Code of Massachusetts Regulations › 940 CMR - OFFICE OF THE ATTORNEY GENERAL › Title 940 CMR 5.00 - Motor Vehicle Regulations › Section 5.04 - Sales Requirements

Current through Register 1525, July 5, 2024
Scope
: 940 CMR 5.04
et
				seq
. pertaining to sales requirements shall apply only to sales of
				motor vehicles which are purchased primarily for personal, family or household
				purposes.
(1) It is an unfair or
			 deceptive act or practice for a dealer to fail to prepare a written contract
			 for a sale of each motor vehicle and to provide a copy of such contract to the
			 purchaser at the time the purchaser signs the contract in the form and manner
			 prescribed in 940 CMR 5.04(2).
(2)
			 It is an unfair or deceptive act or practice for a dealer to use any written or
			 printed contract, form or agreement to evidence the sale of a motor vehicle
			 which is not clearly entitled "MOTOR VEHICLE PURCHASE CONTRACT" and which does
			 not state:
(a) The name and address of the
			 dealer and the purchaser;
(b) The
			 make, model, year and identification or serial numbers of both the vehicle
			 purchased and any trade-in vehicle;
(c) A designation of the purchased vehicle as
			 either "new" or "used"; and a further designation as a "police car", taxicab",
			 "demonstrator", "former leased car", "former daily rental" or a rebuilt vehicle
			 which was previously declared a total loss by an insurance company, if the
			 dealer knows or, in the exercise of reasonable care, should know of the
			 applicability of any such designation;
(d) The total contract price, including an
			 itemized list of any charges for vehicle repair or preparation, optional
			 accessories and documentary preparation which are not already included in the
			 purchase price;
(e) If there are
			 any conditions precedent to the dealer's acceptance of the contract (for
			 example, if the contract must be counter-signed by an authorized dealer
			 representative or if a trade-in vehicle must be inspected and meet certain
			 standards, etc.), the following statement, set forth in a clear and conspicuous
			 manner, with the conditions inserted in the blank spaces:
"This contract is not binding upon either the dealer or the
				purchaser until the following conditions are met:
___________________________________________________
___________________________________________________
PURCHASER MAY CANCEL THIS CONTRACT AND RECEIVE A FULL REFUND AT
				ANY TIME UNTIL S/HE RECEIVES A COPY OF THIS CONTRACT SIGNED BY AN AUTHORIZED
				DEALER REPRESENTATIVE. PURCHASER MUST GIVE
WRITTEN
NOTICE OF CANCELLATION TO THE DEALER."
For purposes of
				940 CMR
				5.00, if a controversy arises concerning the date or
				time of receipt of any notice or document, the time and date of the postmark
				will be determinative unless the notice or document was hand-delivered, in
				which case the actual time of delivery will govern;
(f) If the vehicle carries an express
			 warranty, the following statement:
"This vehicle carries an express warranty. You may obtain a
				written copy of such warranty from the dealer upon request."
(g) The following statement, in either form
			 appearing herein, set forth in a clear and conspicuous manner:
"ATTENTION PURCHASER: All vehicles are WARRANTED as a matter of
				state law. They must be fit to be driven safely on the roads and must remain in
				good running condition for a reasonable period of time. If you have significant
				problems with this vehicle or if it will not pass a Massachusetts inspection,
				you should notify the dealer immediately. He may be required to fix the car or
				refund your money. THIS WARRANTY IS IN ADDITION TO ANY OTHER WARRANTY GIVEN BY
				THE DEALER." or
"ATTENTION PURCHASER: If you have mechanical or operating
				problems or if this vehicle does not pass a Massachusetts safety inspection
				within seven days of purchase, you should notify the dealer immediately. He may
				be required to fix the vehicle or refund your money. This vehicle is covered by
				the implied warranties of merchantability and fitness for a particular purpose.
				THESE IMPLIED WARRANTIES ARE IN ADDITION TO ANY OTHER WARRANTIES GIVEN BY THE
				DEALER."
(h) The provisions
			 of 940 CMR 5.04(2) shall not apply to a retail installment sale agreement, or
			 security agreement, or any other document given or taken in connection with the
			 sale of a motor vehicle, so long as a motor vehicle purchase contract in the
			 form specified in
			 940 CMR
			 5.00 has been properly executed.