North Dakota § 39-22-16 Application for new motor vehicle dealer license - Franchise required - Selling vehicles without a franchise - Penalty

North Dakota Statutes

§ 39-22-16 — Application for new motor vehicle dealer license - Franchise required - Selling vehicles without a franchise - Penalty

North Dakota § 39-22-16

Title 39Motor Vehicles

Ch. 39-22Motor Vehicle Dealer Licensing

This text of North Dakota § 39-22-16 (Application for new motor vehicle dealer license - Franchise required - Selling vehicles without a franchise - Penalty) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 39-22-16 (2026).

Text

Selling vehicles without a franchise - Penalty.

1.In an application for a new motor vehicle dealer license, the applicant shall furnish proof satisfactory to the director that the applicant has a bona fide contract or franchise in effect with a manufacturer or distributor of the new motor vehicle or motor vehicles in which the dealer proposes to deal. A new motor vehicle dealer license entitles the holder to deal in both used motor vehicles and in those new motor vehicles only for which the dealer has a bona fide contract or franchise in effect with a manufacturer or distributor. A used motor vehicle dealer license entitles the holder to deal in used motor vehicles only.

2.New motor vehicle dealers who have been issued surrounding communities as a part of their dealer area of responsibil

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Selling vehicles without a franchise - Penalty.
1. In an application for a new motor vehicle dealer license, the applicant shall furnish
proof satisfactory to the director that the applicant has a bona fide contract or franchise
in effect with a manufacturer or distributor of the new motor vehicle or motor vehicles
in which the dealer proposes to deal. A new motor vehicle dealer license entitles the
holder to deal in both used motor vehicles and in those new motor vehicles only for
which the dealer has a bona fide contract or franchise in effect with a manufacturer or
distributor. A used motor vehicle dealer license entitles the holder to deal in used motor
vehicles only.
2. New motor vehicle dealers who have been issued surrounding communities as a part
of their dealer area of responsibility may be issued additional new motor vehicle dealer
licenses if the manufacturer provides the department written approval of additional
sites for display and sale of motor vehicles. Applicants for additional new car dealer
licenses must meet all of the requirements of this chapter.
3. If a motor vehicle dealer purchases or holds for sale a new motor vehicle for which the
dealer does not have a bona fide contract or franchise in effect with a manufacturer or
distributor, the new motor vehicle becomes, at the time of purchase or possession,
subject to the registration provisions of chapter 39-04, the title registration provisions
of chapter 39-05, and the motor vehicle excise tax provisions of chapter 57-40.3.
4. The department may assess a person violating this section a two hundred fifty dollar
fee for a first violation or a five hundred dollar fee for a second violation within two
years of the first violation. The department may suspend the license of a motor vehicle
dealer licensed under this chapter if a third or subsequent violation of this section
occurs within five years of the first violation.