Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                         CHAPTER 34-H.F.No. 322 
           An act relating to consumer protection; regulating the 
          sale of used motor vehicles; modifying certain 
          definitions; amending Minnesota Statutes 1988, section 
          325F.662, subdivisions 1 and 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 325F.662, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, the following terms have the meanings given to them. 
    (a) "Consumer" means the purchaser, other than for purposes 
of resale, of a used motor vehicle used primarily for personal, 
family, or household purposes. 
    (b) "Dealer" means a motor vehicle dealer or lessor, as 
defined in section 168.27, subdivisions 2, 3, and 4, whether 
licensed or unlicensed, or the dealer's or lessor's agent, who 
is engaged in the business of selling or arranging the sale of 
used motor vehicles in this state; except that, the term does 
not include a bank or financial institution, a business selling 
a used motor vehicle to an employee of that business, a lessor 
selling, either directly or indirectly, a leased used motor 
vehicle to that vehicle's lessee or a family member or employee 
of the lessee, or a licensed auctioneer selling motor vehicles 
at an auction if, in the ordinary course of the auctioneer's 
business, the sale of motor vehicles is incidental to the sale 
of other real or personal property.  
    (c) "Motor vehicle" means a passenger automobile, as 
defined in section 168.011, subdivision 7, including pickup 
trucks and vans. 
    (d) "Used motor vehicle" means any motor vehicle which has 
been driven more than the limited use necessary in moving or 
road testing a new motor vehicle prior to delivery to a 
consumer.  The term does not include a new motor vehicle sold by 
a dealer franchised to sell the vehicle if the vehicle was 
driven for demonstration purposes using dealer plates and if, 
when the vehicle was sold, it carried a manufacturer's express 
warranty which provides coverage at least as broad with respect 
to covered components and duration as that required by this 
section. 
    (e) "Express warranty" means a dealer's written statement, 
as defined in section 325G.17, subdivision 5, provided to a 
consumer in connection with the sale of a used motor vehicle. 
    (f) "Buyer's Guide" means the window form required by the 
Federal Trade Commission's "Used Motor Vehicle Trade Regulation 
Rule," Code of Federal Regulations, title 16, section 455.2. 
    Sec. 2.  Minnesota Statutes 1988, section 325F.662, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXCLUSIONS.] Notwithstanding the provisions of 
subdivision 2, a dealer is not required to provide an express 
warranty for the following used motor vehicles: 
    (1) vehicles sold for a total cash sale price of less than 
$3,000, including the trade-in value of any vehicle traded in by 
the consumer, but excluding tax, license fees, registration 
fees, and finance charges; 
    (2) vehicles with engines designed to use diesel fuel; 
    (3) vehicles with gross weight, as defined in section 
168.011, subdivision 16, in excess of 9,000 pounds; 
    (4) vehicles that have been custom-built or modified for 
show or for racing; 
    (5) vehicles that are eight years of age or older, as 
calculated from the first day in January of the designated model 
year of the vehicle; 
    (6) vehicles that have been produced by a manufacturer 
which has never manufactured more than 10,000 motor vehicles in 
any one year; 
    (7) vehicles having 75,000 miles or more at time of sale; 
    (8) vehicles that are not manufactured in compliance with 
applicable federal emission standards in force at the time of 
manufacture as provided by the Clean Air Act, United States 
Code, title 42, sections 7401 through 7642, and regulations 
adopted pursuant thereto, and safety standards as provided by 
the National Traffic and Motor Safety Act, United States Code, 
title 15, sections 1381 through 1431, and regulations adopted 
pursuant thereto.; and 
    (9) a vehicle which, when it is sold, is unrepaired and 
would be classified as a class C total loss vehicle under 
section 168A.151, or has unrepaired damage in excess of $5,000. 
    Presented to the governor April 14, 1989 
    Signed by the governor April 17, 1989, 2:58 p.m.