GUIDE FOR LICENSED VEHICLE DEALERS AND
GUIDE FOR LICENSED VEHICLE DEALERS AND LESSOR-RETAILERS A Public Service Agency LICENSING OPERATIONS SECTION OL 40 (REV. 12/2009) WWW TABLE OF CONTENTS I. Occupational Licenses ................................................................................................................................1 • RequirementsforRenewingaLicense .......................................................................................................1 • PenaltyRenewal .........................................................................................................................................1 • ContinuingEducationProgram ...................................................................................................................1 • RequirementsforRelinquishmentofaLicense ..........................................................................................1 • RequirementsforModificationofaLicense................................................................................................1 • OwnershipChanges ...................................................................................................................................1 • LicensingRequirementsforaSalesperson ................................................................................................1 • Useof“BirdDogs”(IllegalSalespersonActivity) ........................................................................................1 • NoticetoPublic: InspectionofVehicle .......................................................................................................2 • NoticetoPublic: NoCancellationPeriod....................................................................................................2 • UseofSpecialPlates .................................................................................................................................2 • ReportingUnlicensedDealers ....................................................................................................................2 • TableofLicensingFees ..............................................................................................................................2 • NewMotorVehicleBoardFunction .............................................................................................................3 II. Permits/Licenses (Copies required) ...........................................................................................................3 • BoardofEqualizationResale-Permit ..........................................................................................................3 • Cityand/orCountyBusinessLicense.........................................................................................................3 • FictitiousNameStatement .........................................................................................................................3 • BureauofAutomotiveRepair ......................................................................................................................3 III. Assistance and Supplies ............................................................................................................................3 • RegistrationQuestions ...............................................................................................................................3 • Licensing/RegulationQuestions .................................................................................................................3 • OrderingSupplies—Procedure ...................................................................................................................3 • ReportofSaleand/orWholesaleReportofSaleUsage ............................................................................3 IV. Records ........................................................................................................................................................4 • TimelyReportingofSales ..........................................................................................................................4 • UseofReportofSaleand/orWholesaleReportofSaleForms ...................................................................4 • RetentionPeriods(StateandFederal) .......................................................................................................4 • AccessbyDepartmentStaffandPeaceOfficers ........................................................................................4 • LocationofRecords....................................................................................................................................4 V. Principal Laws/Regulations (Definition) ....................................................................................................5 CaliforniaVehicleCode ...................................................................................................................................5 • FalseStatements ........................................................................................................................................5 • DealerDefined ...........................................................................................................................................5 • PlaceofBusiness .......................................................................................................................................5 • NewMotorVehicleDealer ..........................................................................................................................5 • VehicleSalesperson ...................................................................................................................................5 • DeliveryofRegistrationDocuments ...........................................................................................................5 • ReturnofOccupationalLicense .................................................................................................................6 • Lessor-Retailers ..........................................................................................................................................6 • Dealers,LawsAffecting ..............................................................................................................................6 • Salespersons,LawsAffecting .....................................................................................................................6 • Odometers ..................................................................................................................................................6 • AlteringorChangingVehicleNumbers .......................................................................................................6 • FalseAdvertising ........................................................................................................................................6 • MisuseofDealer’sSupplies .......................................................................................................................6 —i— —ii— TheDepartmentofMotorVehicles(DMV)providesforthestaggeredrenewalofalldealerandlessor-retailerlicenses andspecialplates.Arenewalapplicationismailedtoalllicenseddealersandlessor-retailers45dayspriortothe expirationdateofthelicenses.Renewalofthelicensemustbeaccomplishedonorpriortothelicenseexpirationdate toavoidpenalties.Toavoidlicenseorstickerdeliverydelays,pleasesendtherenewalapplicationwithappropriate fees directly to: Department of MotorVehicles, Occupational Licensing Unit, P.O. Box 932342, Sacramento, CA 94232-3420atleasttwoweekspriortotheexpirationdateshownontherenewalapplication. • Renewal Penalty Renewalfeesandpenaltyfeescanonlybeacceptedforaperiodof30daysaftertheexpirationdateofthelicense. Renewalcannotbeacceptedafter30daysfromtheexpirationdateofthelicenseCVCSection11717(d). • ContinuingEducationProgram License renewal is done annually; however, after initial licensing, used dealers and dealer-wholesale only must attendanapprovedcontinuingeducationalprogramofnotlessthanfour(4)hourseverytwoyearsinordertorenew ormaintaintheirlicense.Thedepartmentwillnotifyalleffecteddealerswiththeirrenewalwhenproofofcontinuing educationisrequiredCVCSection11704.5(c). • Requirements for Relinquishment of a License Whenlicenseddealersorlessor-retailersceasedoingbusiness,orabondiscancelledbytheSuretyCompanyand isnotreinstatedbythecancellationdate,thelicenseeshallimmediatelysurrenderthebusinesslicense,special plates,registrationcardsandallreportofsalebookstothelocalDMVInspector. Wheneveralicenseddealerorlessor-retailerchangesalocation,addsabranchoffice,changesthefirmname,or makesachangeinthecorporatestructure,thelicenseeshallimmediatelynotifyandsubmittheappropriateforms andfeestothelocalDMVInspector. • OwnershipChanges Whenever a licensed dealer or lessor-retailer changes the ownership of a firm by adding a partner, deleting a partner,oraddingapartnertoanindividualownership,oralicensedcorporationmergesintoanothercorporation, anownershipchangehasoccurredrequiringthesurrenderofallsuppliestothedepartment,andthesubmissionof anoriginalapplicationforlicense.Anoriginalapplicationrequiresthesubmissionororiginalapplicationfeesanda new$50,000bond.Thebondundertheoldownershipcannotbeusedforthenewownership. • Licensing Requirements for a Salesperson Everypersonwhoactsasavehiclesalespersonforalicenseddealermustfirstprocurealicenseortemporary permitissuedbytheDMV.Thedepartmentprovidesformsusedinfilingsuchapplications.Atthetimeoftheoriginal orrenewalapplication,thefollowingfeesshallbepaidtothedepartment: A. Anonrefundableapplicationfeeoffifty-onedollars($51)fortheoriginalissuanceofalicense. B. Renewalfee(onceeverythreeyears)of$51.00. • Useof“BirdDogs”(IllegalSalespersonActivity) Itisunlawfulforanylicenseddealertoemployanypersonasasalesperson,whohasnotbeenlicensedbythe departmentasoutlinedinCVCSection11800.Thisincludesthepaymentof“referral”or“finders”feetoanyperson whodirectsapotentialcustomertoadealer. ItisunlawfulforanylicensedsalespersontoperformthesalesactivitiesoutlinedinCVCSection675atanylocation otherthantheemployingdealer’slicensedlocation. —1— • NoticetoPublic: InspectionofVehicle Everydealerwhodisplaysoroffersoneormoreusedvehiclesforsaleatretailshallpostanoticenotlessthan8 incheshighand10incheswide,inaplaceconspicuoustothepublic,whichstatesthefollowing: “Theprospectivepurchaserofavehiclemay,athisorherownexpenseandwiththeapprovalofthedealer,have thevehicleinspectedbyanindependentthirdpartyeitheronoroffthesepremises.” Everydealershallconspicuouslydisplayanotice,notlessthan8incheshighand10incheswide,ineachsalesoffice andsalescubicleofadealer’sestablishedplaceofbusinesswherewrittentermsofspecificsaleorleasetransactions arediscussedwithprospectivepurchasersorlessees,andineachroomofadealer’sestablishedplaceofbusiness wheresaleandleasecontractsareregularlyexecuted,whichstatesthefollowing: “THEREISNOCOOLING-OFFPERIODUNLESSYOUOBTAINACONTRACTCANCELLATIONOPTION” Californialawdoesnotprovidefora“cooling-off”orothercancellationperiodforvehicleleaseorpurchasecontracts. Therefore,youcannotlatercancelsuchacontractsimplybecauseyouchangeyourmind,decidethevehiclecosts toomuch,orwishyouacquiredadifferentvehicle.Afteryousignamotorvehiclepurchaseorleasecontract,itmay becanceledwiththeagreementofthesellerorlessororforlegalcause,suchasfraud. However,Californialawdoesrequireadealertooffera2-daycontractcancellationoptiononusedvehicleswith a purchase price of less than $40,000, subject to certain statutory conditions. This contract cancellation option requirementdoesnotapplytothesaleofarecreationalvehicle,amotorcycle,oranoff-highwaymotorvehiclesubject toidentificationunderCalifornialaw.Seethevehiclecontractcancellationoptionagreementfordetails. Specialplatesissuedtodealersmaybeusedforanypurpose,includingpleasure,providedthevehicleisinthe dealer’sinventoryforsaleandisusedonlybythefirmownersofthedealershiporisleasedtovehiclesalespersons. Specialplatesmaynotbeusedonworkorservicevehicles(seeuseofspecialplatesmemoissuedtoalldealers datedDecember23,1983).Specialplatesarenotprovidedtolessor-retailers. • ReportingUnlicensedDealers Whenever a licensed dealer has grounds to suspect that a person or persons are engaged in the buying and sellingofvehiclesasoutlinedinCVCSection285,withouthavingfirstobtainedalicensefromthedepartment,the dealerortheirauthorizedrepresentativeshouldfileawrittencomplaintwiththelocalDepartmentofMotorVehicles InvestigationsDivision. • Table of Licensing Fees Thefeeforalicenseissuedtoadealerand/orlessor-retailershallbe: A. Anonrefundableoriginalapplicationfeeofone-hundredseventy-fivedollars($175).* B. Alterationcausedbyafirmnamechange,addresschangeortheadditionofabranchlocation—seventydollars ($70). C. Annualrenewalofeachlicenseheld—one-hundredtwenty-fivedollars($125).** D. SpecialPlates–fifty-seven($57)foreachautoplateandfifty-nine($59)foreachmotorcyclespecialplate(plus applicablecountyfees).Basefeeforrenewalswillbe$1.00less.Contactyourlocalinspectorfortotalplatefees dueinyourlocation.** *Pleasenotethatnewauto/commercial,motorcycle,all-terrainvehicle,recreationaltrailer,ormotorhomeapplications willadditionallybeassessedtheNewMotorVehicleBoardfeeoftwo-hundredtwenty-fivedollars($225)forall originalandrenewalapplicationsforeachlocation. **Foratwo-yearrenewal,doublethefees. E. $1.00FamilySupportProgramfee. —2— • NewMotorVehicleBoardFunction TheNewMotorVehicleBoard(NMVB)acceptsandarbitratesprotestssubmittedbydealersonfranchiseterminations, territory infringements, etc.The NMVB also hears and considers appeals presented by dealers from a decision renderedbythedepartmentCVCSections507,3052-3058,3060-3063.TheNMVBconsistsofninemembers.Four oftheappointedmembersarenewmotorvehicledealers,engagedinbusinessforaperiodofnotlessthanfive yearsprecedingtheirappointment.Theremainingfiveappointivemembersarepublicmembersnotaffiliatedwith anylicenseddealer. AlllicenseesarerequiredtofileanapplicationforaSeller’sPermit.ApplicationscanbemadethroughlocalBoardof Equalizationoffices.PursuanttoCVCSections11617(a)(6)and11721(f),thedepartmentmayautomaticallycancel yourdealerorlessor-retaillicenseforfailuretomaintainavalidSeller’sPermit. Licenseesarerequiredtoobtainacityorcountybusinesslicensebythecityorcountylicensingsectioninthearea wherethelicenseeisdoingbusiness. • Fictitious Name Statement AnybusinessthatoperatesunderanamenottheactualnameoftheownerisrequiredtoobtainaFictitiousName Statementfromthecityorcountyintheareawhereyourbusinessislocated.Iftheresponsibleagencydetermines thisisnotrequired,alettersupportingsuchfromthatagencyisneeded. • Bureau of Automotive Repair DealerswhowillbeprovidingautomobileservicingandrepairarerequiredtofileanapplicationwiththeirlocalBureau ofAutomotiveRepairoffice.Additionalinformationisavailableontheirwebsiteatwww.bar.ca.gov. • Registration Questions Licensees seeking assistance with registration problems should contact their local Department of Motor Vehicles Field Office, Registration Section or the Handbook of Registration Procedures, available online at www.dmv.ca.gov/pubs/reg_hbbk_pdf/toc.htm. Licensees seeking assistance with occupational licensing regulation problems should contact their local DMV Inspector. • OrderingSupplies—Procedure Wheneverthereisaneedforthelicenseetoreordersupplies,suchasReportofSaleBooks,andWholesaleReport ofSaleBooks,thelicenseemustusetheappropriatesupplyforderformavailableonthedepartment’swebsiteat www.dmv.ca.gov/vehindustry/Ol/forms/supplyorderforms.htm.Allowatleastsixweeksfordelivery. Intheeventofanemergency,atokensupplyofbooksareavailableateachoftheInspectoroffices.Thelicensee shallsubmitarequestinwritingontheappropriatesupplyorderformtothelocaloffice,namingtherepresentative authorizedtopickuptheorder.Photoidentificationisrequired. • ReportofSaleand/orWholesaleReportofSaleUsage When a vehicle is sold, dealers, lessor-retailers and wholesalers shall use numbered report-of-sales and/or wholesalereport-of-salesformsissuedbythedepartmentCVCSection4456.A“sale”shallbedeemedcompleted andconsummatedwhenthepurchaserofthevehiclehaspaidthepurchaseprice,or,inlieuthereof,hassigneda purchasecontractorsecurityagreementandhastakenphysicalpossessionordeliveryofthatvehicleCVCSection 5901(d). —3— • TimelyReportingofSales Whensellingavehicle,dealersandlessor-retailersshall,nolaterthantheendofthefifthcalendarday,notcounting thedateofsale,givewrittennoticeofthetransferbysendingthestubofthecarboncopy(noticeofsale)totheDMV headquartersinSacramento.Applicationandfeesareduetothedepartmentwithin20daysofthedateofsalefor anewvehicleorwithin30daysforausedvehicle.Newvehicleapplicationforregistrationmustbeclearedwithin40 daysofthedateofsaleorwithin20daysofthedatethedepartmentfirstreturnedtheapplication,whicheverislater. Usedvehicleapplicationforregistrationmustbeclearedwithin50daysofthedateofsaleorwithin30daysofthe datethedepartmentfirstreturnedtheapplication,whicheverislater. Adealerorlessor-retailerwhoviolatesanysubdivisionofCVCSection4456shallpayAdministrativeServiceFees (ASF)onthefollowingschedule: • Failuretosubmitanoticeofsaletothedepartmentwithin5daysofthedateofsale-$5.00 • Failuretosubmitfeesdueandtheapplicationtothedepartmentwithin20daysofthedateofsaleforanewvehicle orwithin30daysforausedvehicle-$5.00 • Failuretoclearnewvehicleapplicationswithin40daysfromthedateofsaleor20daysfromthedatethedepartment firstreturnedtheapplication,orforusedvehicleapplications,50daysfromthedateofsaleor30daysfromthe datethedepartmentfirstreturnedtheapplication,whicheverislater-$25.00 SeeHandbookofRegistrationProceduresforadditionalinstructionsavailableonlineatwww.dmv.ca.gov/pubs/ reg_hdbk_pdf/toc.htm. • UseofReportofSaleand/orWholesaleReportofSaleForms ReportofSaleformswillbeusedinnumericalorder.Thereportformhasfourparts.AllpartsofeachReportofSale havethesamenumber.Thetoppartoftheoriginalaccompaniestheapplicationforregistration.Thestubofthe originalisplacedonthelowerright-handcornerofthewindshield.ThestubofthecarboncopyistobesenttoDMV headquartersnolaterthanthefifthdayfollowingthedateofsale.Thetoppartofthecarboncopyistoremaininthe dealer’sfileforrecordkeeping. Wholesale Report of Sale forms are used in reporting sales of used vehicles from dealer to dealer or dealer to dismantler.TheformhasthreepartsandallpartsoftheWholesaleReportofSalehavethesamenumber.The originalissenttoDMVheadquarters,Sacramento,within5daysafterthesaleofthevehicletoanotherlicensee. Thesecondcopyisthebuyer’scopyandthethirdcopyisthebookcopy.ThisWholesaleReportofSaleformshall besubmittedbylicenseesinlieuoftheNoticeofReleaseofLiabilityformReg.138. WhenaReportofSaleorWholesaleReportofSaleformmustbevoided,allpartsmustbemarked“VOID.”The licenseemustmailallparts,exceptthefilecopy,immediatelytotheDMVheadquartersinSacramento.Thelicensee shouldincludeafullwrittenexplanationconcerningthetransactionandacertificationthatthevehicledidnotleave hispossessionandprint“wasnotoperated”ontheoperatingcopy. • RetentionPeriods(StateandFederal) Allbusinessrecordsrelatingtovehicletransactionsshallberetainedbythedealershipforaperiodofnotlessthan threeyearsCCR,Title13,Section272.00. Thefederalgovernmentrequiresthatallbusinessrecordsberetainedbythedealershipforaperiodofnotlessthan threeyearsnormorethansixyears. TheDirector,DeputyDirector,ChiefandAssistantChiefs,InvestigativeServices,andInvestigatorsofthedepartment havethepowersofpeaceofficersandmayinspectanyvehicle,inanyneworuseddealership,forthepurposeof investigatingthetitleandregistrationofthevehicle,orlocatingstolenvehicles. • LocationofRecords Allsuppliesissuedbythedepartmentremainthepropertyofthedepartmentandmaybetakenupatanytimefor inspection.Allbooksandrecordspertinenttothetypeofbusinessbeingconductedaretobekeptattheestablished placeofbusinessofthelicenseeandareopentoinspectiontoallpeaceofficersduringnormalworkinghours. —4— CaliforniaVehicleCode Itisunlawfultouseafalseorfictitiousname,ortoknowinglymakeanyfalsestatementsorknowinglyconcealany materialfactinanydocumentfiledwiththeDMV,e.g.,falseDateofSale,falseCertificateofNonOperation,false CertificateofCompliance(Smog)CVCSection20. “Dealer”isapersonnototherwiseexpresslyexcludedbyCVCSection286who: (a) Forcommission,money,orotherthingofvalue,sells,exchanges,buys,oroffersforsale,negotiatesorattempts tonegotiate,asaleorexchangeofaninterestinavehiclesubjecttoregistrationoramotorcyclesubjectto identificationunderthiscode,orinducesorattemptstoinduceanypersontobuyorexchangeaninterestina vehicleand,whoreceivesorexpectstoreceiveacommission,money,brokeragefees,profit,oranyotherthing ofvalue,fromeitherthesellerorpurchaserofsaidvehicle;or (b) Isengagedwhollyorinpartinthebusinessofsellingvehiclesorbuyingortakingintrade,vehiclesforthepurpose ofresale,selling,orofferingforsale,orconsignedtobesold,orotherwisedealinginvehicles,whetherornot suchvehiclesareownedbysuchpersonCVCSection285. • Place of Business Aplaceofbusinessisaplaceactuallyoccupiedeithercontinuouslyoratregularperiodsbyadealerwherethebooks andrecordspertinenttothebusinessbeingconductedarekept. Theplaceofbusinessshallhaveanofficeanddisplayareasituatedonthesamepropertywherethebusinessis conducted.Adealerwhodoesnotoffervehiclesforsaleatretail,i.e.,adealerwhoisawholesalerinvolvedonlyin thesaleofvehiclesbetweenlicenseddealers,shallhaveanoffice,butadisplayareaorsignisnotrequiredCVC Section32;CCRTitle13.Sections270.00through272.00. Anewmotorvehicledealerisadealerwhoacquiresforresale,newandunregisteredvehiclesfrommanufacturers ordistributorsofsuchvehiclesCVCSection426. • VehicleSalesperson (a) “VehicleSalesperson”isapersonnototherwiseexpresslyexcludedbythissection,whodoesoneoracombination ofthefollowing: (1) Is employed as a salesperson by a dealer, as defined in CVC Section 285, or who, under any form of contract,agreementorarrangementwithadealerforcommission,money,profit,orotherthingofvalue,sells, exchanges,buysoroffersforsale,negotiates,orattemptstonegotiate,asale,orexchangeofaninterestin avehiclerequiredtoberegisteredunderthiscode. (2) Inducesorattemptstoinduceanypersontobuyorexchangeaninterestinavehiclerequiredtoberegistered, andwhoreceivesorexpectstoreceiveacommission,money,brokeragefees,profit,oranyotherthingof value,fromeitherthesellerorpurchaserofthevehicle. (3) Exercises managerial control over the business of a licensed vehicle dealer or who supervises vehicle salespersonsemployedbyalicenseddealer,whethercompensatedbysalaryorcommission,including,but notlimitedtoanypersonwhoisemployedbythedealerasageneralmanager,assistantgeneralmanager, orsalesmanager,oranyemployeeofalicensedvehicledealerwhonegotiateswithorinducesacustomer toenterintoasecurityagreementorpurchaseagreementorpurchaseorderforthesaleofavehicleon behalfofthelicensedvehicledealerCVCSection675. • DeliveryofRegistrationDocuments A vehicle dealer and/or lessor-retailer shall submit the appropriate documents and fees to the department for registrationforapurchaserwhoislawfullyentitledtoatransferofregistrationCVCSection5753. —5— Wheneverthedepartmentcancels,suspends,orrevokesthelicenseofadealer,thelicenseeshallimmediatelyreturn thelicense,specialplates,ReportofSalebooks,andallsuppliestothedepartmentCVCSection8803. • Lessor-Retailers Beforealessor-retailercanmakearetailsaleofavehicle,eitheradealerlicenseorlessor-retailerlicenseortemporary permitmustfirstbeobtainedCVCSections11600,11700. Beforeadealercanmakearetailorwholesalesaleofavehicle,adealer’slicensemustfirstbeobtainedCVCSections 11700,11726. • Salespersons,LawsAffecting Beforeapersoncanactasavehiclesalesperson,asalesperson’slicensemustfirstbeobtainedCVCSections 11800,11824. • Odometers Itisunlawfulforanypersontodisconnect,turnback,orresettheodometerofanymotorvehiclewiththeintentto alterthenumberofmilesindicatedontheodometerCVCSections11713(n);28050-28053. Nopersonshallintentionallydeface,destroy,oraltertheidentificationnumberofavehiclewithoutwrittenauthorization fromthedepartment,norshallanypersonknowinglybuy,sell,offerforsale,receive,orhaveintheirpossession,any vehiclefromwhichtheidentificationnumberhasbeenremoved,alteredordestroyedCVCSections10750,10751. Itisunlawfulforanylicenseetoadvertiseanystatementswhichareuntrueormisleading,ortoadvertiseanystatement aspartofaplanorschemewiththeintentnottosellanyvehicleorservicesoadvertisedatthepricestatedCVC Section11713. • MisuseofDealer’sSupplies Itisunlawfulforanylicenseetopermittheuseoftheirdealer’slicense,supplies,orbooksbyanyotherpersonfor thepurposeofpermittingthatpersontoengageinthesaleofvehiclesCVCSection11713(m). Advertisingreferstoanystatement,representation,actorannouncementintentionallycommunicatedtoanymember ofthepublicbyanymeanswhatever,whetherorally,inwritingorotherwiseCCRTitle13,Sections255.00-255.04. • AdvertisingbyLicensee Anyadvertisingstatements,representations,oroffersmadeinconnectionwithsaleorattemptedsaleofanyvehicle(s) shallbeclearlysetforth,andbasedonfactsandshallbesubjecttoCCRTitle13,Sections260.00-262.09. Every automobile repair dealer shall pay the required fee for each place of business operated in this state and shallregister,withtheDirectorofConsumerAffairsonformsprescribedbythedirectorB&PCodeSections98849884.19. —6— • SmogDevices Anypersonmayinstallamotorvehiclepollutioncontroldevice;however,nopersonwhohasnotbeenlicensedbythe BureauofAutomotiveRepair,shallinstallsuchadeviceforcompensationB&PCodeSections9889.15-9889.19. Airpollutionconstitutesasignificantdetrimenttopublichealthandwelfare.Exhaustemissionsfrommotorvehicles arethemajorsourceofphotochemicalairpollutionintheprincipalpopulationcentersofCalifornia.Therefore,a demonstrationprograminLosAngeles,Orange,Riverside,SanBernardino,SantaBarbara,andVenturacounties hasbeenestablishedfortheperiodicinspectionofmotorvehiclesB&PCodeSections9889.50-9889.61. • SmogDevices Itisunlawfulforanypersontofalselyrepresentbyadvertisementthequalityofanyarticlesoadvertisedthatwillbe sold,orwillfullyornegligentlytofailtoincludeintheadvertisementastatementthatanyrestrictionsapply. Itisalsounlawfulforanyperson,bymeansofsuchfalseornegligentadvertisement,toinduceanyconsumerto enteranyplaceofbusinessseekingtobuyanyarticlesoadvertisedandthenrefusestosellsuchpersonthearticle atthepriceadvertisedB&PCodeSection17500.5. • Song-BeverlyConsumerWarrantyAct Thischapterexpresslylimitsitselftoanynewproductorpartthereofthatisusedorboughtforuseprimarilyfor personaluseandanywaiverbythebuyershallbedeemedcontrarytopublicpolicyandshallbeunenforceableand void,exceptasexpresslyprovidedinthischapterCivilCodeSections1790-1795.7. • “Lemon”Law Requiresamanufacturertoreplaceanewmotorvehicleorreimbursethebuyerifthevehicledoesnotconformtothe warrantyafterareasonablenumberofattemptshavebeenmadetocorrectanonconformity. ThenewwarrantyprovisionsapplyonlytowarrantednewmotorvehiclespurchasedonorafterJanuary1,1983. Thenewwarrantyprovisionspresumethatamanufactureroritsagenthasmadeareasonablenumberofattempts toconformanewmotorvehicletotheapplicableexpresswarrantiesif,withinoneyearfromdeliverytothebuyeror 12,000miles,whicheveroccursfirst,either: (a) Thesamenonconformityhasbeensubjecttorepairfourormoretimesbythemanufactureroritsagentsand thebuyerhasatleastoncedirectlynotifiedthemanufactureroftheneedfortherepairofthenonconformity,or (b) The vehicle is out of service by reason of repair of nonconformities by the manufacturer or its agents for a cumulativetotalofmorethan30calendardayssincedeliveryofthevehicletothebuyerAB1787–Ch.388, Statsof1982. • StandardsofWarrantyWork Anypersonwhoengagesinthebusinessofinstallingneworusedconsumergoods,orprovidesserviceorrepairs toneworusedconsumergoods,hasadutytothepurchasertoinstallorperformthoseservicesinagoodand workmanlikemannerCivilCodeSections1796-1796.5. • Automobile Sales Finance Act This chapter specifically defines conditional sales contract, sellers, buyers, cash price, down payments, finance charges,motorvehicle,simpleinterestbasis,servicecontracts,financingbydealerorlendinginstitution,refunds, rescissionsandcivilliabilitiesCivilCodeSections2981-2984.4. • ProhibitedTransactions Nopersonwhoisaresidentof,oroperatesanestablishedplaceofbusinesswithinthisstate,shallimport,deliver orpurchaseanewvehicleornewvehicleengine,unlesssuchvehicleorvehicleenginemeetsthisstate’sstringent emissionsstandardsandtestproceduresH&SCodeSections43150-43156. —7— • ManufacturersandDealers Prohibitsthesaleandregistrationinthisstateofanynewvehiclewhichdoesnothavesecurelyaffixedonaside windowtotherearofthedriver,adecalonwhichthemanufacturershallendorsethatthenewvehicleclearlymeets theemissionstandardsadoptedbythisstateH&SCodeSections43200-43213. • UsedMotorVehicles AllowstheStateAirResourcesBoardtoadoptandimplementemissionsstandardsforusedmotorvehiclesforthe controlofemissions.Suchstandardsmaybeapplicabletomotorvehicleengines,ratherthantomotorvehiclesH&S CodeSections43600-43659. X. Consumer Protection • DMV’sRole ItistheintentoftheLegislaturetoprovideconsumerprotectionincaseswherepersonshaveexpresseddissatisfaction intheirdealingwiththevehicleindustry.Thedepartmenthasbeendelegatedtoprovidethisconsumerprotectionto thepublic.Thisprotectionisprovidedthroughthelicensing,education,andregulationofalldealers. A. Warranty Dealersfailingtorepairorservicevehiclesproperlywhileunderwarranty.Thedealerhasadutytothepurchaser toperformthoseservicesinagoodandworkmanlikemannerCivilCodeSection1796. B. MechanicalCondition Dealersofferingvehiclesforsalewhichareinpoormechanicalcondition,e.g.,brakes,tires,lights,horn,etc.,in violationofCVCSection11713(i). C. FailureToTransferTitle DealersfailingorneglectingtotransfervehicleswithintheprescribedtimeperiodCVCSection5753. D. MisleadingAdvertising Makinganystatement,whetherinwritingororally,whichisuntrueormisleadingCVCSection11713(a). • AutoCap(AutomotiveConsumerActionProgram) Isapublicservicethathelpsindividualswithproblemsinvolvingaparticipatingnewcarortruckdealer,ormanufacturer. AutoCapisagroupcomposedofanequalnumberofnewvehicledealersandconsumermemberswhichmeets periodically to review unresolved automotive consumer complaints and to recommend fair solutions.Auto Cap’s decisionisbindingontheparticipatingdealershipormanufacturer,butnottheconsumer,whoisfreetopursueother remedies. • ManufacturerConsumerComplaintBoards Somemanufacturers(Chrysler,Ford)providearbitrationboardswhichhearandrenderdecisionsondisputesbetween dealersandconsumers.Thearbitrationboards’decisionarebindingonthemanufacturer,butnottheconsumer,who isfreetopursueotherremedies. • LocalDistrictAttorneyConsumerFraudUnits WithinsomeDistrictAttorney’soffices,thereisaConsumerFraudUnitwhichprosecutescriminaland/orcivilcases offraudand/orintentionalordeliberateillegalactivitywhichresultsinactuallossordamagetotheconsumer. • DMV’sResponsibility Thedepartmentischargedwithallinvestigativeandenforcementdutieswithinthedepartment’sjurisdiction.Itisthe department’sresponsibilitytoensurethatlicenseesarecomplyingwithstatutesandregulations.Thedepartment alsohastheresponsibilityoftakingdisciplinaryactionagainstalicenseewhohasviolatedanyofthestatutesor regulationsenforcedbythedepartment. —8— • ActionsandPenalties A. Administrative Thedepartmentcan,afternoticeandhearing,suspendorrevokethelicenseofadealerorlessor-retailerwhohas violatedanytermsorconditionsofanystatutesorregulationsenforcedbythedepartment.Mandatorymonetary penaltiesmayberequiredofalicenseepursuanttoanagreementbetweentheDirectoroftheDepartmentof MotorVehiclesandthelicenseeCCRTitle13,Section314.00. B. Civil TheDistrictAttorneyorCityAttorneymayimposemonetarypenaltiesagainstalicenseewhohaswillfullyviolated anyofthetermsandconditionsofanystatutesorregulations. C. Criminal Alicenseemaybesubjecttoarrest,fineorimprisonmentforwillfullyviolatinganyofthetermsandconditionsof applicablestatutesorregulations. —9—
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