[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR455.1]

[Page 449-450]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 455--USED MOTOR VEHICLE TRADE REGULATION RULE--Table of Contents
 
Sec. 455.1  General duties of a used vehicle dealer; definitions.

    (a) It is a deceptive act or practice for any used vehicle dealer, 
when that dealer sells or offers for sale a used vehicle in or affecting 
commerce as commerce is defined in the Federal Trade Commission Act:
    (1) To misrepresent the mechanical condition of a used vehicle;

[[Page 450]]

    (2) To misrepresent the terms of any warranty offered in connection 
with the sale of a used vehicle; and
    (3) To represent that a used vehicle is sold with a warranty when 
the vehicle is sold without any warranty.
    (b) It is an unfair act or practice for any used vehicle dealer, 
when that dealer sells or offers for sale a used vehicle in or affecting 
commerce as commerce is defined in the Federal Trade Commission Act:
    (1) To fail to disclose, prior to sale, that a used vehicle is sold 
without any warranty; and
    (2) To fail to make available, prior to sale, the terms of any 
written warranty offered in connection with the sale of a used vehicle.
    (c) The Commission has adopted this Rule in order to prevent the 
unfair and deceptive acts or practices defined in paragraphs (a) and 
(b). It is a violation of this Rule for any used vehicle dealer to fail 
to comply with the requirements set forth in Secs. 455.2 through 455.5 
of this part. If a used vehicle dealer complies with the requirements of 
Secs. 455.2 through 455.5 of this part, the dealer does not violate this 
Rule.
    (d) The following definitions shall apply for purposes of this part:
    (1) Vehicle means any motorized vehicle, other than a motorcycle, 
with a gross vehicle weight rating (GVWR) of less than 8500 lbs., a curb 
weight of less than 6,000 lbs., and a frontal area of less than 46 sq. 
ft.
    (2) Used vehicle means any vehicle driven more than the limited use 
necessary in moving or road testing a new vehicle prior to delivery to a 
consumer, but does not include any vehicle sold only for scrap or parts 
(title documents surrendered to the State and a salvage certificate 
issued).
    (3) Dealer means any person or business which sells or offers for 
sale a used vehicle after selling or offering for sale five (5) or more 
used vehicles in the previous twelve months, but does not include a bank 
or financial institution, a business selling a used vehicle to an 
employee of that business, or a lessor selling a leased vehicle by or to 
that vehicle's lessee or to an employee of the lessee.
    (4) Consumer means any person who is not a used vehicle dealer.
    (5) Warranty means any undertaking in writing, in connection with 
the sale by a dealer of a used vehicle, to refund, repair, replace, 
maintain or take other action with respect to such used vehicle and 
provided at no extra charge beyond the price of the used vehicle.
    (6) Implied warranty means an implied warranty arising under State 
law (as modified by the Magnuson-Moss Act) in connection with the sale 
by a dealer of a used vehicle.
    (7) Service contract means a contract in writing for any period of 
time or any specific mileage to refund, repair, replace, or maintain a 
used vehicle and provided at an extra charge beyond the price of the 
used vehicle, provided that such contract is not regulated in your State 
as the business of insurance.
    (8) You means any dealer, or any agent or employee of a dealer, 
except where the term appears on the window form required by 
Sec. 455.2(a).