NC DEALERS: A CHANGE IN DEALER LAW

Session Law 2014-108 was signed into law on August 8. One section of it adds “place on probation” to the actions DMV can take in response to certain violations. This section of the law becomes effective October 1st, 2014. We will keep you updated on any regulations DMV issues to clarify what the terms of probation may be.

Section 4 of this law clarifies the disclosure of dealer fees required by G.S. 20-101.1. Online registration fees are not considered part of the “doc fee” for purposes of the disclosures required on the sign you must display in your dealership, as long as they are separately disclosed on the Bill of Sale.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
SESSION LAW 2014-108

MOTOR VEHICLE DEALER LICENSE PROBATION AUTHORIZED
SECTION 5.(a) G.S. 20-294 reads as rewritten:
Ҥ 20-294. Grounds for denying, suspending, placing on probation, or
revoking licenses.
The Division may deny, suspend, place on probation, or revoke a license issued under this
Article for any one or more of the following grounds:
(1) Making a material misstatement in an application for a license.
(2) Willfully and intentionally failing to comply with this Article, Article 15 of
this Chapter, or G.S. 20-52.1, 20-75, 20-79.1, 20-79.2, 20-108, 20-109, or a
rule adopted by the Division under this Article.
(3) Failing to have an established salesroom, if the license holder is a motor
vehicle dealer, or failing to have an established office, if the license holder is
a wholesaler.
(4) Willfully defrauding any retail buyer, to the buyer’s damage, or any other
person in the conduct of the licensee’s business.
(5) Employing fraudulent devices, methods or practices in connection with
compliance with the requirements under the laws of this State with respect to
the retaking of motor vehicles under retail installment contracts and the
redemption and resale of such motor vehicles.
(6) Using unfair methods of competition or unfair deceptive acts or practices.
(7) Knowingly advertising by any means, any assertion, representation or
statement of fact which is untrue, misleading or deceptive in any particular
relating to the conduct of the business licensed or for which a license is
sought.
(8) Knowingly advertising a used motor vehicle for sale as a new motor vehicle.
(9) Being convicted of an offense set forth under G.S. 20-106, 20-106.1, 20-107,
or 20-112 while holding such a license or within five years next preceding
the date of filing the application; or being convicted of a felony involving
moral turpitude under the laws of this State, another state, or the United
States.
(10) Submitting a bad check to the Division of Motor Vehicles in payment of
highway use taxes collected by the licensee.House Bill 272-Ratified Session Law 2014-108 Page 3
(11) Knowingly giving an incorrect certificate of title, or failing to give a
certificate of title to a purchaser, a lienholder, or the Division, as appropriate,
after a vehicle is sold.
(12) Making a material misstatement in an application for a dealer license plate.
(13) Failure to pay a civil penalty imposed under G.S. 20-287.”
SECTION 5.(b) This section becomes effective October 1, 2014.

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