2006 Code of Virginia § 46.2-1500 - Definitions

46.2-1500. Definitions.

Unless the context otherwise requires, the following words and terms for thepurpose of this chapter shall have the following meanings:

"Board" means the Motor Vehicle Dealer Board.

"Certificate of origin" means the document provided by the manufacturer ofa new motor vehicle, or its distributor, which is the only valid indicationof ownership between the manufacturer, its distributor, its franchised motorvehicle dealers, and the original purchaser not for resale.

"Dealer-operator" means the individual who works at the established placeof business of a dealer and who is responsible for and in charge ofday-to-day operations of that place of business.

"Distributor" means a person who is licensed by the Department of MotorVehicles under Chapter 19 ( 46.2-1900 et seq.) of this title and who sellsor distributes new motor vehicles pursuant to a written agreement with themanufacturer, to franchised motor vehicle dealers in the Commonwealth.

"Distributor branch" means a branch office licensed by the Department ofMotor Vehicles under Chapter 19 ( 46.2-1900 et seq.) of this title andmaintained by a distributor for the sale of motor vehicles to motor vehicledealers or for directing or supervising, in whole or in part, itsrepresentatives in the Commonwealth.

"Distributor representative" means a person who is licensed by theDepartment of Motor Vehicles under Chapter 19 ( 46.2-1900 et seq.) of thistitle and employed by a distributor or by a distributor branch, for thepurpose of making or promoting the sale of motor vehicles or for supervisingor contacting its dealers, prospective dealers, or representatives in theCommonwealth.

"Factory branch" means a branch office maintained by a person for the saleof motor vehicles to distributors or for the sale of motor vehicles to motorvehicle dealers, or for directing or supervising, in whole or in part, itsrepresentatives in the Commonwealth.

"Factory representative" means a person who is licensed by the Departmentof Motor Vehicles under Chapter 19 ( 46.2-1900 et seq.) of this title andemployed by a person who manufactures or assembles motor vehicles or by afactory branch for the purpose of making or promoting the sale of its motorvehicles or for supervising or contacting its dealers, prospective dealers,or representatives in the Commonwealth.

"Factory repurchase motor vehicle" means a motor vehicle sold, leased,rented, consigned, or otherwise transferred to a person under an agreementthat the motor vehicle will be resold or otherwise retransferred only to themanufacturer or distributor of the motor vehicle, and which is reacquired bythe manufacturer or distributor, or its agents.

"Family member" means a person who either (i) is the spouse, child,grandchild, spouse of a child, spouse of a grandchild, brother, sister, orparent of the dealer or owner or (ii) has been employed continuously by thedealer for at least five years.

"Franchise" means a written contract or agreement between two or morepersons whereby one person, the franchisee, is granted the right to engage inthe business of offering and selling, servicing, or offering, selling, andservicing new motor vehicles of a particular line-make or late model orfactory repurchase motor vehicles of a particular line-make manufactured ordistributed by the grantor of the right, the franchisor, and where theoperation of the franchisee's business is substantially associated with thefranchisor's trademark, trade name, advertising, or other commercial symboldesignating the franchisor, the motor vehicle or its manufacturer ordistributor. The term shall include any severable part or parts of afranchise agreement which separately provides for selling and servicingdifferent line-makes of the franchisor.

"Franchised late model or factory repurchase motor vehicle dealer" means adealer in late model or factory repurchase motor vehicles, including afranchised new motor vehicle dealer, that has a franchise agreement with amanufacturer or distributor of the line-make of the late model or factoryrepurchase motor vehicles.

"Franchised motor vehicle dealer" means a dealer in new motor vehicles thathas a franchise agreement with a manufacturer or distributor of new motorvehicles, trailers, or semitrailers.

"Fund" means the Motor Vehicle Dealer Board Fund.

"Independent motor vehicle dealer" means a dealer in used motor vehicles.

"Late model motor vehicle" means a motor vehicle of the current model yearand the immediately preceding model year.

"Line-make" means the name of the motor vehicle manufacturer or distributorand a brand or name plate marketed by the manufacturer or distributor.

"Manufacturer" means a person who is licensed by the Department of MotorVehicles under Chapter 19 ( 46.2-1900 et seq.) of this title and engaged inthe business of constructing or assembling new motor vehicles and, in thecase of trucks, also means a person engaged in the business of manufacturingengines, power trains, or rear axles, when such engines, power trains, orrear axles are not warranted by the final manufacturer or assembler of thetruck.

"Motor vehicle" means the same as provided in 46.2-100, except, for thepurposes of this chapter, it shall not include (i) trailers and semitrailers;(ii) manufactured homes, sales of which are regulated under Chapter 4.2 (36-85.16 et seq.) of Title 36; (iii) motor homes; (iv) motorcycles; (v)nonrepairable vehicles, as defined in 46.2-1600; (vi) salvage vehicles, asdefined in 46.2-1600; or (vii) mobile cranes that exceed the size or weightlimitations as set forth in 46.2-1105, 46.2-1110, 46.2-1113, or Article 17( 46.2-1122 et seq.) of Chapter 10 of this title.

"Motor vehicle dealer" or "dealer" means any person who:

1. For commission, money, or other thing of value, buys, sells, exchanges,either outright or on conditional sale, bailment lease, chattel mortgage, orotherwise or arranges or offers or attempts to solicit or negotiate on behalfof others a sale, purchase, or exchange of an interest in new motor vehicles,new and used motor vehicles, or used motor vehicles alone, whether or not themotor vehicles are owned by him; or

2. Is wholly or partly engaged in the business of selling new motor vehicles,new and used motor vehicles, or used motor vehicles only, whether or not themotor vehicles are owned by him; or

3. Offers to sell, sells, displays, or permits the display for sale, of fiveor more motor vehicles within any 12 consecutive months.

The term "motor vehicle dealer" does not include:

1. Receivers, trustees, administrators, executors, guardians, conservators orother persons appointed by or acting under judgment or order of any court ortheir employees when engaged in the specific performance of their duties asemployees.

2. Public officers, their deputies, assistants, or employees, whileperforming their official duties.

3. Persons other than business entities primarily engaged in the leasing orrenting of motor vehicles to others when selling or offering such vehiclesfor sale at retail, disposing of motor vehicles acquired for their own useand actually so used, when the vehicles have been so acquired and used ingood faith and not for the purpose of avoiding the provisions of this chapter.

4. Persons dealing solely in the sale and distribution of funeral vehicles,including motor vehicles adapted therefor; however, this exemption shall notexempt any person from the provisions of 46.2-1519, 46.2-1520 and46.2-1548.

5. Any financial institution chartered or authorized to do business under thelaws of the Commonwealth or the United States which may have received titleto a motor vehicle in the normal course of its business by reason of aforeclosure, other taking, repossession, or voluntary reconveyance to thatinstitution occurring as a result of any loan secured by a lien on thevehicle.

6. An employee of an organization arranging for the purchase or lease by theorganization of vehicles for use in the organization's business.

7. Any person licensed to sell real estate who sells a manufactured home orsimilar vehicle in conjunction with the sale of the parcel of land on whichthe manufactured home or similar vehicle is located.

8. Any person who permits the operation of a motor vehicle show or permitsthe display of motor vehicles for sale by any motor vehicle dealer licensedunder this chapter.

9. An insurance company authorized to do business in the Commonwealth thatsells or disposes of vehicles under a contract with its insured in theregular course of business.

10. Any publication, broadcast, or other communications media when engaged inthe business of advertising, but not otherwise arranging for the sale ofvehicles owned by others.

11. Any person dealing solely in the sale or lease of vehicles designedexclusively for off-road use.

12. Any credit union authorized to do business in Virginia, provided thecredit union does not receive a commission, money, or other thing of valuedirectly from a motor vehicle dealer.

13. Any person licensed as a manufactured home dealer, broker, manufacturer,or salesperson under Chapter 4.2 ( 36-85.16 et seq.) of Title 36.

14. The State Department of Social Services or local departments of socialservices.

"Motor vehicle salesperson" or "salesperson" means (i) any person who ishired as an employee by a motor vehicle dealer to sell or exchange motorvehicles and who receives or expects to receive a commission, fee, or anyother consideration from the dealer; (ii) any person who supervisessalespersons employed by a motor vehicle dealer, whether compensated bysalary or by commission; (iii) any person, compensated by salary orcommission by a motor vehicle dealer, who negotiates with or induces acustomer to enter into a security agreement on behalf of a dealer; or (iv)any person who is licensed as a motor vehicle dealer and who sells orexchanges motor vehicles. For purposes of this section, any person who is anindependent contractor as defined by the United States Internal Revenue Codeshall be deemed not to be a motor vehicle salesperson.

"Motor vehicle show" means a display of motor vehicles to the generalpublic at a location other than a dealer's location licensed under thischapter where the vehicles are not being offered for sale or exchange duringor as part of the display.

"New motor vehicle" means any vehicle which (i) has not been previouslysold except in good faith for the purpose of resale, (ii) has not been usedas a rental, driver education, or demonstration motor vehicle, or for thepersonal and business transportation of the manufacturer, distributor,dealer, or any of his employees, (iii) has not been used except for limiteduse necessary in moving or road testing the vehicle prior to delivery to acustomer, (iv) is transferred by a certificate of origin, and (v) has themanufacturer's certification that it conforms to all applicable federal motorvehicle safety and emission standards. Notwithstanding provisions (i) and(iii), a motor vehicle that has been previously sold but not titled shall bedeemed a new motor vehicle if it meets the requirements of provisions (ii),(iv), and (v).

"Original license" means a motor vehicle dealer license issued to anapplicant who has never been licensed as a motor vehicle dealer in Virginiaor whose Virginia motor vehicle dealer license has been expired for more than30 days.

"Relevant market area" means as follows:

1. In metropolitan localities, the relevant market area shall be a circulararea around an existing franchised dealer with a population of 250,000, notto exceed a radius of 10 miles, but in no case less than seven miles.

2. If the population in an area within a radius of 10 miles around anexisting franchised dealer is less than 250,000, but the population in anarea within a radius of 15 miles around an existing franchised dealer is150,000 or more, the relevant market area shall be that area within the15-mile radius.

3. In all other cases the relevant market area shall be an area within aradius of 20 miles around an existing franchised dealer or the area ofresponsibility defined in the franchise, whichever is greater. In any casewhere the franchise agreement is silent as to area of responsibility, therelevant market area shall be the greater of an area within a radius of 20miles around an existing franchised dealer or that area in which thefranchisor otherwise requires the franchisee to make significant retail salesor sales efforts.

In determining population for this definition, the most recent census by theU.S. Bureau of the Census or the most recent population update, either fromthe National Planning Data Corporation or other similar recognized source,shall be accumulated for all census tracts either wholly or partially withinthe relevant market area.

"Retail installment sale" means every sale of one or more motor vehicles toa buyer for his use and not for resale, in which the price of the vehicle ispayable in one or more installments and in which the seller has eitherretained title to the goods or has taken or retained a security interest inthe goods under form of contract designated either as a security agreement,conditional sale, bailment lease, chattel mortgage, or otherwise.

"Sale at retail" or "retail sale" means the act or attempted act ofselling, bartering, exchanging, or otherwise disposing of a motor vehicle toa buyer for his personal use and not for resale.

"Sale at wholesale" or "wholesale" means a sale to motor vehicle dealersor wholesalers other than to consumers; a sale to one who intends to resell.

"Used motor vehicle" means any vehicle other than a new motor vehicle asdefined in this section.

"Wholesale auction" means an auction of motor vehicles restricted to salesat wholesale.

(Code 1950, 46-503; 1950, p. 1604; 1956, c. 120; 1958, c. 541, 46.1-516;1962, c. 368; 1964, c. 375; 1974, c. 189; 1975, c. 304; 1976, c. 362; 1980,c. 161; 1982, c. 394; 1983, c. 234; 1986, c. 630; 1988, c. 865; 1989, cc. 15,148, 727; 1992, cc. 134, 148, 572; 1993, c. 124; 1994, c. 888; 1995, cc. 767,816; 1996, c. 1053; 1997, cc. 801, 848; 1999, cc. 77, 910; 2004, cc. 111,788; 2005, c. 456; 2006, c. 441.)