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License Business Selling Its Used Motor Vehicles

Concerning the licensing of a business selling used motor vehicles that the business used for its purposes, and, in connection therewith, making an appropriation.
2019 Regular Session
Business & Economic Development
Transportation & Motor Vehicles
Bill Summary

Automotive sales - business disposal license - grounds for discipline - right of action for loss - appropriation. The act 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 act also authorizes the motor vehicle dealer board to deny, suspend, or revoke a business disposal 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;
  • Engaging in various types of fraudulent activities;
  • Failing to perform a written agreement;
  • Failing 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 or selling, acquiring, or disposing of a stolen vehicle;
  • Failing to notify a prospective buyer of the acceptance or rejection of a motor vehicle purchase order agreement 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.

To implement the act, $14,000 is appropriated from the auto dealers license fund to the department of revenue for use by the motor vehicle dealer licensing board.

(Note: This summary applies to this bill as enacted.)


Became Law


Bill Text