§ 44-20-101 — Legislative declaration

(1) The general assembly hereby
declares that:

(a) The sale and distribution of motor vehicles affects the public interest, and
a significant factor of inducement in making a sale of a motor vehicle is the trust
and confidence of the purchaser in the retail dealer from whom the purchase is
made and the expectancy that the dealer will remain in business to provide service
for the motor vehicle purchased;

(b) Proper motor vehicle service is important to highway safety and the
manufacturers and distributors of motor vehicles have an obligation to the public
not to terminate or refuse to continue their franchise agreements with retail dealers
unless the manufacturer or distributor has first established good cause for
termination or noncontinuance of the agreement, to the end that there shall be no
diminution of locally available service;

(c) The licensing and supervision of motor vehicle dealers by the motor
vehicle dealer board are necessary for the protection of consumers, and therefore,
the sale of motor vehicles by unlicensed dealers or salespersons, or by licensed
dealers or salespersons who have demonstrated unfitness, should be prevented;

(d) Consumer education concerning the rules of the motor vehicle industry,
the considerations when purchasing a motor vehicle, and the role, functions, and
actions of the motor vehicle dealer board are necessary for the protection of the
public and for maintaining the trust and confidence of the public in the motor
vehicle dealer board; and

(e) Subject to the United States constitution and the Colorado constitution,
this article 20 applies to each sales, service, and parts agreement in effect,
regardless of when the agreement was adopted.

Legislative History

Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 41, � 2, effective October 1.