28-4301

28-4301. Definitions

In this chapter, unless the context otherwise requires:

1. "Area of responsibility" means the area surrounding an individual dealer that
the factory designates as that dealer's individual primary geographic territory for the
purpose of marketing, promoting, selling and leasing new motor vehicles. In the absence
of the factory designated area, the area of responsibility is that geographical area
surrounding a dealer that lies closer to that dealer than to other dealers of the same
line-make.

2. "Automotive recycler" means a person who is engaged in the business of buying or
acquiring a motor vehicle solely for the purpose of dismantling, selling or otherwise
disposing of the parts or accessories and who dismantles six or more vehicles in a
calendar year.

3. "Branch license" means a license that is issued by the director to a licensed
motor vehicle dealer and that permits the licensee to sell motor vehicles from an
established place of business within the same county but other than the original or
principal place of business for which the license was issued.

4. "Broker" means a person who for any fee, commission or other valuable
consideration offers to provide, provides or represents that the person will provide a
service of arranging or assisting in effecting the purchase of a motor vehicle and who is
not:

(a) A new motor vehicle dealer or an employee or agent of a new motor vehicle
dealer.

(b) A used motor vehicle dealer or an employee or agent of a used motor vehicle
dealer.

(d) An auctioneer or engaged in the auto auction business.

(e) A wholesale motor vehicle dealer.

5. "Community" means the relevant market area. For the purposes of this paragraph,
"relevant market area" means the incorporated city or town in which the franchise is
located.

6. "Distributor" means a person who either:

(a) Sells or distributes new motor vehicles to new motor vehicle dealers in this
state.

(b) Maintains distributor representatives in this state.

7. "Distributor branch" means a branch office maintained or availed of by a
distributor for either:

(a) The sale of new motor vehicles to new motor vehicle dealers in this state.

(b) Directing or supervising its representatives in this state.

8. "Established place of business":

(a) Means a permanent enclosed building or structure that is owned either in fee or
leased with sufficient space to display two or more motor vehicles of a kind and type
that the dealer is licensed to sell and that is devoted principally to the use of a motor
vehicle dealer in the conduct of the business of the dealer.

(b) In the case of a used motor vehicle dealer, trailer dealer or semitrailer
dealer:

(i) Need not be a permanent building or structure or part of a permanent building
or structure.

(ii) May be a vacant lot or part of a vacant lot.

(iii) Does not mean or include a residence, tent, temporary stand or temporary
quarters or permanent quarters occupied pursuant to a temporary arrangement.

(c) In the case of an automotive recycler, means a permanent site or location at
which the business of an automotive recycler is or will be conducted.

9. "Exhibitor" means a manufacturer of new motor homes that exhibits new motor
homes at a special event.

10. "Factory branch" means a branch office maintained or availed of by a
manufacturer for either:

(a) The sale of new motor vehicles to distributors or the sale of new motor
vehicles to new motor vehicle dealers in this state.

(b) Directing or supervising its representatives in this state.

11. "Financial institution" means a bank, trust company, savings and loan
association, credit union, consumer lender, international banking facility or holding
company that is licensed, regulated or insured by the department of financial
institutions, the federal deposit insurance corporation, the office of thrift
supervision, the comptroller of the currency, the national credit union share insurance
fund or the national credit union administration.

12. "Franchise" means a contract between two or more persons if all of the following
conditions are included:

(a) A commercial relationship of definite duration or continuing indefinite
duration is involved.

(b) The franchisee is granted the right to offer, sell and service in this state
new motor vehicles manufactured or distributed by the franchisor.

(d) The operation of the franchisee's business is substantially associated with the
franchisor's trademark, service mark, trade name, advertising or other commercial symbol
designating the franchisor.

(e) The operation of the franchisee's business is substantially reliant on the
franchisor for the continued supply of new motor vehicles, parts and accessories.

13. "Franchisee" means a person who both:

(a) Receives new motor vehicles from the franchisor under a franchise.

(b) Offers and sells to and services new motor vehicles for the general public.

14. "Franchisor" means a person who both:

(a) Manufactures or distributes new motor vehicles.

(b) May enter into a franchise.

15. "Importer" means a person who transports or arranges for the transportation of a
foreign manufactured new motor vehicle into the United States for sale in this state.

16. "Lead" means any retail consumer who satisfies all of the following:

(a) Responds to a factory-directed program that obtains consumer contact information
and that provides such information to one or more dealers.

(b) Expresses an interest to the factory in purchasing, leasing or acquiring any
vehicle or product, service or financing available from the dealers of that factory.

(c) Does not qualify for any reasonable factory sponsored employee, retiree or
vendor new vehicle purchase program or any other reasonable similar factory new vehicle
purchase program.

17. "Line-make" means those motor vehicles that are offered for sale, lease or
distribution under a common name, trademark, service mark or brand name of the
manufacturer of those same motor vehicles.

18. "Major component part" includes a motor vehicle or vehicle part that the
manufacturer has assigned any factory, motor, serial or other identification number or
mark.

19. "Manufacturer" means any person who either:

(a) Manufactures or assembles new motor vehicles.

(b) Manufactures or installs on previously assembled truck chassis special bodies
or equipment that when installed forms an integral part of the new motor vehicle and that
constitutes a major manufacturing alteration, excluding the installation of a camper on a
pickup truck.

20. "Motor home" means a motor vehicle that is primarily designed as temporary
living quarters and that:

(a) Is built onto as an integral part of, or is permanently attached to, a motor
vehicle chassis.

(b) Contains at least four of the following independent life support systems if
each is permanently installed and designed to be removed only for purposes of repair or
replacement:

(i) A cooking facility with an on board fuel source.

(ii) A gas or electric refrigerator.

(iii) A toilet with exterior evacuation.

(iv) A heating or air conditioning system with an on board power or fuel source
separate from the vehicle engine.

(v) A potable water supply system that includes at least a sink, a faucet and a
water tank with an exterior service supply connection.

(vi) A 110-125 volt electric power supply.

21. "Motor vehicle" means an automobile, motor bus, motorcycle, truck or truck
tractor or any other self-propelled vehicle, trailer or semitrailer.

22. "Motor vehicle dealer" means a new motor vehicle dealer, a used motor vehicle
dealer, a broker or a wholesale motor vehicle auction dealer, excluding a person who
comes into possession of a motor vehicle as an incident to the person's regular business
and who sells, auctions or exchanges the motor vehicle.

23. "New house trailer dealer" means a person who buys, sells, exchanges or offers
or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the
business of selling, new house trailers or used house trailers taken in trade on new
house trailers. For the purposes of this paragraph, "house trailer" means a vehicle,
other than a motor vehicle, that is built on a chassis designed for being drawn on the
highways by a motor vehicle and that is designed for human habitation.

24. "New motor vehicle" means a motor vehicle, other than a used motor vehicle, that
is held either for:

(a) Sale by the franchisee who first acquired the vehicle from the manufacturer or
distributor of the vehicle.

(b) Sale by another franchisee of the same line-make.

25. "New motor vehicle dealer" means a person who buys, sells, exchanges or offers
or attempts to negotiate a sale or exchange of an interest in, or who is engaged in the
business of selling, new motor vehicles or used motor vehicles taken in trade on new
motor vehicles or used vehicles purchased for resale.

26. "Off-premises display and sales" means a promotion or sale of motor vehicles for
a period of time as specified by the director that both:

(a) Is sponsored by a licensed motor vehicle dealer, the licensed motor vehicle
dealer's agents or the manufacturer.

(b) Takes place at a location within the same county but not at the licensee's
established place of business.

27. "Off-premises exhibition" means the exhibition of a motor vehicle for a period
of time as specified by the director at a location within the same county but not at the
established place of business of a licensed motor vehicle dealer and at which a
solicitation or sale does not occur.

28. "Provisional automotive recycler's license" means a license that both:

(a) Is issued by the department only in conjunction with an application for an
automotive recycler's license.

(b) Permits the applicant or applicants to conduct the business of an automotive
recycler regulated by this chapter pending completion of the criminal records check
pursuant to section 28-4361.

29. "Provisional dealer's license" means a license that both:

(a) Is issued by the department only in conjunction with an application for a
dealer's license.

(b) Permits the applicant or applicants to conduct the business of a motor vehicle
dealer regulated by this chapter pending completion of the criminal records check
pursuant to section 28-4361.

30. "Retail consumer" means any person purchasing, leasing or acquiring or possibly
purchasing, leasing or acquiring a vehicle or product, service or financing not for
resale.

31. "Service" means any service that is sold, leased or provided to retail consumers
and that directly relates to the ownership or leasing of a new or used motor vehicle,
including extended service contracts or motor vehicle warranty and nonwarranty repairs or
maintenance, including both parts and labor.

32. "Special event" means an exhibition of new motor homes by a motor vehicle dealer
licensed to sell new motor homes or an exhibitor for a period of time specified by the
director at a location in this state other than the licensee's or exhibitor's established
place of business.

33. "Used motor vehicle" means a motor vehicle that has been sold, bargained,
exchanged or given away or the title to the motor vehicle has been transferred from the
person who first acquired the vehicle from the manufacturer, or importer, dealer or agent
of the manufacturer or importer, and that has been placed in bona fide consumer use. For
the purposes of this paragraph, "bona fide consumer use" means actual operation by an
owner who acquired a new motor vehicle both:

(a) For use in the owner's business or for pleasure or otherwise.

(b) For which a certificate of title has been issued or that has been registered as
provided by law.

34. "Used motor vehicle dealer" means a person, other than a new motor vehicle
dealer, who buys, sells, auctions, exchanges or offers or attempts to negotiate a sale or
exchange of an interest in, or who is engaged in the business of selling, four or more
used motor vehicles in a continuous twelve month period. Used motor vehicle dealer does
not include a wholesale motor vehicle auction dealer.

35. "Wholesale motor vehicle auction dealer" means a person who both:

(a) Is in the business of providing auction services solely in wholesale
transactions to motor vehicle dealers licensed by this state or any other jurisdiction.

(b) Does not buy, sell or own the motor vehicles the auction dealer auctions in the
ordinary course of business.

36. "Wholesale motor vehicle dealer" means a person who sells used motor vehicles
only to licensed motor vehicle dealers.