§ 6-1-708 — Vehicle sales and leases - deceptive trade practice - definition

(1)
A person engages in a deceptive trade practice when, in the course of the person's
business, vocation, or occupation, such person:

(a) Commits any of the following acts pertaining to the sale or lease of a
motor vehicle, used motor vehicle, powersports vehicle, or used powersports
vehicle:

(I) Guarantees to a purchaser or lessee of a motor vehicle, used motor
vehicle, powersports vehicle, or used powersports vehicle who conditions the
purchase or lease on the approval of a consumer credit transaction as defined in
section 5-1-301 (12) that such purchaser or lessee has been approved for a
consumer credit transaction if the approval is not final. For purposes of this
subsection (1)(a)(I), guarantee means a written document or oral representation
between the purchaser or lessee and the person selling or leasing the vehicle that
leads such purchaser or lessee to a reasonable good faith belief that the financing
of the vehicle is certain.

(II) Accepts a used vehicle as a trade-in on the purchase or lease of a motor
vehicle, used motor vehicle, powersports vehicle, or used powersports vehicle and
sells or leases the vehicle that has been traded in before the purchaser or lessee
has been approved for a consumer credit transaction as defined in section 5-1-301
(12) if the approval is a condition of the purchase or lease;

(III) Fails to return to the consumer any collateral or down payment tendered
by the consumer conditioned upon a guarantee by a motor vehicle dealer, used
motor vehicle dealer, powersports vehicle dealer, or used powersports vehicle
dealer that a consumer credit transaction as defined in section 5-1-301 (12) has
been approved if the approval was a condition of the sale or lease and if the
financing is not approved and the consumer is required to return the vehicle;

(b) Fails to disclose in writing, prior to sale, to the purchaser that a motor
vehicle is a salvage vehicle, as defined in section 42-6-102 (17), or that a vehicle was
repurchased by or returned to the manufacturer from a previous owner for inability
to conform the motor vehicle to the manufacturer's warranty in accordance with
article 10 of title 42 or with any other state or federal motor vehicle warranty law, or
knowingly fails to disclose in writing, prior to sale, to the purchaser that a motor
vehicle or powersports vehicle has sustained material damage at any one time from
any one incident.

(2) For purposes of this section, if a motor vehicle or used motor vehicle
dealer guarantees financing and if approval for financing is a condition of the sale
or lease, such motor vehicle or used motor vehicle dealer shall not retain any
portion of such purchaser's down payment or any trade-in vehicle as payment of
rent on any vehicle released by such dealer to such purchaser pending approval of
financing even if such dealer has obtained a waiver of such purchaser's right to
return a vehicle or has contracted for a rental agreement with such purchaser.

Legislative History

Source: L. 99: Entire part added with relocations, p. 650, � 2, effective May 18. L. 2000: (1)(a) and (2) amended, p. 244, � 3, effective March 30; (1)(a) amended, p. 1871, � 104, effective August 2. L. 2001: (1)(a) amended, p. 1265, � 2, effective June 5. L. 2007: (1)(b) amended, p. 2018, � 5, effective June 1. L. 2017: (1) amended, (SB 17-240), ch. 395, p. 2064, � 45, effective July 1.