CSHB 272(L&C): "An Act relating to motor vehicle dealers."
00 CS FOR HOUSE BILL NO. 272(L&C) 01 "An Act relating to motor vehicle dealers." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 08.66.015 is amended to read: 04 Sec. 08.66.015. Sale of motor vehicle. (a) A person who does business as a 05 dealer in the state may not offer to sell or sell a motor vehicle as a new [OR 06 CURRENT MODEL] motor vehicle unless the motor vehicle retains the 07 manufacturer's certificate of origin. 08 (b) A person who does business as a dealer in the state may not offer to sell or 09 sell a motor vehicle as a [NEW OR] current model motor vehicle [HAVING A 10 MANUFACTURER'S WARRANTY] unless 11 (1) the dealer has a current sales and service agreement with the 12 manufacturer [AND THE AGREEMENT REQUIRES THE DEALER, UPON 13 DEMAND OF THE MOTOR VEHICLE BUYER, TO PERFORM OR ARRANGE 14 FOR, WITHIN A REASONABLE DISTANCE OF THE DEALER'S PLACE OF 15 BUSINESS IN THE STATE, THE REPAIR AND REPLACEMENT WORK
01 REQUIRED OF THE MANUFACTURER UNDER THE WARRANTY]; [OR] 02 (2) the vehicle is a current model used vehicle received as a trade- 03 in in the normal course [DEALER OFFERS TO GIVE THE BUYER A REBATE 04 TO COVER THE REPAIR AND REPLACEMENT WORK THAT THE DEALER 05 CANNOT PERFORM OR ARRANGE FOR WITHIN A REASONABLE 06 DISTANCE OF THE DEALER'S PLACE] of business; 07 (3) the vehicle has been purchased directly from a consumer for 08 purposes of resale; or 09 (4) the vehicle has been in service with a bona fide rental fleet for 10 at least six months. 11 * Sec. 2. AS 45.25.400(b) is amended to read: 12 (b) A motor vehicle dealer may use the term "manufacturer's suggested retail 13 price," "MSRP," or "list price" in an advertisement for the sale of a motor vehicle, 14 subject to the restriction on price comparisons in AS 45.25.450 and the following: 15 (1) the advertised price must reference the final price listed by the 16 manufacturer on the monroney sticker, including accessories and options physically 17 attached to the vehicle at the time of delivery to the dealer, plus any transportation 18 charges, and minus all manufacturer discounts and savings; 19 (2) the manufacturer's suggested retail price or the list price does not 20 include charges added by the dealer or options added to the vehicle by the dealer; and 21 (3) whenever using the term "manufacturer's suggested retail price," 22 "MSRP," or "list price," the dealer [SHALL PROVIDE IN THE ADVERTISEMENT 23 A CLEAR AND CONSPICUOUS DISCLOSURE THAT STATES THAT A SALE] 24 may not represent that a savings occurs at a lower [HAVE OCCURRED AT 25 THAT] price. 26 * Sec. 3. AS 45.25.410 is amended to read: 27 Sec. 45.25.410. Availability of advertised items. A motor vehicle dealer 28 may not advertise a new motor vehicle [VEHICLES AND RELATED GOODS OR 29 SERVICES] at a specified dealer price with the intent not to supply reasonably 30 expected demand, unless the advertisement discloses the number of vehicles in stock 31 at the advertised price.
01 * Sec. 4. AS 45.25.460(a) is amended to read: 02 (a) In addition to the provisions of AS 45.50.471 and regulations adopted 03 under AS 45.50.471, a motor vehicle dealer [MAY NOT] 04 (1) shall include in [EXCLUDE FROM] an advertisement of a motor 05 vehicle for sale all [THAT TAXES, IF APPLICABLE, VEHICLE REGISTRATION 06 FEES, FINANCE CHARGES, CHARGES FOR THE ISSUANCE OF ANY 07 CERTIFICATE OF COMPLIANCE OR NONCOMPLIANCE REQUIRED BY 08 STATUTE, OR OTHER] fees or charges, except fees or charges to be paid to a third 09 party [THAT ARE NOT OTHERWISE INCLUDED IN THE ADVERTISED PRICE 10 WILL BE ADDED TO THE ADVERTISED PRICE AT THE TIME OF THE SALE]; 11 (2) may not represent the dealer document preparation fee as a 12 government fee; 13 (3) may not advertise a specific motor vehicle for sale without 14 identifying the vehicle by either its vehicle identification number, vehicle stocking 15 number, or license number; 16 (4) may not advertise that free merchandise, gifts, or services will be 17 provided by the dealer if a vehicle is purchased; in this paragraph, "free" includes 18 merchandise or services offered for sale at a price less than the dealer's cost for the 19 merchandise or services; 20 (5) may not use the term "rebate," "cash back," or a similar term in 21 advertising the sale of a motor vehicle unless the rebate is expressed in a specific 22 dollar amount and is in fact a rebate offered by the vehicle manufacturer or distributor 23 directly to the retail buyer of the vehicle; 24 (6) may not require a person, in order to receive the advertised credit 25 terms, to pay a higher price for a motor vehicle and any related goods or services than 26 the cash price the same person would have to pay to purchase the same vehicle and 27 related goods or services; 28 (7) may not advertise a guaranteed trade-in allowance or range of 29 allowances unless the guarantee is provided by the manufacturer or distributor; 30 (8) may not affix to a new motor vehicle a supplemental price sticker 31 containing a price that represents the dealer's asking price if the supplemental price
01 sticker exceeds the manufacturer's suggested retail price, unless the supplemental 02 sticker 03 (A) clearly and conspicuously, in the largest print appearing on 04 the sticker other than the print size used for the dealer's name, discloses that 05 the supplemental sticker price is the dealer's asking price, or words of similar 06 meaning, and is not the manufacturer's suggested retail price; 07 (B) clearly and conspicuously discloses the manufacturer's 08 suggested retail price; and 09 (C) states, if the supplemental sticker price is greater than the 10 sum of the manufacturer's suggested retail price and the price of the items 11 added by the dealer, the difference and describes it as additional dealer mark- 12 up; 13 (9) may not advertise or otherwise represent, or knowingly allow to be 14 advertised or represented on behalf of the dealer, that a down payment is not required 15 in connection with the sale of a motor vehicle when a down payment is in fact 16 required; 17 (10) may not advertise an offer for the sale, lease, or purchase of a 18 motor vehicle that [CREATES THE FALSE IMPRESSION THAT THE VEHICLE IS 19 BEING OFFERED BY A PRIVATE PARTY OR A MOTOR VEHICLE AGENT OR 20 THAT] does not contain the name of the dealer; 21 (11) [USE AN ADVERTISEMENT FOR A MOTOR VEHICLE 22 THAT CONTAINS LANGUAGE THAT FALSELY, IMPLICITLY, OR 23 EXPLICITLY SUGGESTS THAT, TO TAKE ADVANTAGE OF AN OFFER, A 24 CONSUMER MUST ACT WITHIN A CERTAIN PERIOD OF TIME WHEN, IN 25 FACT, THE VEHICLES WILL CONTINUE TO BE AVAILABLE AT THE 26 ADVERTISED PRICE BEYOND THAT TIME PERIOD; 27 (12) REQUIRE A BUYER OF A NEW MOTOR VEHICLE, AS A 28 CONDITION OF SALE AND DELIVERY, TO ALSO PURCHASE SPECIAL 29 FEATURES, APPLIANCES, ACCESSORIES, OR EQUIPMENT NOT DESIRED 30 OR REQUESTED BY THE BUYER UNLESS THE SPECIAL FEATURES, 31 APPLIANCES, EQUIPMENT, OR ACCESSORIES ARE ALREADY INSTALLED
01 ON THE VEHICLE WHEN RECEIVED BY THE DEALER; 02 (13)] may not represent and sell as a new motor vehicle a 03 demonstrator vehicle or a motor vehicle that is a used motor vehicle; in this paragraph, 04 "demonstrator vehicle" 05 (A) means a motor vehicle 06 (i) that has been assigned by a dealer for use by the 07 dealership as an executive vehicle for promotional purposes, including 08 being driven in the community; 09 (ii) that has not been licensed by a retail buyer; and 10 (iii) the title of which has not been transferred to a retail 11 buyer; 12 (B) does not include a motor vehicle that has only been driven 13 to demonstrate the motor vehicle to a prospective buyer; 14 (12) may not [(14)] advertise that the dealer finances any person or 15 does not reject any person's credit, or make similar claims; 16 (13) may not [(15)] advertise or make a statement, declaration, or 17 representation in an advertisement that cannot be substantiated in fact; the burden of 18 proof of the factual basis for the statement, declaration, or representation is on the 19 dealer. 20 * Sec. 5. AS 45.25.510(a) is amended to read: 21 (a) Before entering into a new motor vehicle sales contract, a new motor 22 vehicle dealer shall disclose in writing to a buyer of the new motor vehicle any known 23 damage and repair to the new motor vehicle if the damage exceeds five percent of the 24 manufacturer's suggested retail price as calculated at the dealer's authorized warranty 25 rate for labor and parts, or $1,000, whichever amount is greater. A new motor 26 vehicle dealer is not required to disclose to a buyer that glass, tires, bumpers, or 27 cosmetic parts of a new motor vehicle were damaged at any time if the damaged item 28 has been replaced with original or comparable equipment. A replaced part is not part 29 of the cumulative damage required to be disclosed under this subsection. 30 * Sec. 6. AS 45.25.610(c) is amended to read: 31 (c) If [NOTWITHSTANDING THE REQUIREMENTS OF THIS SECTION,
01 IF] a motor vehicle dealer arranges financing for a buyer, the motor vehicle dealer 02 may deliver the motor vehicle to the buyer before final approval by the financing 03 entity if 04 (1) the buyer and seller sign an agreement separate from the motor 05 vehicle installment contract on an 8 1/2 x 11 inch sheet of paper that clearly and 06 conspicuously informs the buyer that final financing arrangements have not yet been 07 approved and that clearly sets out the amount that will be financed, the annual 08 percentage rate of the finance charge, the amount of the finance charge, the number 09 and frequency of payments, and the amount of each payment; 10 (2) the separate agreement clearly and conspicuously informs the 11 buyer that accepting delivery of the vehicle before final financing approval obligates 12 the buyer to terms of the motor vehicle sales contract if the terms on the separate 13 agreement are identical to the terms finally approved by the financing entity; and 14 (3) the separate agreement provides that the separate agreement, the 15 motor vehicle sales contract, and any and all other conditions of the purchase will be 16 void if any of the terms contained in the separate agreement are changed by either the 17 motor vehicle dealer or the financing institution as a condition of sale or final 18 financing approval. 19 * Sec. 7. AS 45.25.610(d) is amended to read: 20 (d) If a buyer's final financing is not approved [WITHIN SEVEN BUSINESS 21 DAYS FROM THE DATE OF THE SEPARATE AGREEMENT] and, as a result, the 22 transaction is not completed, the motor vehicle dealer shall return the buyer's entire 23 down payment, and the buyer's trade-in, if any, shall be returned to the buyer in the 24 same condition and with not more than 100  miles accumulated on the odometer 25 from when the motor vehicle was delivered to the motor vehicle dealer. 26 * Sec. 8. AS 45.25.460(b) and 45.25.610(b) are repealed.