Code of Massachusetts Regulations
940 CMR - OFFICE OF THE ATTORNEY GENERAL
Title 940 CMR 5.00 - Motor Vehicle Regulations
Section 5.03 - Manufacturers' Responsibilities

Universal Citation: 940 MA Code of Regs 940.5

Current through Register 1531, September 27, 2024

(1) It is an unfair or deceptive act or practice for a manufacturer which, pursuant to the terms of a warranty, furnishes replacement parts or equipment for motor vehicles manufactured by it to fail to apply to such replacement parts or equipment the same express warranty which it would have applied to such parts or equipment had they been sold at retail.

(2) It is an unfair or deceptive act or practice for a manufacturer to:

(a) Fail to furnish to its dealers a price list for vehicles, optional equipment, accessories and destination or transportation charges on the basis of which the dealers may execute motor vehicle purchase contracts with purchasers; or

(b) Increase the price of any vehicle or other item included on its price list except by advance written notification to its dealers of the specific dollar amount of the increase applicable to such vehicle or item.

(3) It is an unfair or deceptive act or practice for a manufacturer which has received a written purchase order for a motor vehicle to demand payment for the vehicle or any equipment or accessories ordered in an amount greater than the price listed on the latest price list delivered to its dealers unless:

(a) The purchase order requests delivery of the vehicle more than eight weeks after the date of the order and the manufacturer notifies the dealer of a price increase on the vehicle prior to the requested date of delivery.

(b) The increase in price is due to a law or regulation of the United States or the Commonwealth of Massachusetts which either requires the addition of new equipment to certain vehicles or changes approved transportation rates or existing tax rates; or

(c) In the case of foreign made cars, the increase is due to the revaluation of the United States dollar.

(4) It is an unfair or deceptive act or practice for a manufacturer to fail to cancel any purchase order for a motor vehicle and refund all amounts received for such vehicle at the request of the dealer, if the manufacturer fails to deliver the vehicle to the dealer within eight weeks after the date of the purchase order, unless:

(a) The purchase order specified a different time period for delivery;

(b) The manufacturer had notified the dealer in writing, prior to the date of the purchase order, of a longer delivery period for the model vehicle ordered; or

(c) The delay is caused by acts beyond the control of the manufacturer.

(5) It is an unfair or deceptive act or practice for a manufacturer to fail to give prompt written notice of any defect in motor vehicles manufactured by it to its distributors, zone offices, dealers and other representatives, as well as to the purchasers or owners of such vehicles who are known to the manufacturer. Such written notice shall contain the following information:

(a) A clear description of such defect and the identity of the model or class of vehicles in which such defect occurs;

(b) An evaluation of the risk of accident, impairment of operation or performance or impairment of value of the vehicle reasonably related to such defect;

(c) A statement of the measures to be taken to obtain remedy of such defect; and

(d) Whether the cost of such remedy or any part thereof will be borne by the manufacturer.

(6) If a retail purchaser rejects a motor vehicle pursuant to M.G.L. c. 106, s. 2-601 or revokes his acceptance of a motor vehicle pursuant to M.G.L. c. 106, s. 2-608, and if the basis for such rejection or revocation is the failure of the motor vehicle to conform to specifications submitted by the dealer to the manufacturer regarding such motor vehicle, the dealer may in turn revoke its acceptance of said motor vehicle, and in such event it shall be an unfair and deceptive act or practice for a manufacturer or distributor to fail to promptly refund to the dealer, upon receipt of the motor vehicle, any and all amounts paid by the dealer to the manufacturer on account of its purchase of said motor vehicle, provided however that:

(a) The motor vehicle has not been further altered from the condition it was in when the purchaser rejected or revoked his or her acceptance of it under M.G.L., c. 106 and returned it to the dealer;

(b) Title to the same is free and clear of all liens and encumbrances; and

(c) All requisite title documents and instruments of transfer have been properly prepared and executed in favor of the manufacturer.

Disclaimer: These regulations may not be the most recent version. Massachusetts may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.