Utah Code 41-3-103. Exceptions to “dealer” definition — Dealer licensed in other state — Direct-sale manufacturer — Direct-sale manufacturer salesperson
Superseded 7/1/2023 41-3-103. Exceptions to “dealer” definition — Dealer licensed in other state — Direct-sale manufacturer — Direct-sale manufacturer salesperson. Under this chapter:
(1)
Terms Used In Utah Code 41-3-103
Administrator: means the motor vehicle enforcement administrator. See Utah Code 41-3-102
Dealer: includes a representative or consignee of any dealer. See Utah Code 41-3-102
Direct-sale manufacturer: means a person:
(a)
that is both a manufacturer and a dealer;
(b)
that is:
(i)
an electric vehicle manufacturer; or
(ii)
a low-volume manufacturer;
(c)
that is not a franchise holder;
(d)
that is domiciled in the United States; and
(e)
whose chief officers direct, control, and coordinate the person's activities as a direct-sale manufacturer from a physical location in the United States. See Utah Code 41-3-102
Direct-sale manufacturer salesperson: means an individual who for a salary, commission, or compensation of any kind, is employed either directly, indirectly, regularly, or occasionally by a direct-sale manufacturer to sell, purchase, or exchange or to negotiate for the sale, purchase, or exchange of a motor vehicle manufactured by the direct-sale manufacturer who employs the individual. See Utah Code 41-3-102
Electric vehicle manufacturer: means a person that, in this state, sells, displays for sale, or offers for sale or exchange only new motor vehicles of the person's own line-make that are:
(a)
exclusively propelled through the use of electricity, a hydrogen fuel cell, or another non-fossil fuel source;
(b)
(i)
passenger vehicles with a gross vehicle weight rating of 14,000 pounds or less; or
(ii)
trucks with a gross vehicle weight rating of 14,000 pounds or less; and
Line-make: means motor vehicles that are offered for sale, lease, or distribution under a common name, trademark, service mark, or brand name of the manufacturer. See Utah Code 41-3-102
Low-volume manufacturer: means a manufacturer who:
(a)
in this state, sells, displays for sale, or offers for sale or exchange only new motor vehicles of the person's own line make that are:
(i)
(A)
passenger vehicles with a gross vehicle weight rating of 14,000 pounds or less; or
(B)
trucks with a gross vehicle weight rating of 14,000 pounds or less; and
(ii)
manufactured by the person; and
(b)
constructs no more than 325 new motor vehicles in any 12-month period. See Utah Code 41-3-102
Manufacturer: means a person engaged in the business of constructing or assembling new motor vehicles, ownership of which is customarily transferred by a manufacturer's statement or certificate of origin, or a person who constructs three or more new motor vehicles in any 12-month period. See Utah Code 41-3-102
Salesperson: means an individual who for a salary, commission, or compensation of any kind, is employed either directly, indirectly, regularly, or occasionally by any new motor vehicle dealer or used motor vehicle dealer to sell, purchase, or exchange or to negotiate for the sale, purchase, or exchange of motor vehicles. See Utah Code 41-3-102
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Used motor vehicle: means a vehicle that:
(a)
has been titled and registered to a purchaser other than a dealer; or
(b)
for a motor vehicle that is not a trailer, travel trailer, or semitrailer, has been driven 7,500 or more miles. See Utah Code 41-3-102
(a)
An insurance company, bank, finance company, company registered as a title lender under Title 7, Chapter 24, Title Lending Registration Act, company registered as a check casher or deferred deposit lender under Title 7, Chapter 23, Check Cashing and Deferred Deposit Lending Registration Act, public utility company, commission impound yard, federal or state governmental agency, or any political subdivision of any of them or any other person coming into possession of a motor vehicle as an incident to its regular business, that sells the motor vehicle under contractual rights that it may have in the motor vehicle is not considered a dealer.
(b)
A person who sells or exchanges only those motor vehicles that the person has owned for over 12 months is not considered a dealer.
(2)
(a)
A person engaged in leasing motor vehicles is not considered as coming into possession of the motor vehicles incident to the person’s regular business.
(b)
A pawnbroker engaged in selling, exchanging, or pawning motor vehicles is considered as coming into possession of the motor vehicles incident to the person’s regular business and must be licensed as a used motor vehicle dealer.
(3)
A person currently licensed as a dealer or salesperson by another state or country and not currently under license suspension or revocation by the administrator may only sell motor vehicles in this state to licensed dealers, dismantlers, or manufacturers, and only at their places of business.
(4)
Except as otherwise expressly provided:
(a)
a direct-sale manufacturer is subject to the same provisions under this chapter as a new motor vehicle dealer; and
(b)
a direct-sale manufacturer salesperson is subject to the same provisions under this chapter as a salesperson.
(5)
Notwithstanding any provision of this chapter to the contrary, a direct-sale manufacturer:
(a)
may, without a franchise, sell, display for sale, or offer for sale or exchange a motor vehicle:
(i)
described in Subsection 41-3-102(17) if the direct-sale manufacturer is an electric vehicle manufacturer; or
(ii)
described in Subsection 41-3-102(23) if the direct-sale manufacturer is a low-volume manufacturer; and
(b)
may not sell, display for sale, or offer for sale or exchange a new motor vehicle that is not of the same line-make the direct-sale manufacturer manufactures.
