§ 44-20-141 — Stop-sale directives - used motor vehicles - definitions

Colorado § 44-20-141

• Jurisdiction: Colorado
• Title 44: Revenue -
• Art.: Sale of Self-propelled Vehicles

Text

(1) As
used in this section, unless the context otherwise requires:

(a) Average trade-in value means the value of a used motor vehicle as
established by a generally accepted, published, third-party used vehicle resource.

(b) Stop-sale directive means an unconditional directive from a
manufacturer or distributor to a motor vehicle dealer to stop selling a type of motor
vehicle manufactured by the manufacturer or distributed by the distributor because
of a safety defect.

(2) A manufacturer or distributor shall reimburse a motor vehicle dealer in
accordance with subsection (3) of this section if:

(a) The manufacturer or distributor issues a stop-sale directive for a motor
vehicle manufactured or distributed by the issuer of the stop-sale directive;

(b) The motor vehicle dealer holds an active sales, service, and parts
agreement with the manufacturer or distributor for the line-make of the used motor
vehicle covered by the stop-sale directive;

(c) The used motor vehicle covered by the stop-sale directive is held in the
inventory of the motor vehicle dealer on the date the stop-sale directive is issued or
taken by the dealer as a trade-in vehicle on a consumer purchase of the same line-make; and

(d) The manufacturer or distributor has not provided a remedy procedure or
made parts available to repair the used motor vehicle for more than thirty days
after the stop-sale directive is issued.

(3) If the conditions in subsection (2) of this section are met, the
manufacturer or distributor shall, upon application by the motor vehicle dealer, pay
or credit the dealer one and one-half percent per month of the average trade-in
value of the used motor vehicle's model prorated from thirty days after the stop-sale directive was issued to the earlier of:

(a) The date when the manufacturer or distributor provides the motor vehicle
dealer with a remedy procedure and any necessary parts for ordering to repair the
used motor vehicle; or

(b) The date the motor vehicle dealer transfers the motor vehicle.

(4) A manufacturer or distributor may determine a reasonable manner and
method required for a motor vehicle dealer to demonstrate the inventory status of a
used motor vehicle to determine eligibility for reimbursement.

(5) (a) This section applies only to used motor vehicles.

(b) This section is not intended to prevent a manufacturer or distributor from
requiring that a motor vehicle not be subject to an open recall or stop-sale directive
for the motor vehicle to be qualified or sold as a certified preowned vehicle or
substantially similar designation.

(c) This section does not require a manufacturer or distributor to provide
total compensation to a motor vehicle dealer that would exceed the total average
trade-in valuation of the affected used motor vehicle.

(d) This section does not preclude a motor vehicle dealer and a manufacturer
or distributor from agreeing to reimbursement terms that differ from those
specified in this section.

(e) Compensation provided to a motor vehicle dealer under this section is
exclusive and may not be combined with any other remedy under state or federal
law.

Legislative History

Source: L. 2018: Entire article added with relocations, (SB 18-030), ch. 7, p. 89, � 2, effective October 1.