Once again, the Virginia Motor Vehicle Dealer Board (MVDB) considered two cases of sales by unlicensed sales people at its recent January meeting. The cases revealed how the dealerês cooperation in any investigation can have a significant impact on the civil penalty assessed.
In one case, the sales were done by an unlicensed sales person as a result of negligence there was a system problem and the dealer did not follow up on the salespersonês application. In that case, even though a hearing officer recommended that no civil penalty be imposed, the board felt that some civil penalty must be paid because there was negligence. However, in light of the cooperation by personnel of the dealership with MVDB representatives, a civil penalty of only $50 per unlicensed sale was imposed.
In the other case, another dealer who had sales by an unlicensed sales person was found by a hearing officer to be uncooperative with MVDB representatives requiring substantial work to dig out the facts concerning unlicensed sales and was assessed a civil penalty of $500 per unlicensed sale.
Other issues of interest for dealers included:
Ads concerning special circumstance vehicles. MVDB considered ads concerning special circumstance vehicles repossessions, police seizures, etc. Apparently, there are a number of promotions being sold to dealers advertising sales of these vehicles that may be misleading. As a result, the board voted to give the executive director authority to require substantiation concerning advertisement of special circumstance vehicles and the power to pursue actions to seek to have the advertisers cease and desist from misleading advertising.
Independent dealer operator course. The board received a report concerning the new training course for independent dealer operator candidates. The two-day course was established so that independent dealer operator candidates can better understand the substantial compliance issues involved in operating a motor vehicle dealership. Under the law, dealer operators of franchised motor vehicle dealers or independent motor vehicle dealers owned by franchise motor vehicle dealers do not have to take the course, but they must pass the dealer operator test and receive a certificate of qualification.
The next MVDB meeting is scheduled for March 13, 2006 at DMV headquarters in Richmond.
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