SUBCHAPTER 3. LICENSING AND REGULATION. SECTIONS. 23-112-301. License Required. 23-112-302. Application for License. 23-112-303. Application Fees. 23-112-304. Issuance of License – Change of Location – Change of Business or Corporate Name, Structure, or DBA name – Dealers, Manufacturers, Distributors, etc. 23-112-305. Display of License – Change of Employer – Factory Representative and Distributor Representative. 23-112-306. Display of License – Change of Employer – Salesperson. 23-112-307. Expiration of License. 23-112-308. Denial, Revocation, and Suspension. 23-112-309. Monetary Penalty in Lieu of Suspension or Revocation of License. 23-112-310. Delivery, Preparation, and Warranty Obligations. 23-112-311. Addition or Relocation of New Motor Vehicle Dealer. 23-112-312. License Reciprocity with Other States. 23-112-313. Warranty Agreements. 23-112-314. Civil Penalty. 23-112-315. [Repealed. Motor Vehicle Dealer Documentary Fees-Disclosures.] 23-112-316. Delivery Prior to Sale-Disclosures. 23-112-317. Motor Vehicle Dealer Service and Handling Fees. 23-112-318. Negative Equity Financing and Disclosures Permitted. 23-112-301. License Required. (a) Notwithstanding any other statute, the following acts are declared to be unlawful: (1) The violation of any of the provision of this chapter; and (2) For any person to engage in business as, or serve in the capacity of, or act as a new motor vehicle dealer, motor vehicle lessor, manufacturer, importer, distributor, factory branch or division, distributor branch or division, factory representative, distributor representative, second-stage manufacturer, or converter, as such, in Arkansas without first obtaining a license therefor as provided in this chapter, regardless of whether or not the person maintains or has a place of business in Arkansas. (b) Any person, firm, association, corporation, or trust engaging, acting, or serving in more than one (1) of these capacities or having more than one (1) place where such a business is carried on or conducted shall be required to obtain and hold a separate and current license for each capacity and place of business. (c) (1) However, any new licensed motor vehicle dealer shall not be required to obtain a license as a motor vehicle lessor for any location licensed as a motor vehicle dealer. (2) A motor vehicle lessor shall be required to obtain only one (1) motor vehicle lessor’s license, regardless of the number of leasing locations he or she owns and operates but shall list each location on his or her application and pay a fee of fifty dollars ($50.00) for each location. (3) New lease locations opened after a license is issued shall be approved by the Arkansas Motor Vehicle Commission but shall not require a new license. (4) A motor vehicle lessor shall sell or offer for sale used motor vehicles only from an established place of business and only after application to, approval of, and licensure at each location by the Commission. (d) (1) No person may engage in the business of buying, selling, or exchanging motor vehicles, unless he or she; (A) Holds a valid license issued by the Commission for the makes of motor vehicles being bought, sold, or exchanged; or (B) Is a bona fide employee or agent of the licensee. (2) For purposes of this subsection, “engage in the business of buying, selling, or exchanging motor vehicles” means: (A) Displaying for sale motor vehicles on a lot or showroom; (B) Advertising for sale new motor vehicles regardless of the medium used; or (C) Regularly or actively soliciting buyers for motor vehicles. History. Acts 1975, No. 388, §§ 5, 8, 10; 1985, No. 1032, §§ 3, 6; 1985, No. 1058, §§ 3, 6; A.S.A. 1947, §§ 75-2305, 75-2308, 75-2310; 1989, No. 678, § 1; 1995, No. 568, § 4; 1997, No. 1154, § 9; 1999, No. 1042, § 2; 2001, No. 1053, § 2; 2009, No. 756,§ 6; 2021, No. 504 §§ 5, 6; 2021, No. 1077, § 3. 23-112-302. Application for License. (a) Applications for licenses required to be obtained under the provisions of this chapter shall: (1) Be verified by the oath or affirmation of the applicants; (2) Be on forms prescribed by the Arkansas Motor Vehicle Commission and furnished to the applicants; and (3) Contain such information as the Commission deems necessary to enable it too fully determine the qualifications and eligibility of the several applicants to receive the licenses applied for. (b) The Commission shall require that there be set forth in each application: (1) Information relating to: (A) The applicant’s business integrity; (B) Whether the applicant has an established place of business in the State of Arkansas and is primarily engaged in the pursuit, avocation, or business for which licenses are applied for; and (C) Whether the applicant has the proper facilities and is able to properly conduct the business for which licenses are applied for; and (2) Other pertinent information consistent with the safeguarding of the public interest and public welfare. (c) (1) (A) In addition to the foregoing provisions of subsections (a) and (b) of this section, applications for licenses as: (i) New motor vehicle dealers must also be accompanied by the filing with the Commission of a corporate surety bond in the penal sum of fifty thousand dollars ($50,000) on a bond form approved by the Commission; and (ii) New motorcycle dealers, new all-terrain vehicle dealers, new low speed vehicle dealers, and motor vehicle lessors shall also be accompanied by the filing with the Commission of a corporate surety bond in the penal sum of twenty-five thousand dollars ($25,000) on a bond form approved by the Commission. (B) In each instance that a branch license is applied for, each application shall be accompanied by the filing with the Commission of a corporate surety bond in the penal sum of twenty-five thousand dollars ($25,000) on a bond form approved by the Commission. (C) Motor vehicle dealers shall also provide proof of liability insurance coverage on all vehicles to be offered for sale in an amount equal to or greater than the amount required by the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq. (2) The bond shall be in effect upon the applicant’s being licensed and shall be conditioned upon the applicant’s complying with the provisions of this chapter. (3) The bond shall be an indemnity for any loss sustained by any person by reason of the acts of the person bonded when those acts constitute grounds for the suspension or revocation of his or her license. (4) The bond shall be executed in the name of the State of Arkansas for the benefit of any aggrieved party. (5) The aggregate liability of the surety for all claimants, regardless of the number of years this bond is in force or has been in effect, shall not exceed the amount of the bond. (6) The proceeds of the bond shall be paid upon receipt by the Commission of a final judgment from an Arkansas court of competent jurisdiction against the principal and in favor of an aggrieved party. (d) (1) In addition to the provisions subsections (a)-(c) of this section, applications for licenses as motor vehicle dealers in new motor vehicles must also be accompanied by the filing with the Commission of a bona fide contract or franchise then in effect between the applicant and a manufacturer or distributor of the new motor vehicles proposed to be dealt in. (2) However, if the contract or franchise has already been filed with the Commission in connection with a previous application made by the applicant, the applicant, in lieu of again filing the contract or franchise, shall identify the contract or franchise by appropriate reference and file all revisions and additions, if any, which have been made to the contract or franchise. (e) The applicant for a license as a new motor vehicle dealer shall furnish satisfactory evidence that the applicant: (1) Maintains adequate space in the building or structure wherein the applicant’s established business is conducted for the display of new motor vehicles or will have the facilities within a reasonable time after receiving a license; (2) Has or will have adequate facilities in the building or structure to perform repair and service work on motor vehicles and adequate space for storage of new parts and accessories for the motor vehicles; and Arkansas Automobile Dealers Association | 29 ARKANSAS MOTOR VEHICLE COMMISSION ACT
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