At its May 9, 2005 bi-monthly meeting, the Virginia Motor Vehicle Dealer Board determined to seek legislation that the initial dealer bond for a new dealer member be increased from $25,000 to $50,000. MVDB determined to leave the period that the new dealer bond must be in place at three years.
Other significant actions by MVDB included:
à Failure to Maintain Records. MVDB assessed a significant civil penalty against an independent dealer for failure to properly maintain records. This action should serve as a reminder of the need to maintain vehicle sales records and other statutorily mandated records.
à Offsite Sales. MVDB staff noted that it had shut down an offsite sale for which the dealer had not sought a supplemental license another reminder to dealers who wish to do offsite sales that they must obtain a supplemental license to do so.
à Direct Mail Campaign. A board member requested an investigation of a direct mail flyer that he had received as to its compliance with the advertising regulations. Direct mail campaigns are a form of advertising and must comply with the Virginia advertising statute and regulations.
Dealer Operator License Examination. MVDB discussed the revision of the dealer operator examination that all new dealer operators must take. The concern is that the exam should carefully test for knowledge of the broad concepts necessary to operate a dealership.
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