Title 41 Chapter 3 Part 2 Section 210

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Index	Utah Code
Title 41	Motor Vehicles
Chapter 3	Motor Vehicle Business Regulation Act
Part 2	Licensing
Section 210	License holders -- Prohibitions, allowances, and requirements. *(Effective 5/3/2023)* *(Superseded 5/6/2026)*

Effective 5/3/2023
Superseded 5/6/2026
41-3-210. License holders -- Prohibitions, allowances, 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)

unless the licensee is 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:

(i)	engage in a business respecting the selling or exchanging of new or new and used motor vehicles for which the licensee is not licensed; and

(ii)	unless the licensee is a direct-sale manufacturer, sell or exchange a new motor vehicle for which the licensee does not have a franchise;

(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 the licensee's behalf or at the licensee's 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 or a direct-sale manufacturer 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)	subject to Subsection (14), 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;

(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 or a direct-sale manufacturer's license under Section 41-3-202; and

(ii)	unless the licensee is a direct-sale manufacturer, possess a franchise from the manufacturer of the new motor vehicle sold, displayed for sale, offered for sale, or exchanged by the licensee;

(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 or a direct-sale manufacturer salesperson's license to solicit for prospective purchasers;

(v)

as a direct-sale manufacturer, engage in business as a direct-sale manufacturer without having:

(i)	an authorized service center; or

(ii)	a principal place of business; or

(w)

possess a franchise that is not expressed in writing, if the franchise allows the sale or exchange of a new trailer that:

(i)	is not designed for human habitation;

(ii)	has a gross vehicle weight rating of less than 26,000 pounds; and

(iii)

is not designed to carry a motorboat as defined in Section 73-18-2.

(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:

(i)	possesses a franchise from the initial or first stage manufacturer, presumably the manufacturer of the motor vehicle's chassis; or

(ii)	manufactured the initial or first stage of the motor vehicle.

(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)

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:

(i)	accept delivery of any motor vehicle, parts, or accessories or any other commodity or commodities, including advertising material not ordered by the dealer;

(ii)	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;

(iii)

order from any person any parts, accessories, equipment, machinery, tools, appliances, or any other commodity;

(iv)

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;

(v)

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;

(vi)	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 and written notice is a violation of this subsection and is an unfair cancellation; or

(vii)

waive or forbear the right of the dealer, if the dealer offers for sale, sells, or exchanges cargo/utility trailers, to protest the establishment or relocation of a dealer who offers for sale, sells, or exchanges cargo/utility trailers of the same line-make in the relevant market area of the established dealer.

(b)

For the purpose of Subsection (5)(a)(vii):

(i)

"Cargo/utility trailer" means a trailer that:

(A)	is not designed for human habitation;

(B)	has a gross vehicle weight rating of less than 26,000 pounds; and

(C)	is not designed to carry a motorboat as defined in Section 73-18-2.

(ii)

"Relevant market area" means:

(A)	for a dealership located in a county that has a population of less than 225,000, the county in which the dealership is located and the area within a 15-mile radius of the dealership; or

(B)	for a dealership located in a county that has a population of 225,000 or more, the area within a 10-mile radius of the dealership.

(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 or direct-sale manufacturer 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, if required, 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.

(14)

(a)

Subject to Subsection (14)(b), a licensed vehicle dealer may:

(i)	sell a vehicle to a buyer without the buyer being required to appear in person at one of the dealer's licensed places of business;

(ii)	collect a buyer's signature or electronic signature on a purchase contract and related purchase documents;

(iii)

collect payment electronically; and

(iv)

deliver:

(A)	a new motor vehicle to a buyer at the buyer's home or place of business, or at one of the dealer's licensed places of business; or

(B)	a used motor vehicle to a buyer at a location mutually agreed upon by the buyer and the dealer.

(b)	A vehicle purchase contract is not executed until the contract is countersigned by the licensed dealer at one of the dealer's licensed places of business.

(c)

Except as provided in this Subsection (14), Subsection (1)(n) is construed to prevent a dealer, salesperson, or any other representative of a dealership from selling, displaying, or offering a motor vehicle for sale from the dealer's, salesperson's, or any other representative's home or other unlicensed location.

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