No. 29412 (Amendment): R152-20-2. Definitions

DAR File No.: 29412
Filed: 01/12/2007, 03:33
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

During its five-year review of the New Motor Vehicle Warranties Rule, the Division determined it was necessary to clarify Section R152-20-2. The proposed amendment adds references to the statute which contains the language the definition seeks to clarify.

Summary of the rule or change:

The proposed amendment adds a reference to the statute which contains the language the definition seeks to clarify.

State statutory or constitutional authorization for this rule:

Sections 63-46a-3, 13-2-5, and 13-20-1

Anticipated cost or savings to:

the state budget:

This rule change adds clarifying language; therefore there are no anticipated costs or savings to the state budget.

local governments:

This rule change adds clarifying language; therefore there are no anticipated costs or savings to local governments.

other persons:

This rule change adds clarifying language; therefore there are no anticipated costs or savings to other persons.

Compliance costs for affected persons:

This rule change adds clarifying language; therefore there are no compliance costs.

Comments by the department head on the fiscal impact the rule may have on businesses:

No fiscal impact to businesses is anticipated as a result of this rule filing which contains clarifying amendments. Francine Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Consumer Protection
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Thomas Copeland at the above address, by phone at 801-530-6601, by FAX at 801-530-6001, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/05/2007

This rule may become effective on:

03/12/2007

Authorized by:

Kevin V Olsen, Director

RULE TEXT

R152. Commerce, Consumer Protection.

R152-20. New Motor Vehicle Warranties.

R152-20-2. Definitions.

A. For purposes of determining whether a nonconformity has been subject to repair the required number of times, an "attempt" to repair, as used in Section 13-20-4 or 13-20-5, means that the vehicle is or has been presented to the manufacturer or its agent for the same non-conformity.

B. "Collateral charges" as used in Section 13-20-4 includes, but is not limited to:

1. Sales taxes

2. Document preparation fees

3. The cost of additional warranties or extended warranties, if included in the purchase price

C. "Comparable new motor vehicle" as used in Section 13-20-4 means:

1. A motor vehicle that is determined by the division to be identical to, or reasonably equivalent to, the nonconforming vehicle had it conformed to all applicable express warranties. A comparable new motor vehicle includes any service contracts, contract options, and factory or dealer installed options that were originally included in the sale of the nonconforming vehicle; or

2. A vehicle with an equivalent retail value including any service contracts, and factory or dealer installed options that were originally included with the nonconforming vehicle, if the consumer consents to a different make or model.

D. "New motor vehicle" as used in Section 13-20-4 means a motor vehicle which has never been titled or registered and has been driven fewer than 7,500 miles.

E. "Nonconforming vehicle" as used in Section 13-20-4 means a motor vehicle that does not meet all express warranties provided in the sales agreement or contract.

F. "Purchase price" as used in Section 13-20-4 means the actual amount paid for the vehicle. "Purchase price" includes taxes, licensing fees, and additional warranty fees, but does not include collateral charges.

G. "Reasonable allowance" as used in Section 13-20-4 for mileage means the dollar value based on the prescribed deduction per mile. The cap on a reasonable allowance shall be calculated as the purchase price divided by 100,000, but shall not in any case be less than ten (10) cents per mile nor more than twenty-one (21) cents per mile. The consumer shall not be liable for mileage on the vehicle at the time of delivery, nor for mileage during the time the vehicle was being repaired.

 

KEY: automobiles, automobile repair, consumer protection, motor vehicles

Date of Enactment or Last Substantive Amendment: [1991]2007

Notice of Continuation: June 3, 2002

Authorizing, and Implemented or Interpreted Law: 63-46a-3; 13-2-5; 13-20-1