2023 Colorado Revised Statutes
Title 44 - REVENUE - REGULATION OF ACTIVITIES (§§ 44-1-101 — 44-50-1001)
AUTOMOBILES (§§ 44-20-101 — 44-20-440)
Article 20 - SALE OF SELF-PROPELLED VEHICLES (§§ 44-20-101 — 44-20-440)
Part 1 - MOTOR VEHICLE DEALERS (§§ 44-20-101 — 44-20-142)
Section 44-20-141 - Stop-sale directives - used motor vehicles - definitions

Universal Citation:
CO Code § 44-20-141 (2023)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.

  • (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.

Renumbered from C.R.S. § 12-6-132 and amended by 2018 Ch. 7,§ 2, eff. 10/1/2018.

Added by 2017 Ch. 355,§ 4, eff. 8/9/2017.

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

This section is similar to former § 12-6-132 as it existed prior to 2018.


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