and without due regard to the equities of the parties or to the detriment of the public welfare failed to properly fulfill any warranty agreement or to adequately and fairly compensate any of its motor vehicle dealers for labor, parts, or incidental expenses incurred by the dealer with regard to factory warranty agreements performed by the dealer. (B) Compensation for parts for two-wheeled, three-wheeled, and four-wheeled motorcycles and motor-driven all-terrain vehicles must be at the manufacturer’s suggested retail price; (19) For the Commission of any act prohibited by §§23-112-301 – 23-112-307, 23-112- 402, and 23-112-403, or the failure to perform any of the requirements of those sections; (20) Using or permitting the use of special license plates assigned to him or her for any other purpose than those permitted by law; (21) Disconnecting, turning back, or resetting the odometer of any motor vehicle in violation of state or federal law; (22) Accepting an open assignment of title or bill of sale for a motor vehicle which is not completed by identifying the licensee as the purchaser or assignee of the motor vehicle; (23) (A) Failure to notify the Commission of a change in ownership, location, or franchise, or any other matters the Commission may require by rule. (B) The notification shall be in written form and submitted to the Commission at least fifteen (15) days prior to the effective date of the change. (24) Failure to endorse and deliver an assignment and warranty of title to the buyer pursuant to §27-14-902. (25) Using or permitting the use of a: (A) Temporary preprinted paper buyer's tag assigned to the dealer for any purpose other than permitted under § 27-14-1705; or (B) Dealer's extra license plate by an authorized or unauthorized user for any purpose other than permitted under § 27-14-1704; (26) Failure of a dealer to submit or deliver a certificate of title or manufacturer’s certificate of origin within a reasonable period of time. (b) The revocation or suspension of the license of a manufacturer, factory branch or division, distributor, or distributor branch or division may be limited to: (1) One (1) or more municipalities or counties; (2) (A) The sales area of any dealer whose franchise is unfairly cancelled or terminated within the purview of this chapter or whose franchise is not renewed in violation of the provisions of this chapter. (B) However, when a franchise is unfairly cancelled or terminated within the purview of this chapter or is not renewed in violation of the provisions of this chapter in a metropolitan area serviced by several motor vehicle dealers handling the same motor vehicles, the revocation or suspension shall not be applicable to the remaining motor vehicle dealers in the metropolitan area. History. Acts 1975, No. 388, § 6; 1985, No. 1032, § 5; 1985, No. 1058, § 5; A.S.A. 1947,§ 75-2306; Acts 1991, No. 411, § 1; 1993, No. 383, § 4; 2001, No. 1053, § 9; 2009, No. 756, § 9; 2019, No. 315, §2830; 2019, No. 315, §2831; 2021, No. 504, §10. 23-112-309. Monetary Penalty in Lieu of Suspension or Revocation of License. (a) (1) If after alternate proceedings or notice and hearing, the Arkansas Motor Vehicle Commission finds that any person holding a license under this chapter is guilty of any violation of this chapter or rules promulgated under this chapter, it shall have the power and authority to impose a monetary penalty upon the licensee in lieu of suspension or revocation of license. (2) The Commission shall have the power and authority to require the licensee to pay the monetary penalty with the sanction that the license may be suspended until the penalty is paid, which time shall not exceed ninety (90) days from entry of the Commission’s Order or Final Order on appeal. (3) The penalty in lieu of suspension or revocation may be imposed only if the Commission formally finds that the public interest would not be impaired thereby and the payment of the penalty will achieve the desired disciplinary results. (b) (1) If the Commission finds that there is sufficient cause upon which to base the revocation of a license, the amount of the monetary penalty in lieu of revocation shall not exceed ten thousand dollars ($10,000). (2) If the Commission finds that there is sufficient cause upon which to base suspension of a license, the amount of the monetary penalty in lieu of suspension shall not be less than fifty dollars ($50.00) nor more than five hundred dollars ($500) per day for each day the license would otherwise be suspended. However, the amount of the penalty shall not exceed the aggregate of five thousand dollars ($5,000). (c) No penalty shall be imposed if the license has been revoked by the Commission for the violation. (d) Each instance when this chapter or a rule is violated shall constitute a separate violation. (e) Unless the penalty assessed under this section is paid within fifteen (15) days following the date for an appeal from the order, the Commission shall have the power to file suit in the Pulaski County Circuit Court to obtain a judgment for the amount of penalty not paid. History. Acts 1975, No. 388, § 6; 1985, No. 1032, § 5; 1985, No. 1058, § 5; A.S.A. 1947,§ 75-2306; Acts 1999, No. 1042, § 4; 2001, No. 1053, § 10; 2019, No. 315, §2832. 23-112-310. Delivery, Preparation, and Warranty Obligations. (a) (1) Every licensed motor vehicle manufacturer, distributor, second-stage manufacturer, importer, or converter shall file with the Arkansas Motor Vehicle Commission with its initial application for a license: (A) A copy of the documents stating the delivery, preparation, and warranty obligations of its motor vehicle dealers; and (B) A schedule of the compensation to be paid to its motor vehicle dealers for the work and services they shall be required to perform in connection with the delivery, preparation, and warranty obligations. (2) The documents shall constitute the dealer’s only responsibility for product liability as between the dealer and the manufacturer or distributor. (3) Any revisions to the delivery, preparation, and warranty obligations or to the schedule of compensation shall be filed no later than September 15 of each calendar year. (b) Any mechanical, body, or parts defects arising from any express or implied warranties of any manufacturer shall constitute the manufacturer’s product or warranty liability. (c) Notwithstanding the terms of a franchise agreement or provision of law in conflict with this subsection, the dealer’s delivery, preparation, and warranty obligations as filed with the Commission shall constitute the dealer’s sole responsibility for product liability as between the dealer and the manufacturer or distributor, and, except for a loss caused by the dealer’s negligence or intentional misconduct or a loss caused by the dealer’s modification of a product without manufacturer authorization, the manufacturer or distributor shall reimburse the dealer for all losses incurred by the dealer, including legal fees, court costs, and damages, as a result of the dealer’s having been named a party in a product liability action. (d) (1) (A) A manufacturer, distributor, distributor branch or division, or factory or division branch shall not pay to any of its motor vehicle dealers a labor rate per hour or parts rate for warranty work that is less than that charged by the dealer to its retail customers provided the rate is reasonable compared to other same line-make dealers in the dealer’s relevant market area or the dealer’s competitive market area. (B) Conversely, a dealer shall not charge to its manufacturer, distributor, distributor branch or division, or factory branch or division a labor rate per hour or parts rate in excess of the rate charged to its retail customers. (C) A manufacturer, distributor, distributor branch or division, or factory branch or division of new motorcycles, motorized cycles, and all-terrain vehicles shall not pay to any new motor vehicle dealers of motorcycles, motorized cycles, and all-terrain vehicles a labor rate per hour or parts rate for warranty work that is less than that charged by the new motor vehicle dealer to its retail customers, provided that the rate is reasonable compared to other same line make motor vehicle dealers in the new motor vehicle dealer’s relevant market area or the new motor vehicle dealer’s competitive market area. (D) (i) A motor vehicle dealer may request a change in the labor rate per hour for warranty work or parts markup for warranty work, and the manufacturer, distributor, distributor branch or division, or factory or division branch shall approve or disapprove the request within forty-five (45) days from the date the request is received. (ii) A request submitted under subdivision (d)(1)(D)(i) of this section is approved if a manufacturer, distributor, distributor branch or division, or factory or division branch fails to approve or disapprove the request within forty-five (45) days from the date the request for a change in the labor rate per hour for warranty work orparts markup for warranty work is received. (iii) If the manufacturer or distributor determines, from any set of repair orders submitted under subdivision (d)(1)(D)(i) of this section that the labor rate per hour for warranty work or the parts markup for warranty work is substantially higher or lower Arkansas Automobile Dealers Association | 31 ARKANSAS MOTOR VEHICLE COMMISSION ACT
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