AS Title 8, Chapter 66: Motor Vehicle Dealers and Buyers' Agents

Chapter 66. Motor Vehicle Dealers and Buyers' Agents. Sec. 08.66.010. Dealers to register. A dealer in motor vehicles shall, as a condition to engaging in business in the state, register biennially with the department. Sec. 08.66.015. Sale of motor vehicle. (a) A person who does business as a dealer in the state may not offer to sell or sell a motor vehicle as a new motor vehicle unless (1) the motor vehicle retains the manufacturer's certificate of origin; and (2) the dealer has a current sales and service agreement with the manufacturer of the motor vehicle for sales in this state. (b) [Repealed, § 2 ch 61 SLA 2006.] Sec. 08.66.020. Application, bond, and fee. Application for dealer registration shall be accompanied by a biennial registration fee of $50 and a bond required by AS 08.66.060 . Sec. 08.66.030. Form of application. The department shall prescribe and furnish the form of application for dealer registration under AS 08.66.010 . The application must contain (1) the name under which the business is conducted; (2) the location and telephone number of the business; (3) the name and address of all persons having an interest in the business and, in the case of a corporation, the application shall contain the name and address of the two principal officers; (4) the name and make of all vehicles handled; (5) a statement of whether or not used vehicles are handled; (6) a statement that the applicant is a bona fide dealer in motor vehicles with an established business at the location given; (7) a statement that no person holding a five percent or greater interest in the business has, during the five-year period immediately preceding the date of the application, been convicted of a felony if the felony involved fraud, embezzlement, or misappropriation of property; (8) a statement that the applicant has reviewed the workers' compensation insurance requirements of AS 23.30 and will maintain applicable workers' compensation insurance as required under AS 23.30 ; (9) a copy of a certificate of insurance documenting that the applicant maintains the insurance coverage required under AS 08.66.085 ; (10) if the applicant sells a motor vehicle as a new or current model motor vehicle having a manufacturer's warranty, the name of the manufacturer of the motor vehicle and the date and duration of the applicant's sales and service agreement with the manufacturer; and (11) other information the department requires to administer this chapter. Sec. 08.66.040. Filing application for registration; identification of dealer. The application shall be filed with the department. Upon receipt of the application, the department shall examine it and may make an investigation of the information in it. If the department is satisfied that the dealer is entitled to registration, and the fees have been paid and a bond filed, the department shall assign a distinctive registration number to the dealer and file the dealer's application and index it alphabetically and numerically. A dealer is registered when the department assigns a registration number. A dealer shall inform each person who purchases a vehicle from the dealer that the dealer is registered under this chapter and provide the dealer's registration number. Sec. 08.66.050. Renewal of registration. A dealer shall renew the registration required by this chapter before January 1 every two years. Sec. 08.66.060. Bond. (a) An applicant for a dealer registration under AS 08.66.010 shall file with the application and shall maintain in force while registered a bond in favor of the state that is executed by a surety approved by the commissioner. The amount of the bond shall be $100,000, except that the amount of a bond for a dealer who sells only motorcycles shall be $25,000. The bond must be conditioned on the dealer's (1) doing business in compliance with this chapter and the other laws of this state; and (2) not committing fraud or making fraudulent representations in the course of doing business as a dealer. (b) A surety may cancel the bond required by (a) of this section by giving notice in writing to the commissioner or the commissioner's designee. However, cancellation does not relieve a surety of liability arising before cancellation or a liability that has accrued on the bond before cancellation. The commissioner or the commissioner's designee shall retain the cancelled bond on file and may not relieve a surety of a liability arising before cancellation or accruing on the bond before cancellation. (c) A bond filed under (a) of this section is valid for renewal of a dealer registration unless the surety has provided a written notice of cancellation to the commissioner. (d) In this section, “commissioner” means the commissioner of administration. Sec. 08.66.070. Action on bond. If a person suffers loss or damage by reason of fraud, fraudulent representations, or a violation of a provision of this chapter or another law of this state by a dealer, the person has a right of action against the dealer and a personal right of action against the surety upon the bond. The aggregate liability of the surety may not exceed the amount of the bond. Sec. 08.66.080. Penalties. A dealer who fails to register and file a bond as required by this chapter is guilty of a violation. A dealer who knowingly violates a provision of this chapter is guilty of a class A misdemeanor. Sec. 08.66.085. Insurance requirements. A dealer in motor vehicles shall maintain liability insurance for bodily injury and property damage on an auto dealer's form. Secs. 08.66.090 — 08.66.250. Dealer defined; registration of buyer's agent; application, bond, and fee; department approval; renewal of registration; bond; action on bond; buyer's agent contract required; purchase agreement; fees of buyer's agent; ownership interest prohibited; certain compensation prohibited; dual agency prohibited; records of buyer's agent; penalty. [Repealed § 13 ch 79 SLA 2002.] Sec. 08.66.260. Buyer's agent contract required. (a) Before a buyer's agent negotiates on behalf of a buyer the purchase of a motor vehicle from a motor vehicle dealer, the buyer's agent must have a written contract with the buyer. (b) The contract required by (a) of this section must include a description of the specific services to be provided by the buyer's agent, the date when the buyer's agent will provide the services, and a description of the fees that the buyer's agent will charge, including any fee that the buyer is to pay before the motor vehicle is delivered to the buyer. Sec. 08.66.270. Purchase agreement. A buyer's agent shall arrange for the buyer's purchase agreement with the dealer to provide all warranty information, including the warranty expiration date, mileage limitations, and other restrictions. The warranty information must be specific to the motor vehicle being purchased. Sec. 08.66.280. Fees of buyer's agent. (a) A buyer's agent may not collect a fee from a buyer before the agent and the buyer enter into the contract required by AS 08.66.260 . (b) A buyer's agent may not calculate the fee of the buyer's agent as a percentage of the motor vehicle purchase price or of the savings achieved by the agent for the buyer on the purchase of the motor vehicle. (c) Until the motor vehicle is delivered to the buyer, a buyer's agent shall hold in trust in a bank account a fee that the agent receives before the buyer receives the motor vehicle. Sec. 08.66.290. Ownership interest prohibited. A buyer's agent may not own an interest in the motor vehicle that is the subject of the purchase that the agent is negotiating for the buyer. Sec. 08.66.300. Certain compensation prohibited. A buyer's agent may not accept a rebate, kickback, commission, or other form of compensation from a financial institution, motor vehicle dealer, or other person, except the buyer, on a motor vehicle purchase that the agent negotiates for a buyer. Sec. 08.66.310. Dual agency prohibited. When representing a buyer, a buyer's agent may not act as an agent for the motor vehicle dealer. Sec. 08.66.320. Records of buyer's agent. A buyer's agent shall maintain complete records of each motor vehicle purchase the agent negotiates, including the purchase arrangements and monetary transactions. The records must include (1) copies of advertisements, brochures, and pamphlets issued, used, or distributed by the buyer's agent during the sales transaction; (2) the original contract between the buyer's agent and the buyer; (3) copies of any purchase orders issued by the buyer's agent; (4) evidence of the delivery of the motor vehicle to the buyer; (5) a copy of the purchase agreement between the buyer and the motor vehicle dealer; and (6) a copy of any service agreement between the manufacturer and the motor vehicle dealer. Sec. 08.66.330. Penalty. [Repealed, § 13 ch 79 SLA 2002.] Sec. 08.66.350. Definitions. In this chapter, (1) “buyer's agent” means a person who does business in the state by negotiating on behalf of a buyer the purchase of a motor vehicle from a motor vehicle dealer; (2) “department” means the Department of Administration; (3) “motor vehicle” means a motor vehicle that is required to be registered under AS 28.10 ; (4) “motor vehicle dealer” or “dealer” (A) means (i) a buyer's agent; or (ii) a person, other than a manufacturer, who sells, leases, solicits, or arranges for the sale or lease of five or more motor vehicles in any 12 consecutive months, regardless of who owns the vehicles; (B) does not include (i) a receiver, a trustee, an administrator, an executor, a guardian, or another person appointed by a court or a person performing duties as a public officer; (ii) a person disposing of a motor vehicle acquired and actually used for the person's own use or for the use of a family member of the person, or acquiring a motor vehicle for the person's own use or for the use of a family member of the person if the vehicle is acquired and used in good faith and not for the purpose of avoiding the provisions of this chapter; (iii) a person who sells motor vehicles as an incident of the person's principal business but who is not engaged primarily in the selling of motor vehicles; (iv) an employee of an organization arranging for the purchase or lease by the organization of a vehicle for use in the organization's business; (v) a publication, broadcast, or other communications media when engaged in the business of advertising, but not otherwise arranging for the sale of a motor vehicle owned by another person.