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S.B. 163
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SALE OF MOTOR VEHICLE
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Paula F. Julander
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AN ACT RELATING TO MOTOR VEHICLES; PROHIBITING THE SALE OF A MOTOR
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VEHICLE ON CERTAIN DAYS; PROVIDING PENALTIES; AND MAKING TECHNICAL
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CHANGES.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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41-3-210, as last amended by Chapter 165, Laws of Utah 1998
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41-3-702, as last amended by Chapter 21, Laws of Utah 1999
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
41-3-210
is amended to read:
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41-3-210. License holders -- Prohibitions.
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(1) The holder of any license issued under this chapter may not:
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(a) intentionally publish, display, or circulate any advertising that is misleading or
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inaccurate in any material fact or that misrepresents any of the products sold, manufactured,
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remanufactured, handled, or furnished by a licensee;
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(b) intentionally publish, display, or circulate any advertising without identifying the seller
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as the licensee by including in the advertisement the full name under which the licensee is licensed
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or the licensee's number assigned by the division;
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(c) violate this chapter or the rules made by the administrator;
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(d) violate any law of the state respecting commerce in motor vehicles or any rule
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respecting commerce in motor vehicles made by any licensing or regulating authority of the state;
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(e) engage in business as a new motor vehicle dealer, special equipment dealer, used motor
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vehicle dealer, motor vehicle crusher, or body shop without having in effect a bond as required in
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this chapter;
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(f) act as a dealer, dismantler, crusher, manufacturer, transporter, remanufacturer, or body
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shop without maintaining a principal place of business;
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(g) engage in a business respecting the selling or exchanging of new or new and used
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motor vehicles for which he is not licensed, including selling or exchanging a new motor vehicle
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for which the licensee does not have a franchise, but this Subsection (1)(g) does not apply to a
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special equipment dealer who sells a new special equipment motor vehicle with a gross vehicle
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weight of 12,000 or more pounds after installing special equipment on the motor vehicle;
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(h) dismantle or transport to a crusher for crushing or other disposition any motor vehicle
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without first obtaining a dismantling or junk permit under Section
41-1a-1009
,
41-1a-1010
, or
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41-1a-1011
;
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(i) as a new motor vehicle dealer, special equipment dealer, or used motor vehicle dealer
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fail to give notice of sales or transfers as required in Section
41-3-301
;
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(j) advertise or otherwise represent, or knowingly allow to be advertised or represented on
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his behalf or at his place of business, that no down payment is required in connection with the sale
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of a motor vehicle when a down payment is required and the buyer is advised or induced to finance
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a down payment by a loan in addition to any other loan financing the remainder of the purchase
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price of the motor vehicle;
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(k) as a crusher, crush or shred a motor vehicle brought to the crusher without obtaining
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proper evidence of ownership of the motor vehicle; proper evidence of ownership is a certificate
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of title endorsed according to law or a dismantling or junk permit issued under Section
41-1a-1009
,
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41-1a-1010
, or
41-1a-1011
;
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(l) as a manufacturer or remanufacturer assemble a motor vehicle that does not comply
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with construction, safety, or vehicle identification number standards fixed by law or rule of any
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licensing or regulating authority;
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(m) as anyone other than a salesperson licensed under this chapter, be present on a dealer
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display space and contact prospective customers to promote the sale of the dealer's vehicles;
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(n) sell, display for sale, or offer for sale motor vehicles at any location other than the
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principal place of business or additional places of business licensed under this chapter; this
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provision is construed to prevent dealers, salespersons, or any other representative of a dealership
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from selling, displaying, or offering motor vehicles for sale from their homes or other unlicensed
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locations;
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(o) (i) as a dealer, dismantler, body shop, or manufacturer, maintain a principal place of
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business or additional place of business that shares any common area with a business or activity
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not directly related to motor vehicle commerce; or
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(ii) maintain any places of business that share any common area with another dealer,
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dismantler, body shop, or manufacturer;
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(p) withhold delivery of license plates obtained by the licensee on behalf of a customer for
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any reason, including nonpayment of any portion of the vehicle purchase price or down payment;
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(q) issue a temporary permit for any vehicle that has not been sold by the licensee;
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(r) alter a temporary permit in any manner;
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(s) operate any principal place of business or additional place of business in a location that
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does not comply with local ordinances, including zoning ordinances; or
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(t) sell, display for sale, offer for sale, or exchange any new motor vehicle if the licensee
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does not:
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(i) have a new motor vehicle dealer's license under Section
41-3-202
; and
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(ii) possess a franchise from the manufacturer of the new motor vehicle sold, displayed
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for sale, offered for sale, or exchanged by the licensee.
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(2) (a) If a new motor vehicle is constructed in more than one stage, such as a motor home,
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ambulance, or van conversion, the licensee shall advertise, represent, sell, and exchange the
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vehicle as the make designated by the final stage manufacturer, except in those specific situations
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where the licensee possesses a franchise from the initial or first stage manufacturer, presumably
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the manufacturer of the motor vehicle's chassis.
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(b) Sales of multiple stage manufactured motor vehicles shall include the transfer to the
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purchaser of a valid manufacturer's statement or certificate of origin from each manufacturer under
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Section
41-3-301
.
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(3) Each licensee, except salespersons, shall maintain and make available for inspection
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by peace officers and employees of the division:
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(a) a record of every motor vehicle bought, or exchanged by the licensee or received or
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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;
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(c) a record of every motor vehicle bought or otherwise acquired and wrecked or
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dismantled by the licensee;
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(d) all buyers' orders, contracts, odometer statements, temporary permit records, financing
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records, and all other documents related to the purchase, sale, or consignment of motor vehicles;
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and
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(e) a record of the name and address of the person to whom any motor vehicle or motor
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vehicle body, chassis, or motor vehicle engine is sold or otherwise disposed of and a description
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of the motor vehicle by year, make, and vehicle identification number.
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(4) Each licensee required by this chapter to keep records shall:
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(a) be kept by the licensee at least for five years; and
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(b) furnish copies of those records upon request to any peace officer or employee of the
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division during reasonable business hours.
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(5) A manufacturer, distributor, distributor representative, or factory representative may
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not induce or attempt to induce by means of coercion, intimidation, or discrimination any dealer
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to:
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(a) accept delivery of any motor vehicle, parts, or accessories or any other commodity or
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commodities, including advertising material not ordered by the dealer;
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(b) order or accept delivery of any motor vehicle with special features, appliances,
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accessories, or equipment not included in the list price of the motor vehicle as publicly advertised
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by the manufacturer;
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(c) order from any person any parts, accessories, equipment, machinery, tools, appliances,
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or any other commodity;
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(d) enter into an agreement with the manufacturer, distributor, distributor representative,
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or factory representative of any of them, or to do any other act unfair to the dealer by threatening
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to cancel any franchise or contractual agreement between the manufacturer, distributor, distributor
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branch, or factory branch and the dealer;
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(e) refuse to deliver to any dealer having a franchise or contractual arrangement for the
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retail sale of new and unused motor vehicles sold or distributed by the manufacturer, distributor,
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distributor branch or factory branch, any motor vehicle, publicly advertised for immediate delivery
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within 60 days after the dealer's order is received; or
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(f) unfairly, without regard to the equities of the dealer, cancel the franchise of any motor
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vehicle dealer; the nonrenewal of a franchise or selling agreement without cause is a violation of
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this subsection and is an unfair cancellation.
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(6) A dealer may not assist an unlicensed dealer or salesperson in unlawful activity through
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active or passive participation in sales, or by allowing use of his facilities or dealer license number,
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or by any other means.
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(7) (a) The holder of any new motor vehicle dealer license issued under this chapter may
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not sell any new motor vehicle to:
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(i) another dealer licensed under this chapter who does not hold a valid franchise for the
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make of new motor vehicles sold, unless the selling dealer licenses and titles the new motor
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vehicle to the purchasing dealer; or
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(ii) any motor vehicle leasing or rental company located within this state, or who has any
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branch office within this state, unless the dealer licenses and titles the new motor vehicle to the
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purchasing, leasing, or rental company.
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(b) Subsection (7)(a)(i) does not apply to the sale of a new incomplete motor vehicle with
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a gross vehicle weight of 12,000 or more pounds to a special equipment dealer licensed under this
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chapter.
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(8) A dealer licensed under this chapter may not take on consignment any new motor
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vehicle from anyone other than a new motor vehicle dealer, factory, or distributor who is licensed
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and franchised to distribute or sell that make of motor vehicle in this or any other state.
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(9) A body shop licensed under this chapter may not assist an unlicensed body shop in
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unlawful activity through active or passive means or by allowing use of its facilities, name, body
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shop number, or by any other means.
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(10) A used motor vehicle dealer licensed under this chapter may not advertise, offer for
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sale, or sell a new motor vehicle that has been driven less than 7,500 miles by obtaining a title only
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to the vehicle and representing it as a used motor vehicle.
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(11) (a) Except as provided in Subsection (11)(c), a dealer or salesperson licensed under
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this chapter may not, on consecutive days of Saturday and Sunday, sell, offer for sale, lease, or
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offer for lease a motor vehicle.
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(b) Each day a motor vehicle is sold, offered for sale, leased, or offered for lease in
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violation of Subsection (11)(a) and each motor vehicle sold, offered for sale, leased, or offered for
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lease in violation of Subsection (11)(a) shall constitute a separate offense.
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(c) The provisions of Subsection (11)(a) shall not apply to a dealer participating in a trade
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show or exhibition if:
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(i) there are five or more dealers participating in the trade show or exhibition; and
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(ii) the trade show or exhibition takes place at a location other than the principal place of
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business of one of the dealers participating in the trade show or exhibition.
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Section 2.
Section
41-3-702
is amended to read:
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41-3-702. Civil penalty for violation.
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(1) The following are civil violations under this chapter and are in addition to criminal
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violations under this chapter:
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(a) Level I:
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(i) failure to display business license;
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(ii) failure to surrender license of salesperson because of termination, suspension, or
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revocation;
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(iii) failure to maintain a separation from nonrelated motor vehicle businesses at licensed
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locations;
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(iv) issuing a temporary permit improperly;
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(v) failure to maintain records;
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(vi) selling a new motor vehicle to a nonfranchised dealer or leasing company without
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licensing the motor vehicle;
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(vii) special plate violation; and
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(viii) failure to maintain a sign at principal place of business.
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(b) Level II:
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(i) failure to report sale;
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(ii) advertising violation;
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(iii) dismantling without a permit;
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(iv) manufacturing without meeting construction or vehicle identification number
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standards; [and]
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(v) withholding customer license plates; or
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(vi) selling a motor vehicle on consecutive days of Saturday and Sunday.
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(c) Level III:
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(i) operating without a principal place of business;
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(ii) selling a new motor vehicle without holding the franchise;
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(iii) crushing a motor vehicle without proper evidence of ownership;
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(iv) selling from an unlicensed location;
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(v) altering a temporary permit;
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(vi) refusal to furnish copies of records; and
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(vii) assisting an unlicensed dealer or salesperson in sales of motor vehicles.
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(2) (a) The schedule of civil penalties for violations of Subsection (1) is:
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(i) Level I: $25 for the first offense, $100 for the second offense, and $250 for the third
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and subsequent offenses;
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(ii) Level II: $100 for the first offense, $250 for the second offense, and $1,000 for the
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third and subsequent offenses; and
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(iii) Level III: $250 for the first offense, $1,000 for the second offense, and $5,000 for the
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third and subsequent offenses.
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(b) When determining under this section if an offense is a second or subsequent offense,
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only prior offenses committed within the 12 months prior to the commission of the current offense
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may be considered.
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(3) The following are civil violations in addition to criminal violations under Section
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41-1a-1008
:
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(a) knowingly selling a salvage vehicle, as defined in Section
41-1a-1001
, without
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disclosing that the salvage vehicle has been repaired or rebuilt;
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(b) knowingly making a false statement on a vehicle damage disclosure statement, as
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defined in Section
41-1a-1001
; or
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(c) fraudulently certifying that a damaged motor vehicle is entitled to an unbranded title,
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as defined in Section
41-1a-1001
, when it is not.
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(4) The civil penalty for a violation under Subsection (3) is:
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(a) not less than $1,000, or treble the actual damages caused by the person, whichever is
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greater; and
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(b) reasonable attorneys' fees and costs of the action.
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(5) A civil action may be maintained by a purchaser or by the administrator.
Legislative Review Note
as of 1-25-00 10:20 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.