T49CH16

Title 49 > T49CH16

Sections (46)

49-1601

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1601. Unlicensed dealers and salesmen prohibited. It shall be unlawful for any person to act as a dealer or salesman, wholesaler, manufacturer of vehicles or a manufacturer, distributor, factory branch, or distributor branch representative, without first having procured a license from the department. It shall be unlawful for any person other than a licensed dealer to display a vehicle for sale unless the title is in the name of the displayer. It shall be unlawful to solicit sales of vehicles without a dealer’s license, unless the title is in the name of the seller. The provisions of this section shall not apply to the sale or solicitation of specialty vehicles to governmental entities within the state. Specialty vehicles shall be defined as fire trucks, fire engines, urban transit buses, ambulances, street sweepers and hazardous material response vehicles. History: [49-1601, added 1988, ch. 265, sec. 374, p. 758; am. 1993, ch. 230, sec. 1, p. 803.]

49-1601A

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1601A. LEGISLATIVE FINDINGS AND INTENT. (1) The legislature finds that the distribution and sale of motor vehicles within this state vitally affects the general economy of the state, the public interest, and the public welfare. (2) In order to promote the public interest and the public welfare and in the exercise of the state’s police power, it is necessary to regulate motor vehicle manufacturers, distributors, and factory or distributor representatives and to regulate dealers of motor vehicles doing business in this state in order to prevent frauds, impositions, and other abuses on its citizens and to protect and preserve the investments and properties of the citizens of this state. (3) The provisions of this chapter shall be construed and applied to accomplish the purposes provided for in this section. History: [49-1601A, added 2024, ch. 213, sec. 1, p. 750.]

49-1602

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1602. Administration — Powers and duties. The department shall: (1) Issue, and for reasonable cause shown, refuse to issue an applicant any license authorized under the provisions of this chapter. The department may refuse to issue all license types to any applicant, other than a partnership or corporation, if the applicant fails to comply with the terms and provisions of this chapter or the rules of the board, or if the applicant has been convicted of a violation of any of the provisions of this chapter, chapter 5, title 49 , Idaho Code, section 49-1418 , Idaho Code, chapter 6, title 48 , Idaho Code, any felony committed in conjunction with a dealership or of any federal odometer law or regulation. Should the applicant be a partnership or a corporation, the department may refuse to issue a license to the applicant where it determines that one (1) or more of the partners of a partnership, or one (1) or more of the stockholders or officers of a corporation, was previously the holder of a license which was revoked or suspended, and the license revoked never reissued or the suspended license never reinstated, or that one (1) or more of the partners, stockholders, or officers, though not previously the holder of a license, has violated any of the provisions of this chapter or of an applicable rule or regulation, or of federal motor vehicle safety standards. (2) For just cause shown, revoke or suspend, on terms, conditions, and for a period of time as the department shall consider fair and just, any license or licenses issued pursuant to the provisions of this chapter. No license shall be revoked or suspended unless it shall be shown that the licensee has violated a provision of this chapter or of an applicable rule or regulation, or of federal motor vehicle safety standards. An Idaho licensed motor vehicle dealer or licensed motor vehicle salesman who is convicted of one (1) or more of the offenses set forth in subsection (1) of this section shall not be eligible to reapply for a motor vehicle dealer’s or salesman’s license until all outstanding customer complaints have been resolved to the department’s satisfaction and for the following time periods from the date of conviction: misdemeanor convictions: three (3) years for the first conviction and seven (7) years for every subsequent conviction; felony convictions: ten (10) years for the first conviction and ten (10) years for every subsequent conviction. The holder of a motor vehicle dealer’s license shall not be eligible to apply for a motor vehicle salesman’s license within the same time periods set forth in this subsection when convicted of one (1) or more of the offenses set forth in subsection (1) of this section. (3) On its own motion, upon the sworn complaint of any person, investigate any suspected or alleged violation by a licensee of any of the provisions of this chapter or of an applicable rule or regulation. (4) Prescri

49-1603

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1603. Dealer advisory board — duties. (1) There shall be a dealer advisory board to consist of eleven (11) members to assist and advise the department in the administration of the provisions of this chapter. Five (5) members shall be appointed from licensed dealers selling new vehicles, four (4) members appointed from licensed dealers selling used vehicles, one (1) member shall be appointed from licensed dealers selling new recreational vehicles and one (1) member shall be appointed to represent new and used motorcycle and ATV dealers. The governor shall appoint the board with consideration to recommendations of the board of directors of the Idaho automobile dealers association, recommendations of the board of directors of the recreational vehicle dealers association of Idaho and recommendations of the independent dealer association representing used vehicle dealers. The term of office of each member shall be three (3) years. Vacancies occurring on the board other than by expiration of the term shall be filled for the unexpired term only, and each member of the board shall serve until his successor is appointed and qualified. Members of the advisory board shall be compensated as provided by section 59-509 (b), Idaho Code, and payments of compensation shall be paid from the state highway account as part of the expenses of administering the provisions of this chapter. A majority of the members of the advisory board shall constitute a quorum, the presence of which at any meeting duly called by the department shall have full and complete power to act upon and resolve in the name of the advisory board any matter, thing or question referred to it by the department, or which by reason of any provisions of this chapter, it has power to determine. (2) The advisory board on the first day of each July, or as soon thereafter as practicable, shall elect a chairman, vice-chairman and secretary from among its members, who shall hold office until their successors are elected. As soon as the board has elected its officers, the secretary shall certify the results of the election to the department. The chairman shall preside at all meetings of the advisory board and the secretary shall make a record of their proceedings. All members of the advisory board shall be entitled to vote on any question, matter, or thing which properly comes before it. History: [49-1603, added 1988, ch. 265, sec. 381, p. 766; am. 1989, ch. 310, sec. 27, p. 799; am. 1991, ch. 272, sec. 7, p. 697; am. 1996, ch. 135, sec. 1, p. 460; am. 2010, ch. 221, sec. 1, p. 494; am. 2013, ch. 136, sec. 1, p. 317.]

49-1604

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1604. Records as evidence. Copies of all records and papers in the office of the director, authenticated under the hand and seal of the director, shall be received in evidence in all cases equally and with like effect as the original. History: [49-1604, added 1988, ch. 265, sec. 377, p. 762.]

49-1605

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1605. Change of franchise status. Should the dealer change to, or add another franchise for the sale of new vehicles, or cancel or, for any cause whatever, otherwise lose a franchise for the sale of new vehicles, he shall immediately notify the department. History: [49-1605, added 1988, ch. 265, sec. 378, p. 763.]

49-1606

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1606. Classes of licenses — Nonresident dealers. Licenses issued under the provisions of this chapter shall be as follows: (1) A dealer’s license shall permit the licensee to engage in the business of selling or exchanging new and used vehicles, new and used motorcycles, motor-driven cycles and motorbikes, new and used all-terrain vehicles, utility type vehicles, snow machines and travel trailers, truck campers, and new and used motor homes. This form of license shall permit licensees who are owners or part owners of the business of the licensee to act as vehicle salesmen. (2) A vehicle salesman’s license shall permit the licensee to engage in the activities of a vehicle salesman. (3) A wholesale dealer’s license shall permit the licensee to engage in the business of wholesaling used vehicles to Idaho vehicle dealers. The holder of this license must meet all the requirements for a principal place of business, except for the requirement of display area and adequate room to repair vehicles. (4) A vehicle manufacturer’s license shall permit the licensee to engage in the business of constructing or assembling vehicles, of the type subject to registration under this title at an established place of business within Idaho. (5) A distributor, factory branch, or distributor branch license shall permit the licensee to engage in the business of selling and distributing vehicles, parts, and accessories to their franchised dealers. (6) A representative (factory branch or distributor, etc.) license shall permit the licensee to engage in the business of contacting his respective authorized dealers, for the purpose of making or promoting the sale of his, its, or their vehicles, parts, and accessories. (7) Pending the satisfaction of the department that the applicant has met the requirements for licensure, it may issue a temporary permit to any applicant for a license. A temporary permit shall not exceed a period of ninety (90) days while the department is completing its investigation and determination of facts relative to the qualifications of the applicant for a license. A temporary permit shall terminate when the applicant’s license has been issued or refused. (8) The department may issue a probationary vehicle salesman’s license, subject to conditions to be observed in the exercise of the privilege granted either upon application for issuance of a license or upon application for renewal of a license. The conditions to be attached to the exercise of the privilege shall not appear on the face of the license but shall, in the judgment of the department, be in the public interest and suitable to the qualifications of the applicant as disclosed by the application and investigation by the department. (9) A nonresident dealer who is currently authorized to do business as, and has an established place of business as a vehicle dealer in another state, is not subject to licensure under the provisions

49-1607

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1607. Fees — Funds — Expenses — Expiration of licenses. (1) The department shall collect with each application for licensure the following fees: (a) Dealer’s, wholesale dealer’s and vehicle manufacturer’s license, initial application, two hundred dollars ( $200) . T e n d o ll a rs ($ 10.00) of such fee shall be either retained by the department or authorized agent, if collected and processed by the department or authorized agent, or deposited in the county current expense fund. Renewal application, one hundred seventy-five dollars ( $175) . (b) V e hi c l es a l es man ’ s l i ce n se, t hi r t y - s i x d o ll a rs ($ 36.00). Ten dollars ( $10.00) o f s u c h f ees ha ll b ee i t h erre t ain e d b y t h e d e p a r t m e n t or a u t h or i ze d a g e n t, i f co ll ec t e d an d p rocesse d b y t h e d e p a r t m e n t or a u t h or i ze d a g e n t, or d e p os i t e d in t h eco u n t yc u rre n t e x p e n se f u n d . (c) D i s t r ib u t or - f a c t ory b r an c h - d i s t r ib u t or b r an c h l i ce n se, o n e h u n d re d se v e n t y - f i v e d o ll a rs ($ 175). (d) Representative’s license, forty-four dollars ( $44.00) . (e) T ore i ss u e a l i ce n se, s a l es manan dd e a l er i d e n t i f i c a t i o n c a r d soro t h er l i ce n s in g d oc u m e n t s a t a d e a l er ’ sre q u es t, n o t res u lt in g f ro man error b y t h e d e p a r t m e n t, a f eeo f e i g h t ee n d o ll a rs ($ 18.00) per document. (f) Supplemental lot license or relocated principal place of business, and temporary supplemental lot, forty-four dollars ( $44.00) f or l i ce n se i ss u e d t o a s in g l e d e a l er . A f eeo f e i g h t y - e i g h t d o ll a rs ($ 88.00) for a license issued to a group of dealers for a temporary supplemental lot. (2) All fees shall be paid over to the state treasurer for credit to the state highway account, out of which shall be paid the expenses of the department and the expenses incurred in enforcing the provisions of this chapter. (3) Dealer licenses, if not suspended or revoked, may be renewed from year to year upon the payment of the fees specified in this section to accompany applications, and renewals shall be made in accordance with the provisions of section 49-1634 , Idaho Code. (a) There shall be twelve (12) licensing periods, starting with January and ending in December. A dealer’s license shall be in effect from the month of initial licensing through the last day of the next year’s calendar month that precedes the month of the initial licensing. (b) Any renewal license application received or postmarked after thirty (30) days from the end of the previous year’s license period shall be processed as an initial application and initial fees shall be paid. (4) Salesman licenses, if not suspended or revoked, shall be valid for three (3) years from the date of issue and may be renewed upon application and payment of the fees specified in this section provided that: (a) Employment remains with the sponsoring dealership; and (b) The sponsoring dealership has a valid license issued by the department. History: [49-1607, added 1988, ch. 265, sec. 380, p. 765; am. 1991, ch. 272, sec. 9, p. 698; am. 1993, ch. 297, sec. 1, p. 1095; am. 1998, ch. 392

49-1608

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1608. License bond. (1) Before any dealer’s license shall be issued by the department to any applicant, the applicant shall procure and file with the department good and sufficient bond in the amount shown, conditioned that the applicant shall not practice any fraud, make any fraudulent representation or violate any of the provisions of this chapter, rules of the department, or the provisions of chapter 5, title 49 , section 49-1418 , or chapter 6, title 48 , Idaho Code, or federal motor vehicle safety standards, or odometer fraud in the conduct of the business for which he is licensed. (a) A dealer exclusively in the business of motorcycle, motor-driven cycle and motorbike sales, all-terrain vehicles, utility type vehicles, truck campers and snow machine sales, ten thousand dollars ( $10, 000) . (b) A n y w h o l es a l e d e a l er in t h e b u s in esso f w h o l es a l in gu se d v e hi c l eso f a llt y p es, f or t y t h o u s an dd o ll a rs ($ 40,000). Such wholesale dealer licensees shall be exempt from participating in the Idaho consumer asset recovery fund as provided in sections 49-1608B through 49-1608F , Idaho Code. (c) All other dealers, twenty thousand dollars ($20,000). (2) The bond required in this section may be continuous in form and the total aggregate liability on the bond shall be limited to the payment of the amounts set forth in this section. The bond shall be in the following form: (a) A corporate surety bond, by a surety licensed to do business in this state; or (b) A certificate of deposit, in a form prescribed by the director; or (c) A cash deposit with the director. (3) If a bond is canceled or otherwise becomes invalid, upon receiving notice of the cancellation or invalidity, the department shall immediately suspend the dealer’s license and take possession of the license itself, all vehicle plates used in the business and all unused title applications of the licensee. The licensee is entitled to a hearing which shall be held within twenty (20) days of the suspension. Upon receiving notice that a valid bond is in force, the department shall immediately reinstate the license. (4) The bond requirements of this section shall be satisfied if the applicant is a duly licensed manufactured home dealer in accordance with chapter 21, title 44 , Idaho Code, and the bond required by section 44-2103 , Idaho Code, otherwise meets the requirements of this section. The amount of the bond shall be in the amount as required in this section or that required in section 44-2103 , Idaho Code, whichever is greater. The applicant shall furnish a certified copy of the bond as required in section 44-2103 , Idaho Code, to the department. History: [(49-1608) 49-2409, added 1978, ch. 243, sec. 5, p. 530; am. 1979, ch. 187, sec. 2, p. 548; am. 1982, ch. 95, sec. 112, p. 257; am. 1985, ch. 117, sec. 11, p. 260; am. 1987, ch. 109, sec. 1, p. 221; am. 1988, ch. 140, sec. 1, p. 253; am. and redesig. 1988, ch. 265, sec. 381, p. 766;

49-1608A

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1608A. Dealer and manufacturer liability insurance. Every dealer and vehicle manufacturer shall, as a condition of issuance or renewal of a dealer or vehicle manufacturer license by the department, continuously provide insurance against loss resulting from liability imposed by law for bodily injury or death or damage to property suffered by any person arising out of the ownership, maintenance or use of vehicles owned by or under the control of the licensee and used in conduct of the business of the dealer or vehicle manufacturer. Such insurance shall be in an amount not less than twenty-five thousand dollars ( $25, 000) b ec a u seo f b o d i l y inj u ry t oor d e a t h o f o n e (1) p erso ninan yo n e (1) a cc i d e n t an d, s u bj ec tt o t h e l imi t f oro n e (1) p erso n, in t h e am o u n t o ff i f t y t h o u s an dd o ll a rs ($ 50,000) because of bodily injury to or death of two (2) or more persons in any one (1) accident, and in the amount of fifteen thousand dollars ($15,000) because of injury to or destruction of property of others in any one (1) accident. The applicant for a dealer or vehicle manufacturer license shall maintain on file with the department a certificate of liability insurance, issued by an insurance or surety company authorized to do business in this state or by an authorized agent of such company, in such form as may be prescribed by the director of the department of insurance as set forth in section 49-1231 , Idaho Code. History: [49-1608A, added 2006, ch. 208, sec. 1, p. 637.]

49-1608B

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1608B. Idaho consumer asset recovery fund established — Expenditures authorized. (1) There is hereby created in the state treasury an account to be known as the Idaho consumer asset recovery fund (ICAR), hereinafter referred to as the fund. Moneys in the fund are hereby continuously appropriated to the department and shall be used exclusively to satisfy unpaid judgments as provided for in section 49-1608C , Idaho Code. The fund shall consist of moneys appropriated by the legislature and other moneys as provided for in law. All interest earned on investment by the department of moneys in the fund shall be returned to the fund. (2) Except as provided for in subsection (3) of this section, moneys paid out of the fund shall be known as expenditures and shall be limited to awards based upon claims or final judgments of fraud, fraudulent representation or any violation of: provisions of this chapter; provisions of chapter 6, title 48 , Idaho Code; provisions of chapter 5, title 49 , Idaho Code; provisions of section 49-1418 , Idaho Code; or provisions of federal motor vehicle safety standards or odometer fraud as provided for in this chapter. All expenditures from the fund by the board pursuant to the provisions of this act, including expenditures provided for in subsection (3) of this section, shall be paid out on warrants drawn by the department upon presentation of proper vouchers approved by the Idaho consumer asset recovery control board as established in section 49-1608C , Idaho Code. (3) Notwithstanding any other provision of this act, no expenditures shall be made from the fund until the fund has accumulated one (1) full year of fees. When the fund reaches or exceeds two million dollars ($2,000,000), the fee provided for in section 49-1608C , Idaho Code, shall be temporarily suspended upon approval of the Idaho consumer asset recovery control board. (4) Claims made against a dealer with an existing bond, pursuant to section 49-1608 , Idaho Code, shall first be paid by the bond before claims may be approved for payment by the board from the fund. From July 1, 2013, through June 30, 2014, all dealers shall be required to maintain the surety bond required pursuant to the provisions of 49-1608 , Idaho Code. History: [49-1608B, added 2013, ch. 136, sec. 2, p. 318.]

49-1608C

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1608C. creation of board and fees. (1) The Idaho consumer asset recovery fund (ICAR) shall be administered by the Idaho consumer asset recovery control board, hereinafter referred to as the board. The board shall be comprised of the director of the Idaho transportation department or his designee and the dealer advisory board or their designee(s), as established by section 49-1603 , Idaho Code. (2) In addition to fees authorized pursuant to section 49-1607 , Idaho Code, and in addition to any fees authorized elsewhere in this chapter, the Idaho consumer asset recovery control board shall establish a fee to be collected from each applicant for a new or renewing license issued pursuant to this chapter. The fee provided for in this section shall be charged for each applicant for a motor vehicle dealer’s license and the amount of such fee shall be set annually by the board. In setting the amount of the fee, the board shall take into consideration the balance of the fund and expenditures of moneys from the fund by all required participants. All fees collected pursuant to the provisions of this section shall be paid into the Idaho consumer asset recovery fund as established in section 49-1608B , Idaho Code. The department shall maintain an accurate record of all transactions involving the fund and report to the board at each meeting. History: [49-1608C, added 2013, ch. 136, sec. 3, p. 319.]

49-1608D

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1608D. new applicants and suspension of fees. In addition to the fees collected pursuant to section 49-1608C , Idaho Code, applicants for an initial motor vehicle dealer’s license shall maintain a license bond pursuant to section 49-1608 , Idaho Code, for three (3) consecutive years. If the fee has been temporarily suspended pursuant to section 49-1608B (3), Idaho Code, the new dealer shall pay the last set fee into the fund during the initial three (3) year licensing period. Only those renewing licensees who have not been the subject of a claim against their bond or against the fund for three (3) consecutive years shall be exempt from the requirement to maintain such bond as required pursuant to the provisions of section 49-1608 , Idaho Code. History: [49-1608D, added 2013, ch. 136, sec. 4, p. 319.]

49-1608E

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1608E. submission of claims. (1) Except as otherwise provided in this section, whenever any person is awarded a final judgment certified in a court of competent jurisdiction in the state of Idaho for: (a) Any actual loss or damage in connection with the purchase or lease of a motor vehicle by reason of any fraud practiced on him or fraudulent representation made to him by a licensed motor vehicle dealer; or (b) Any actual loss or damage by reason of a violation by a dealer of any of the provisions of chapter 6, title 48 , Idaho Code, chapter 5, title 49 , Idaho Code, or section 49-1418 , Idaho Code, in connection with the purchase or lease of a motor vehicle on or after July 1, 2014, the judgment creditor may file a verified claim with the board requesting payment from the fund of the amount unpaid on the judgment subject to the following conditions: (i) Unless the judgment has been appealed, the claim shall be filed with the department, acting on behalf of the board, no sooner than forty-five (45) days and no later than one (1) year after the judgment becomes final. (ii) The board shall not consider claims submitted by motor vehicle dealers, financial institutions or institutions providing floorplans for motor vehicle dealers. (2) To be eligible to receive any payment from the fund, any action instituted by a person against a licensee that may become a claim against the fund shall be served to the board in a manner consistent with the provisions of section 48-613 , Idaho Code. History: [49-1608E, added 2013, ch. 136, sec. 5, p. 319.]

49-1608F

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1608F. payment of claims — maximum. (1) The maximum claim of one (1) judgment creditor against the fund, based on an unpaid certified judgment arising out of any loss or damage by reason of a claim submitted pursuant to section 49-1608E , Idaho Code, involving a single transaction, shall be limited to fifty thousand dollars ( $50, 000), re g a r d l esso f t h e am o u n t o f t h e u n p ai d cer t i f i e df ina l j u d g m e n t o f o n e (1) j u d g m e n t cre d i t or . (2) T h e a gg re g a t eo f c l aim s a g ain s tt h e f u n d ba se d o n u n p ai df ina l j u d g m e n t s a r i s in g o u t o f an y l ossor d ama g e b yre a so n o f a c l aim s u bmi tt e d p u rs u an tt osec t i o n 49 - 1608 E, I d ah o C o d e, in v o l v in g m ore t han o n e (1) t r an s a c t i o n s ha ll b e l imi t e d t oo n e h u n d re d tw e n t y t h o u s an dd o ll a rs ($ 120,000) per licensee, regardless of the total amounts of the unpaid certified judgments of judgment creditors. (3) If a claim has been made against the fund, and the board has reason to believe that there may be additional claims against the fund from other transactions involving the same licensee, the board may withhold any payment from the fund involving the licensee for a period not to exceed the end of the relevant license period. After this period, if the aggregate of claims against the licensee exceeds one hundred twenty thousand dollars ( $120, 000), a t o t a l o f o n e h u n d re d tw e n t y t h o u s an dd o ll a rs ($ 120,000) shall be prorated among the claimants and paid from the fund in proportion to the amounts of their unpaid certified judgments against the licensee. (4) (a) Claims against motor vehicle dealers or their salespersons participating in the Idaho consumer asset recovery fund pursuant to section 49-1608E , Idaho Code, shall be prorated when the aggregate exceeds one hundred twenty thousand dollars ( $120, 000) a g ain s t o n e (1) d e a l er . (b) Cl aim ss ha ll b e p ror a t e d o n l y a f t er t h e d e a l er ’ s tw e n t y t h o u s an dd o ll a r ($ 20,000) bond has been exhausted and utilized first. Such additional claims shall be prorated when the aggregate exceeds one hundred thousand dollars ($100,000) against one (1) dealer. (5) Upon receipt of a certified judgment filed in support of a claim against the fund, the board shall send written notice to the licensee who is the subject of the unpaid judgment that a claim has been filed and that the licensee should satisfy the unpaid judgment. If the unpaid judgment is not fully satisfied within thirty (30) days following the date of the written notice by the board, the board shall make payment from the fund subject to the other limitations provided for in this act. (6) If at any time the fund is insufficient to fully satisfy any claims or claim filed with the board and authorized by this act, the board shall pay such claim, claims or portion thereof to the claimants in the order that the claims were filed with the board. (7) On payment by the board to a claimant from the fund, the board shall, within five (5) business days, notify the licensee in writing of the board’

49-1609

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1609. Manufacturer or dealer to give notice of sale or transfer. Every manufacturer or dealer, upon transferring a vehicle, whether by sale, lease or otherwise, to any person other than a manufacturer or dealer, shall within thirty (30) calendar days, give written notice of the transfer to the department or the assessor upon the official form provided by the department. Every notice shall contain the date of transfer, the time of transfer, the names and addresses of the transferor and transferee, any liens, a current odometer reading and a description of the vehicle as may be called for in the official form. History: [49-1609, added 1988, ch. 265, sec. 382, p. 767; am. 1989, ch. 35, sec. 3, p. 47; am. 1991, ch. 272, sec. 11, p. 700.]

49-1609A

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1609A. Satisfaction of liens prior to resale of vehicle. (1) When a motor vehicle dealer licensed pursuant to this chapter takes possession of a vehicle for purposes of resale, the dealer shall have ten (10) business days from the date of possession to satisfy in full any and all lienholders who are perfected at the time of taking possession, unless the owner relinquishing possession of the vehicle agrees in writing to directly pay the perfected lienholder. (2) No such vehicle shall be resold or transferred to any retail purchaser until all perfected liens have been satisfied in full. (3) It shall be a misdemeanor punishable as provided in section 49-236 , Idaho Code, for any person or licensee to violate the provisions of this section. History: [49-1609A, added 2001, ch. 190, sec. 1, p. 653.]

49-1610

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1610. Right of action for loss by fraud — Process. (1) If any person shall suffer any loss or damage by reason of any fraud practiced on him or fraudulent representation made to him by a licensed dealer or one (1) of the dealer’s salesmen acting for the dealer, in his behalf or within the scope of the employment of salesman, or shall suffer any loss or damage by reason of the violation by the dealer or salesman of any of the provisions of this chapter, or chapter 5, title 49 , Idaho Code, or section 49-1418 , Idaho Code, or chapter 6, title 48 , Idaho Code, or any applicable rule or regulation of the board, or federal odometer law or regulation, that person shall have a right of action against the dealer and his salesman. (2) Notwithstanding the terms, provisions or conditions of any agreement or franchise, or other terms or provisions of any novation, waiver or other written instrument, any person who is or may be injured by a violation of a provision of this chapter, or any party to a franchise who is so injured in his business or property by a violation of a provision of this chapter relating to that franchise, or any person so injured because he refuses to accede to a proposal for an arrangement which, if consummated, would be in violation of the provisions of this chapter, may bring an action for damages and equitable relief, including injunctive relief. (3) A license or a renewal shall not be issued to any applicant unless and until the applicant shall file with the director a good and sufficient instrument in writing in which he shall appoint the director as the true and lawful agent of the applicant upon whom all process may be served in any action or actions which may subsequently be commenced against the applicant arising out of any claim for damages suffered by any person by reason of the violation of the applicant of any of the terms and provisions of this chapter or provisions of chapter 5, title 49 , section 49-1418 , or chapter 6, title 48 , Idaho Code, or of federal motor vehicle safety standards, or federal odometer laws and regulations. The applicant shall stipulate and agree in the appointment that any process directed to the applicant in such a case which is served upon the director, or in his absence his designee, shall be of the same legal force and effect as if served upon the applicant personally. The applicant shall further stipulate and agree in writing that the agency created by the appointment shall continue for and during the period covered by any license that may be issued and so long thereafter as the applicant may be made to answer in damages for a violation of the provisions of this chapter. The instrument appointing the director as agent for the applicant for service of process shall be acknowledged by the applicant before an officer authorized to take and certify acknowledgments under the laws of this state. In any case wherein the licensee be

49-1611

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1611. Display, form and custody of dealer’s and salesman’s license. The department shall prescribe each form of the vehicle dealer’s and salesman’s license. It shall be the duty of each dealer to display conspicuously his own license in his place of business. The department shall prepare and deliver a pocket identification card, which shall certify that the person whose name appears on the card is a licensed vehicle dealer or vehicle salesman, as the case may be, and each vehicle dealer’s or vehicle salesman’s card shall contain a current photograph of the applicant and the date of expiration of the license. Each and every vehicle dealer and vehicle salesman shall, upon request, display his card. History: [49-1611, added 1988, ch. 265, sec. 384, p. 768; am. 1991, ch. 272, sec. 13, p. 703; am. 1993, ch. 297, sec. 2, p. 1096; am. 1998, ch. 392, sec. 22, p. 1228.]

49-1612

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1612. Notice of change of address. (1) The department shall not issue a dealer’s license to any applicant who does not have a principal place of business. Should the dealer change the site or location of his principal place of business, he shall immediately upon making the change notify the department, and a new license shall be granted for the unexpired portion of the term of the license, providing the new location meets all the requirements for a principal place of business. Should a dealer cease to be in possession of a principal place of business from and on which he conducts the business for which he is licensed, he shall immediately notify the department and upon demand by the department shall deliver the dealer’s license, which shall be held and retained until it shall be made to appear to the department that the licensee has again come into possession of a principal place of business, whereupon the dealer’s license shall be reissued to him, without charge. Nothing in the provisions of this chapter shall be construed to prevent a dealer from conducting the business for which the dealer is licensed at one (1) or more licensed supplemental lots or locations not contiguous to the dealer’s principal place of business but operated and maintained in conjunction with it. (2) The department shall not issue a vehicle manufacturer’s license to any applicant who does not have an established place of business within Idaho. Should the vehicle manufacturer change his established place of business within Idaho, the licensee shall immediately upon making the change, notify the department of the location and address of the new established place of business, and a new license shall be granted for the unexpired portion of the term of the license. History: [49-1612, added 1988, ch. 265, sec. 385, p. 768; am. 2006, ch. 108, sec. 1, p. 301.]

49-1613

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1613. Unlawful acts by licensee. (1) It shall be unlawful for the holder of any license issued under the provisions of this chapter to: (a) Intentionally publish or circulate any advertising that is misleading or inaccurate in any material particular or that misrepresents any of the products sold or furnished by a licensed dealer; (b) Violate any of the provisions of this chapter or any of the applicable rules; (c) Knowingly purchase, sell or otherwise acquire or dispose of a stolen vehicle; (d) Violate any law respecting commerce in vehicles or any lawful rule respecting commerce in vehicles promulgated by any licensing or regulating authority now existing or hereafter created by the laws of the state; (e) Engage in the business for which the dealer is licensed without at all times maintaining a principal place of business; (f) Engage in a type of business respecting the selling or exchanging of vehicles for which he is not licensed; (g) Knowingly purchase a vehicle that has an altered or removed vehicle identification number plate or alter or remove a vehicle identification number plate; (h) Violate any provision of this title or any rules promulgated; (i) Violate any provision of the federal motor vehicle safety standards, federal odometer laws or regulations; (j) Display for sale, exchange, or sell any vehicle for which the vehicle dealer does not hold title or consignment agreement or other documentary evidence of his right to the possession of every vehicle in his possession; or (k) Issue more than one (1) temporary permit per vehicle sale pursuant to the provisions set forth in section 49-504 (6), Idaho Code. (2) It shall be unlawful for any manufacturer or distributor licensed under this chapter to require, attempt to require, coerce, or attempt to coerce, any new vehicle dealer in this state to: (a) Order or accept delivery of any new vehicle, part or accessory, equipment or any other commodity not required by law that shall not have been voluntarily ordered by the new vehicle dealer. This paragraph is not intended to modify or supersede any terms or provisions of a franchise requiring dealers to market a representative line of vehicles that the manufacturer or distributor is publicly advertising. (b) Order or accept delivery of any new vehicle with special features, accessories or equipment not included in the list price of such vehicles as publicly advertised by the manufacturer or distributor. (c) Participate monetarily in an advertising campaign or contest, or to purchase any promotional materials, training materials, showroom or other display decorations or materials at the expense of the dealer. (d) Enter into any agreement with the manufacturer or distributor or to do any other act prejudicial to the dealer by threatening to terminate or cancel a franchise or any contractual agreement existing between the dealer and the manufacturer or distributor. This paragraph

49-1614

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1614. Termination, cancellation or nonrenewal. (1) Notwithstanding the terms, provisions or conditions of any franchise agreement, or any waiver, a manufacturer shall not cancel, terminate or fail to renew any franchise agreement with a dealer unless the manufacturer has satisfied the notice requirement of subsection (2) of this section and has good cause for cancellation, termination or nonrenewal. (2) Notwithstanding the terms, provisions or conditions of any franchise agreement prior to the termination, cancellation or nonrenewal of any franchise agreement, the manufacturer shall furnish notification of termination, cancellation or nonrenewal to the department and the dealer: (a) In the manner described in subsection (3) of this section; and (b) Not less than ninety (90) days prior to the effective date of termination, cancellation or nonrenewal; or (c) Not less than fifteen (15) days prior to the effective date of termination, cancellation or nonrenewal with respect to any of the following: (i) Insolvency of the dealership or filing of any petition by or against the dealership under any bankruptcy or receivership law; (ii) Failure of the dealership to conduct its customary sales and service operations during its customary business hours for seven (7) consecutive business days, except for acts of God or circumstances beyond the direct control of the dealer; (iii) Conviction of the dealer, or any owner or his operator, resulting in imprisonment exceeding thirty (30) days; (iv) Revocation of any license that the dealer is required to have to operate a dealership; and (d) Not less than one hundred eighty (180) days prior to the effective date of termination or cancellation, where the manufacturer is discontinuing the sale of the product line. (3) Notification under this section shall be in writing, by certified mail or personally delivered to the dealer, and shall contain a statement of intention to terminate, cancel or not to renew the franchise agreement and a statement of the reasons for and the date on which termination, cancellation or nonrenewal takes effect. (4) Notwithstanding the terms, provisions, or conditions of any franchise agreement or of any waiver, good cause for a termination, cancellation, or nonrenewal shall be determined in accordance with the standards set forth in section 49-1617 (5)(a), Idaho Code, provided that the dealer has been notified in writing of the reasons for the intended termination, cancellation, or nonrenewal one hundred eighty (180) days prior to termination, cancellation, or nonrenewal. A protest may be filed in accordance with the provisions of section 49-1617 , Idaho Code. (5) Notwithstanding the terms, provisions, or conditions of any franchise agreement, the factors set forth in section 49-1617 (5)(b), Idaho Code, do not constitute good cause for a termination, cancellation, or nonrenewal of a franchise agreement. (6) The manufacturer

49-1615

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1615. Succession to ownership. Notwithstanding the terms, provisions or conditions of any franchise: (1) A licensee may appoint by will, or any other written instrument, a designated family member to succeed in the ownership interest in the dealership. (2) Unless there exists good cause for refusal to honor succession on the part of the manufacturer, any designated family member of a deceased or incapacitated owner of a dealership may succeed to the ownership under the existing franchise, provided the designated family member gives the manufacturer written notice of his intention to succeed to the ownership of the dealership within one hundred twenty (120) days of the owner’s death or incapacity, and the designated family member agrees to be bound by all the terms and conditions of the franchise. (3) The manufacturer may request, and the designated family member shall provide, promptly upon request, personal and financial data that is reasonably necessary to determine whether the succession should be honored. (4) If a manufacturer believes that good cause exists for refusing to honor the succession to the ownership of a dealership by a family member of a deceased or incapacitated owner of a dealership under the existing franchise agreement, the manufacturer may, not more than sixty (60) days following receipt of notice of the designated family member’s intent to succeed to the ownership of the dealership, or any personal or financial data which it has requested, serve upon the designated family member and the department, notice of its refusal to honor the succession and of its intent to discontinue the existing franchise with the dealer no sooner than ninety (90) days from the date notice is served. The notice must state the specific grounds for a refusal to honor the succession. A protest may be filed in accordance with the provisions of section 49-1617 , Idaho Code. (5) If notice of refusal and discontinuance is not timely served upon the family member, the franchise shall continue in effect subject to termination only as otherwise permitted under this chapter. (6) This chapter does not preclude the owner of a dealership from designating any person as his successor by written instrument filed with the manufacturer and, in the event there is a conflict between that written instrument and the provisions of this section, and that written instrument has not been revoked by the owner of the dealership, in writing, to the manufacturer, then the written instrument shall govern. History: [49-1615, added 1988, ch. 265, sec. 388, p. 777.]

49-1616

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1616. Limitations on establishing or relocating dealers. (1) In the event that a manufacturer seeks to enter into a franchise establishing an additional dealership or relocating an existing dealership within a radius of ten (10) miles from where the same line is represented, the manufacturer shall in writing, first notify the department and each dealer for the line within the ten (10) mile radius, at least sixty (60) days prior to the addition or relocation, of the intention to establish an additional dealership or to relocate an existing dealership within the ten (10) mile radius. (2) This section shall not apply to the relocation of an existing dealer within that dealer’s relevant market area, provided that the relocation not be at a site within a radius of seven (7) miles of a licensed franchise for the same line make of vehicle, or if the proposed franchise is to be established at or within a radius of two (2) miles of a location at which a former franchise for the same line make of new vehicle had ceased operating within the previous two (2) years. If the seven (7) and two (2) mile exceptions are not applicable, the relocation may still be possible upon notice and resolution of protest under subsections (1) and (3) of this section. (3) A protest may be filed in accordance with the provisions of section 49-1617 , Idaho Code. History: [49-1616, added 1988, ch. 265, sec. 389, p. 778; am. 2000, ch. 184, sec. 1, p. 454.]

49-1617

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1617. Protests — Hearings — Costs. (1) Within twenty (20) days of the completion of mediation, a dealer may file with the department to protest: (a) The termination, cancellation, or nonrenewal of a franchise; (b) The establishment or relocation of a dealership; (c) A refusal to honor the appointment of a designated family member pursuant to section 49-1615 , Idaho Code; (d) A refusal to honor a proposed modification of a dealer sales and service agreement; or (e) For the resolution of any other dispute between a manufacturer or distributor and a new vehicle dealer alleged to arise from a violation of Idaho law. (2) When a protest is filed, the department shall inform the manufacturer or distributor that a timely protest has been filed and the manufacturer or distributor shall have twenty (20) days to respond to the protest. (3) All costs of the department, including the cost of the hearing officer and the cost of preparing the record, shall be apportioned by the hearing officer. The hearing officer may in his discretion award costs to the prevailing party. A dealer suffering pecuniary loss because of a violation of this chapter, upon prevailing in a protest action for such violation, shall be entitled to costs and reasonable attorney’s fees to be determined by the hearing officer. In the event of a willful violation, a dealer shall be entitled to damages equal to three (3) times the pecuniary loss suffered to be awarded by the hearing officer or by the court. (4) The office of administrative hearings shall appoint a hearing officer to preside over and conduct the protest as a contested case hearing under the provisions of chapter 52, title 67 , Idaho Code. In such a hearing: (a) The manufacturer or distributor has the burden of proof to establish good cause as provided in subsection (5) of this section. This shall include but not be limited to termination, cancellation, or nonrenewal of any franchise agreement by the manufacturer or distributor for insolvency, license revocation, conviction of a felony, fraud by a dealer, or failure by a dealer to comply with a provision of the franchise agreement where the provision is both reasonable and of material significance to the franchise agreement relationship. (b) The rules of evidence for a protest hearing are the same as those found in chapter 52, title 67 , Idaho Code. (c) The hearing officer may issue subpoenas, administer oaths, and compel the attendance of witnesses and production of books, papers, documents, and all other evidence and may apply to the district court of the county in which the hearing is held for a court order enforcing this section. (d) The hearing shall be conducted pursuant to chapter 52, title 67 , Idaho Code. (e) A transcript of the testimony of each witness taken at the hearing must be made and preserved. (f) Within sixty (60) days after the hearing, the hearing officer shall issue a preliminary order pur

49-1617A

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1617A. MEDIATION of disputes. (1) All disputes between a manufacturer or a distributor and a new vehicle dealer alleging a violation of any provision of this chapter or any other provision of Idaho law are subject to mediation as provided for in this section. A demand for mediation must be served on the adverse party before the filing of the objection, protest, complaint, or petition or the bringing of the action. A demand for mediation must be in writing and served on the adverse party by certified mail, return receipt requested, or by overnight delivery service that provides proof of delivery at an address designated for the party in the records of the complainant. The demand for mediation must contain a brief statement of the dispute and the relief sought by the complainant filing the demand. (2) Within twenty (20) days after the date a demand for mediation is served, the parties shall mutually select an independent mediator and meet with that mediator for the purpose of attempting to resolve the dispute. If the parties are unable to agree on a mediator, a party may apply to a district judge of the district court for the county in which the dealership is located for appointment of a mediator. The meeting place must be within this state in a location selected by the mediator in proximity to the place of business of a party domiciled in this state. The mediator may extend the date of the meeting for good cause shown by either party or on the stipulation of both parties. (3) The service of a demand for mediation under subsection (1) stays the time for the filing of any objection, protest, complaint, or petition with the department or for bringing an action until the representatives of both parties have met with a mutually selected or appointed mediator for the purpose of attempting to resolve the dispute. If an objection, protest, complaint, or petition is filed before the meeting, the department or the court shall enter an order suspending the proceeding or action until the meeting has occurred and may, on the written stipulation of all parties to the proceeding or action that they wish to continue to mediate under this section, enter an order suspending the proceeding or action for as long a period as the department or court considers to be appropriate. A suspension order issued under this subsection may be revoked on motion of any party or on motion of the department or the court. (4) The department shall encourage dealers, manufacturers, and distributors to establish a panel of mediators who have the character, ability, and training to serve as mediators and who have knowledge of the motor vehicle industry. (5) A mediator shall be immune from civil liability for any good faith act or omission within the scope of the mediator’s performance of the mediator’s powers and duties under this chapter. An act or omission of a mediator is presumed to be a good faith act or omission. T

49-1617B

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1617B. Standing to bring an action. (1) The following entities have standing to seek redress for violations of this chapter or of any other provision of Idaho law relating to or affecting the relationship between a manufacturer or a distributor and a new vehicle dealer: (a) A new vehicle dealer; and (b) Any corporation or association that is primarily owned by or composed of new vehicle dealers and that primarily represents the interests of new vehicle dealers if at least one (1) of the corporation or association members would have standing on its own, the interests that the action seeks to protect are germane to the corporation’s or association’s purpose, and the claim asserted or the relief requested does not require the participation of individual members in the action. (2) Entities that have standing pursuant to this section may: (a) File a petition and request the department handle the matter as an administrative proceeding; (b) File a demand for mediation pursuant to section 49-1617A , Idaho Code; or (c) Bring a civil action in a court of competent jurisdiction. (3) An action filed pursuant to this section may seek: (a) Recovery of actual damages; (b) Declaratory or injunctive relief; or (c) Reasonable costs of the suit and attorney’s fees to a prevailing party. History: [49-1617B, added 2023, ch. 122, sec. 5, p. 355.]

49-1618

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1618. Denial or revocation of license requires hearing. (1) Before the department shall refuse to issue to any applicant a license provided for in this chapter, and before revoking or suspending any license, it shall give the applicant or licensee written notice of the action which the department contemplates taking with respect to the application or license, which shall provide that on or before a day certain, not less than twenty (20) days from the date on which written notice shall be served, the applicant or licensee shall show cause, if any, in writing duly verified and filed with the department, why the contemplated action should not be taken. Upon receipt of the written showing, the department shall fix a day certain, not less than fifteen (15) days nor more than thirty (30) days from the date on which it received the showing, when it will hear evidence and argument in support of it. Written notice of the date and place of hearing shall be given to the applicant or licensee, not less than ten (10) days prior to the date fixed for hearing. All hearings shall be held in Ada County, Idaho. A record or tape or other recording device of all proceedings had at the hearing shall be made and preserved, pending final disposition of the matter. (2) Notice to the applicant or licensee that the department contemplates refusing to issue the license applied for or contemplates revoking or suspending a license duly issued by it, shall have attached to it a complete statement of the facts upon which the department bases its contemplated action. In any proceeding under this section, the department shall have the burden of proving that the applicant is not qualified, or that the licensee has violated a provision of this chapter or a rule or regulation of the department. (3) The notices provided to be given to an applicant or a licensee shall be served by the department or its employees delivering the notice to the applicant or licensee personally, or by the department mailing the notice by certified mail to: (a) The applicant for a license at the residence address given in his application for license; (b) A licensed dealer or at the last known address of the principal place of business of the dealer; and (c) A licensed salesman at his last known residence address. (4) The date on which the notice shall be considered to have been served for purposes of computing time shall be the date on which the notice is delivered to the applicant or licensee personally, or the date on which the notice is mailed. (5) The director or his designee shall preside at all hearings and the department shall request the attendance of the advisory board at hearings. At the conclusion of the hearing, the hearing officer shall make written findings of fact and recommendations to the director. The findings of fact shall be conclusive unless clearly erroneous and unsupported by the record. The director shall issue a w

49-1619

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1619. Production of witnesses and documents. In the preparation and conduct of hearings, the department has the power to require the attendance and testimony of any witness, the production of any papers or books, may sign and issue subpoenas, administer oaths and examine witnesses, and take any evidence it considers pertinent to the determination of the matter, and any witnesses so subpoenaed shall be entitled to the same fees and mileage as prescribed by law in judicial proceedings in the district court of this state in civil action, but the payment of fees and mileage must be out of, and kept within the limits of, the funds created from license fees authorized in this chapter. The party against whom the matter may be pending shall have the right to obtain a subpoena from the department for any witnesses he may desire at the hearing, and depositions may be taken as in civil court cases in the district court. Any information obtained from the books and records of the person complained against may not be used against him as the basis for a criminal prosecution under the laws of this state. History: [49-1619, added 1988, ch. 265, sec. 392, p. 782.]

49-1620

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1620. Report of findings. The director shall state in writing his decision after the hearing. If the director determines that an applicant is not qualified to receive a license, no license shall be granted, and if the director determines that a license holder has violated any of the provisions of this chapter or of a rule or regulation promulgated by the department, the director may suspend the license on terms and conditions and for a period of time as to the director appears fair, reasonable and just, or the director may revoke the license. History: [49-1620, added 1988, ch. 265, sec. 393, p. 782.]

49-1621

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1621. Judicial review. Any party to a hearing before the department, or any party to a hearing has the right to judicial review in the district court. Appeals shall be as provided in chapter 52, title 67 , Idaho Code. History: [49-1621, added 1988, ch. 265, sec. 394, p. 782; am. 1993, ch. 216, sec. 49, p. 635.]

49-1622

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1622. Product liability responsibility. A manufacturer must file with the department a copy of the delivery and preparation obligations required to be performed by a dealer prior to the delivery of a new vehicle to a buyer. These delivery and preparation obligations constitute the dealer’s only responsibility for product liability as between the dealer and the manufacturer. Any mechanical, body, or parts defects arising from an express or implied warranty of the manufacturer constitute the manufacturer’s product or warranty liability only, as between the manufacturer and the dealer. The provisions of this section shall not affect the obligation of dealers to perform warranty repair and maintenance as may be required by law or contract. History: [49-1622, added 1988, ch. 265, sec. 395, p. 783.]

49-1623

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1623. Product liability indemnification. Notwithstanding the terms of any franchise agreement, it shall be unlawful for any manufacturer to fail to indemnify and hold harmless its franchised dealers against any judgment or settlement for damages, including court costs and reasonable attorney fees of the dealer, arising out of complaints, claims or lawsuits including strict liability, negligence, misrepresentation, warranty (express or implied), or rescission of the sale, to the extent that the judgment or settlement relates to the alleged defective or negligent manufacture, assembly or design of new vehicles, parts or accessories or other functions by the manufacturer, beyond the control of the dealer. History: [49-1623, added 1988, ch. 265, sec. 396, p. 783.]

49-1624

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1624. Disclosure of damage required. On any new vehicle, any uncorrected damage or any corrected damage exceeding six percent (6%) of the manufacturer’s suggested retail price, as measured by retail repair costs, must be disclosed in writing prior to delivery. Damage to glass, tire and bumpers is excluded from the six percent (6%) requirement when replaced by identical manufacturer’s original equipment. History: [49-1624, added 1988, ch. 265, sec. 397, p. 783.]

49-1625

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1625. Repaired damage not grounds for rejection. Repaired damage to a customer-ordered new vehicle, not exceeding the six percent (6%) requirement, shall not constitute grounds for rejection of the customer order. The customer’s right of rejection ceases upon his acceptance of delivery of the vehicle, provided disclosure as required in section 49-1624 , Idaho Code, is made prior to delivery. History: [49-1625, added 1988, ch. 265, sec. 398, p. 783.]

49-1626

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1626. Payment for delivery preparation and warranty service. (1) Each manufacturer or distributor shall specify in writing to each of its dealers licensed in this state, the dealer’s obligations for predelivery preparation and warranty service on its products, compensate the dealer for service required of the dealer by the manufacturer or distributor, provide the dealer a schedule of compensation to be paid the dealer for parts, work and service in connection with its products, and the time allowance for the performance of that work and service. (2) In no event shall a schedule of compensation fail to include reasonable compensation for diagnostic work, as well as repair service and labor. Time allowances for the diagnosis and performance of warranty work and service shall be reasonable and adequate for the work to be performed. (3) It is unlawful for a new vehicle manufacturer or distributor to fail to perform any warranty obligations or to fail to include in written notices of factory recalls to new vehicle owners and dealers, the expected date by which necessary parts and equipment will be available to dealers for the correction of those defects, or to fail to compensate any of the dealers in this state for repairs affected by recall. (4) A vehicle dealer may submit a warranty claim to a manufacturer or distributor if a warranty defect is identified and documented prior to the expiration of a manufacturer’s or distributor’s warranty: (a) While a franchise agreement is in effect; or (b) After the termination of a franchise agreement if the claim is for work performed while the franchise agreement was in effect. (5) All claims made by dealers pursuant to this section for labor and parts shall be paid within thirty (30) days following their approval. All claims shall be either approved or disapproved within thirty (30) days after their receipt, on forms and in the manner specified by the manufacturer or distributor, and any claim not specifically disapproved in writing within thirty (30) days after receipt shall be construed to be approved and payment must follow within thirty (30) days. (6) A dealer whose claim has been denied due to failure to comply with a specific claim processing requirement, such as a clerical error or other administrative technicality that does not put into question the legitimacy of the claim, may resubmit the corrected claim as provided for in subsection (7) of this section. (7) A dealer shall have thirty (30) days from the date of notification by a manufacturer or distributor of a denial of a claim or a charge-back to the dealer to resubmit a claim for payment or compensation if the claim was denied for any of the reasons described in subsection (6) of this section, whether the charge-back was a direct or an indirect transaction, unless a longer period of time is provided for by the manufacturer or distributor. (8) Notwithstanding the terms of a franch

49-1627

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1627. Use of dealer and manufacturer license plate. (1) Any dealer or manufacturer license plate issued may, during the calendar year for which issued, be transferred from one (1) vehicle to another owned or operated by such manufacturer or dealer, in pursuance of his business as a manufacturer or dealer. (2) Dealer plates shall not be used on vehicles under the following circumstances: (a) On work or service vehicles not held in stock for sale; (b) On leased or rented vehicles owned by the licensed manufacturer or dealer; (c) On a laden vehicle designed for transportation of cargo, unless the manufacturer or dealer has complied with section 49-434 , Idaho Code, except as provided in subsection (3) of this section; (d) On vehicles which have been sold; (e) On vehicles used by the licensee for furtherance of another business; (f) On vehicles owned by a licensed wholesaler used for personal use; (g) On vehicles owned by a licensed wholesaler, operated by their licensed salesmen, used for personal use. (3) Dealer and manufacturer plates may be used on laden vehicles operated by the manufacturer, dealer or his licensed vehicle salesman, in connection with the manufacturer’s or dealer’s business. A dealer plate may be used on a laden trailer in connection with a manufacturer’s or dealer’s business to move vehicles or trailers from a manufacturer to a dealer, from dealership to dealership or from a dealership to off-site locations in promotion of the dealer’s business as long as the power unit is properly licensed under chapter 4, title 49 , Idaho Code. A dealer plate may be used on a vehicle assigned for personal use on a full-time basis to the dealer, or licensed full-time vehicle salesman. This personal use exception applies only to the manufacturer, dealer, or licensed full-time vehicle salesman personally, and any other persons, including members of their families, are excluded. A prospective purchaser of a vehicle may have possession of the vehicle with a dealer plate for not more than ninety-six (96) hours or may operate the vehicle when accompanied by the manufacturer, dealer or a licensed vehicle salesman. (4) Licensed part-time vehicle salesmen may use a dealer plate on a vehicle that is offered for sale only to demonstrate the vehicle to a purchaser, but not for personal use. Other employees or authorized persons, not licensed as a vehicle salesman, may use a dealer plate when testing the mechanical operation of a vehicle or for the necessary operation in pursuance of the dealer’s business, including the delivery and pickup of vehicles owned or purchased by that manufacturer or dealer. (5) Laden dealer and manufacturer plates may be displayed on any power unit in the dealer’s or manufacturer’s inventory to operate vehicles laden with vehicles that are in the dealer’s or manufacturer’s inventory in pursuance of the dealer’s or manufacturer’s business. Such use shall be limit

49-1628

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1628. Use of vehicle dealer loaner plate. (1) A dealer shall maintain a log showing the vehicle identification number, date, reason for use, and the name of the person authorized to use the plate. (2) The user of a loaner plate shall carry identification showing dealer name, number on plate, signature of dealer and year for which the plate is valid. (3) Loaner plates may be used on vehicles held in stock for sale which are loaned to a customer of a dealership while the customer vehicle is being repaired, and, on vehicles held in stock for sale and operated by the dealer or his family for personal use or for furtherance of dealership business. (4) Loaner plates may not be used on: (a) Work or service vehicles not held in stock for sale; (b) Leased or rented vehicles owned by the licensed dealer; (c) A laden vehicle designed for transportation of cargo, unless the dealer has complied with the provisions of section 49-434 , Idaho Code; (d) Vehicles which have been sold; (e) Vehicles used by licensee for furtherance of another business; (f) Vehicles used for personal use by licensed salesman or other nonlicensed employees of the dealership; (g) Vehicles of which the dealer does not have legal ownership; (h) Vehicles being operated by an actual purchaser. History: [49-1628, added 1988, ch. 265, sec. 401, p. 786.]

49-1629

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1629. Odometers. (1) Nothing in this chapter shall prevent the service, repair or replacement of an odometer, provided the mileage as defined in section 49-114 , Idaho Code, indicated remains the same as before the service, repair or replacement. Where the odometer is incapable of registering the same mileage as before service, repair or replacement, the odometer shall be adjusted to read zero and a notice shall be attached permanently to the left door frame of the vehicle by the owner or his agent specifying the mileage prior to repair or replacement of the odometer and the date on which it was repaired or replaced. Provided however, the notice shall not be required if the odometer reading is converted from registering in kilometers to miles, and the mileage on the vehicle after the conversion of the odometer is equivalent to its mileage before the conversion. No person shall: (a) Fail to adjust an odometer or affix a notice regarding adjustment, as required under this section. (b) With intent to defraud, remove or alter any notice affixed to a vehicle pursuant to the provisions of this section. (2) It shall be unlawful for any person to: (a) Disconnect, turn back, or reset the odometer of any vehicle with the intent to reduce the number of miles indicated on the odometer gauge. (b) Sell a vehicle in this state if that person has knowledge that the odometer on the vehicle has been turned back or replaced, and if the person fails to notify the buyer prior to the time of the sale, that the odometer has been turned back or replaced, or that he has reason to believe that the odometer has been turned back or replaced. (c) Advertise for sale, to sell, to use, or to install on any part of a vehicle or on an odometer in a vehicle, any device which causes the odometer to register any mileage other than the true mileage driven. History: [49-1629, added 1988, ch. 265, sec. 402, p. 787; am. 2005, ch. 145, sec. 2, p. 458.]

49-1630

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1630. Purchaser plaintiff to recover costs and attorney’s fees. In any suit brought by the purchaser of a vehicle against the seller of that vehicle, the purchaser shall be entitled to recover his court costs and a reasonable attorney’s fee fixed by the court, if: (1) The suit or claim is based substantially upon the purchaser’s allegation that the odometer on the vehicle has been tampered with or replaced contrary to this chapter; and (2) It is found in the suit that the seller of the vehicle or any of his employees or agents knew or had reason to know that the odometer on the vehicle had been tampered with or replaced, and failed to disclose that knowledge to the purchaser prior to the time of sale. History: [49-1630, added 1988, ch. 265, sec. 403, p. 787.]

49-1632

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1632. Applicability of chapter. (1) Any person who engages directly or indirectly in purposeful contacts within this state in connection with the offering or advertising for sale, or has business dealings with respect to a new vehicle sale within this state, shall be subject to the provisions of this chapter and shall be subject to the jurisdiction of the courts of this state. (2) The applicability of this chapter shall not be affected by a choice of law clause in any franchise, agreement, waiver, novation, or any other written instrument. (3) Any provision of any agreement, franchise, waiver, novation or any other written instrument which is in violation of any section of this chapter shall be considered null and void and without force and effect. (4) It shall be unlawful for a manufacturer to use any subsidiary corporation, affiliate corporation, or any other controlled corporation, partnership, entity, association, or person to accomplish what would otherwise be unlawful conduct under this chapter on the part of the manufacturer. (5) Nothing in this chapter shall be construed to impair the obligations of a contract entered into prior to January 1, 1989, or to prevent a manufacturer, distributor, representative or any other person, whether or not licensed under this chapter, from requiring performance of a prior written contract entered into with any dealer, nor shall the requirement of performance constitute a violation of any of the provisions of this chapter. Any contract, or the terms of it, requiring performance, shall have been freely entered into and executed between the contracting parties. This chapter shall apply to any amendments, novations, records or modifications of prior contracts and to any contracts entered into subsequent to March 31, 1989. History: [49-1632, added 1988, ch. 265, sec. 405, p. 788; am. 2024, ch. 213, sec. 3, p. 758.]

49-1633

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1633. Limitations. (1) Actions arising out of any provision of this chapter shall be commenced within a four (4) year period of the accrual of the cause of action. If a person liable under this chapter conceals the cause of action from the knowledge of the person entitled to bring it, the period prior to the discovery of his cause of action by the person entitled shall be excluded in determining the time limited for the commencement of the action. (2) If a cause of action accrues during the pendency of any civil, criminal or administrative proceeding against a person brought by the United States, or any of its agencies under the antitrust laws, the federal trade commission act, or any other federal act, or the laws or to franchising, such actions may be commenced within one (1) year after the final disposition of the civil, criminal or administrative proceeding. History: [49-1633, added 1988, ch. 265, sec. 406, p. 789.]

49-1634

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1634. Dealer sales — Minimum sales required for license renewal. (1) A vehicle dealer shall certify upon application for renewal of his dealer’s license that during the preceding licensing year he sold at least five (5) vehicles, either at retail or wholesale. (2) Failure to sell or to verify the sale of a minimum of five (5) vehicles shall be grounds for the department to deny renewal of the dealer’s license. (3) Any vehicle dealer who has had his license denied or has failed to meet the requirement to sell a minimum of five (5) vehicles during the preceding licensing year is entitled to a hearing as provided in section 49-1618 , Idaho Code. History: [49-1634, added 1991, ch. 272, sec. 17, p. 709; am. 1993, ch. 297, sec. 3, p. 1097.]

49-1636

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1636. Consignment sales. (1) An owner who consigns a vehicle to a vehicle dealer to be offered for sale or exchange on behalf of the owner to a third party purchaser, shall provide the dealer with either the certificate of title to the vehicle along with a power of attorney designating the dealer as an agent of the owner, or a duly executed consignment agreement between the dealer and the owner, along with a copy of the certificate of title of the vehicle being consigned. (2) A consignment agreement shall contain at the least, the following: (a) The name and current address of the owner of the vehicle as shown on the certificate of title; (b) The name and current address of any person holding a lien on the vehicle; (c) The name of the consignee; (d) A description of the vehicle including the vehicle’s make, model, vehicle identification number and odometer reading; and (e) A statement that the owner has appointed the vehicle dealer as his agent for the purpose of offering the vehicle for sale. History: [49-1636, added 1991, ch. 272, sec. 19, p. 709.]

49-1637

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1637. Education requirements for vehicle dealers. (1) Except as provided in subsection (2) of this section, the following continuing education requirements shall apply to a vehicle dealer for an initial dealer’s license and for the annual renewal, as provided in sections 49-1607 (3) and 49-1634 , Idaho Code, of a dealer’s license: (a) An applicant for an annual renewal of a dealer’s license must complete a four (4) hour education program as described in subsection (3) of this section prior to submitting a renewal application for a vehicle or vessel dealer license. (b) An applicant requesting an initial vehicle or vessel dealer’s license shall be required to provide certification that he has completed a department approved prelicensing class or program, including an examination on the materials that were presented prior to submitting a license application. (2) The education requirements of subsection (1) of this section do not apply to an applicant for a full-time or part-time vehicle salesman’s license, manufacturer’s license or distributor’s license. The following applicants are also exempt from the provisions of subsection (1) of this section: (a) A vehicle dealer of nationally advertised and recognized new motor vehicles or vessels; and (b) A franchise dealer of new recreational vehicles, new motorcycles, new all-terrain vehicles, new snowmobiles or new vessels. (3) The continuing education programs and prelicensing class requirements required in subsection (1) of this section shall be developed with input from motor vehicle industry organizations including, but not limited to, the Idaho independent automobile dealers association, and shall be approved by the department: (a) Prelicensing classes shall consist of eight (8) hours of instruction or as otherwise approved by the department, which shall include the written examination. (b) Fees applicable to the prelicensing class shall not exceed three hundred fifty dollars ( $350) . (c) F ees a ppl i c ab l e t o t h e d e a l ere d u c a t i o n p ro g r am s ha ll n o t e x cee d tw o h u n d re dd o ll a rs ($ 200). (d) Any provider as approved by the department shall make the dealer education programs and prelicensing classes available on a monthly basis, at a minimum. (4) The continuing education programs and the prelicensing class/programs required in subsection (1) of this section may be provided by accredited educational institutions, private vocational schools, correspondence schools or trade associations, provided that the continuing education program and prelicensing class/programs have been approved by the department as required in subsection (3) of this section. (5) The department may promulgate rules as necessary to implement the provisions of this section. History: [49-1637, added 2003, ch. 98, sec. 2, p. 317; am. 2010, ch. 329, sec. 2, p. 874; am. 2013, ch. 93, sec. 1, p. 229.]

49-1638

TITLE 49 MOTOR VEHICLES CHAPTER 16 DEALERS AND SALESMEN LICENSING 49-1638. Manufacturer incentive programs for motor vehicle dealers. (1) A manufacturer or distributor shall pay a motor vehicle dealer’s claim for payment or other compensation due under a manufacturer incentive program within thirty (30) business days after receiving the claim, unless the claim is disapproved by written notice, with reasons stated, within thirty (30) business days of receipt of the dealer’s claim. A claim that is not disapproved or disallowed in writing within thirty (30) business days after the manufacturer or distributor receives the claim is deemed automatically approved. (2) A manufacturer shall not deny a claim based solely on a motor vehicle dealer’s incidental failure to comply with a specific claim processing requirement, such as a clerical error or other administrative technicality that does not put into question the legitimacy of the claim. (3) A dealer shall have sixty (60) days from the date of notification by a manufacturer or distributor of a denial or a charge-back to the dealer to resubmit a claim for payment or compensation if the claim was denied for a dealer’s incidental failure as set forth in subsection (2) of this section, whether the charge-back was a direct or an indirect transaction. (4) A motor vehicle dealer has ninety (90) days after the expiration of a manufacturer or distributor incentive program, or such longer time as provided by the franchise agreement, whichever is greater, to submit a claim for payment or compensation under the program. (5) Notwithstanding the terms of a franchise agreement or other contract with a dealer and except as provided in subsection (6) of this section, after the expiration of one (1) year after the date of payment of the vehicle claim, a manufacturer or distributor shall not: (a) Charge back to a motor vehicle dealer, whether directly or indirectly, the amount of a claim that has been approved and paid by the manufacturer or distributor under an incentive program; (b) Charge back to a motor vehicle dealer, whether directly or indirectly, the cash value of a prize or other thing of value awarded to the dealer under an incentive program; or (c) Audit the records of a motor vehicle dealer to determine compliance with the terms of an incentive program. (6) A manufacturer or distributor may make charge-backs to a motor vehicle dealer if, after completion of an audit of the dealer’s records, the manufacturer or distributor can show, by a preponderance of the evidence, that: (a) With respect to a claim under a service incentive program, the repair work was improperly performed in a substandard manner or was unnecessary; or (b) The claim is unsubstantiated in accordance with the manufacturer’s or distributor’s reasonable requirements. (7) Notwithstanding subsections (5) and (6) of this section, a manufacturer or distributor may make charge-backs to a motor vehicle dealer for fraud at any time permitted by secti

Idaho • Lex Graph

Explorer

T49CH16

T49CH16

Sections (46)

49-1601

49-1601A

49-1602

49-1603

49-1604

49-1605

49-1606

49-1607

49-1608

49-1608A

49-1608B

49-1608C

49-1608D

49-1608E

49-1608F

49-1609

49-1609A

49-1610

49-1611

49-1612

49-1613

49-1614

49-1615

49-1616

49-1617

49-1617A

49-1617B

49-1618

49-1619

49-1620

49-1621

49-1622

49-1623

49-1624

49-1625

49-1626

49-1627

49-1628

49-1629

49-1630

49-1632

49-1633

49-1634

49-1636

49-1637

49-1638

Graph View

Table of Contents

Backlinks