Colorado Code § 44-20-102

Definitions
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As used in this part 1, and in part 4 of this article 20, unless the
context or section 44-20-402 otherwise requires:
(1) "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.
(2) "Board" means the motor vehicle dealer board.
(3) "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.
(4) (a) "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.
(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.
(II) 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.
(5) "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.
(6) "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.
(7) (a) "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.
(b) "Custom trailer" does not include manufactured housing, farm tractors, and other
machines and tools used in the production, harvest, and care of farm products.
(8) "Director" means the director of the auto industry division created in section 44-20-
105.
(9) "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.
(10) "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.
(11) "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.
(12) "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.
(13) "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.
(14) "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) 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
(b) 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.
(15) "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.
(16) "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.
(17) "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.
(18) "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:
(a) Receivers, trustees, administrators, executors, guardians, or other persons appointed
by or acting under the judgment or order of any court;
(b) Public officers while performing their official duties;
(c) Employees of a motor vehicle dealer when engaged in the specific performance of
their duties as employees;
(d) A wholesaler or anyone selling motor vehicles solely to wholesalers;
(e) Any person engaged in the selling of a fire truck; or
(f) A motor vehicle auctioneer.
(19) "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.
(20) "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.
(21) "Person" means any natural person, estate, trust, limited liability company,
partnership, association, corporation, or other legal entity, including a registered limited liability
partnership.
(22) "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.
(23) "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.
(24) "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.
(25) "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:
(a) Control the use and development of the real property;
(b) Require the franchisee to establish or maintain an exclusive dealership facility at the
real property; or
(c) Restrict the franchisee from transferring, selling, leasing, developing, or changing the
use of the real property.
(26) "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:
(a) Receivers, trustees, administrators, executors, guardians, or other persons appointed
by or acting under the judgment or order of any court;
(b) Public officers while performing their official duties;
(c) Employees of a used motor vehicle dealer when engaged in the specific performance
of their duties as employees;
(d) A wholesaler or anyone selling motor vehicles solely to wholesalers;
(e) 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;
(f) 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;
(g) A motor vehicle auctioneer; or
(h) An operator, as defined in section 42-4-2102 (5), who sells a motor vehicle pursuant
to section 42-4-2104.
(27) "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.
(28) "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.

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