Kentucky Statutes 190.071 – Prohibited practices on part of new motor vehicle dealer
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(1) It shall be a violation of this section for any new motor vehicle dealer:
(a) To require the purchaser of a motor vehicle as a condition of sale and delivery, to also purchase special features, appliances, accessories, or equipment not desired or requested by the purchaser, unless the features, appliances, accessories, or equipment are the type which are ordinarily installed on the vehicle by the manufacturer or distributor when the vehicle is received or acquired by the dealer.
(b) To advertise, display, represent, or sell as a new or unused motor vehicle any vehicle which has been operated for demonstration purposes, or which is otherwise a used motor vehicle.
(c) To sell or offer for sale as a new or unused motor vehicle any motor vehicle for which he cannot secure for the purchaser the new car warranty that may be extended by the manufacturer of the vehicle to purchasers of one (1) of its new vehicles, unless the fact that the vehicle being sold without a manufacturer’s warranty is communicated to the purchaser, and disclosed prominently in writing.
(d) To fail to have an established place of business which is used, or will be used, primarily for the purpose of selling, buying, displaying, repairing, or servicing motor vehicles.
(e) To use false or fraudulent representations in connection with the operation of the new motor vehicle dealership.
(f) To fail to reasonably supervise his agents, salesmen, or employees.
(g) To transfer a new motor vehicle with a manufacturer’s statement of origin to a motor vehicle dealer who does not have either a valid service agreement or franchise from the particular line, make, manufacturer, distributor, factory branch, or factory representative.
(2) Any motor vehicle dealer who fails to comply with this section or the provisions of KRS Chapter 186 or 186A, and any motor vehicle dealer other than a wholesale auto dealer who is found by the commission to have acquired a used motor vehicle for cash, trade-in, or in any other manner and fails to have the registration transferred to him prior to the time the vehicle is sold or otherwise transferred to another person shall be subject to suspension, fine, or revocation of his motor vehicle dealer’s license.
Effective: July 14, 1992
History: Amended 1992 Ky. Acts ch. 452, sec. 10, effective July 14, 1992. — Amended
1984 Ky. Acts ch. 357, sec. 10, effective July 13, 1984. — Created 1982 Ky. Acts ch.
373, sec. 14, effective July 15, 1982.
(a) To require the purchaser of a motor vehicle as a condition of sale and delivery, to also purchase special features, appliances, accessories, or equipment not desired or requested by the purchaser, unless the features, appliances, accessories, or equipment are the type which are ordinarily installed on the vehicle by the manufacturer or distributor when the vehicle is received or acquired by the dealer.
Terms Used In Kentucky Statutes 190.071
- Commission: means the Motor Vehicle Commission. See Kentucky Statutes 190.010
- Distributor: which means any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers, or who maintains factory representatives, or who controls any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers. See Kentucky Statutes 190.010
- Established place of business: means a permanent, enclosed commercial building located within this state, easily accessible and open to the public at all reasonable times, and at which the business of a vehicle dealer, including the display and repair of vehicles, may be lawfully carried on in accordance with the terms of all applicable building codes, zoning, and other land use regulatory ordinances. See Kentucky Statutes 190.010
- Factory branch: which means a branch office maintained by a manufacturer for the purpose of selling, or offering for sale, new motor vehicles to a distributor, wholesaler, or new motor vehicle dealer, or for directing or supervising, in whole or in part, factory or distributor representatives, and shall further include any sales promotion organization, whether the same be a person, firm, or corporation, which is engaged in promoting the sale of new motor vehicles in this state of a particular brand or make to new motor vehicle dealers. See Kentucky Statutes 190.010
- Factory representative: which means a representative employed by a manufacturer, distributor, or factory branch for the purpose of making or promoting for the sale of his or her, its, or their new motor vehicles, or for supervising or contracting with his or her, its, or their dealers, or prospective dealers. See Kentucky Statutes 190.010
- Franchise: means the agreement or contract between any new motor vehicle manufacturer, written or otherwise, and any new motor vehicle dealer that purports to fix the legal rights and liabilities of the parties to an agreement or contract, and pursuant to which the dealer purchases and resells the franchise product, along with any addendums to the franchise agreement. See Kentucky Statutes 190.010
- Manufacturer: means any person, partnership, firm, association, corporation, or trust, resident or nonresident, who manufactures or assembles new motor vehicles, or imports for distribution through distributors of new motor vehicles, or any partnership, firm, association, joint venture, corporation, or trust, resident or nonresident, which is controlled by the manufacturer. See Kentucky Statutes 190.010
- Motor vehicle: means every vehicle intended primarily for use and operation on the public highways that is self-propelled, including low-speed motor vehicles as defined in KRS §. See Kentucky Statutes 190.010
- Motor vehicle dealer: means any person not excluded by subsection (3) of this section, engaged in the business of selling, offering to sell, soliciting, or advertising the same, of new or used motor vehicles, or possessing motor vehicles for the purpose of resale, either on his or her own account, or on behalf of another, either as his or her primary business or incidental thereto. See Kentucky Statutes 190.010
- New motor vehicle: means a vehicle that is in the possession of the manufacturer, distributor, or wholesaler, or has been sold to the holders of a valid sales and service agreement, franchise, or contract, granted by the manufacturer, distributor, or wholesaler for the sale of the make of new vehicle, which is new, and on which the original title has not been issued from the franchised dealer. See Kentucky Statutes 190.010
- Person: means a person, partnership, firm, corporation, association, trust, estate, or other legal entity. See Kentucky Statutes 190.010
- Sale: means the issuance, transfer, agreement for transfer, exchange, lease, pledge, hypothecation, mortgage in any form, whether by transfer in trust or otherwise, of any motor vehicle or interest in it, or of any franchise related to it, as well as any option, subscription, other contract, or solicitation looking to a sale, offer to attempt to sell in any form, whether spoken or written. See Kentucky Statutes 190.010
(b) To advertise, display, represent, or sell as a new or unused motor vehicle any vehicle which has been operated for demonstration purposes, or which is otherwise a used motor vehicle.
(c) To sell or offer for sale as a new or unused motor vehicle any motor vehicle for which he cannot secure for the purchaser the new car warranty that may be extended by the manufacturer of the vehicle to purchasers of one (1) of its new vehicles, unless the fact that the vehicle being sold without a manufacturer’s warranty is communicated to the purchaser, and disclosed prominently in writing.
(d) To fail to have an established place of business which is used, or will be used, primarily for the purpose of selling, buying, displaying, repairing, or servicing motor vehicles.
(e) To use false or fraudulent representations in connection with the operation of the new motor vehicle dealership.
(f) To fail to reasonably supervise his agents, salesmen, or employees.
(g) To transfer a new motor vehicle with a manufacturer’s statement of origin to a motor vehicle dealer who does not have either a valid service agreement or franchise from the particular line, make, manufacturer, distributor, factory branch, or factory representative.
(2) Any motor vehicle dealer who fails to comply with this section or the provisions of KRS Chapter 186 or 186A, and any motor vehicle dealer other than a wholesale auto dealer who is found by the commission to have acquired a used motor vehicle for cash, trade-in, or in any other manner and fails to have the registration transferred to him prior to the time the vehicle is sold or otherwise transferred to another person shall be subject to suspension, fine, or revocation of his motor vehicle dealer’s license.
Effective: July 14, 1992
History: Amended 1992 Ky. Acts ch. 452, sec. 10, effective July 14, 1992. — Amended
1984 Ky. Acts ch. 357, sec. 10, effective July 13, 1984. — Created 1982 Ky. Acts ch.
373, sec. 14, effective July 15, 1982.