Michigan Compiled Laws
300-1949-II-TRANSFERS-OF-TITLE-OR-INTEREST - Transfers of Title or Interest (257.233...257.242a)
Section 257.233b - Definitions; Disclosure by Dealer of Damage or Repair; Exception; Grounds for Revocation.

Sec. 233b.
(1) As used in this section:
(a) "Distributor" means that term as defined in section 3(1) of 1981 PA 118, MCL 445.1563.
(b) "Manufacturer" means that term as defined in section 4(2) of 1981 PA 118, MCL 445.1564.
(c) "Program vehicle" means a motor vehicle from either the current model year or the immediately preceding model year, that was repurchased by a manufacturer or distributor from a rental car company.
(2) Except as provided in this subsection, a new motor vehicle dealer shall disclose in writing to a purchaser or lessee of a new motor vehicle, demonstrator, executive or manufacturer's vehicle, or program vehicle before entering into a sales contract or lease agreement that, after the vehicle completed the manufacturing process, the vehicle was damaged and repaired, including an itemization of repairs, if the dealer has knowledge of the damage and repairs and if the cost of the cumulative repairs, as calculated at the rate of the dealer's authorized warranty rate for labor and parts exceeds either 1 of the following:
(a) Five percent of the manufacturer's suggested retail price of the vehicle.
(b) Seven hundred fifty dollars in surface coating repairs or corrosion protection restoration or a combination of these items. If a new motor vehicle dealer fails to comply with this subsection, the purchaser or lessee shall retain all applicable remedies available under article 2 of the uniform commercial code, 1962 PA 174, MCL 440.2101 to 440.2725.
(3) A dealer in new motor vehicles is not required to disclose to a purchaser or lessee under this act that any glass, tires, wheels, bumpers, audio equipment, in-dash components, or components contained in the living quarters of a motor home that are not required for the operation of the motor home as a motor vehicle were damaged at any time if the damaged item has been replaced with original manufacturer's parts and material.
(4) Repaired damage to a motor vehicle, subject to this section, not exceeding the cost of cumulative repairs as determined pursuant to subsection (2) shall not constitute grounds for revocation of acceptance by the purchaser or lessee. The right of revocation ceases upon the purchaser's or lessee's acceptance of delivery of the vehicle.
History: Add. 1994, Act 305, Eff. Jan. 2, 1995 ;-- Am. 2002, Act 642, Eff. Jan. 1, 2003

Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 257 - Motor Vehicles

Act 300 of 1949 - Michigan Vehicle Code (257.1 - 257.923)

300-1949-II - Chapter II Administration, Registration, Certificate of Title and Anti-Theft (257.201...257.259)

300-1949-II-TRANSFERS-OF-TITLE-OR-INTEREST - Transfers of Title or Interest (257.233...257.242a)

Section 257.233 - Transfer or Assignment of Title To, or Interest In, Registered Vehicle; Disposition of Plates; Application for New Registration Certificate; Penalty; Indorsement on Certificate of Title; Effective Date of Transfer; Submission of Sec...

Section 257.233a - Transfer of Title or Interest in Vehicle; Disclosure of Odometer Mileage.

Section 257.233a.amended - Transfer of Title or Interest in Vehicle; Disclosure of Odometer Mileage; Electronically Signed Odometer Disclosure Statement.

Section 257.233b - Definitions; Disclosure by Dealer of Damage or Repair; Exception; Grounds for Revocation.

Section 257.234 - Presentation of Certificate of Title and Registration Certificate to Secretary of State; Fees; Issuance of New Certificate of Title and Registration Certificate; Mail or Delivery; Repossession of License Plates; Payment of Transfer...

Section 257.235 - Dealer as Transferee of Vehicle; Requirements; Duties; Liability of Dealer or Transferee; Transfer of Title or Interest to Another Dealer; Duties of Dealer; Dealer Reassignment of Title Form; Buy Back or Off Lease Vehicle.

Section 257.235.amended - Dealer as Transferee of Vehicle; Requirements; Duties; Liability of Dealer or Transferee; Transfer of Title or Interest to Another Dealer; Duties of Dealer; Dealer Reassignment of Title Form; Buy Back or Off Lease Vehicle.

Section 257.235a - Licensed Dealer or Junk Dealer Purchasing Vehicle for Purpose of Destroying or Junking Vehicle; Acceptance and Disposition of Certificate of Title; Fee.

Section 257.235b - Possession of Certificate of Title by Inventory Lender for Vehicle Subject to Inventory Loan; Written Agreement; Release of Certificate of Title by Used or Secondhand Vehicle Dealer's Inventory Lender; Limitation; Failure to Releas...

Section 257.236 - Procuring Title to Vehicle Acquired by Operation of Law; Validity of Registration Upon Death of Owner; Application for Title by Surviving Spouse or Heir; Proof of Death; Certification; Petition.

Section 257.236a - Termination of Owner's Interest by Enforcement of Security Agreement; Application for New Certificate; Certification; Holding Vehicle for Resale; Termination of Owner's Interest by Sale Pursuant to Court Process; Issuance and Conte...

Section 257.237 - Transfer of Registration; Issuance of New Registration Certificate and Certificate of Title; Filing Surrendered Certificate of Title; Retention of Records.

Section 257.238 - Security Interest in Vehicle; Certificate of Title; Assignment; Termination Statement; Electronic Transactions.

Section 257.239 - Certificate of Title; Failure to Endorse or Deliver, Fine.

Section 257.240 - Liability for Use or Ownership of Vehicle After Transfer of Endorsed Certificate of Title; Conditions; Violation of Subsection (2); Civil Infraction; Fine; Towing and Storage Fees.

Section 257.241 - Electronic Lien Title System; Establishment, Implementation, and Operation; Contracts; Participation of Secured Parties; Inclusion of Secured Interest or Other Information in Electronic File; Execution of Release; Delivery; Assignme...

Section 257.242 - Sale of Vehicle for Salvage.

Section 257.242a - Regrooved or Recut Motor Vehicle or Motorcycle Tires; Sale or Possession With Intent to Sell Prohibited; Exception; Misdemeanor.