ARKANSAS MOTOR VEHICLE COMMISSION ACT or corporation other than the manufacturer or distributor of the chassis of the motor vehicle and that has not been the subject of a retail sale; (9) “Distributor” means any person, resident or nonresident, who, in whole or in part, sells or distributes new motor vehicles to motor vehicle dealers or who maintains distributor representatives; (10) “Distributor branch” means a branch or division office similarly maintained by a distributor for the same purposes a factory branch or division is maintained; (11) “Distributor representative” means a representative similarly employed by a distributor or distributor branch; (12) “Factory branch” means a branch or division office maintained by a person, firm, association, corporation, or trust who manufactures or assembles new motor vehicles for sale to distributors, to motor vehicle dealers, or for directing or supervising, in whole or in part, its representatives; (13) “Factory representative” means a representative employed by a: (A) Person, firm, association, corporation, or trust who manufactures or assembles new motor vehicles; or (B) Factory branch, for the purpose of making or promoting the sale of its new motor vehicles or for supervising or contacting its dealers or prospective dealers; (14) “Franchise” means one (1) or more contracts between a franchised dealer as franchisee and either a manufacturer or a distributor, importer, second-stage manufacturer, or converter as franchiser under which: (A) The franchisee is granted the right to sell and service new motor vehicles manufactured or distributed by the franchiser; (B) The franchisee as an independent business is a component of the franchiser’s distribution system; (C) The franchise is substantially associated with the franchiser’s trademark, trade name, or commercial symbol; (D) The franchisee’s business is substantially reliant on the franchiser for a continued supply of motor vehicles, parts, or accessories for the conduct of its business; or (E) (i) Any right, duty, or obligation granted or imposed by this chapter is affected. (ii) “Franchise” includes: (a) A written communication from a franchiser to a franchisee by which a duty is imposed upon the franchisee; or (b) Any separate written agreement between the franchisee and the franchiser that materially affects the franchise, as defined in this subdivision (14), whether entered into: (1) Contemporaneously with the creation of the franchise; or (2) Subsequent to the date the franchise was created; (15) “Good faith” means the duty of each party to any franchise and all officers, employees, or agents thereof to act in a fair and equitable manner toward each other so as to guarantee the one (1) party freedom from coercion, intimidation, or threats of coercion or intimidation from the other party; (16) “Licensed location” means the address designated as the primary business address of the motor vehicle dealer on the application submitted for approval of licensure; (17) “Line make of a motor vehicle” means a group or series of motor vehicles that have the same brand identification or brand name, based upon the manufacturer’s trademark, trade name, or logo. (18) “Low speed vehicle” means a motor vehicle: (A) That is a four (4) wheeled; (B) That has an attainable speed in one (1) mile of more than twenty miles per hour (20 m.p.h) and not more than twenty-five miles per hour (25 m.p.h.) on a paved level surface; and (C) With a gross vehicle weight of less than three thousand pound (3,000 lbs.). (19) “Manufacturer” means any person, firm, association, corporation, or trust, resident or nonresident, that manufactures or assembles new motor vehicles; (20) “Motor vehicle” means a self-propelled vehicle having two (2) or more wheels that has as its primary purpose the transportation of a person, including without limitation all-terrain vehicles, automobiles, trucks, motorcycles, motor-driven cycles, motor scooters, and low speed vehicles; (21) (A) (i) “Motor vehicle dealer” means a person that is: (a) Engaged in the business of selling, offering to sell, soliciting, or advertising the sale of servicing or repairing motor vehicles under a manufacturer’s warranty; and (b) Located at an established and permanent place of business under a franchise, sales and service agreement, or a bona fide contract in effect with a manufacturer or distributor. (ii) “Motor vehicle dealer” includes any person engaged in the business of selling, offering to sell, soliciting, or advertising the sale, regardless of the medium used, of commercial buses, school buses, or other multi-passenger motor vehicles, or possessing them for the purpose of resale. (B) “Motor vehicle dealer” does not include: (i) Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under judgment, decree, or order of any court; (ii) Public officers while performing their duties as officers; (iii) Employees of persons, corporations, or associations enumerated in subdivision (21)(B)(i) of this section when engaged in the specific performance of their duties as employees; (iv) Specialty vehicle dealers; (v) Financial institutions engaged in the leasing of motor vehicles; or (vi) Used motor vehicle dealers licensed by the state under § 23-112-601 et. seq.; (22) “Motor vehicle lessor” means any person not excluded by subdivision (21) of this section engaged in the motor vehicle leasing or rental business; (23) [Repealed by 2021 amendment]; (24) “New motor vehicle” means any motor vehicle, the legal title to which has never been transferred by a manufacturer, distributor, or franchised new motor vehicle dealer to an ultimate purchaser; (25) “Off premises” means a location other than the address designated as the licensed location; (26) “Person” means and includes, individually and collectively, individuals, firms, partnerships, co-partnerships, associations, corporations, trusts, or any other form of business enterprise, or any legal entity; (27) (A) “Relevant market area” means the area within a radius surrounding an existing dealer or the area of responsibility defined in the franchise and on file in the commission office, whichever is greater. (B) (i) For all licensed new motor vehicle dealers, excluding motorcycles, motorized cycles, and motor-driven all-terrain vehicles, which include two-wheeled, three-wheeled, four-wheeled, six-wheeled, or eight-wheeled motorcycles, motorized cycles, and motor-driven all-terrain vehicles, the relevant market area shall be a radius of twenty (20) miles. (ii) However, when a manufacturer is seeking to establish an additional new motor vehicle dealer, the relevant market area shall in all instances be the area within a radius of ten (10) miles around an existing dealer. (C) For all licensed new motor vehicle dealers of motorcycles, motorized cycles, and motor-driven all-terrain vehicles, which include two-wheeled, three-wheeled, four-wheeled, sixwheeled, or eight-wheeled motorcycles, motorized cycles, and motor-driven all-terrain vehicles, the relevant market area shall in all instances be the area within a radius of thirty (30) miles around an existing dealer or the area of responsibility defined in the franchise and on file in the commission office, whichever is greater; (28) “Retail sale” or “sale at retail” means the act or attempted act of selling, bartering, exchanging, or otherwise disposing of a new motor vehicle to an ultimate purchaser for use as a consumer; (29) “Second-stage manufacturer” or “converter” means a person, firm, or corporation that, prior to retail sale of a motor vehicle: (A) Assembles, installs, or affixes a body, cab, or special equipment to a chassis; or (B) Substantially adds to, subtracts from, or modifies a previously assembled or manufactured motor vehicle; 24 | 2024 Membership Directory and Buyer’s Guide
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