§ 44-20-102 — Definitions

As used in this part 1, and in part 4 of this article 20,
unless the context or section 44-20-402 otherwise requires:

(1) Advertise or advertisement means any commercial message in any
newspaper, magazine, leaflet, flyer, or catalog, on radio, television, or a public
address system, in direct mail literature or other printed material, on any interior or
exterior sign or display, in any window display, on a computer display, or in any
point-of-transaction literature or price tag that is delivered or made available to a
customer or prospective customer in any manner; except that the term does not
include materials required to be displayed by federal or state law.

(2) Board means the motor vehicle dealer board.

(3) Business incidental thereto means a business owned by the motor
vehicle dealer or used motor vehicle dealer related to the sale of motor vehicles,
including motor vehicle part sales, motor vehicle repair, motor vehicle recycling,
motor vehicle security interest assignment, and motor vehicle towing.

(4) (a) Buyer agent means any person required to be licensed pursuant to
this part 1 who is retained or hired by a consumer for a fee or other thing of value to
assist, represent, or act on behalf of the consumer in connection with the purchase
or lease of a motor vehicle.

(b) (I) Buyer agent does not include a person whose business includes the
purchase of motor vehicles primarily for resale or lease; except that nothing in this
subsection (4) prohibits a buyer agent from assisting a consumer regarding the
disposal of a trade-in motor vehicle that is incident to the purchase or lease of a
vehicle if the buyer agent does not advertise the sale of, or sell, the vehicle to the
general public, directs interested dealers and wholesalers to communicate their
offers directly to the consumer or to the consumer via the buyer agent, does not
handle or transfer titles or funds between the consumer and the purchaser,
receives no compensation from a dealer or wholesaler purchasing a consumer's
vehicle, and identifies himself or herself as a buyer agent to dealers and
wholesalers interested in the consumer's vehicle.

(II) A buyer agent licensed under this part 1 shall not be employed by or
receive a fee from a person whose business includes the purchase of motor vehicles
primarily for resale or lease, a motor vehicle manufacturer, a motor vehicle dealer,
or a used motor vehicle dealer.

(5) Coerce means to compel or attempt to compel by threatening,
retaliating, or exerting economic force or by not performing or complying with any
terms or provisions of the franchise or agreement; except that recommendation,
exposition, persuasion, urging, or argument do not constitute coercion.

(6) Consumer means a purchaser or lessee of a motor vehicle used for
business, personal, family, or household purposes. Consumer does not include a
purchaser of motor vehicles primarily for resale.

(7) (a) Custom trailer means any motor vehicle that is not driven or
propelled by its own power and is designed to be attached to, become a part of, or
be drawn by a motor vehicle and that is uniquely designed and manufactured for a
specific purpose or customer.

(b) Custom trailer does not include manufactured housing, farm tractors,
and other machines and tools used in the production, harvest, and care of farm
products.

(8) Director means the director of the auto industry division created in
section 44-20-105.

(9) Distributor means a person, resident or nonresident, who, in whole or in
part, sells or distributes new motor vehicles to motor vehicle dealers or who
maintains distributor representatives.

(10) Fire truck means a vehicle intended for use in the extermination of
fires, with features that may include a fire pump, a water tank, an aerial ladder, an
elevated platform, or any combination thereof.

(11) Franchise means the authority to sell or service and repair motor
vehicles of a designated line-make granted through a sales, service, and parts
agreement with a manufacturer, distributor, or manufacturer representative.

(12) Good faith means the duty of each party to any franchise and all
officers, employees, or agents thereof to act in a fair and equitable manner toward
each other so as to guarantee the one party freedom from coercion, intimidation, or
threats of coercion or intimidation from the other party. Recommendation,
endorsement, exposition, persuasion, urging, or argument shall not be deemed to
constitute a lack of good faith.

(12.5) [ Editor's note: Subsection (12.5) is effective July 1, 2027. For the
applicability of this subsection (12.5) on or after January 1, 2028, see the editor's
note following this section. ] Kei road vehicle means a kei vehicle as defined in
section 42-1-102 (45.3).

(13) Line-make means a group or series of motor vehicles that have the
same brand identification or brand name, based upon the manufacturer's
trademark, trade name, or logo.

(14) Manufacturer means any person, firm, association, corporation, or
trust, resident or nonresident, who manufactures or assembles new and unused
motor vehicles; except that manufacturer does not include:

(a) A person who only manufactures utility trailers that weigh less than two
thousand pounds and does not manufacture any other type of motor vehicle; and

(b) A person, other than a manufacturer operating a motor vehicle dealer in
accordance with section 44-20-126, who is a licensed dealer selling motor vehicles
that the person has manufactured.

(15) Manufacturer representative means a representative employed by a
person who manufactures or assembles motor vehicles for the purpose of making
or promoting the sale of its motor vehicles or for supervising or contacting its
dealers or prospective dealers.

(16) [ Editor's note: This version of subsection (16) is effective until July 1,
2027. ] Motor vehicle means every vehicle intended primarily for use on the public
highways that is self-propelled and every vehicle intended primarily for operation
on the public highways that is not self-propelled but is designed to be attached to,
become a part of, or be drawn by a self-propelled vehicle, not including farm
tractors and other machines and tools used in the production, harvesting, and care
of farm products. Motor vehicle includes a low-power scooter or autocycle as
either is defined in section 42-1-102.

(16) [ Editor's note: This version of subsection (16) is effective July 1, 2027.
For the applicability of this subsection (16) on or after January 1, 2028, see the
editor's note following this section. ] Motor vehicle means every vehicle intended
primarily for use on the public highways that is self-propelled and every vehicle
intended primarily for operation on the public highways that is not self-propelled
but is designed to be attached to, become a part of, or be drawn by a self-propelled
vehicle, not including farm tractors and other machines and tools used in the
production, harvesting, and care of farm products. Motor vehicle includes a kei
road vehicle or a low-power scooter or autocycle as either is defined in section 42-1-102.

(17) Motor vehicle auctioneer means any person, not otherwise required to
be licensed pursuant to this part 1, who is engaged in the business of offering to
sell, or selling, used motor vehicles owned by persons other than the auctioneer at
public auction only. Any auctioning of motor vehicles by an auctioneer must be
incidental to the primary business of auctioning goods.

(18) Motor vehicle dealer means a person who, for commission or with
intent to make a profit or gain of money or other thing of value, sells, leases,
exchanges, rents with option to purchase, offers, or attempts to negotiate a sale,
lease, or exchange of an interest in new or new and used motor vehicles or who is
engaged wholly or in part in the business of selling or leasing new or new and used
motor vehicles, whether or not the motor vehicles are owned by the person. The
sale or lease of three or more new or new and used motor vehicles or the offering
for sale or lease of more than three new or new and used motor vehicles at the
same address or telephone number in any one calendar year is prima facie evidence
that a person is engaged in the business of selling or leasing new or new and used
motor vehicles. Motor vehicle dealer includes an owner of real property who
allows more than three new or new and used motor vehicles to be offered for sale
or lease on the property during one calendar year unless the property is leased to a
licensed motor vehicle dealer. Motor vehicle dealer does not include:

(a) Receivers, trustees, administrators, executors, guardians, or other
persons appointed by or acting under the judgment or order of any court;

(b) Public officers while performing their official duties;

(c) Employees of a motor vehicle dealer when engaged in the specific
performance of their duties as employees;

(d) A wholesaler or anyone selling motor vehicles solely to wholesalers;

(e) Any person engaged in the selling of a fire truck; or

(f) A motor vehicle auctioneer.

(19) Motor vehicle salesperson means a natural person who, for a salary,
commission, or compensation of any kind, is employed either directly or indirectly,
regularly or occasionally, by a motor vehicle dealer or used motor vehicle dealer to
sell, lease, purchase, or exchange or to negotiate for the sale, lease, purchase, or
exchange of motor vehicles.

(20) New motor vehicle means a motor vehicle that has been transferred
on a manufacturer's statement of origin and that has sufficiently low mileage to be
considered new, as determined by the board.

(21) Person means any natural person, estate, trust, limited liability
company, partnership, association, corporation, or other legal entity, including a
registered limited liability partnership.

(22) Principal place of business means a site or location devoted
exclusively to the business for which the motor vehicle dealer or used motor vehicle
dealer is licensed, and businesses incidental thereto, sufficiently designated to
admit of definite description, with adequate contiguous space to permit the display
of one or more new or used motor vehicles, with a permanent enclosed building or
structure large enough to accommodate the office of the dealer and to provide a
safe place to keep the books and other records of the business of the dealer, at
which site or location the principal portion of the dealer's business shall be
conducted and the books and records thereof kept and maintained; except that a
dealer may keep its books and records at an off-site location in Colorado after
notifying the board in writing of the location at least thirty days in advance.

(23) Recreational vehicle means a camping trailer, fifth wheel trailer, motor
home, recreational park trailer, travel trailer, or truck camper, all as defined in
section 24-32-902, or multipurpose trailer, as defined in section 42-1-102.

(24) Sales, service, and parts agreement means an agreement between a
manufacturer, distributor, or manufacturer representative and a motor vehicle or
powersports dealer authorizing the dealer to sell and service a line-make of motor
or powersports vehicles or imposing any duty on the dealer in consideration for the
right to have or competitively operate a franchise, including any amendments or
additional related agreements thereto. Each amendment, modification, or
addendum that materially affects the rights, responsibilities, or obligations of the
contracting parties creates a new sales, service, and parts agreement.

(25) Site control provision means an agreement that applies to real
property owned or leased by a franchisee and that gives a motor vehicle or
powersports vehicle manufacturer, distributor, or manufacturer representative the
right to:

(a) Control the use and development of the real property;

(b) Require the franchisee to establish or maintain an exclusive dealership
facility at the real property; or

(c) Restrict the franchisee from transferring, selling, leasing, developing, or
changing the use of the real property.

(26) Used motor vehicle dealer means a person who, for commission or
with intent to make a profit or gain of money or other thing of value, sells,
exchanges, leases, or offers an interest in used motor vehicles, or attempts to
negotiate a sale, exchange, or lease of used motor vehicles, or who is engaged
wholly or in part in the business of selling used motor vehicles, whether or not the
motor vehicles are owned by the person. The sale of three or more used motor
vehicles or the offering for sale of more than three used motor vehicles at the same
address or telephone number in any one calendar year is prima facie evidence that
a person is engaged in the business of selling used motor vehicles. Used motor
vehicle dealer includes an owner of real property who allows more than three used
motor vehicles to be offered for sale on the property during one calendar year
unless the property is leased to a licensed used motor vehicle dealer. Used motor
vehicle dealer does not include:

(a) Receivers, trustees, administrators, executors, guardians, or other
persons appointed by or acting under the judgment or order of any court;

(b) Public officers while performing their official duties;

(c) Employees of a used motor vehicle dealer when engaged in the specific
performance of their duties as employees;

(d) A wholesaler or anyone selling motor vehicles solely to wholesalers;

(e) Mortgagees or secured parties as to sales in any one year of not more
than twelve motor vehicles constituting collateral on a mortgage or security
agreement, if the mortgagees or secured parties do not realize for their own
account any money in excess of the outstanding balance secured by the mortgage
or security agreement, plus costs of collection;

(f) A person who only sells or exchanges no more than four motor vehicles
that are collector's items under part 3 or 4 of article 12 of title 42;

(g) A motor vehicle auctioneer; or

(h) An operator, as defined in section 42-4-2102 (5), who sells a motor
vehicle pursuant to section 42-4-2104.

(27) Wholesale motor vehicle auction dealer means a person or firm that
provides auction services in wholesale transactions in which the purchasers are
motor vehicle dealers licensed by this state or any other jurisdiction or in consumer
transactions of government vehicles at a time and place that does not conflict with
a wholesale motor vehicle auction conducted by that licensee.

(28) Wholesaler means a person who, for commission or with intent to
make a profit or gain of money or other thing of value, sells, exchanges, or offers or
attempts to negotiate a sale, lease, or exchange of an interest in new or new and
used motor vehicles solely to motor vehicle dealers or used motor vehicle dealers.

Legislative History

Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 42, � 2, effective October 1. L. 2025: (12.5) added and (16) amended, (HB 25-1281), ch. 176, p. 739, � 9, effective July 1, 2027.