AN
ACT Relating to motor vehicle dealers; amending RCW 46.70.023, 46.70.051,
46.70.101, 46.70.120, 46.70.130, and 46.70.180; creating a new section; and
prescribing penalties.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
46.70.023 and 1995 c 7 s 1 are each amended to read as follows:
(1)
An "established place of business" requires a permanent, enclosed
commercial building located within the state of Washington easily accessible at
all reasonable times. ((An established place of business shall have an
improved display area of not less than three thousand square feet in or
immediately adjoining the building, or a display area large enough to display
six or more vehicles of the type the dealer is licensed to sell, whichever area
is larger.)) The business of a vehicle dealer((, including the display
of vehicles, may)) must be lawfully carried on at an established
place of business in accordance with the terms of all applicable building code,
zoning, and other land-use regulatory ordinances. A vehicle dealer may
display a vehicle for sale only at its established place of business, licensed
subagency, or temporary subagency site, except at auction. The dealer shall
keep the building open to the public so that ((they)) the public
may contact the vehicle dealer or the dealer's salespersons at all reasonable
times. The books, records, and files necessary to conduct the business shall
be kept and maintained at that place. The established place of business shall
display an exterior sign with the business name and nature of the business,
such as auto sales, permanently affixed to the land or building, with letters
clearly visible to the major avenue of traffic. ((In no event may)) A
room or rooms in a hotel, rooming house, or apartment house building or part of
a single or multiple-unit dwelling house may not be considered an
"established place of business" unless the ground floor of such a
dwelling is devoted principally to and occupied for commercial purposes and the
dealer offices are located on the ground floor. A mobile office or mobile home
may be used as an office if it is connected to utilities and is set up in
accordance with state law. A state-wide trade association representing
manufactured housing dealers shall be permitted to use a manufactured home as
an office if the office complies with all other applicable building code,
zoning, and other land-use regulatory ordinances. This subsection does not
apply to auction companies that do not own vehicle inventory or sell vehicles
from an auction yard.
(2)
An auction company shall have office facilities within the state. The books,
records, and files necessary to conduct the business shall be maintained at the
office facilities. All storage facilities for inventory shall be listed with
the department, and shall meet local zoning and land use ordinances. An
auction company shall maintain a telecommunications system.
(3)
Auction companies shall post their vehicle dealer license at each auction where
vehicles are offered, and shall provide the department with the address of the
auction at least three days before the auction.
(4)
If a dealer maintains a place of business at more than one location or under
more than one name in this state, he or she shall designate one location as the
principal place of business of the firm, one name as the principal name of the
firm, and all other locations or names as subagencies. A subagency license is
required for each and every subagency: PROVIDED, That the department may grant
an exception to the subagency requirement in the specific instance where a
licensed dealer is unable to locate their used vehicle sales facilities
adjacent to or at the established place of business. This exception shall be
granted and defined under the promulgation of rules consistent with the
Administrative Procedure Act.
(5)
All vehicle dealers shall maintain ownership or leasehold throughout the
license year of the real property from which they do business. The dealer
shall provide the department with evidence of ownership or leasehold whenever
the ownership changes or the lease is terminated.
(6)
A subagency shall comply with all requirements of an established place of
business, except that subagency records may be kept at the principal place
of business designated by the dealer. Auction companies shall comply with
the requirements in subsection (2) of this section.
(7)
A temporary subagency shall meet all local zoning and building codes for the
type of merchandising being conducted. The dealer license certificate shall be
posted at the location. No other requirements of an established place of
business apply to a temporary subagency. Auction companies are not required to
obtain a temporary subagency license.
(8)
A wholesale vehicle dealer shall have office facilities in a commercial
building within this state, and all storage facilities for inventory shall be
listed with the department, and shall meet local zoning and land use
ordinances. A wholesale vehicle dealer shall maintain a telecommunications
system. An exterior sign visible from the nearest street shall identify the
business name and the nature of business. A wholesale dealer need not maintain
a display area as required in this section. When two or more vehicle dealer
businesses share a location, all records, office facilities, and inventory, if
any, must be physically segregated and clearly identified.
(9)
A retail vehicle dealer shall be open during normal business hours, maintain
office and display facilities in a commercially zoned location or in a location
complying with all applicable building and land use ordinances, and maintain a
business telephone listing in the local directory. When two or more vehicle
dealer businesses share a location, all records, office facilities, and
inventory shall be physically segregated and clearly identified.
(10)
A listing dealer need not have a display area if the dealer does not physically
maintain any vehicles for display.
(11)
A subagency license is not required for a mobile home dealer to display an
on-site display model, a consigned mobile home not relocated from its site, or
a repossessed mobile home if sales are handled from a principal place of
business or subagency. A mobile home dealer shall identify on-site display
models, repossessed mobile homes, and those consigned at their sites with a
sign that includes the dealer's name and telephone number.
(12)
Every vehicle dealer shall advise the department of the location of each and
every place of business of the firm and the name or names under which the firm
is doing business at such location or locations. If any name or location is
changed, the dealer shall notify the department of such change within ten
days. The license issued by the department shall reflect the name and location
of the firm and shall be posted in a conspicuous place at that location by the
dealer.
(13)
A vehicle dealer's license shall upon the death or incapacity of an individual
vehicle dealer authorize the personal representative of such dealer, subject to
payment of license fees, to continue the business for a period of six months
from the date of the death or incapacity.
Sec.
2. RCW
46.70.051 and 1993 c 307 s 7 are each amended to read as follows:
(1)
After the application has been filed, the fee paid, and bond posted, if
required the department shall, if no denial order is in effect and no
proceeding is pending under RCW 46.70.101, issue the appropriate license, which
license, in the case of a vehicle dealer, shall designate the classification of
the dealer. Nothing prohibits a vehicle dealer from obtaining licenses for
more than one classification, and nothing prevents any vehicle dealer from
dealing in other classes of vehicles on an isolated basis.
(2)
An auction company licensed under chapter 18.11 RCW may sell at auction all
classifications of vehicles under a motor vehicle dealer's license issued under
this chapter including motor vehicles, miscellaneous type vehicles, and mobile
homes and travel trailers.
(3)
At the time the department issues a vehicle dealer license, the department
shall provide to the dealer a current, up-to-date vehicle dealer manual setting
forth the various statutes and rules applicable to vehicle dealers. In
addition, at the time any such license is renewed under RCW 46.70.083, the
department shall provide the dealer with any updates or current revisions to
the vehicle dealer manual.
Sec.
3. RCW
46.70.101 and 1991 c 140 s 3 are each amended to read as follows:
The
director may by order deny, suspend, or revoke the license of any vehicle
dealer or vehicle manufacturer or, in lieu thereof or in addition thereto, may
by order assess monetary penalties of a civil nature not to exceed one thousand
dollars per violation, if the director finds that the order is in the public
interest and that the applicant or licensee:
(1)
In the case of a vehicle dealer:
(a)
The applicant or licensee, or any partner, officer, director, owner of ten
percent or more of the assets of the firm, or managing employee:
(i)
Was the holder of a license issued pursuant to this chapter, which was revoked
for cause and never reissued by the department, or which license was suspended
for cause and the terms of the suspension have not been fulfilled or which
license was assessed a civil penalty and the assessed amount has not been paid;
(ii)
Has been adjudged guilty of a crime which directly relates to the business of a
vehicle dealer and the time elapsed since the adjudication is less than ten
years, or suffering any judgment within the preceding five years in any civil
action involving fraud, misrepresentation, or conversion. For the purposes of
this section, adjudged guilty shall mean in addition to a final conviction in
either a state or municipal court, an unvacated forfeiture of bail or
collateral deposited to secure a defendant's appearance in court, the payment
of a fine, a plea of guilty, or a finding of guilt regardless of whether the
sentence is deferred or the penalty is suspended;
(iii)
Has knowingly or with reason to know made a false statement of a material fact
in his application for license or any data attached thereto, or in any matter under
investigation by the department;
(iv)
Has knowingly, or with reason to know, provided the department with false
information relating to the number of vehicle sales transacted during the past
one year in order to obtain a vehicle dealer license plate;
(v)
Does not have an established place of business as required in this chapter;
(vi)
Refuses to allow representatives or agents of the department to inspect during
normal business hours all books, records, and files maintained within this
state;
(vii)
Sells, exchanges, offers, brokers, auctions, solicits, or advertises a new or
current model vehicle to which a factory new vehicle warranty attaches and
fails to have a valid, written service agreement as required by this chapter,
or having such agreement refuses to honor the terms of such agreement within a
reasonable time or repudiates the same;
(viii)
Is insolvent, either in the sense that their liabilities exceed their assets,
or in the sense that they cannot meet their obligations as they mature;
(ix)
Fails to pay any civil monetary penalty assessed by the director pursuant to
this section within ten days after such assessment becomes final;
(x)
Fails to notify the department of bankruptcy proceedings in the manner required
by RCW 46.70.183;
(xi)
Knowingly, or with reason to know, allows a salesperson employed by the dealer,
or acting as their agent, to commit any of the prohibited practices set forth
in subsection (1)(a) of this section and RCW 46.70.180.
(b)
The applicant or licensee, or any partner, officer, director, owner of ten
percent of the assets of the firm, or any employee or agent:
(i)
Has failed to comply with the applicable provisions of chapter 46.12 or 46.16
RCW or this chapter or any rules and regulations adopted thereunder;
(ii)
Has defrauded or attempted to defraud the state, or a political subdivision
thereof of any taxes or fees in connection with the sale or transfer of a
vehicle;
(iii)
Has forged the signature of the registered or legal owner on a certificate of
title;
(iv)
Has purchased, sold, disposed of, or has in his or her possession any vehicle
which he or she knows or has reason to know has been stolen or appropriated
without the consent of the owner;
(v)
Has willfully failed to deliver to a purchaser a certificate of ownership to a
vehicle which he has sold;
(vi)
Has committed any act in violation of RCW 46.70.090 relating to vehicle dealer
license plates or manufacturer license plates;
(vii)
Has committed any act in violation of RCW 46.70.180 relating to unlawful acts
and practices;
(viii)
Has engaged in practices inimical to the health or safety of the citizens of
the state of Washington including but not limited to failure to comply with
standards set by the state of Washington or the federal government pertaining
to the construction or safety of vehicles;
(ix)
Has aided or assisted an unlicensed dealer or salesperson in unlawful activity
through active or passive participation in sales, allowing use of facilities,
dealer license number, or by any other means;
(x)
Converts or appropriates, whether temporarily or permanently, property or funds
belonging to a customer, dealer, or manufacturer, without the consent of the
owner of the property or funds; or
(xi)
Has sold any vehicle with actual knowledge that:
(A)
It has (("REBUILT")) any of the following brands on
the title: "SALVAGE/REBUILT," "JUNK," or
"DESTROYED"; or
(B)
It has been declared totaled out by an insurance carrier and then rebuilt;
or
(C)
The vehicle title contains the specific comment that the vehicle is
"rebuilt";
without
clearly disclosing that ((fact)) brand or comment in writing.
(c)
The licensee or any partner, officer, director, or owner of ten percent or more
of the assets of the firm holds or has held any such position in any other
vehicle dealership licensed pursuant to this chapter which is subject to final
proceedings under this section.
(2)
In the case of a manufacturer, or any partner, officer, director, or majority shareholder:
(a)
Was or is the holder of a license issued pursuant to this chapter which was
revoked for cause and never reissued by the department, or which license was
suspended for cause and the terms of the suspension have not been fulfilled, or
which license was assessed a civil penalty and the assessed amount has not been
paid;
(b)
Has knowingly or with reason to know, made a false statement of a material fact
in his application for license, or any data attached thereto, or in any matter
under investigation by the department;
(c)
Has failed to comply with the applicable provisions of chapter 46.12 or 46.16
RCW or this chapter or any rules and regulations adopted thereunder;
(d)
Has defrauded or attempted to defraud the state or a political subdivision
thereof, of any taxes or fees in connection with the sale or transfer of a
vehicle;
(e)
Has purchased, sold, disposed of, or has in his possession, any vehicle which
he knows or has reason to know has been stolen or appropriated without the
consent of the owner;
(f)
Has committed any act in violation of RCW 46.70.090 relating to vehicle dealer
license plates and manufacturer license plates;
(g)
Has committed any act in violation of RCW 46.70.180 relating to unlawful acts
and practices;
(h)
Sells or distributes in this state or transfers into this state for resale, any
new or unused vehicle to which a warranty attaches or has attached and refuses
to honor the terms of such warranty within a reasonable time or repudiates the
same;
(i)
Fails to maintain one or more resident employees or agents to provide service
or repairs to vehicles located within the state of Washington only under the
terms of any warranty attached to new or unused vehicles manufactured and which
are or have been sold or distributed in this state or transferred into this
state for resale unless such manufacturer requires warranty service to be
performed by all of its dealers pursuant to a current service agreement on file
with the department;
(j)
Fails to reimburse within a reasonable time any vehicle dealer within the state
of Washington who in good faith incurs reasonable obligations in giving effect
to warranties that attach or have attached to any new or unused vehicle sold or
distributed in this state or transferred into this state for resale by any such
manufacturer;
(k)
Engaged in practices inimical to the health and safety of the citizens of the
state of Washington including but not limited to failure to comply with
standards set by the state of Washington or the federal government pertaining
to the construction and safety of vehicles;
(l)
Is insolvent either in the sense that his or her liabilities exceed his or her
assets or in the sense that he or she cannot meet his or her obligations as
they mature;
(m)
Fails to notify the department of bankruptcy proceedings in the manner required
by RCW 46.70.183.
Sec.
4. RCW
46.70.120 and 1990 c 238 s 7 are each amended to read as follows:
A
dealer shall complete and maintain for a period of at least five years a record
of the purchase and sale of all vehicles purchased or sold by him. The records
shall consist of:
(1)
The license and title numbers of the state in which the last license was
issued;
(2)
A description of the vehicle;
(3)
The name and address of the person from whom purchased;
(4)
The name of the legal owner, if any;
(5)
The name and address of the purchaser;
(6)
If purchased from a dealer, the name, business address, dealer license number,
and resale tax number of the dealer;
(7)
The price paid for the vehicle and the method of payment;
(8)
The vehicle odometer disclosure statement given by the seller to the dealer,
and the vehicle odometer disclosure statement given by the dealer to the
purchaser;
(9)
The written agreement to allow a dealer to sell between the dealer and the
consignor, or the listing dealer and the seller;
(10)
Trust account records of receipts, deposits, and withdrawals;
(11)
All sale documents, which shall show the full name of dealer employees involved
in the sale; and
(12)
Any additional information the department may require. However, the
department may not require a dealer to collect or retain the hardback copy of a
temporary license permit after the permanent license plates for a vehicle have
been provided to the purchaser, if the dealer maintains some other copy of the
temporary license permit together with a log of the permits issued.
Such
records shall be maintained separate ((and apart)) from all other
business records of the dealer ((and shall at all times)). Records
older than two years may be kept at a location other than the dealer's place of
business if those records are made available in hard copy for inspection within
three calendar days, exclusive of Saturday, Sunday, or a legal holiday, after a
request by the director or the director's authorized agent. Records kept at
the vehicle dealer's place of business must be available for inspection by
the director or ((his duly)) the director's authorized agent during
normal business hours.
Dealers
may maintain their recordkeeping and filing systems in accordance with their
own particular business needs and practices. Nothing in this chapter requires
dealers to maintain their records in any particular order or manner, as long as
the records identified in this section are maintained in the dealership's
recordkeeping system.
Sec.
5. RCW
46.70.130 and 1973 1st ex.s. c 132 s 16 are each amended to read as follows:
(1)
Before the execution of a contract or chattel mortgage or the consummation of
the sale of any vehicle, the seller must furnish the buyer an itemization in
writing signed by the seller separately disclosing to the buyer the finance
charge, insurance costs, taxes, and other charges which are paid or to be paid
by the buyer.
(2)
Notwithstanding subsection (1) of this section, an itemization of the various
license and title fees paid or to be paid by the buyer, which itemization must
be the same as that disclosed on the registration/application for title
document issued by the department, may be required only on the title
application at the time the application is submitted for title transfer. A
vehicle dealer may not be required to separately or individually itemize the
license and title fees on any other document, including but not limited to the
purchase order and lease agreement. No fee itemization may be required on the
temporary permit.
Sec.
6. RCW
46.70.180 and 1995 c 256 s 26 are each amended to read as follows:
Each
of the following acts or practices is unlawful:
(1)
To cause or permit to be advertised, printed, displayed, published,
distributed, broadcasted, televised, or disseminated in any manner whatsoever,
any statement or representation with regard to the sale or financing of a
vehicle which is false, deceptive, or misleading, including but not limited to
the following:
(a)
That no down payment is required in connection with the sale of a vehicle when
a down payment is in fact required, or that a vehicle may be purchased for a
smaller down payment than is actually required;
(b)
That a certain percentage of the sale price of a vehicle may be financed when
such financing is not offered in a single document evidencing the entire
security transaction;
(c)
That a certain percentage is the amount of the service charge to be charged for
financing, without stating whether this percentage charge is a monthly amount
or an amount to be charged per year;
(d)
That a new vehicle will be sold for a certain amount above or below cost
without computing cost as the exact amount of the factory invoice on the
specific vehicle to be sold;
(e)
That a vehicle will be sold upon a monthly payment of a certain amount, without
including in the statement the number of payments of that same amount which are
required to liquidate the unpaid purchase price.
(2)
To incorporate within the terms of any purchase and sale agreement any
statement or representation with regard to the sale or financing of a vehicle
which is false, deceptive, or misleading, including but not limited to terms
that include as an added cost to the selling price of a vehicle an amount for
licensing or transfer of title of that vehicle which is not actually due to the
state, unless such amount has in fact been paid by the dealer prior to such
sale. However, expenses or fees charged by a dealer that are necessary or
required to be paid by a dealer to a third party in order to obtain a lien
release or a vehicle identification number inspection or verification, or to
otherwise clear title to the vehicle, or in order to license or transfer title
to a vehicle, do not violate this section if such expenses or fees are
disclosed or itemized on the purchase order.
(3)
To set up, promote, or aid in the promotion of a plan by which vehicles are to
be sold to a person for a consideration and upon further consideration that the
purchaser agrees to secure one or more persons to participate in the plan by
respectively making a similar purchase and in turn agreeing to secure one or
more persons likewise to join in said plan, each purchaser being given the
right to secure money, credits, goods, or something of value, depending upon
the number of persons joining the plan.
(4)
To commit, allow, or ratify any act of "bushing" which is defined as
follows: Taking from a prospective buyer of a vehicle a written order or offer
to purchase, or a contract document signed by the buyer, which:
(a)
Is subject to the dealer's, or his or her authorized representative's future
acceptance, and the dealer fails or refuses within ((forty-eight hours))
three calendar days, exclusive of Saturday, Sunday, or a legal
holiday, and prior to any further negotiations with said buyer, either: (i)
To deliver to the buyer ((either)) the dealer's signed acceptance,
or ((all copies of)) (ii) to void the order, offer, or contract
document ((together with)) and tender the return of any initial
payment or security made or given by the buyer, including but not limited to
money, check, promissory note, vehicle keys, a trade-in, or certificate of
title to a trade-in; or
(b)
Permits the dealer to renegotiate a dollar amount specified as trade-in
allowance on a vehicle delivered or to be delivered by the buyer as part of the
purchase price, for any reason except:
(i)
Failure to disclose that the vehicle's certificate of ownership has ((been
branded for any reason, including, but not limited to, status as a rebuilt
vehicle as provided in RCW 46.12.050 and 46.12.075; and)) any of the
following brands: "SALVAGE/REBUILT" or "JUNK" or
"DESTROYED," or has been declared totaled out by an insurance carrier
and then rebuilt, or that the vehicle title contains the specific comment that
the vehicle is "rebuilt"; or
(ii)
Substantial physical damage or latent mechanical defect occurring before the
dealer took possession of the vehicle and which could not have been reasonably
discoverable at the time of the taking of the order, offer, or contract; or
(iii)
Excessive additional miles or a discrepancy in the mileage. "Excessive
additional miles" means the addition of five hundred miles or more, as
reflected on the vehicle's odometer, between the time the vehicle was first
valued by the dealer for purposes of determining its trade-in value and the
time of actual delivery of the vehicle to the dealer. "A discrepancy in
the mileage" means: (A) A discrepancy between the mileage reflected on
the vehicle's odometer and the stated mileage on the signed odometer statement;
or (B) a discrepancy between the mileage stated on the signed odometer
statement and the actual mileage on the vehicle; or
(c)
Fails to comply with the obligation of any written warranty or guarantee given
by the dealer requiring the furnishing of services or repairs within a
reasonable time.
(5)
To commit any offense relating to odometers, as such offenses are defined in
RCW 46.37.540, 46.37.550, 46.37.560, and 46.37.570. A violation of this
subsection is a class C felony punishable under chapter 9A.20 RCW.
(6)
For any vehicle dealer or vehicle ((salesman)) salesperson to
refuse to furnish, upon request of a prospective purchaser, ((the name and
address of the previous registered owner of any used vehicle offered for sale))
for vehicles previously registered to a business or governmental entity, the
name and address of such business or governmental entity.
(7)
To commit any other offense under RCW 46.37.423, 46.37.424, or 46.37.425.
(8)
To commit any offense relating to a dealer's temporary license permit,
including but not limited to failure to properly complete each such permit, or
the issuance of more than one such permit on any one vehicle. However, a
dealer shall be entitled to issue a second temporary permit on a vehicle if the
following conditions are met:
(a)
The lienholder fails to deliver the vehicle title to the dealer within the
required time period;
(b)
The dealer has satisfied the lien; and
(c)
The dealer has proof that payment of the lien was made within two calendar
days, exclusive of Saturday, Sunday, or a legal holiday, after the sales
contract has been executed by all parties and all conditions and contingencies
in the sales contract have been met or otherwise satisfied.
(9)
For a dealer, salesman, or mobile home manufacturer, having taken an instrument
or cash "on deposit" from a purchaser prior to the delivery of the
bargained-for vehicle, to commingle the "on deposit" funds with
assets of the dealer, salesman, or mobile home manufacturer instead of holding
the "on deposit" funds as trustee in a separate trust account until
the purchaser has taken delivery of the bargained-for vehicle. Delivery of a
manufactured home shall be deemed to occur in accordance with RCW
46.70.135(5). Failure, immediately upon receipt, to endorse "on
deposit" instruments to such a trust account, or to set aside "on
deposit" cash for deposit in such trust account, and failure to deposit
such instruments or cash in such trust account by the close of banking hours on
the day following receipt thereof, shall be evidence of intent to commit this
unlawful practice: PROVIDED, HOWEVER, That a motor vehicle dealer may keep a
separate trust account which equals his or her customary total customer
deposits for vehicles for future delivery. For purposes of this section,
"on deposit" funds received from a purchaser of a manufactured home
means those funds that a seller requires a purchaser to advance before ordering
the manufactured home, but does not include any loan proceeds or moneys that
might have been paid on an installment contract.
(10)
For a dealer or manufacturer to fail to comply with the obligations of any
written warranty or guarantee given by the dealer or manufacturer requiring the
furnishing of goods and services or repairs within a reasonable period of time,
or to fail to furnish to a purchaser, all parts which attach to the
manufactured unit including but not limited to the undercarriage, and all items
specified in the terms of a sales agreement signed by the seller and buyer.
(11)
For a vehicle dealer to pay to or receive from any person, firm, partnership,
association, or corporation acting, either directly or through a subsidiary, as
a buyer's agent for consumers, any compensation, fee, gratuity, or reward in
connection with the purchase or sale of a new motor vehicle.
(12)
For a buyer's agent acting directly or through a subsidiary to pay to or to
receive from any motor vehicle dealer any compensation, fee, gratuity, or
reward in connection with the purchase or sale of a new motor vehicle.
(13)
For a buyer's agent to arrange for or to negotiate the purchase, or both, of a
new motor vehicle through an out-of-state dealer without disclosing in writing
to the customer that the new vehicle would not be subject to chapter 19.118
RCW.
(14)
Being a manufacturer, other than a motorcycle manufacturer governed by chapter
46.94 RCW, to:
(a)
Coerce or attempt to coerce any vehicle dealer to order or accept delivery of
any vehicle or vehicles, parts or accessories, or any other commodities which
have not been voluntarily ordered by the vehicle dealer: PROVIDED, That
recommendation, endorsement, exposition, persuasion, urging, or argument are
not deemed to constitute coercion;
(b)
Cancel or fail to renew the franchise or selling agreement of any vehicle
dealer doing business in this state without fairly compensating the dealer at a
fair going business value for his or her capital investment which shall include
but not be limited to tools, equipment, and parts inventory possessed by the
dealer on the day he or she is notified of such cancellation or termination and
which are still within the dealer's possession on the day the cancellation or
termination is effective, if: (i) The capital investment has been entered into
with reasonable and prudent business judgment for the purpose of fulfilling the
franchise; and (ii) the cancellation or nonrenewal was not done in good faith.
Good faith is defined as the duty of each party to any franchise to act in a
fair and equitable manner towards each other, so as to guarantee one party
freedom from coercion, intimidation, or threats of coercion or intimidation
from the other party: PROVIDED, That recommendation, endorsement, exposition,
persuasion, urging, or argument are not deemed to constitute a lack of good
faith.
(c)
Encourage, aid, abet, or teach a vehicle dealer to sell vehicles through any
false, deceptive, or misleading sales or financing practices including but not
limited to those practices declared unlawful in this section;
(d)
Coerce or attempt to coerce a vehicle dealer to engage in any practice
forbidden in this section by either threats of actual cancellation or failure
to renew the dealer's franchise agreement;
(e)
Refuse to deliver any vehicle publicly advertised for immediate delivery to any
duly licensed vehicle dealer having a franchise or contractual agreement for
the retail sale of new and unused vehicles sold or distributed by such
manufacturer within sixty days after such dealer's order has been received in
writing unless caused by inability to deliver because of shortage or
curtailment of material, labor, transportation, or utility services, or by any
labor or production difficulty, or by any cause beyond the reasonable control
of the manufacturer;
(f)
To provide under the terms of any warranty that a purchaser of any new or
unused vehicle that has been sold, distributed for sale, or transferred into
this state for resale by the vehicle manufacturer may only make any warranty
claim on any item included as an integral part of the vehicle against the
manufacturer of that item.
Nothing
in this section may be construed to impair the obligations of a contract or to
prevent a manufacturer, distributor, representative, or any other person,
whether or not licensed under this chapter, from requiring performance of a
written contract entered into with any licensee hereunder, nor does the
requirement of such performance constitute a violation of any of the provisions
of this section if any such contract or the terms thereof requiring
performance, have been freely entered into and executed between the contracting
parties. This paragraph and subsection (14)(b) of this section do not apply to
new motor vehicle manufacturers governed by chapter 46.96 RCW.
(15)
Unlawful transfer of an ownership interest in a motor vehicle as defined in RCW
19.116.050.
NEW
SECTION. Sec. 7. The
department of licensing, in consultation with interested parties, shall develop
and provide to the legislative transportation committee by December 1, 1996,
recommendations on changes to comments and brands on vehicle certificates of
ownership and registration. The recommendations shall address, but are not
limited to, whether references to rebuilt, former taxi, former for hire, former
rental, and former government vehicles should be portrayed as comments or title
brands, and how the "nonstandard" brand can be replaced with a brand
or brands that provide more specific information.
