(1) An individual, or a dealer required to be licensed pursuant to KRS Chapter 190, shall disclose all damages to a motor vehicle: (a) Of which the individual or the dealer has direct knowledge;
(b) Which result in repairs, for items other than wheels, tires, or glass, that exceed two thousand dollars ($2,000); and
(c) That occur while the motor vehicle is in the individual's or the dealer's possession and prior to delivery to a purchaser.
(2) Disclosure under this section shall be in writing and shall require the purchaser's signature acknowledging the disclosure of damages. Effective:June 29, 2017 History: Amended 2017 Ky. Acts ch. 139, sec. 1, effective June 29, 2017. -- Amended 2009 Ky. Acts ch. 54, sec. 2, effective June 25, 2009. -- Amended 2000 Ky. Acts ch. 23, sec. 7, effective February 22, 2000. -- Created 1994 Ky. Acts ch. 243, sec. 5, effective July 15, 1994.
Notes of Decisions
Keeton v. Lexington Truck Sales, Inc., 275 S.W.3d 723 (Ky. Ct. App. 2008).
· cites it 9× “Because the Fayette Circuit Court misinterpreted KRS 186A.540, we reverse for further proceedings.”
Potter v. Bruce Walters Ford Sales, Inc., 37 S.W.3d 210 (Ky. Ct. App. 2001).
· cites it 10× “Appellant then filed this action in the circuit court, alleging that Walters breached express and implied warranties, and violated KRS 186A.540, the Consumer Protection Act, and the Magnuson-Moss Warranty Act.”
Smith v. Gen. Motors Corp., 979 S.W.2d 127 (Ky. Ct. App. 1998).
· cites it 2× “We are also persuaded by Smith’s argument that KRS 186A.540 imposed an affirmative duty upon Royal Oaks to disclose repairs exceeding $300.”
Robert J. Leeper v. Coad Auto Sales, Inc. D/B/A Coad Toyota Paducah (Ky. Ct. App. 2023).
· cites it 7× “-2- Coad argued lack of privity; that the “economic loss rule” barred Leeper’s negligence and strict liability claims; and that the basis of Leeper’s negligence per se claim – its alleged violation of KRS 186A.540 – was unsupported by the evidence.”
Paul Miller Ford, Inc. v. Barry T. Smith (Ky. Ct. App. 2024).
· cites it 7× “At the conclusion of evidence, the circuit court entered a directed verdict against PMF for the violation of KRS 186A.540. The remaining claims (breach of contract/express warranty, KCPA, and fraud) were submitted to the jury.”
Royal Auto Sales, LLC v. Jumanda Price (Ky. Ct. App. 2022).
“540 impose a duty upon motor vehicle dealers to disclose all damages to a motor vehicle of which the dealer has direct knowledge and which result in repairs (for items other than wheels, tires, or glass) that exceed two thousand dollars ($2,000.”
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