S.B. 199

1

PAYMENT TO DEALER FOR VEHICLE USE
2 2000 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: L. Alma Mansell
5 AN ACT RELATING TO MOTOR VEHICLES; AMENDING PROVISIONS RELATED TO
6 THE RETURN OF A MOTOR VEHICLE TO A DEALER UNDER CERTAIN
7 CIRCUMSTANCES; AND PROVIDING CONDITIONS OF THE RETURN.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 41-3-403, as renumbered and amended by Chapter 234, Laws of Utah 1992
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 41-3-403 is amended to read:
13 41-3-403. Dealer noncompliance -- Rights of purchaser -- Penalties.
14 (1) (a) [If] Except as provided under Subsection (4), if a dealer fails to comply with
15 Subsection 41-3-301 (1), the purchaser may return the purchased motor vehicle to the dealer and
16 receive a complete refund of all money and other consideration given for the purchase, including
17 any motor vehicles or property traded in.
18 (b) If the motor vehicle or property traded in has been sold by the dealer, he shall return
19 to the purchaser the amount of money equivalent to the value of the motor vehicle or property as
20 allowed toward the purchase.
21 (c) Demand for the return may be made directly by the customer, his attorney, or the
22 administrator.
23 (d) Any loan payments or interest due between the sale date and the return date on either
24 the motor vehicle purchased or a motor vehicle traded in, are the responsibility of the dealer.
25 (2) Failure of a dealer to comply with this section:
26 (a) is a violation of Subsection 41-3-301 (1);
27 (b) is a ground for immediate dealer license suspension; and

28 (c) allows the customer a cause of action against the dealer to recover all consideration
29 owed under Subsection (1).
30 (3) Motor vehicles returned under the provisions of this section are not considered to be
31 sold for purposes of notice of sale under Subsection 41-3-301 (2) and for purposes of sales tax
32 under Title 59, Chapter 12, Sales and Use Tax Act.
33 (4) A dealer is not required to accept the return of a purchased motor vehicle under this
34 section unless the purchaser:
35 (a) returns the motor vehicle to the dealer within 180 days after the date of the purchase;
36 (b) furnishes to the dealer a written odometer disclosure statement in accordance with
37 Section 41-1a-902 ; and
38 (c) pays the dealer an amount equal to the current standard mileage rate for the cost of
39 operating a motor vehicle established by the federal Internal Revenue Service for each mile the
40 motor vehicle was driven between the date the purchaser first acquired possession and the date
41 when the purchaser returned the motor vehicle to the dealer.




Legislative Review Note
as of 1-28-00 1:38 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel