S.B. 163 Enrolled

SALE OF MOTOR VEHICLE
2000 GENERAL SESSION
STATE OF UTAH
Sponsor: Paula F. Julander
AN ACT RELATING TO MOTOR VEHICLES; PROHIBITING THE SALE OF A MOTOR
VEHICLE ON CERTAIN DAYS; PROVIDING PENALTIES; AND MAKING TECHNICAL
CHANGES.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
41-3-210, as last amended by Chapter 165, Laws of Utah 1998
41-3-702, as last amended by Chapter 21, Laws of Utah 1999
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 41-3-210 is amended to read:
41-3-210. License holders -- Prohibitions.
(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;

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(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; or
(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.
(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;

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(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

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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

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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.
Section 2. Section 41-3-702 is amended to read:
41-3-702. Civil penalty for violation.
(1) The following are civil violations under this chapter and are in addition to criminal
violations under this chapter:
(a) Level I:
(i) failure to display business license;
(ii) failure to surrender license of salesperson because of termination, suspension, or
revocation;
(iii) failure to maintain a separation from nonrelated motor vehicle businesses at licensed
locations;
(iv) issuing a temporary permit improperly;
(v) failure to maintain records;
(vi) selling a new motor vehicle to a nonfranchised dealer or leasing company without
licensing the motor vehicle;
(vii) special plate violation; and
(viii) failure to maintain a sign at principal place of business.
(b) Level II:

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(i) failure to report sale;
(ii) advertising violation;
(iii) dismantling without a permit;
(iv) manufacturing without meeting construction or vehicle identification number standards;
[and]
(v) withholding customer license plates; or
(vi) selling a motor vehicle on consecutive days of Saturday and Sunday.
(c) Level III:
(i) operating without a principal place of business;
(ii) selling a new motor vehicle without holding the franchise;
(iii) crushing a motor vehicle without proper evidence of ownership;
(iv) selling from an unlicensed location;
(v) altering a temporary permit;
(vi) refusal to furnish copies of records; and
(vii) assisting an unlicensed dealer or salesperson in sales of motor vehicles.
(2) (a) The schedule of civil penalties for violations of Subsection (1) is:
(i) Level I: $25 for the first offense, $100 for the second offense, and $250 for the third and
subsequent offenses;
(ii) Level II: $100 for the first offense, $250 for the second offense, and $1,000 for the third
and subsequent offenses; and
(iii) Level III: $250 for the first offense, $1,000 for the second offense, and $5,000 for the
third and subsequent offenses.
(b) When determining under this section if an offense is a second or subsequent offense, only
prior offenses committed within the 12 months prior to the commission of the current offense may
be considered.
(3) The following are civil violations in addition to criminal violations under Section
41-1a-1008 :
(a) knowingly selling a salvage vehicle, as defined in Section 41-1a-1001 , without disclosing

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that the salvage vehicle has been repaired or rebuilt;
(b) knowingly making a false statement on a vehicle damage disclosure statement, as defined
in Section 41-1a-1001 ; or
(c) fraudulently certifying that a damaged motor vehicle is entitled to an unbranded title, as
defined in Section 41-1a-1001 , when it is not.
(4) The civil penalty for a violation under Subsection (3) is:
(a) not less than $1,000, or treble the actual damages caused by the person, whichever is
greater; and
(b) reasonable attorneys' fees and costs of the action.
(5) A civil action may be maintained by a purchaser or by the administrator.

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