Current law requires a business to be licensed as a used motor vehicle dealer when selling more than 20 vehicles, which were used for business purposes, over a 2-year period. The bill creates a business disposal license for a business to sell its used vehicles if the vehicle sales do not exceed 20% of the business's gross revenue. The vehicles must not be passenger vehicles.
The bill also authorizes the motor vehicle dealer board to discipline a person holding this type of license for the following:
- A material misstatement in an application;
- Violating several classes of laws dealing with motor vehicle sales and commerce;
- Having been convicted of certain crimes;
- Various types of fraud;
- Failing to perform a written agreement;
- Failure to make the required disclosures;
- Misleading or inaccurate advertising;
- Representing or selling as new a used motor vehicle;
- Selling a defective vehicle unless sold as a tow-away and not to be driven;
- Failing to notify a prospective buyer of the acceptance or rejection of a motor vehicle purchase within a reasonable period when on a finance sale or a consignment sale;
- Failing to maintain a place of business with a fixed address and full-time employees; and
- Failing to post a bond.
A person has a right of action against a business disposer and the surety upon a disposer's bond if the disposer commits a fraudulent act or violates the laws governing motor vehicle dealers.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)