2006 Code of Virginia § 46.2-1993 - Definitions

46.2-1993. Definitions.

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

"All-terrain vehicle" shall have the meaning ascribed in 46.2-100.

"Certificate of origin" means the document provided by the manufacturer ofa new motorcycle, or its distributor, which is the only valid indication ofownership between the manufacturer, its distributor, its franchisedmotorcycle 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 sells or distributes new motorcyclespursuant to a written agreement with the manufacturer, to franchisedmotorcycle dealers in the Commonwealth.

"Distributor branch" means a branch office maintained by a distributor forthe sale of motorcycles to motorcycle dealers or for directing orsupervising, in whole or in part, its representatives in the Commonwealth.

"Distributor representative" means a person employed by a distributor or bya distributor branch, for the purpose of making or promoting the sale ofmotorcycles or for supervising or contacting its dealers, prospectivedealers, or representatives in the Commonwealth.

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

"Factory representative" means a person employed by a person whomanufactures or assembles motorcycles, or by a factory branch for the purposeof making or promoting the sale of its motorcycles, or for supervising orcontacting its dealers, prospective dealers, or representatives in theCommonwealth.

"Factory repurchase motorcycle" means a motorcycle sold, leased, rented,consigned, or otherwise transferred to a person under an agreement that themotorcycle will be resold or otherwise retransferred only to the manufactureror distributor of the motorcycle, and which is reacquired by the manufactureror 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.

"Farm utility vehicle" shall have the meaning ascribed in 46.2-100.

"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 motorcycles of a particular line-make or late model or factoryrepurchase motorcycles of a particular line-make manufactured or distributedby the grantor of the right, the franchisor, and where the operation of thefranchisee's business is substantially associated with the franchisor'strademark, trade name, advertising, or other commercial symbol designatingthe franchisor, the motorcycle or its manufacturer or distributor. The termshall include any severable part or parts of a franchise agreement whichseparately provides for selling and servicing different line-makes of thefranchisor.

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

"Franchised motorcycle dealer" or "franchised dealer" means a dealer innew motorcycles that has a franchise agreement with a manufacturer ordistributor of new motorcycles.

"Independent motorcycle dealer" means a dealer in used motorcycles.

"Late model motorcycle" means a motorcycle of the current model year andthe immediately preceding model year.

"Line-make" means the name of the motorcycle manufacturer or distributorand a brand or name plate marketed by the manufacturer or distributor. Forthe purposes of this chapter, the "line-make" of a motorcycle manufacturer,factory branch, distributor, or distributor branch shall include every brandof all-terrain vehicle and off-road motorcycle manufactured or distributedbearing the name of the motorcycle manufacturer or distributor.

"Manufacturer" means a person engaged in the business of constructing orassembling new motorcycles.

"Motorcycle" means every motor vehicle designed to travel on not more thanthree wheels in contact with the ground, except any vehicle included withinthe term "farm vehicle" or "moped" as defined in 46.2-100. Except asotherwise provided in this chapter, for the purposes of this chapter"all-terrain vehicles" and "off-road motorcycles" shall be deemed to be"motorcycles."

"Motorcycle 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 motorcycles,new and used motorcycles, or used motorcycles alone, whether or not themotorcycles are owned by him;

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

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

The term "motorcycle 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 motorcycles to others when selling or offering such motorcyclesfor sale at retail, disposing of motorcycles acquired for their own use andactually so used, when the motorcycles have been so acquired and used in goodfaith and not for the purpose of avoiding the provisions of this chapter.

4. Any financial institution chartered or authorized to do business under thelaws of the Commonwealth or the United States which may have received titleto a motorcycle 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 themotorcycle.

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

6. Any person who permits the operation of a motorcycle show or permits thedisplay of motorcycles for sale by any motorcycle dealer licensed under thischapter.

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

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

9. 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 motorcycle dealer.

"Motorcycle salesperson" or "salesperson" means any person who islicensed as and employed as a salesperson by a motorcycle dealer to sell orexchange motorcycles.

"Motorcycle show" means a display of motorcycles to the general public at alocation other than a dealer's location licensed under this chapter where themotorcycles are not being offered for sale or exchange during or as part ofthe display.

"New motorcycle" means any motorcycle 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 motorcycle, 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 motorcycle 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 federalmotorcycle safety and emission standards. Notwithstanding provisions (i) and(iii), a motorcycle that has been previously sold but not titled shall bedeemed a new motorcycle if it meets the requirements of provisions (ii),(iv), and (v).

"Off-road motorcycle" shall have the meaning ascribed in 46.2-100.

"Original license" means a motorcycle dealer license issued to an applicantwho has never been licensed as a motorcycle dealer in Virginia or whoseVirginia motorcycle dealer license has been expired for more than 30 days.

"Relevant market area" means as follows:

1. In metropolitan localities with populations of 250,000 or more, therelevant market area shall be a circular area around an existing franchiseddealer not to exceed a radius of 10 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 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 motorcycles to abuyer for his use and not for resale, in which the price of the motorcycle 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 motorcycle to abuyer for his personal use and not for resale.

"Sale at wholesale" or "wholesale" means a sale to motorcycle dealers orwholesalers other than to consumers, or a sale to one who intends to resell.

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

"Wholesale auction" means an auction of motorcycles restricted to sales atwholesale.

(1996, cc. 1043, 1052; 1997, cc. 801, 848; 2003, c. 334; 2006, c. 896.)