1     
VEHICLE SALES AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Don L. Ipson

5     
House Sponsor: Steve Eliason

6     

7     LONG TITLE
8     General Description:
9          This bill allows a licensed vehicle dealer to sell and deliver a vehicle to a buyer at the
10     buyer's home or place of business.
11     Highlighted Provisions:
12          This bill:
13          ▸     allows a licensed vehicle dealer to:
14               •     sell a vehicle to a buyer without the buyer being required to appear in person to
15     one of the dealer's places of business;
16               •     enter into a purchase contract, collect an electronic signature, and collect
17     payment electronically; and
18               •     deliver a purchased vehicle to a buyer at the buyer's home, place of business, or
19     another location under certain circumstances; and
20          ▸     makes technical changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:
26     AMENDS:
27          41-3-210, as last amended by Laws of Utah 2020, Chapter 367
28     

29     Be it enacted by the Legislature of the state of Utah:

30          Section 1. Section 41-3-210 is amended to read:
31          41-3-210. License holders -- Prohibitions, allowances, and requirements.
32          (1) The holder of any license issued under this chapter may not:
33          (a) intentionally publish, display, or circulate any advertising that is misleading or
34     inaccurate in any material fact or that misrepresents any of the products sold, manufactured,
35     remanufactured, handled, or furnished by a licensee;
36          (b) intentionally publish, display, or circulate any advertising without identifying the
37     seller as the licensee by including in the advertisement the full name under which the licensee
38     is licensed or the licensee's number assigned by the division;
39          (c) violate this chapter or the rules made by the administrator;
40          (d) violate any law of the state respecting commerce in motor vehicles or any rule
41     respecting commerce in motor vehicles made by any licensing or regulating authority of the
42     state;
43          (e) engage in business as a new motor vehicle dealer, special equipment dealer, used
44     motor vehicle dealer, motor vehicle crusher, or body shop without having in effect a bond as
45     required in this chapter;
46          (f) act as a dealer, dismantler, crusher, manufacturer, transporter, remanufacturer, or
47     body shop without maintaining a principal place of business;
48          (g) unless the licensee is a special equipment dealer who sells a new special equipment
49     motor vehicle with a gross vehicle weight of 12,000 or more pounds after installing special
50     equipment on the motor vehicle:
51          (i) engage in a business respecting the selling or exchanging of new or new and used
52     motor vehicles for which the licensee is not licensed; and
53          (ii) unless the licensee is a direct-sale manufacturer, sell or exchange a new motor
54     vehicle for which the licensee does not have a franchise;
55          (h) dismantle or transport to a crusher for crushing or other disposition any motor
56     vehicle without first obtaining a dismantling or junk permit under Section 41-1a-1009,
57     41-1a-1010, or 41-1a-1011;

58          (i) as a new motor vehicle dealer, special equipment dealer, or used motor vehicle
59     dealer fail to give notice of sales or transfers as required in Section 41-3-301;
60          (j) advertise or otherwise represent, or knowingly allow to be advertised or represented
61     on the licensee's behalf or at the licensee's place of business, that no down payment is required
62     in connection with the sale of a motor vehicle when a down payment is required and the buyer
63     is advised or induced to finance a down payment by a loan in addition to any other loan
64     financing the remainder of the purchase price of the motor vehicle;
65          (k) as a crusher, crush or shred a motor vehicle brought to the crusher without
66     obtaining proper evidence of ownership of the motor vehicle; proper evidence of ownership is
67     a certificate of title endorsed according to law or a dismantling or junk permit issued under
68     Section 41-1a-1009, 41-1a-1010, or 41-1a-1011;
69          (l) as a manufacturer or remanufacturer assemble a motor vehicle that does not comply
70     with construction, safety, or vehicle identification number standards fixed by law or rule of any
71     licensing or regulating authority;
72          (m) as anyone other than a salesperson or a direct-sale manufacturer salesperson
73     licensed under this chapter, be present on a dealer display space and contact prospective
74     customers to promote the sale of the dealer's vehicles;
75          (n) subject to Subsection (14), sell, display for sale, or offer for sale motor vehicles at
76     any location other than the principal place of business, or additional places of business licensed
77     under this chapter; [this provision is construed to prevent dealers, salespersons, or any other
78     representative of a dealership from selling, displaying, or offering motor vehicles for sale from
79     their homes or other unlicensed locations;]
80          (o) (i) as a dealer, dismantler, body shop, or manufacturer, maintain a principal place of
81     business or additional place of business that shares any common area with a business or
82     activity not directly related to motor vehicle commerce; or
83          (ii) maintain any places of business that share any common area with another dealer,
84     dismantler, body shop, or manufacturer;
85          (p) withhold delivery of license plates obtained by the licensee on behalf of a customer

86     for any reason, including nonpayment of any portion of the vehicle purchase price or down
87     payment;
88          (q) issue a temporary permit for any vehicle that has not been sold by the licensee;
89          (r) alter a temporary permit in any manner;
90          (s) operate any principal place of business or additional place of business in a location
91     that does not comply with local ordinances, including zoning ordinances;
92          (t) sell, display for sale, offer for sale, or exchange any new motor vehicle if the
93     licensee does not:
94          (i) have a new motor vehicle dealer's license or a direct-sale manufacturer's license
95     under Section 41-3-202; and
96          (ii) unless the licensee is a direct-sale manufacturer, possess a franchise from the
97     manufacturer of the new motor vehicle sold, displayed for sale, offered for sale, or exchanged
98     by the licensee;
99          (u) as a new motor vehicle dealer or used motor vehicle dealer, encourage or conspire
100     with any person who has not obtained a salesperson's or a direct-sale manufacturer
101     salesperson's license to solicit for prospective purchasers;
102          (v) as a direct-sale manufacturer, engage in business as a direct-sale manufacturer
103     without having:
104          (i) an authorized service center; or
105          (ii) a principal place of business; or
106          (w) possess a franchise that is not expressed in writing, if the franchise allows the sale
107     or exchange of a new trailer that:
108          (i) is not designed for human habitation;
109          (ii) has a gross vehicle weight rating of less than 26,000 pounds; and
110          (iii) is not designed to carry a motorboat as defined in Section 73-18-2.
111          (2) (a) If a new motor vehicle is constructed in more than one stage, such as a motor
112     home, ambulance, or van conversion, the licensee shall advertise, represent, sell, and exchange
113     the vehicle as the make designated by the final stage manufacturer, except in those specific

114     situations where the licensee:
115          (i) possesses a franchise from the initial or first stage manufacturer, presumably the
116     manufacturer of the motor vehicle's chassis; or
117          (ii) manufactured the initial or first stage of the motor vehicle.
118          (b) Sales of multiple stage manufactured motor vehicles shall include the transfer to the
119     purchaser of a valid manufacturer's statement or certificate of origin from each manufacturer
120     under Section 41-3-301.
121          (3) Each licensee, except salespersons, shall maintain and make available for
122     inspection by peace officers and employees of the division:
123          (a) a record of every motor vehicle bought, or exchanged by the licensee or received or
124     accepted by the licensee for sale or exchange;
125          (b) a record of every used part or used accessory bought or otherwise acquired;
126          (c) a record of every motor vehicle bought or otherwise acquired and wrecked or
127     dismantled by the licensee;
128          (d) all buyers' orders, contracts, odometer statements, temporary permit records,
129     financing records, and all other documents related to the purchase, sale, or consignment of
130     motor vehicles; and
131          (e) a record of the name and address of the person to whom any motor vehicle or motor
132     vehicle body, chassis, or motor vehicle engine is sold or otherwise disposed of and a
133     description of the motor vehicle by year, make, and vehicle identification number.
134          (4) Each licensee required by this chapter to keep records shall:
135          (a) be kept by the licensee at least for five years; and
136          (b) furnish copies of those records upon request to any peace officer or employee of the
137     division during reasonable business hours.
138          (5) (a) A manufacturer, distributor, distributor representative, or factory representative
139     may not induce or attempt to induce by means of coercion, intimidation, or discrimination any
140     dealer to:
141          (i) accept delivery of any motor vehicle, parts, or accessories or any other commodity

142     or commodities, including advertising material not ordered by the dealer;
143          (ii) order or accept delivery of any motor vehicle with special features, appliances,
144     accessories, or equipment not included in the list price of the motor vehicle as publicly
145     advertised by the manufacturer;
146          (iii) order from any person any parts, accessories, equipment, machinery, tools,
147     appliances, or any other commodity;
148          (iv) enter into an agreement with the manufacturer, distributor, distributor
149     representative, or factory representative of any of them, or to do any other act unfair to the
150     dealer by threatening to cancel any franchise or contractual agreement between the
151     manufacturer, distributor, distributor branch, or factory branch and the dealer;
152          (v) refuse to deliver to any dealer having a franchise or contractual arrangement for the
153     retail sale of new and unused motor vehicles sold or distributed by the manufacturer,
154     distributor, distributor branch or factory branch, any motor vehicle, publicly advertised for
155     immediate delivery within 60 days after the dealer's order is received;
156          (vi) unfairly, without regard to the equities of the dealer, cancel the franchise of any
157     motor vehicle dealer; the nonrenewal of a franchise or selling agreement without cause and
158     written notice is a violation of this subsection and is an unfair cancellation; or
159          (vii) waive or forbear the right of the dealer, if the dealer offers for sale, sells, or
160     exchanges cargo/utility trailers, to protest the establishment or relocation of a dealer who offers
161     for sale, sells, or exchanges cargo/utility trailers of the same line-make in the relevant market
162     area of the established dealer.
163          (b) For the purpose of Subsection (5)(a)(vii):
164          (i) "Cargo/utility trailer" means a trailer that:
165          (A) is not designed for human habitation;
166          (B) has a gross vehicle weight rating of less than 26,000 pounds; and
167          (C) is not designed to carry a motorboat as defined in Section 73-18-2.
168          (ii) "Relevant market area" means:
169          (A) for a dealership located in a county that has a population of less than 225,000, the

170     county in which the dealership is located and the area within a 15-mile radius of the dealership;
171     or
172          (B) for a dealership located in a county that has a population of 225,000 or more, the
173     area within a 10-mile radius of the dealership.
174          (6) A dealer may not assist an unlicensed dealer or salesperson in unlawful activity
175     through active or passive participation in sales, or by allowing use of his facilities or dealer
176     license number, or by any other means.
177          (7) (a) The holder of any new motor vehicle dealer or direct-sale manufacturer license
178     issued under this chapter may not sell any new motor vehicle to:
179          (i) another dealer licensed under this chapter who does not hold a valid franchise for
180     the make of new motor vehicles sold, unless the selling dealer licenses and titles the new motor
181     vehicle to the purchasing dealer; or
182          (ii) any motor vehicle leasing or rental company located within this state, or who has
183     any branch office within this state, unless the dealer licenses and titles the new motor vehicle to
184     the purchasing, leasing, or rental company.
185          (b) Subsection (7)(a)(i) does not apply to the sale of a new incomplete motor vehicle
186     with a gross vehicle weight of 12,000 or more pounds to a special equipment dealer licensed
187     under this chapter.
188          (8) A dealer licensed under this chapter may not take on consignment any new motor
189     vehicle from anyone other than a new motor vehicle dealer, factory, or distributor who is
190     licensed and, if required, franchised to distribute or sell that make of motor vehicle in this or
191     any other state.
192          (9) A body shop licensed under this chapter may not assist an unlicensed body shop in
193     unlawful activity through active or passive means or by allowing use of its facilities, name,
194     body shop number, or by any other means.
195          (10) A used motor vehicle dealer licensed under this chapter may not advertise, offer
196     for sale, or sell a new motor vehicle that has been driven less than 7,500 miles by obtaining a
197     title only to the vehicle and representing it as a used motor vehicle.

198          (11) (a) Except as provided in Subsection (11)(c), or in cases of undue hardship or
199     emergency as provided by rule by the division, a dealer or salesperson licensed under this
200     chapter may not, on consecutive days of Saturday and Sunday, sell, offer for sale, lease, or offer
201     for lease a motor vehicle.
202          (b) Each day a motor vehicle is sold, offered for sale, leased, or offered for lease in
203     violation of Subsection (11)(a) and each motor vehicle sold, offered for sale, leased, or offered
204     for lease in violation of Subsection (11)(a) shall constitute a separate offense.
205          (c) The provisions of Subsection (11)(a) shall not apply to a dealer participating in a
206     trade show or exhibition if:
207          (i) there are five or more dealers participating in the trade show or exhibition; and
208          (ii) the trade show or exhibition takes place at a location other than the principal place
209     of business of one of the dealers participating in the trade show or exhibition.
210          (12) For purposes of imposing the sales and use tax under Title 59, Chapter 12, Sales
211     and Use Tax Act, a licensee issuing a temporary permit under Section 41-3-302 shall separately
212     identify the fees required by Title 41, Chapter 1a, Motor Vehicle Act.
213          (13) (a) A dismantler or dealer engaged in the business of dismantling motor vehicles
214     for the sale of parts or salvage shall identify any vehicles or equipment used by the dismantler
215     or dealer for transporting parts or salvage on the highways.
216          (b) The identification required under Subsection (13)(a) shall:
217          (i) include the name, address, and license number of the dismantler or dealer; and
218          (ii) be conspicuously displayed on both sides of the vehicle or equipment in clearly
219     legible letters and numerals not less than two inches in height.
220          (14) (a) Subject to Subsection (14)(b), a licensed vehicle dealer may:
221          (i) sell a vehicle to a buyer without the buyer being required to appear in person at one
222     of the dealer's licensed places of business;
223          (ii) collect a buyer's signature or electronic signature on a purchase contract and related
224     purchase documents;
225          (iii) collect payment electronically; and

226          (iv) deliver:
227          (A) a new motor vehicle to a buyer at the buyer's home or place of business, or at one
228     of the dealer's licensed places of business; or
229          (B) a used motor vehicle to a buyer at a location mutually agreed upon by the buyer
230     and the dealer.
231          (b) A vehicle purchase contract is not executed until the contract is countersigned by
232     the licensed dealer at one of the dealer's licensed places of business.
233          (c) Except as provided in this Subsection (14), Subsection (1)(n) is construed to
234     prevent a dealer, salesperson, or any other representative of a dealership from selling,
235     displaying, or offering a motor vehicle for sale from the dealer's, salesperson's, or any other
236     representative's home or other unlicensed location.