Last revised: Thursday, May 01, 2008