§ 818.102. Definitions
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 63 P.S. Professions and Occupations (State Licensed)Effective: October 24, 2019
Effective: October 24, 2019
63 P.S. § 818.102
Formerly cited as PA ST 63 P.S. § 818.2
§ 818.102. Definitions
The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:
“Agreement.” A contract or franchise or any other written instrument which describes the contractual relationship between a manufacturer, distributor or dealer and at least one other person.
“Area of responsibility.” The geographic area designated in the franchise agreement or related document where a new vehicle dealer is responsible for effectively selling, servicing and otherwise representing the products of the manufacturer.
“Board.” The State Board of Vehicle Manufacturers, Dealers and Salespersons.
“Branch lot.” An office and lot maintained in addition to the main office and lot of a licensed vehicle dealer used for the display or sale of vehicles.
“Broker.”
(1) Any person who, for any direct or indirect commission, compensation or other consideration, arranges or offers to arrange a transaction involving the sale of a new or used vehicle or establishes or offers to establish a plan or program involving the sale of a new or used vehicle and who is not:
(i) a licensed dealer or a licensed employee of a new or used vehicle dealer;
(ii) a licensed representative or a licensed employee of a manufacturer, factory branch or factory representative of new vehicles;
(iii) a licensed representative or a licensed employee of a distributor, distributor representative or distributor branch of new vehicles;
(iv) at any point in the transaction the owner of the vehicle involved in the transaction; or
(v) a licensed wholesale vehicle auction or public or retail vehicle auction.
(2) For purposes of this definition, “direct or indirect commission, compensation or other consideration” shall not include any interest, finance charges and fees directly associated with loans originated by financial institutions.
“Bushing.” The practice of increasing the selling price of a vehicle above that originally quoted the purchaser or decreasing the allowance for trade-in of a used vehicle after the purchaser has signed a purchase order or contract which is subject to subsequent acceptance by the seller. If a used vehicle is being used as the trade-in and it is not to be delivered to the dealer until delivery of the new vehicle, the used vehicle may be reappraised at the time of delivery of the new vehicle if the dealer can establish that the vehicle has suffered damage or serious mechanical deterioration since the date of original valuation. The reappraisal value may determine the allowance made for the used vehicle.
“Buying, selling or exchanging.” Includes listing, offering, auctioning, advertising, representing or soliciting, offering or attempting to solicit or negotiate on behalf of another a sale, purchase or exchange or any similar or related activity.
“Common ownership.” Exists when a person is an owner of two or more licensed dealerships, regardless of:
(1) the location of each dealership;
(2) the person's percentage of ownership at each dealership; or
(3) the corporate structure of each dealership.
“Dealer.” A person required to be licensed under this act who is engaged in the business of buying, selling or exchanging new or used vehicles or an interest in new or used vehicles, regardless of whether the vehicles are owned by that person. The term includes persons engaged in consignment sales for a seller, but does not include a person issued an identification number by the Department of Transportation, unless the board has also issued a dealer license to the person. Vehicle dealers shall be classified as one or more of the following:
(1) A new vehicle dealer, who is a person engaged in the business of buying, selling or exchanging new and used vehicles, trailers or semitrailers for commission, compensation or other consideration, who holds a franchise with a manufacturer or distributor, giving the dealer selling rights for that particular line-make of new vehicles, trailers or semitrailers, or who is a distributor of new vehicles, trailers or semitrailers who holds a franchise with a manufacturer or distributor of vehicles, trailers and semitrailers.
(2) A used vehicle dealer, who is a person engaged in the business of buying, selling or exchanging used vehicles, trailers or semitrailers for commission, compensation or other consideration. The term includes fleet owners who engage directly in the retail sale of its fleet vehicles.
(3) A new manufactured housing dealer, who is a person engaged in the business of selling new manufactured housing and buying, selling or exchanging used manufactured housing or mobile homes for commission, compensation or other consideration and who holds a franchise with a manufacturer or distributor giving the dealer selling rights for a particular line-make of new manufactured housing.
(4) A used manufactured housing or mobile home dealer, who is a person engaged in the business of buying, selling or exchanging used manufactured housing or mobile homes for commission, compensation or other consideration.
(5) A new recreational vehicle dealer, who is a person engaged in the business of buying, selling or exchanging new and used recreational vehicles for commission, compensation or other consideration and who holds a franchise with a manufacturer or distributor giving the dealer selling rights for a particular line of new recreational vehicles.
(6) A used recreational vehicle dealer, who is a person engaged in the business of buying, selling or exchanging used recreational vehicles for commission, compensation or other consideration.
(7) A mobility vehicle dealer.
“Department.” The Department of State acting through the Commissioner of Professional and Occupational Affairs.
“Distributor.” A person, resident or nonresident, who sells, distributes or services a manufacturer's products to or for dealers or maintains distributor representatives.
“Distributor branch.” An established place of business operated, controlled or maintained by a distributor for the purpose of selling, distributing or servicing a manufacturer's products to or for dealers.
“Distributor representative.” A representative employed by a distributor or distributor branch for the purpose of selling, distributing or servicing a manufacturer's products to or for dealers.
“Do-not-drive order.” A notification provided to the owner of an affected vehicle by a manufacturer or by the National Highway Traffic Safety Administration unconditionally instructing the owner to stop driving the vehicle until the noncompliance or defect remedy is performed.
“Dual” or “dualing.” A new vehicle dealership having two or more line-makes of new vehicles located in the same dealership facilities.
“Due regard to the equities.” Treatment in enforcing an agreement that is fair and equitable to a dealer or distributor and that is not discriminatory compared to similarly situated dealers or distributors.
“Engaging in the business.” Any activity which requires licensure under this act.
“Established place of business.” A permanent, enclosed building as more specifically defined by regulation which is accessible and open at reasonable times and at which the business may be lawfully conducted in accordance with the terms of applicable building codes, zoning and other land-use regulatory ordinances.
“Factory branch.” An established place of business operated, controlled or maintained, in whole or in part, by a manufacturer for the purpose of selling or servicing a manufacturer's products to or for distributors or dealers or for directing or supervising, in whole or part, its representatives.
“Factory representative.” A representative employed by a manufacturer or by a factory branch for the purpose of making or promoting the sale of its vehicles or for supervising or contacting its dealers or prospective dealers.
“Fifth wheel trailer.” A vehicle mounted on wheels designed to provide temporary living quarters for recreational, camping or travel use which is a size and weight which does not require a special highway movement permit and is designed to be towed by a motorized vehicle that contains a towing mechanism mounted above or forward of the tow vehicle's rear axle.
“Fleet owner.” Any person who owns 15 or more vehicles.
“Folding camping trailer.” A vehicle mounted on wheels and constructed with collapsible side walls that fold for towing by another vehicle and unfold at the campsite to provide temporary living quarters for recreational, camping or travel use.
“Franchise.” The written agreement between any new vehicle manufacturer or distributor and any new vehicle dealer which purports to fix the legal rights and liabilities of the parties to such agreement, and pursuant to which the dealer purchases, resells, services, separately services and performs warranty repairs on the franchise product or leases or rents the dealership premises.
“Just cause.” A material breach by a vehicle dealer or distributor, due to matters within the dealer's or distributor's control, of a reasonable and necessary provision of an agreement if the breach is not cured within a reasonable time after written notice of the breach has been received from the manufacturer or distributor.
“Line-make.” Groups of vehicles that are offered for sale, lease or distribution under a common name, trademark, service mark or brand name of the manufacturer or distributor of those same vehicles.
“Manufactured housing.” A structure manufactured after 1975, transportable in one or more sections, which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities and includes the plumbing, heating, air conditioning and electrical systems contained therein. The term shall include any structure which meets all the requirements of this definition with respect to which the manufacturer voluntarily files a certification required by the United States Department of Housing and Urban Development.
“Manufacturer.” Any person, resident or nonresident, who manufactures or assembles vehicles or who manufactures or installs on previously assembled chassis special bodies or equipment which when installed form an integral part of a vehicle and which constitute a major manufacturing alteration.
“Material damage.” Damage sustained or incurred by a vehicle, whether repaired or replaced, which results in a vehicle being altered or reconditioned and the alteration or reconditioning is of a nature that a reasonable person would consider important in determining whether to make a retail purchase of a particular vehicle for a particular price. Replacement of tires, glass, bumpers and in-dash audio equipment, and only for recreational vehicles any appliances, furniture or fixtures, shall not be considered altering or reconditioning the vehicle if those components are replaced by identical manufacturer's original equipment.
“Mobile home.” A structure manufactured before 1976, designed and used exclusively for living quarters or commercial purposes, but only incidentally operated on a highway.
“Mobility vehicle.” A vehicle that:
(1) Is designed and equipped to transport a person with a disability.
(2) Contains a lowered floor or frame or a raised roof and door.
(3) Contains one of the following:
(i) an electronic or mechanical wheelchair, scooter or platform lift that enables a person to enter or exit the vehicle while occupying a wheelchair or scooter;
(ii) an electronic or mechanical wheelchair ramp; or
(iii) a system to secure a wheelchair or scooter to allow for a person to be safely transported while occupying the wheelchair or scooter that is installed as an integral part or permanent attachment to the vehicle chassis.
“Mobility vehicle dealer.” A person engaged in the business of buying, selling or exchanging mobility vehicles for commission, compensation or other consideration.
“Motor home.” A motorized vehicle designed to provide temporary living quarters for recreational, camping or travel use containing at least four of the following permanently installed independent life support systems:
(1) A cooking facility with an on-board fuel source.
(2) A potable water supply system that includes at least a sink, a faucet and a water tank with an exterior service supply connection.
(3) A toilet with exterior evacuation.
(4) A gas or electric refrigerator.
(5) A heating or air conditioning system with an on-board power or fuel source separate from the vehicle engine.
(6) An electric power system separate from the vehicle.
“Motorcycle.” A vehicle having a seat or saddle for the use of the rider and designed to travel on not more than three wheels in contact with the ground or an “all-terrain vehicle” or “ATV” as defined in 75 Pa.C.S. § 7702 (relating to definitions).
“Net acquisition cost.” The cost to a dealer plus any charges by the manufacturer or distributor for the distribution, delivery and taxes, less all allowances paid or credited to the dealer by the manufacturer or distributor.
“New vehicle.” A vehicle, regardless of mileage, which has never been registered or titled in this Commonwealth or any other state or jurisdiction and on which a tax imposed under Article II of the act of March 4, 1971 (P.L. 6, No. 2),1 known as the Tax Reform Code of 1971, has not been paid prior to its sale.
“Off-premise sale,” “vehicle show” or “exhibition.” A sale, show or exhibition of one or more vehicle dealers, distributors, manufacturers or manufacturers' representatives who display, sell or attempt to sell vehicles, mobile homes, manufactured housing or trailers, but not recreational vehicles, for a fixed and limited period of time held in the relevant market area of the participating dealers or distributors.
“Park model RV.” A vehicle that:
(1) Is designed and marketed as temporary living quarters for recreational camping, travel or seasonal use.
(2) Is not permanently affixed to real property for use as a permanent dwelling.
(3) Is built on a single chassis mounted on wheels with a gross trailer area not exceeding 400 square feet in the set-up mode.
(4) Is certified by the manufacturer as complying with the ANSI A119.5 Park Model Recreational Vehicle Standard.
“Person.” Any individual, corporation, partnership, association or other entity foreign or domestic.
“Public or retail vehicle auction.” Any person required to be licensed under this act who for commission, compensation or other consideration is engaging in the business of providing retail vehicle auction services at an established place of business in which the auction acts as an agent as to vehicles which are sold to buyers, including individual retail buyers and the general public.
“Recreational vehicle.” A vehicle which is either self-propelled or towed by a consumer-owned tow vehicle and designed to provide temporary living quarters for recreational, camping or travel use that complies with all applicable Federal vehicle regulations and is certified by the manufacturer as complying with NFPA 1192 Standard on Recreational Vehicles or ANSI A119.5 Park Model Recreational Vehicle Standard and include the following types:
(1) Motor home.
(2) Travel trailer.
(3) Fifth wheel travel trailer.
(4) Folding camping trailer.
(5) Truck camper.
(6) Park model RV.
“Recreational vehicle show,” “recreational vehicle off-premise sale,” “recreational vehicle exhibition” or “recreational vehicle rally.” A sale, show, exhibition or rally, held by one or more recreational vehicle dealers, distributors, manufacturers or manufacturers' representatives who display, sell or attempt to sell recreational vehicles for a fixed and limited period of time, which shall not exceed ten days in a calendar month, 20 days in three consecutive calendar months and 60 days in a calendar year. Set-up and tear-down days and days when the events are not open shall be excluded from the calculation of the applicable time period.
“Recreational vehicle warrantor.” An individual, firm, corporation or business entity, including a manufacturer or supplier that provides a written warranty to a consumer in connection with a new recreational vehicle or a part, accessory or component of a new recreational vehicle. The term does not include service contracts, mechanical or other insurance or extended warranties sold for separate consideration by a dealer or other person not controlled by a manufacturer.
“Relevant market area.” The area within a radius of 20 miles around an existing dealer or the area of responsibility defined in the franchise, whichever is greater; except:
(1) where a manufacturer is seeking to establish an additional new vehicle dealer, the relevant market area shall be in all instances the area within a radius of ten miles around the proposed site of the additional new vehicle dealer, except for cities of the first and second class which will be the area within a five-mile radius, around the proposed site of the additional new vehicle dealer; and
(2) where a manufacturer is seeking to relocate an existing dealer, the relevant market area is the area within a radius of 20 miles around the proposed site of the relocating dealer or the area of responsibility defined in the franchise of the relocating dealer, whichever is greater.
This definition shall not apply to manufactured housing or recreational vehicle dealers or their manufacturer agreements.
“Retail sale” or “sale at retail.” The act or attempted act of selling, bartering, exchanging or otherwise disposing of a vehicle to an ultimate purchaser.
“Salesperson.” Any person who, for a commission, compensation or other consideration, is employed by a dealer to buy, sell or exchange one or more new or used vehicles.
“Significantly modify facilities.” An alteration that has a major impact on the architectural features, characteristics, appearance or integrity of a structure or lot. The term does not include routine maintenance, such as interior painting, reasonably necessary to maintain a dealership facility in attractive condition.
“Site-control agreement” or “exclusive use agreement.” An agreement that, regardless of its name, title, form or the parties entering into it, has the effect of:
(1) controlling the use and development of the premises of a dealer's franchise or facility;
(2) requiring a dealer to establish or maintain an exclusive dealership facility on the premises of the dealer's franchise or facility;
(3) restricting the power or authority of the dealer or the lessor if the dealer leases the dealership premises to transfer, sell, lease, develop, redevelop or change the use of the dealership premises, whether by sublease, lease, collateral pledge of lease, right of first refusal to purchase or lease, option to purchase or lease or any similar arrangement; or
(4) establishing a valuation process or formula for the dealership premises that does not allow for the dealership premises to be transferred, sold or leased by the dealer at the highest and best use valuation for the dealership premises.
“Stop-sale order.” A notification issued by a manufacturer to its new vehicle dealers stating that certain used vehicles in inventory shall not be sold or leased, at retail or wholesale, due to a Federal safety recall for a defect or a noncompliance or a Federal or California emissions recall.
“Trailer” or “semitrailer.” A vehicle, other than a recreational vehicle, with a gross vehicle weight over 3,000 pounds which is designed to be towed by a vehicle.
“Travel trailer.” A vehicle mounted on wheels and towed by a consumer's motorized vehicle designed to provide temporary living quarters for recreational, camping or travel use of a size and weight as to not require a special highway movement permit when towed by a motorized vehicle.
“Truck camper.” A vehicle designed to be placed in the bed of a pickup truck to provide temporary living quarters for recreational, camping or travel use.
“Used vehicle.” A vehicle on which title has been transferred from the person who first acquired it from the manufacturer or dealer in this Commonwealth or any other state or jurisdiction and on which a tax imposed under Article II of the act of March 4, 1971 (P.L. 6, No. 2), known as the Tax Reform Code of 1971, was paid prior to its sale.
“Vehicle.” Every device which is or may be moved or drawn upon a highway, except devices which are infrequently operated or moved upon a highway but are designed primarily for use in construction or agriculture or road maintenance, devices moved by human or animal power, devices used exclusively upon rails or tracks, motorized pedalcycles and mobility vehicles.
“Wholesale vehicle auction.” Any person required to be licensed under this act who for commission, compensation or other consideration is engaging in the business of providing wholesale vehicle auction services at an established place of business. The auction need not have custody or control of the subject vehicle but shall have the authority of the buyer or seller to negotiate or conduct a transaction on behalf of the buyer or seller.
Credits
1983, Dec. 22, P.L. 306, No. 84, § 2 [63 P.S. § 818.2], effective Jan. 1, 1984. Amended 1984, June 8, P.L. 380, No. 78, § 1, retroactive effective Jan. 1, 1984; 1991, Dec. 20, P.L. 387, No. 41, § 1, effective in 60 days; 1996, April 19, P.L. 104, No. 27, § 1, effective in 60 days; 2000, Oct. 18, P.L. 577, No. 75, § 1, effective in 60 days; 2008, Oct. 8, P.L. 1086, No. 90, § 1, effective in 60 days [Dec. 8, 2008]; 2009, Sept. 3, P.L. 378, No. 41, § 1, effective in 60 days [Nov. 2, 2009]; 2010, Oct. 27, P.L. 958, No. 100, § 1, effective in 60 days [Dec. 27, 2010]; 2011, July 7, P.L. 285, No. 65, § 1, effective in 60 days [Sept. 6, 2011]; 2011, Dec. 22, P.L. 557, No. 120, § 1, effective in 60 days [Feb. 21, 2012]; 2014, Oct. 14, P.L. 2507, No. 146, § 1, imd. effective; 2015, Dec. 17, P.L. 450, No. 78, § 1, effective in 60 days [Feb. 16, 2016]; 2018, June 28, P.L. 420, No. 59, § 1, effective in 60 days [Aug. 27, 2018]. Renumbered as § 102 [63 P.S. § 818.102] and amended by 2018, Oct. 24, P.L. 816, No. 134, § 3, effective in 365 days [Oct. 24, 2019].
Footnotes
72 P.S. § 7201 et seq.
63 P.S. § 818.102, PA ST 63 P.S. § 818.102
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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