Utah's "Lemon Law" requires that if a new vehicle is replaced or repurchased by a manufacturer due to an alleged "nonconformity," that the Utah title be stamped with a "brand" stating "MANUFACTURER BUYBACK NONCONFORMING VEHICLE." Utah law defines a nonconformity as:
"a defect, malfunction, or condition that fails to conform to the express warranty, or substantially impairs the use, safety, or value of a motor vehicle." (UCA §41-3-407)
However, the law states a "nonconformity" does NOT include a defect, malfunction, or condition that results from an accident, abuse, neglect, modification or alteration of a motor vehicle by a person other than the manufacturer, its authorized agent or a dealer.
The law also requires the manufacturer or any future seller (dealer or individual) to disclose to a potential buyer, in writing, and in a "clear and conspicuous manner," the fact that the vehicle is a manufacturer buyback.
Utah statute requires the following disclosure language to be contained in each contract for the sale or lease of a buyback vehicle or a nonconforming vehicle to a consumer.
Disclosure Statement
Vehicle Identification Number (VIN): _______________________
Year:_______ Make:______________ Model:_________________________
Prior Title Number:______________
State of Title:_______
Odometer Reading:___________
This is a used motor vehicle. It was previously returned to the manufacturer or its agent in exchange for a replacement motor vehicle or a refund because it was alleged or found to have the following nonconformities: (nonconformities are listed)
THIS DISCLOSURE MUST BE GIVEN BY THE SELLER TO THE BUYER EVERY TIME THIS VEHICLE IS RESOLD
____________________________________
(Buyer's Signature)
_______________________
Date