MICHIGAN VEHICLE CODE
Act 300 of 1949
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.
Sec. 240.
(1) The owner of a motor vehicle who has made a bona fide sale by transfer of his or her title or interest and who has delivered possession of the vehicle and the certificate of title to that vehicle properly endorsed to the purchaser or transferee is not liable for any damages or a violation of law that subsequently results from the use or ownership of the vehicle by another, if the owner, other than a licensed dealer, satisfies the conditions prescribed under subsection (2).
(2) The owner of a motor vehicle, other than a licensed dealer, shall satisfy 1 of the following conditions:
(a) Accompany the purchaser of the vehicle to a secretary of state branch office to assure that the title of the vehicle being sold is transferred.
(b) Maintain a record of the sale for not less than 18 months. As used in this subdivision, "record of the sale" means either a photocopy of the reassigned title or a form or document that includes the name, address, driver license number, and signature of the person to whom the vehicle is sold and the purchase price and date of sale of the vehicle.
(3) A person who violates subsection (2) is responsible for a civil infraction and shall be ordered to pay a civil fine of $15.00.
(4) A person who violates subsection (2) is presumed to be the last titled owner and to be liable for towing fees and daily storage fees for an abandoned motor vehicle.
History: 1949, Act 300, Eff. Sept. 23, 1949 ;-- Am. 1999, Act 267, Imd. Eff. Dec. 29, 1999 ;-- Am. 2004, Act 493, Eff. Oct. 1, 2005
Notes of Decisions
Clevenger v. Allstate Ins., 505 N.W.2d 553 (Mich. 1993).
· cites it 10× “Williams was no longer the title holder, she no longer had an "insurable interest" in the automobile. Plaintiff counters that even if Mrs.”
Allstate Ins. v. Demps, 348 N.W.2d 720 (Mich. Ct. App. 1984).
· cites it 3× “Therefore, after January 26, 1979, Demps was no longer liable for any negligence in the operation of the vehicle under MCL 257.240; MSA 9.1940. Also, because Demps no longer owned the automobile after January 26, 1979, Allstate could not thereafter be liable for damages or to…”
Cason v. Auto Owners Ins., 450 N.W.2d 6 (Mich. Ct. App. 1989).
· cites it 2× “Auto Owners urges that because the no-fault act and the Michigan Vehicle Code are to be read and interpreted together, Sentry Ins, supra, MCL 257.240; MSA 9.1940 should apply to relieve its insured from liability.”
Universal Underwriters Grp. v. Allstate Ins., 635 N.W.2d 52 (Mich. Ct. App. 2001).
“The Court rejected the argument that MCL 257.240 7 relieved the insured and therefore the insurer from liability: While liability insurance coverage and motor vehicle damage insurance coverage are based upon ownership or maintenance or use of the covered automobile, pip benefits…”
Goins v. Greenfield Jeep Eagle, Inc, 534 N.W.2d 467 (Mich. 1995).
“[MCL 257.240; MSA 9.1940.] In the instant case, the Court of Appeals examined the dealer’s actions in order to determine if a proper transfer occurred.”
Brown v. Pointer, 212 N.W.2d 201 (Mich. 1973).
“See, also, MCLA 257.240; MSA 9.1940, relieving an owner of a vehicle of liability for negligent operation by another upon a bona fide sale by transfer of his title or interest and delivery of possession of the vehicle and the properly endorsed certificate of title.”
Long v. Thunder Bay Mfg. Corp., 272 N.W.2d 337 (Mich. Ct. App. 1978).
· cites it 8× “1940, set forth as follows, means just what it says: "The owner of a motor vehicle who has made a bona fide sale by transfer of his title or interest and who has delivered possession of such vehicle and certificate of title thereto properly endorsed to the purchaser or…”
Brown v. Pointer, 200 N.W.2d 756 (Mich. Ct. App. 1972).
· cites it 2× “" MCLA 257.240; MSA 9.1940. The 1962 Oldsmobile driven by Charles Pointer on April 13, 1969, came into the possession of Associates Discount on November 19, 1968, as a result of its repossession from a third party due to a default in monthly installment payments.”
Perry v. Golling Chrysler Plymouth Jeep, Inc., 716 N.W.2d 558 (Mich. 2006).
“The parties shall include among the issues to be addressed at oral argument whether, under MCL 257.240 and 257.233(9), a dealer's ownership liability ceases upon completion and signing of an application for title by the applicant or, in contrast, when the application for title…”
— Mich. Comp. Laws § 257.240(1) — 1 case
— Mich. Comp. Laws § 257.240(2) — 1 case
— Mich. Comp. Laws § 257.240(4) — 1 case
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.