CO Code § 44-20-102 (2021)
2021 Colorado Code|Title 44 - Revenue - Regulation of Activities|Article 20 - Sale of Self-Propelled Vehicles|Part 1 - Motor Vehicle Dealers|§ 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:    “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.    “Board” means the motor vehicle dealer board.    “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.      “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.      “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. (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.    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.          “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.    “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.      “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.    “Custom trailer” does not include manufactured housing, farm tractors, and other machines and tools used in the production, harvest, and care of farm products.       “Director” means the director of the auto industry division created in section 44-20-105.    “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.    “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.    “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.    “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.    “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.    “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 person who only manufactures utility trailers that weigh less than two thousand pounds and does not manufacture any other type of motor vehicle; and    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.       “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.    “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.    “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.    “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:   Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court;    Public officers while performing their official duties;    Employees of a motor vehicle dealer when engaged in the specific performance of their duties as employees;    A wholesaler or anyone selling motor vehicles solely to wholesalers;    Any person engaged in the selling of a fire truck; or    A motor vehicle auctioneer.       “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.    “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.    “Person” means any natural person, estate, trust, limited liability company, partnership, association, corporation, or other legal entity, including a registered limited liability partnership.    “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.    “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.    “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.    “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:   Control the use and development of the real property;    Require the franchisee to establish or maintain an exclusive dealership facility at the real property; or    Restrict the franchisee from transferring, selling, leasing, developing, or changing the use of the real property.       “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:   Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court;    Public officers while performing their official duties;    Employees of a used motor vehicle dealer when engaged in the specific performance of their duties as employees;    A wholesaler or anyone selling motor vehicles solely to wholesalers;    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;    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;    A motor vehicle auctioneer; or    An operator, as defined in section 42-4-2102 (5), who sells a motor vehicle pursuant to section 42-4-2104.       “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.    “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.     History. Source: L. 2018: Entire article added with relocations,(SB 18-030), ch. 7, p. 42, § 2, effective October 1.    Editor's note:   This section is similar to former § 12-6-102 as it existed prior to 2018.   ANNOTATION   Annotator's note. The following annotations include cases decided under former provisions similar to this section.   Earlier provisions held invalid and unenforceable. GMC v. Blevins, 144 F. Supp. 381 (D. Colo. 1956 ) (case decided under repealed § 13-11-2 , CRS 53).   This section requires all who sell trailers to be licensed as automobile dealers. State ex rel. Dept. of Rev. v. Modern Trailer Sales, Inc., 175 Colo. 296 , 486 P.2d 1064 (1971).   This section defines trailers as motor vehicles. State ex rel. Dept. of Rev. v. Modern Trailer Sales, Inc., 175 Colo. 296 , 486 P.2d 1064 (1971).   Mobile home not motor vehicle. Mobile homes fall within the statutory definition of “movable structure”. This definition recognizes the general or common use of the product as being for residential purposes. A motor vehicle, on the other hand, is designed primarily for travel on the public highways. Shaw v. Aurora Mobile Homes & Real Estate, Inc., 36 Colo. App. 321, 539 P.2d 1366 (1975).   Movable structures cannot be considered to be “motor vehicles”. Shaw v. Aurora Mobile Homes & Real Estate, Inc., 36 Colo. App. 321, 539 P.2d 1366 (1975).   Mobile home dealers are not subject to article. Since the definition of a motor vehicle dealer specifies motor vehicles as the exclusive subject matter bringing a person within the coverage of § 12-6-111 , that bond does not cover activities in the sale of mobile homes, i.e., “movable structures”. Shaw v. Aurora Mobile Homes & Real Estate, Inc., 36 Colo. App. 321, 539 P.2d 1366 (1975).   “Employed” in subsection (14). The general assembly intended that the term “employed”, as used in subsection (14), not be restricted to technical employer-employee relationships. Instead, by including indirect and occasional employment, the general assembly intended to embrace all persons whose services are utilized in the furtherance of the business of the dealer. United Buying Serv., Inc. v. State Dept. of Rev., 37 Colo. App. 465, 548 P.2d 1286 (1976).