Utah's "Lemon Law" 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." (41-3-406 to 414)
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