§ 44-20-439 — Stop-sale directives - used powersports vehicles - definitions

Colorado § 44-20-439

• 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 powersports 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 powersports vehicle dealer to stop selling a type of
powersports vehicle manufactured by the manufacturer or distributed by the
distributor because of a safety defect.

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

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

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

(c) The used powersports vehicle covered by the stop-sale directive is held in
the inventory of the powersports 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 powersports vehicle for more than thirty
days after the stop-sale directive was issued.

(3) If the conditions in subsection (2) of this section are met, the
manufacturer or distributor shall, upon application by the powersports vehicle
dealer, pay or credit the dealer one and one-half percent per month of the average
trade-in value of each used powersports vehicle's model affected by the stop-sale
directive 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 powersports
vehicle dealer with a remedy procedure and any necessary parts for ordering to
repair the used powersports vehicle; or

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

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

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

(b) This section is not intended to prevent a manufacturer or distributor from
requiring that a powersports vehicle not be subject to an open recall or stop-sale
directive as a condition for the powersports 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 powersports vehicle dealer that would exceed the total
average trade-in valuation of the affected used powersports vehicle.

(d) This section does not preclude a powersports 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 powersports 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. 134, � 2, effective October 1.