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MVDA Requirements for Disclosure

As a general rule, customers are entitled to the disclosure of any facts “that could reasonably be expected to influence the decision of a reasonable buyer or lessee to purchase or lease the vehicle on the terms disclosed in the contract.” The MVDA goes further by setting explicit requirements for dealers to disclose specific information related to a vehicle’s previous use (e.g., a taxi), history (e.g., collision-damaged) and condition (e.g., missing airbags) to any customer.

Providing disclosure verbally does not meet the requirements of the Act. Disclosure MUST be made in writing (on the contract) in a “clear, comprehensible and prominent manner.”

Failure by the dealer to comply with certain disclosure requirements can result in a customer’s immediate right to cancel the contract and return the vehicle.

Note: Timely disclosure of information is required; this means the contract (including the information required to be disclosed) must be given to the customer for review before it is signed.