§481J-4 Disclosure of damages or defects in used motor vehicles. (a) No dealer may offer for sale any used motor vehicle without first providing:

(1) Written notice to the prospective consumer of any material mechanical defect in the motor vehicle and any damage sustained by the motor vehicle due to fire, water, collision, or other causes for which the cost of repairs exceeds $1,000 for parts and labor, when the defect or damage is known to the dealer; and

(2) Written notice to the prospective consumer whether the dealer has conducted any inspection of the motor vehicle to determine known defects or damage.

(b) If a dealer promises that any repairs will be made or any conditions corrected in connection with the purchase of a used motor vehicle, such promises shall be provided in writing and either attached or incorporated into the sales contract.

(c) For purposes of this section:

"Known" means that a dealer or the dealer's agent or employee has obtained facts or information about the condition of a motor vehicle which would lead a reasonable person in similar circumstances to believe that the motor vehicle contained one or more material mechanical defects. The term "known" encompasses knowledge obtained through an inspection, from a previous owner, from the salesperson at an auction or another dealer, or through other means.

"Material mechanical defect" means any defect or malfunction which renders the motor vehicle mechanically unsound or inoperable. [L 1994, c 224, pt of §1]