BP BHEAD INT S

AN ACT Relating to consumer purchases and leases of motor vehicles; reenacting and amending RCW 46.70.011; and adding new sections to chapter 46.70 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 46.70.011 and 1989 c 337 s 11 and 1989 c 301 s 1 are each reenacted and amended to read as follows:

As used in this chapter:

(1) "Vehicle" means and includes every device capable of being moved upon a public highway and in, upon, or by which any persons or property is or may be transported or drawn upon a public highway, excepting devices moved by human or animal power or used exclusively upon stationary rails or tracks.

(2) "Motor vehicle" means every vehicle which is self-propelled and every vehicle which is propelled by electric power obtained from overhead trolley wires, but not operated upon rails, and which is required to be registered and titled under Title 46 RCW, Motor Vehicles.

(3) "Vehicle dealer" means any person, firm, association, corporation, or trust, not excluded by subsection (4) of this section, engaged in the business of buying, selling, listing, exchanging, offering, brokering, leasing with an option to purchase, auctioning, soliciting, or advertising the sale of new or used vehicles, or arranging or offering or attempting to solicit or negotiate on behalf of others, a sale, purchase, or exchange of an interest in new or used motor vehicles, irrespective of whether the motor vehicles are owned by that person. Vehicle dealers shall be classified as follows:

(a) A "motor vehicle dealer" is a vehicle dealer that deals in new or used motor vehicles, or both;

(b) A "mobile home and travel trailer dealer" is a vehicle dealer that deals in mobile homes, park trailers, or travel trailers, or more than one type of these vehicles;

(c) A "miscellaneous vehicle dealer" is a vehicle dealer that deals in motorcycles or vehicles other than motor vehicles or mobile homes and travel trailers or any combination of such vehicles.

(4) The term "vehicle dealer" does not include, nor do the licensing requirements of RCW 46.70.021 apply to, the following persons, firms, associations, or corporations:

(a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by, or acting under a judgment or order of, any court; or

(b) Public officers while performing their official duties; or

(d) Any person engaged in an isolated sale of a vehicle in which he is the registered or legal owner, or both, thereof; or

(e) Any person, firm, association, corporation, or trust, engaged in the selling of equipment other than vehicles, subject to registration, used for agricultural or industrial purposes; or

(f) A real estate broker licensed under chapter 18.85 RCW, or his authorized representative, who, on behalf of the legal or registered owner of a used mobile home negotiates the purchase, sale, or exchange of the used mobile home in conjunction with the purchase, sale, exchange, rental, or lease of the land upon which the used mobile home is located and the real estate broker is not acting as an agent, subagent, or representative of a vehicle dealer licensed under this chapter; or

(g) Owners who are also operators of the special highway construction equipment or of the highway construction equipment for which a vehicle license and display vehicle license number plate is required as defined in RCW 46.16.010; or

(h) Any bank, trust company, savings bank, mutual savings bank, savings and loan association, credit union, and any parent, subsidiary, or affiliate thereof, authorized to do business in this state under state or federal law with respect to the sale or other disposition of a motor vehicle owned and used in their business; or with respect to the acquisition and sale or other disposition of a motor vehicle in which the entity has acquired an interest as a lessor, lessee, or secured party.

(5) "Vehicle salesperson" means any person who for any form of compensation sells, auctions, leases with an option to purchase, or offers to sell or to so lease vehicles on behalf of a vehicle dealer.

(6) "Department" means the department of licensing, which shall administer and enforce the provisions of this chapter.

(7) "Director" means the director of licensing.

(8) "Manufacturer" means any person, firm, association, corporation, or trust, resident or nonresident, who manufactures or assembles new and unused vehicles or remanufactures vehicles in whole or in part and further includes the terms:

(a) "Distributor," which means any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new and unused vehicle to vehicle dealers or who maintains factory representatives.

(b) "Factory branch," which means a branch office maintained by a manufacturer for the purpose of selling or offering for sale, vehicles to a distributor, wholesaler, or vehicle dealer, or for directing or supervising in whole or in part factory or distributor representatives, and further includes any sales promotion organization, whether a person, firm, or corporation, which is engaged in promoting the sale of new and unused vehicles in this state of a particular brand or make to vehicle dealers.

(c) "Factory representative," which means a representative employed by a manufacturer, distributor, or factory branch for the purpose of making or promoting for the sale of their vehicles or for supervising or contracting with their dealers or prospective dealers.

(9) "Established place of business" means a location meeting the requirements of RCW 46.70.023(1) at which a vehicle dealer conducts business in this state.

(10) "Principal place of business" means that dealer firm's business location in the state, which place the dealer designates as their principal place of business.

(11) "Subagency" means any place of business of a vehicle dealer within the state, which place is physically and geographically separated from the principal place of business of the firm or any place of business of a vehicle dealer within the state, at which place the firm does business using a name other than the principal name of the firm, or both.

(12) "Temporary subagency" means a location other than the principal place of business or subagency within the state where a licensed vehicle dealer may secure a license to conduct the business and is licensed for a period of time not to exceed ten days for a specific purpose such as auto shows, shopping center promotions, tent sales, exhibitions, or similar merchandising ventures. No more than six temporary subagency licenses may be issued to a licensee in any twelve-month period.

(13) "Wholesale vehicle dealer" means a vehicle dealer who buys and sells other than at retail.

(14) "Retail vehicle dealer" means a vehicle dealer who may buy and sell at both wholesale and retail.

(15) "Listing dealer" means a used mobile home dealer who makes contracts with sellers who will compensate the dealer for obtaining a willing purchaser for the seller's mobile home.

(16) "Auction" means a transaction conducted by means of exchanges between an auctioneer and the members of the audience, constituting a series of oral invitations for offers for the purchase of vehicles made by the auctioneer, offers to purchase by members of the audience, and the acceptance of the highest or most favorable offer to purchase.

(17) "Auction company" means a sole proprietorship, partnership, corporation, or other legal or commercial entity licensed under chapter 18.11 RCW that only sells or offers to sell vehicles at auction or only arranges or sponsors auctions.

(18) "Consumer" means a person who purchases or leases a motor vehicle that is normally used for personal or household purposes.

NEW SECTION. Sec. 2. (1) A consumer may rescind the purchase or lease of a new or used motor vehicle from a motor vehicle dealer until midnight of the third business day following the consummation of the transaction or the delivery of the notification and rescission forms required in section 5 of this act, whichever is later, by notifying the seller or lessor of his or her intention to rescind. In no case may more than seven business days elapse following the consummation of the transaction or the delivery of the notification and rescission forms required in section 5 of this act, whichever is later, before the motor vehicle is returned. If the motor vehicle is not returned within seven business days, the purchaser or lessee loses rescission rights under sections 2 through 10 of this act.

(2) To rescind the purchase or lease of a new or used motor vehicle under this section:

(a) The motor vehicle shall have fewer than two hundred miles of additional mileage from what existed on the date of the purchase or lease agreement or the delivery of the notification and rescission forms required in section 5 of this act, whichever is later, and have no damage, other than normal wear and tear, that was not present upon original delivery of the motor vehicle to the consumer; and

(b) The consumer shall exercise the right to rescind by delivering either written notification or the motor vehicle to the seller or lessor and paying a rescission fee equal to one percent of the purchase price or fifty dollars, whichever is more. The consumer may require the seller or lessor to deduct the rescission fee from any refund of money on the purchase or lease price of the motor vehicle or any refund made under section 3 of this act.

(3) In an action brought under sections 2 through 10 of this act, a seller or lessor may raise as an affirmative defense that the motor vehicle has damage other than normal wear and tear that was not present upon delivery to the consumer.

NEW SECTION. Sec. 3. Except as provided in section 4 of this act, upon notification of rescission and delivery of the motor vehicle by the consumer to the seller or lessor, within ten days the seller or lessor shall return all moneys and all trade‑in vehicles or other property given as a down payment, collateral, or otherwise, and shall cancel and nullify any financing or security interest.

NEW SECTION. Sec. 4. Upon proof that the trade-in vehicle is not available because title has been transferred before the time of notification, the seller or lessor shall pay the buyer or lessee an amount of money equal to the amount credited for the trade-in. The seller or lessor may deduct reasonable expenditures for repair or improvements to a trade-in vehicle.

NEW SECTION. Sec. 5. (1) Sellers and lessors of motor vehicles shall provide to all purchasers and lessees clear and conspicuous notification of the rights in sections 2 through 10 of this act. Notification shall be in at least twelve-point type.

(2) Sellers and lessors of motor vehicles shall provide to all purchasers and lessees a form with clear and understandable instructions for rescinding the sale or lease of the motor vehicle.

NEW SECTION. Sec. 6. Any agreement entered into by a consumer for the purchase of a new motor vehicle that waives, limits, or disclaims the rights set forth in sections 2 through 10 of this act shall be void as contrary to public policy.

NEW SECTION. Sec. 7. The attorney general shall adopt rules, including the necessary forms, for the implementation of sections 2 through 10 of this act.

NEW SECTION. Sec. 8. The legislature finds that the practices covered by sections 2 through 10 of this act are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. Violations of sections 2 through 10 of this act are not reasonable in relation to the development and preservation of business. A violation of sections 2 through 10 of this act is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying chapter 19.86 RCW.

NEW SECTION. Sec. 9. Nothing in sections 2 through 8 of this act limits the consumer from pursuing other rights or remedies under any other law.

NEW SECTION. Sec. 10. Sections 2 through 9 of this act do not apply to motor vehicle sales at auctions.

NEW SECTION. Sec. 11. Sections 2 through 10 of this act are each added to chapter 46.70 RCW.

NEW SECTION. Sec. 12. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.