§ 31-16-108 — Unlawful acts

Wyoming § 31-16-108

• Jurisdiction: Wyoming
• Title 31: Motor Vehicles
• Ch. 16: MOTOR VEHICLE FRANCHISES

Text

(a) No vehicle dealer or other person required to be
licensed under this act, or any salesperson or agent shall:
(i) Knowingly publish or circulate any misleading or
inaccurate advertisement which misrepresents any of the products
sold or furnished by a licensed dealer or use any false or
misleading advertisement in the conduct of its business;
(ii) Violate this act or any of the rules and
regulations promulgated under it;
(iii) Knowingly purchase, sell, acquire or dispose of
a stolen vehicle;
(iv) Violate any law of this state respecting
commerce in vehicles or any state agency rule or regulation;
(v) Engage in the business for which a dealer is
licensed without maintaining a principal place of business as
required by this act;
(vi) Engage in a type of business respecting the sale
or exchange of new or new and used vehicles for which he is not
licensed;
(vii) Knowingly purchase a vehicle which has an
altered or removed vehicle identification number or to alter or
remove a vehicle identification number plate;
(viii) Repealed by Laws 1997, ch. 154, § 3.
(ix) Violate any provision of the federal motor
vehicle safety standards;
(x) Display for sale, exchange or sell any new motor
vehicle for which the vehicle dealer does not hold a valid
franchise;
(xi) Import, display for sale, exchange, or sell, any
new vehicle, or any used vehicle originally sold by a
manufacturer for distribution outside the United States unless
the vehicle is in compliance with all federal regulations
governing vehicles that were manufactured for distribution
outside the United States and subsequently imported into the
United States. Any dealer required to be licensed under this act
shall maintain records in his principal place of business
necessary to verify compliance with this provision if requested
by the department or any law enforcement officer;
(xii) Advertise, display, demonstrate, exchange or
sell any vehicle with less than one thousand (1,000) miles on
the odometer, unless the person is a properly licensed dealer,
or the person has obtained a valid Wyoming title in his name or
business name and has paid the applicable sales or use tax on
the vehicle in his name before advertising, displaying,
demonstrating, exchanging or selling the vehicle.
(b) No manufacturer licensed under this act shall require
or coerce or attempt to require or coerce any new vehicle dealer
in this state:
(i) To order or accept delivery of any new vehicle,
vehicle part or accessory, equipment or any other commodity not
required by law which the new vehicle dealer has not voluntarily
ordered. This paragraph does not modify or supersede any terms
or provisions of the franchise requiring new vehicle dealers to
market a representative line of the vehicles covered by the
franchise, to promote the sale, leasing and rental of the
vehicles and to carry a reasonable inventory of models offered
for sale by the manufacturer;
(ii) To order or accept delivery of any new vehicle
with special features, accessories or equipment not included in
the list price of those vehicles as publicly advertised by the
manufacturer or distributor unless they are required by law;
(iii) To 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 new vehicle dealer. This
paragraph does not modify any provisions of the franchise
requiring the dealer to advertise and promote the sale of
vehicles covered by the franchise and does not apply to
campaigns, contests, advertising and other promotional programs
in which the dealer voluntarily participates;
(iv) To enter into any agreement with the
manufacturer or to prejudice the new vehicle dealer by
threatening to terminate or cancel a franchise or any
contractual agreement existing between the dealer and the
manufacturer. This paragraph does not preclude the manufacturer
or distributor from insisting on compliance with the reasonable
terms or provisions of the franchise or other contractual
agreement. Notice in good faith from a manufacturer or
distributor to any new vehicle dealer of the new vehicle
dealer's violation of those terms or provisions does not
constitute a violation of this act;
(v) To change the capital structure of the new
vehicle dealer or the new vehicle dealer's financing means if
the new vehicle dealer meets any reasonable capital standards
determined by the manufacturer in accordance with uniformly
applied criteria. A new vehicle dealer may change its capital
structure in accordance with reasonable capital standards if the
change does not change the principal management or ownership in
whole or in part or result in the sale of the franchise. If a
change in capital structure results in a sale of the franchise,
the manufacturer or distributor may not unreasonably withhold
any necessary consent to the change;
(vi) To refrain from participation in the management
of, investment in or the acquisition of any other line of new
vehicle or related products. This paragraph does not apply
unless the new vehicle dealer maintains a reasonable line of
credit for each make or line of new vehicle, the new vehicle
dealer remains in compliance with any reasonable facilities and
other franchise requirements of the manufacturer and no change
is made in the principal management of the new vehicle dealer;
(vii) To prospectively agree to relieve any person
from liability imposed by this law or to require any controversy
between a new vehicle dealer and a manufacturer, distributor or
their representatives, to be referred to any person other than
the duly constituted courts of the state or the United States,
or to the director if the referral would be binding upon the new
vehicle dealer;
(viii) To establish, after becoming a new vehicle
dealer, exclusive facilities, personnel or display space for a
line make when such requirements would not be justified by
reasonable business considerations;
(ix) To expand facilities without making available a
sufficient supply of new vehicles to justify an expansion
considering the market and economic conditions;
(x) To modify significantly an existing dealership or
to construct a new vehicle dealership facility without a
sufficient supply of new vehicles to justify a modification or
construction considering the market and economic conditions.
(c) No manufacturer licensed under this act shall:
(i) Delay, refuse or fail to deliver new vehicles or
new vehicle parts or accessories in a reasonable time and
quantity relative to the new vehicle dealer's facilities and
sales potential in the new vehicle dealer's relevant market area
after acceptance of an order from a new vehicle dealer having a
franchise for the retail sale of any new vehicle sold or
distributed by the manufacturer, any new vehicle, parts or
accessories to new vehicles as are covered by the franchise, if
the vehicle, parts or accessories are publicly advertised as
being available for delivery or actually delivered. Failure
caused by acts or causes beyond the control of the manufacturer
is not a violation of this act;
(ii) Refuse to disclose to any new vehicle dealer
handling the same line make the manner and mode of distribution
of the line make within the relevant market area;
(iii) Without the consent of the dealer, obtain
money, goods, services or other benefit from a person who does
business with the new vehicle dealer in relation to the
transaction between the new vehicle dealer and the person other
than as compensation for services rendered and products
provided, unless the benefit is promptly transmitted or credited
to the new vehicle dealer;
(iv) Increase prices of new vehicles ordered by the
new vehicle dealer for consumers prior to the new vehicle
dealer's receipt of the written official price increase
notification. A sales contract signed by a consumer is evidence
of each order if the vehicle is delivered to the customer. In
the event of manufacturer price reductions or cash rebates paid
to the new vehicle dealer intended by the manufacturer to be
passed on to the consumer, the amount of any reduction or rebate
received by a new vehicle dealer passes to the private retail
consumer by the new vehicle dealer. Price reductions apply to
all unused, undamaged and unsold vehicles in the dealer's
inventory which were subject to the price reduction. Price
differences applicable to a new model or series are not a price
increase or price decrease. Price changes caused by the
following are not subject to this paragraph:
(A) The addition to a vehicle of required or
optional equipment or a change in the capacity, performance,
size, weight or design specifications of a vehicle;
(B) Changes in the rate of exchange of the
United States dollar, in the case of foreign-made vehicles or
components; and
(C) An increase in transportation charges due to
increased rates imposed by a carrier.
(v) Release to any other party, except under subpoena
or as otherwise required by law or in an administrative,
judicial or arbitration proceeding involving the manufacturer or
new vehicle dealer, any business, financial, or personal
information which is provided by the new vehicle dealer to the
manufacturer without the express written consent of the new
vehicle dealer;
(vi) Deny any new vehicle dealer the right of free
association with any other new vehicle dealer for any lawful
purpose;
(vii) Unfairly compete with a new vehicle dealer in
the same line make and operating under an agreement or franchise
from the manufacturer in the relevant market area. A
manufacturer is not competing when operating a dealership either
temporarily for a reasonable period or in a bona fide retail
operation which is for sale to any qualified independent person
at a fair and reasonable price, or in a bona fide relationship
in which an independent person has made a significant investment
subject to loss in the dealership and can reasonably expect to
acquire full ownership of such dealership on reasonable terms
and conditions;
(viii) Unfairly discriminate among its new vehicle
dealers with respect to warranty reimbursement;
(ix) Unreasonably withhold consent to the sale,
transfer or exchange of the franchise to a qualified buyer
capable of being licensed as a new vehicle dealer in this state;
(x) Fail to respond in writing to a request for
consent as specified in paragraph (ix) of this subsection within
sixty (60) days of receipt of a written request. Failure to
respond within the time specified is consent to the request;
(xi) Prevent or attempt to prevent any new vehicle
dealer from changing the executive management control of the new
vehicle dealer unless the manufacturer shows the change of
executive management will result in executive management or
control by a person who is not of good moral character or who
does not meet reasonable, preexisting and, with consideration
given to the volume of sales and service of the dealership,
uniformly applied minimum business experience standards. This
paragraph does not prevent a manufacturer or distributor from
withholding consent based upon the prospective buyer's
character, automotive experience, capital and other reasonable
qualifications for appointment as a dealer, and the effect of
the proposed transaction upon competition. If the manufacturer
rejects a proposed change in executive management control,
written notice of his reasons shall be given to the dealer
within sixty (60) days of notice to the manufacturer by the
dealer of the proposed change or the change in the executive
management of the new vehicle dealer shall be presumptively
deemed approved;
(xii) Terminate, cancel or fail to renew any
franchise solely because of the death or incapacity of an owner
who is not listed in the franchise as one on whose expertise and
abilities the manufacturer relied in granting the franchise;
(xiii) Prevent or attempt to prevent the new vehicle
dealer from receiving the fair market value of the dealership in
a sale transaction or from transferring the new vehicle
dealership to a spouse or legal heir as specified in this act;
(xiv) Engage in any predatory practice or
discrimination against any new vehicle dealer;
(xv) Use any false or misleading advertisement in the
conduct of his business as a manufacturer or distributor in this
state;
(xvi) Make any false or misleading statement, either
directly or through any agent or employee, to induce any new
vehicle dealer to enter into any agreement or franchise.
(d) No manufacturer or any officer, agent or
representative shall coerce or attempt to coerce any new vehicle
dealer in this state to sell, assign or transfer any retail
installment sales contract obtained by the dealer in connection
with the sale by him in this state of new vehicles manufactured
or sold by the manufacturer to a specified finance company,
class of companies or to any other specified person.
(e) Any statement, threats, promises, acts, contracts or
offers of contracts which lessen or eliminate competition or
tend to create a monopoly are unfair trade practices, unfair
methods of competition and are prohibited.
(f) No manufacturer or agent or employee of a manufacturer
shall use a written instrument, agreement or waiver to attempt
to nullify any of the provisions of this section. Any such
agreement, written instrument or waiver is null and void.
(g) No person shall directly or indirectly impose
unreasonable restrictions on the new vehicle dealer relative to
the sale, transfer, right to renew, termination, discipline,
noncompetition covenants, site control (whether by sublease,
collateral pledge of lease, or otherwise), right of first
refusal to purchase, option to purchase, compliance with
subjective standards and assertion of legal or equitable rights.
(h) This act applies to all written franchise agreements
between a manufacturer and a new vehicle dealer, including but
not limited to, the franchise offering, the franchise agreement,
sales of goods, services or advertising, promises to pay,
security interests, pledges, insurance contracts, advertising
contracts, construction or installation contracts, servicing
contracts and all other agreements where the manufacturer has
any direct or indirect interest.
(j) No motor vehicle manufacturer or distributor licensed
under this act, directly or indirectly, shall offer to sell or
sell new motor vehicles to a consumer except through a new
vehicle dealer who holds a valid sales and service agreement,
franchise, or contract granted by the manufacturer, distributor
or wholesaler for the sale of its motor vehicles. This
subsection shall not apply to a licensed direct sale
manufacturer, sales to affiliates of the manufacturer,
distributor or wholesaler, sales to the federal government,
charitable organizations or sales to employees of the
manufacturer, distributor or wholesaler.