CHAPTER 7

An Act to authorize city councils to require bonds of officers and employees
of their cities and to provide for the same. [H 63]

Approved February 5, 1958

Be it enacted by the General Assembly of Virginia:

1. § 1. Notwithstanding any provision of any charter or law to the
contrary, the council of any city may require all or any officers and em-
ployees of the city to give bond for the faithful and proper discharge of
their duties; as used herein the words officers and employees shall include
officers and employees paid solely or partly by the city. The city may pay
the premium on such bonds from city funds and may provide for indi-
vidual surety bonds or for a bond covering all officers and employees or
any group thereof. The bond shall be payable to the city as its interest may
appear in event of breach of the conditions thereof.

2. An emergency exists and this act is in force from its passage.

CHAPTER 7
MOTOR VEHICLE DEALERS
Article 1
General Provisions

§ 46.1-515. The short title of this chapter is “Virginia Motor Vehicle
Dealer Licensing Act”.

§ 46.1-516. Unless the context otherwise requires, the following words
ane one for the purpose of this chapter shall have the following
meanings:
(a) ‘Motor Vehicle Dealer” means any person who

(1) For commission, money or other thing of value, buys, sells, ex-
changes, either outright or on conditional sale, bailment lease, chattel
mortgage or otherwise howsoever, or offers or attempts to negotiate a sale
or exchange of an interest in, new motor vehicles or new and used motor
vehicles or used motor vehicles alone.

(2) Is engaged, wholly or in part, in the business of selling new motor
vehicles or new and used motor vehicles, or used motor vehicles only,
whether or not such motor vehicles are owned by such person, partnership,
association or corporation.

(b) For the purpose of this chapter the term “motor vehicle dealer”
does not include:

(1) Receivers, trustees, administrators, executors, guardians or other
persons appointed by or acting under judgment or order of any court or
their employees when engaged in the specific performance of their duties
as such employees.

(2) Public officers, their deputies, assistants or employees, while per-
forming their official duties.

(8) Persons disposing of motor vehicles acquired for their own use
and actually so used, when the same shall have been so acquired and used
ma ae faith and not for the purpose of avoiding the provisions of this

apter.

_ (4) Persons dealing solely in the sale and distribution of fire-fighting
equipment, ambulances and funeral vehicles, including motor vehicles
adapted therefor; provided that the exemption granted under this para-
graph shall not extend to exempt any such person from the provisions of
§§ 46.1-528 and 46.1-529.

(c) “Motor vehicle salesman” or “salesman” means any person who
is employed as a salesman by, or has an agreement with, a motor vehicle
dealer to sell or exchange motor vehicles.

(d) “Distributor” or “wholesaler” means a person, resident or non-
resident in this State, who in whole or in part, sells or distributes motor
vehicles to motor vehicle dealers in this State or who maintains a dis-
tributor representative in this State.

(e) “Factory branch” means a branch office, maintained by a person
for the sale of motor vehicles to distributors or for the sale of motor
vehicles to motor vehicle dealers, or for directing or supervising, in whole
or in part, its representatives in this State.

(f) “Distributor branch” means a branch office maintained by a dis-
tributor or wholesaler for the sale of motor vehicles to motor vehicle dealers
or for directing or supervising, in whole or in part, its representatives in
this State.

(g) “Factory representative’ means a person employed by a person
who manufactures or assembles motor vehicles or by a factory branch
for the purpose of making or promoting the sale of its motor vehicles or
for supervising or contacting its dealers, prospective dealers, or repre-
sentatives in this State.

(h) “Distributor representative’ means a person employed by a dis-
tributor or wholesaler, or by a distributor branch, for the purpose of mak-
ing or promoting the sale of motor vehicles dealt in by it or for super-
vising or contacting its dealers, prospective dealers, or representatives in
this State.

(i) “Established place of business” means a salesroom in a permanent
enclosed building or structure, either owned in fee or leased, at which
a permanent business of bartering, trading and selling of motor vehicles
will be carried on as such in good faith and at which place of business
shall be kept and maintained the books, records and files necessary to con-
duct the business at such place. It shall not mean residence, tents, tem-
porary stands or other temporary quarters, nor permanent quarters oc-
cupied pursuant to any temporary arrangement, devoted principally to the
business of a motor vehicle dealer, as herein defined.

(k) “Retail instalment sale’ means and includes every sale of one
or more motor vehicles to a buyer for his use and not for resale, in which
the price thereof is payable in one or more instalments over a period of
time and in which the seller has either retained title to the goods or has
taken or retained a security interest in the goods under form of contract
designated either as a conditional sale, bailment lease, chattel mortgage
or otherwise.

i 46.1-517. (a) The Commissioner shall promote the interests of the
retail buyers of motor vehicles.

(b) The Commissioner may prevent unfair methods of competition
and unfair or deceptive acts or practices.

§ 46.1-518. The Commissioner may, in hearings arising under this
chapter, determine the place in the State where they shall be held; subpoena
witnesses; take depositions of witnesses residing without the State in the
manner provided for in civil actions in courts of record; pay such witnesses
the fees and mileage for their attendance as is provided for witnesses in
civil actions in courts of record; and administer oaths.

§ 46.1-519. The Commissioner may, whenever he shall believe from
evidence submitted to him that any person has been or is violating any
provision of this chapter, in addition to any other remedy, bring action
in the name of the State against such person and any other persons con-
cerned or in any other way participating in, or about to participate in,
practices or acts so in violation, to enjoin such person and such other
persons from continuing the same.

§ 46.1-520. The Commissioner may make such rules and regulations,
not inconsistent with the provisions of this chapter, as he shall deem
necessary or proper for the effective administration and enforcement of
this chapter, provided that a copy of such rules and regulations shall be
mailed to each motor vehicle dealer licensee ten days prior to the effective
date of such rules and regulations.

§ 46.1-521. (a) The Commissioner may inspect the pertinent books,
records, letters and contracts of a licensee relating to any written complaint
for a violation of this chapter made to him against such licensee. If such
licensee is found to have violated this chapter or any lawful order of the
Commissioner, the actual cost of such examination shall be paid by such
licensee so examined within thirty days after demand therefor by the Com-
missioner. The Commissioner may maintain an action for the recovery of
such costs in any court of competent jurisdiction.

(b) No licensee shall be subject to examination or audit by the Com-
missioner except as provided in this section.

§ 46.1-522. Any person violating any of the provisions of this chapter
shall be guilty of a misdemeanor and upon conviction thereof shall be
sentenced to pay a fine of not exceeding five hundred dollars or to undergo
imprisonment for not to exceed six months, or by both such fine and
imprisonment.

Article 2
Licenses

§ 46.1-523. It is unlawful for any new motor vehicle dealer, used
motor vehicle dealer, motor vehicle salesman, manufacturer, factory branch,
distributor branch, factory or distributor representative to engage in
business as such in this State without first obtaining a license as provided
in this chapter. If any motor vehicle dealer acts as motor vehicle sales-
man, he shall obtain a motor vehicle salesman’s license in addition to a
motor vehicle dealer’s license. A manufacturer or factory branch or dis-
tributor or distributor branch, licensed as such, may also operate as a
motor vehicle dealer without additional license.

§ 46.1-524. Subject to the zoning restrictions of any town, city or
county a licensed motor vehicle dealer may use vacant lots and premises
for the sale and display of motor vehicles; provided, that if such lots and
premises are more than twenty-five yards distant from the dealer’s estab-
lished place of business a supplemental license is obtained for each such
lot or premises.

§ 46.1-525. (a) Application for license shall be made to the Commis-
sioner at such time and in such form and shall contain such information as
the Commissioner shall require. The application shall be accompanied by
the required fee.

(b) The Commissioner shall require in such application, or otherwise,
information relating to the matters set forth in § 46.1-535 as grounds for
the refusing of licenses and to other pertinent matters requisite for the
safeguarding of the public interest in the locality in which the applicant
proposes to engage in business, all of which shall be considered by the
Commissioner in determining the fitness of the applicant to engage in the
busine3s for which he seeks a license.

§ 46.1-526. All licenses that are granted shall expire, unless sooner
revoked or suspended, on June thirtieth of the year following date of issue.

§ 46.1-527. Subject to the provisions of § 46.1-524 supplemental
licenses shall be issued for each place of business, operated or proposed to
be operated by the licensee, that is not contiguous to other premises for
which a license is issued.

§ 46.1-528. (a) The license fee for each fiscal year or part thereof,
shall be as follows:

(1) For motor vehicle dealers, distributors and wholesalers, fifteen
dollars for each principal place of business, plus five dollars for a sup-
plemental license for each car lot more than 25 yards distant from a
principal place of business.

(2) For manufacturers, twenty dollars, and for each branch factory
in this State, ten dollars.

(3) A manufacturer, wholesaler or distributor may operate as a motor
vehicle dealer, without any additional fee or license.

For motor vehicle salesmen, two dollars.

(5) For factory representatives, or distributor branch representa-
tives, two dollars.

(b) The licenses and fees required by this chapter are in addition to
licenses, taxes and fees imposed by other provisions of law and nothing
contained in this section or in any other section of this chapter shall be
construed as exempting any person, firm or corporation from any license,
tax or fee imposed by any other provision of law. i.

§ 46.1-529. All licensing fees shall be collected by the Commissioner
as provided in this chapter and by him shall be paid into the State Treasury
and are hereby appropriated to the Commissioner for the purpose of
administering, enforcing and effectuating the purposes of this chapter. All
payments out of this appropriation shall be made by the State Treasurer
on warrants of the Comptroller, issued on vouchers signed by the Commis-
sioner or such other person or persons as shall be designated by him.

§ 46.1-580. The licenses of new motor vehicle dealers, used motor
vehicle dealers, manufacturers, factory branches, distributors and dis-
tributor branches shall specify the location of each place of business or
branch or other location occupied or to be occupied by the licensee in con-
ducting his business as such and the license or supplemental license issued
therefor shall be conspicuously displayed on each of such premises. In the
event any such location is changed, the Commissioner shall endorse the
change of location on the license, without charge if the new location is
within the same political subdivision. A change in location to another
political subdivision shall require a new license.

§ 46.1-531. Whenever any licensee places an advertisement in any
Lewepaper or publication, the type and number of the license shall appear
therein.

§ 46.1-532. Each dealer shall keep a current list of his licensed sales-
men, showing names, addresses and serial numbers of their licenses, posted
in a conspicuous place in each place of business.

§ 46.1-5383. Every salesman, factory representative and distrivutor
representative shall carry his license when engaged in his business and
shall display the same upon request. The license shall name his employer
and, in the event of a change of employer, he shall immediately mail his
license to the Commissioner, who shall endorse such change on the license
without a charge.

§ 46.1-534. No motor vehicle dealer, unless licensed under this chap-
ter, shall be entitled to receive any dealer’s registration plates under the
provisions of the laws of this State providing for the issuance of such
registration plates.

§ 46.1-535. A license may be denied, suspended or revoked on any
one or more of the following grounds:

(a) Material misstatement in application for license.

(b) Wilful failure to comply with any provision of this chapter or
any aes rule or regulation promulgated by the Commissioner under this
chapter.

(c) Being a motor vehicle dealer, failure to have an established place
of business as defined in § 46.1-516(i).

(d) Wilfully defrauding any retail buyer, to the buyer’s damage, or
any other person in the conduct of the licensee’s business.

(e) Employment of fraudulent devices, methods or practices in con-
nection with compliance with the requirements under the statutes of this
State with respect to the retaking of motor vehicles under retail instalment
contracts and the redemption and resale of such motor vehicles.

(f) Having used unfair methods of competition or unfair deceptive
acts or practices.

(g) Knowingly advertising by any means any assertion, representa-
tion or statement of fact which is untrue, misleading or deceptive in any
particular relating to the conduct of the business licensed or for which a
license is sought.

(h) Having been convicted of any fraudulent act in connection with
the business of selling motor vehicles.

(i) Having been convicted of a felony involving his acquisition or
transference of title to a motor vehicle.

(j) Wilfully retaining in his possession titles to motor vehicles that
have not been completely and legally assigned to him.

§ 46.1-5386. (a) The Commissioner shall act upon all applications for
a license within thirty days after the receipt thereof, by either granting or
refusing the same. Any applicant denied a license shall, upon his written
request filed within thirty days, be given a hearing at such time and place
as determined by the Commissioner or person designated by him. All
such hearings shall be public and shall be held with reasonable promptness.
The applicant may be represented by counsel.

(b) Any applicant denied a license for failure to comply with the
definition of an established place of business may not, nor shall anyone,
apply for a license for such premises, for which a license was denied, until
ie expiration of sixty days from the date of the rejection of such appli-
cation.

§ 46.1-587. No license shall be suspended or revoked, or renewal
thereof refused, until a written copy of the complaint made has been fur-
nished to the licensee against whom the same is directed and a public
hearing thereon has been had before the Commissioner. At least ten days’
written notice of the time and place of such hearing shall be given to the
licensee by registered mail addressed to his last known post office address
or as shown on his license or other record of information in possession of
the Commissioner. At any such hearing the licensee shall have the right
to be heard personally or by counsel. After hearing, the Commissioner
shall have power to suspend, revoke or refuse to renew, the license in
question. Immediate notice of any such action shall be given to the licensee
in the manner herein provided in the case of notices of hearing.

§ 46.1-538. If a licensee is a partnership or corporation, it shall be
sufficient cause for the denial, suspension or revocation of a license that
any officer, director or trustee of the partnership or corporation, or any
member in the case of a partnership, has committed any act or omitted any
duty which would be cause for refusing, suspending or revoking a license
to such party as an individual. Each licensee shall be responsible for the
acts of any or all of his salesmen while acting as his agent, if such licensee
approved of or had knowledge of such acts or other similar acts and after
such approval or knowledge retained the benefit, proceeds, profits or
advantages accruing from such acts or otherwise ratified the acts.

§ 46.1-539. (a) Any person aggrieved by the action of the Commis-
sioner in refusing to grant or renew a license or in suspending or revoking
a license, or by any other action of the Commissioner which is alleged to
be improper, unreasonable or unlawful under the provisions of this chapter
may appeal from such action of the Commissioner in writing to any court
of record in the city or county in which the applicant or licensee intends
to conduct his business.

(b) Appeals from refusals to grant or renew licenses and from sus-
pensions and revocations of licenses must be taken within thirty days
after such refusal, suspension or revocation of which action immediate
notice shall be given the licensee by registered mail addressed as provided
in § 46.1-537. No such appeal shall act as a supersedeas.

(c) In appeals from action by the Commissioner in suspending or
revoking’ a license, no such appeal will be allowed until the aggrieved person
shall enter into a proper bond with surety approved by the clerk of the
court not to exceed $5,000 to observe the motor vehicle laws of this Com-
monwealth, including the provisions of Chapter 7, Title 46.1 of the Code
rn ee until the final judgment of the court to which the appeal is

en

§ 46.1-540. Within thirty days after the service of such notice of
appeal, the Commissioner shall file with the clerk of the court in which the
appeal is filed a transcript of the record of the proceedings in his office,
duly certified over the seal of the Division. The record shall include all
papers on file with the Commissioner affecting or relating to the inquiry
or investigation, if any, conducted by the Commissioner and a transcript
of all evidence taken in the hearing. Notice of the filing of the transcript,
with the term and number to which filed, shall be forthwith given by the
Commissioner to the licensee and to the party or parties, if any, upon whose
complaint the proceedings before the Commissioner were instituted. The
cost of the transcript and one dollar for certification shall be entered as
part of the record costs in the cause, to be paid as the court may direct.

i 46.1-541. The court, upon application by the Commissioner or the
appellant, shall fix a time and place for hearing, at which time, or at any
adjournment thereof, the appeal shall be heard by the judge or judges
of the court with or without a jury. In all proceedings upon such appeal,
the Attorney General shall appear for and represent the Commissioner.

§ 46.1-542. After such hearing, the court shall affirm the adjudica-
tion unless it shall find that the same is in violation of the constitutional
rights of the appellant, or is not in accordance with law, or that any
finding of fact made by the Commissioner and necessary to support his
adjudication is not supported by substantial evidence. If the adjudication
is not affirmed, the court may set aside or modify it in whole or in part or
may remand the proceeding to the Commissioner for further disposition
in accordance with the order of the court.

§ 46.1-543. (a) Hither party may appeal from the decision of the
court to the Supreme Court of Appeals. Such appeals shall be taken and
prosecuted in the same manner and with like effect as is provided by law
in other cases of appeal to the Supreme Court of Appeals.

(b) No appeal shall be taken on behalf of the person whose license was
suspended or revoked, until such person enter into a proper bond with
surety approved by the trial court in an amount determined by the trial
court (not to exceed $5,000) to observe the motor vehicle laws of this
Commonwealth, including the provisions of Chapter 7, Title 46.1 of the
Code of Virginia until such time as his appeal may be refused or, if
allowed, until final judgment of the Supreme Court of Appeals.

§ 46.1-544. The remedy at law provided by §§ 46.1-539 through 46.1-
543 shall not in any manner impair the right to applicable equitable relief ;
and such right to equitable relief is hereby preserved, notwithstanding the
provisions of such sections.

ARTICLE 3
Conduct of Business

§ 46.1-545. (a) Every retail instalment sale shall be evidenced by an
instrument in writing, which shall contain all the agreements of the
parties and shall be signed by the buyer.

(b) Prior to or at the time of delivery of the motor vehicle the seller
shall deliver to the buyer a written statement describing clearly the motor
vehicles sold to the buyer, the cash sale price thereof, the cash paid down
by the buyer, the amount credited the buyer for any trade-in and a
description of the motor vehicle traded, the amount of the finance charge,
in separate amounts the specific charge for any kind of insurance to be
effected, the amount of any other charge specifying its purpose, the net
balance due from the buyer, the terms of the payment of such net balance
and a statement showing each kind of insurance coverage to be effected.
Whenever any charge for a summary of insurance coverage appears on such
statement, and the insurance coverage effected or to be effected thereunder
does not include a policy of motor vehicle liability insurance, the seller or his
assignee shall stamp or mark upon the face of such writing in red letters
no smaller than eighteen point type the following words: “No Liability
Insurance Included.” The Commissioner may determine the form of such
statement to be included therein. In the event that a policy of insurance
of any kind is purchased at the time of the sale of a motor vehicle the
seller shall deliver to the purchaser the policy of insurance, or a copy of
the policy, within a reasonable time.

(c) A violation of any provision of this section shall bar recovery of
any finance charge on the deferred balance by the seller or assignee of the
seller in any suit upon a sales contract arising from the sale in respect to
which such violation occurred.

§ 46.1-546. (a) It is unlawful for any manufacturer, wholesaler or
distributor, or any officer, agent or representative of either, to coerce or
attempt to coerce any retail motor vehicle dealer or prospective retail
motor vehicle dealer in this State to sell, assign or transfer any retail
instalment sales contract, obtained by such dealer in connection with the
sale by him in this State of motor vehicles manufactured or sold by such
manufacturer, wholesaler or distributor, to a specified finance company or
class of such companies, or to any other specified persons, by any of the
acts or means hereinafter set forth, namely:

(1) By any statement, suggestion, promise or threat that such manu-
facturer, wholesaler or distributor will in any manner benefit or injure
such dealer, whether such statement, suggestion, threat or promise is
express or implied or made directly or indirectly.

(2) By any act that will benefit or injure such dealer.

(3) By any contract, or any express or implied offer of contract,
made directly or indirectly to such dealer, for handling such motor vehicles
on the condition that such dealer sell, assign or transfer his retail instal-
ment sales contract thereon, in this State, to a specified finance company
or class of such companies or to any other specified person.

(4) By any express or implied statement or representation made
directly or indirectly that such dealer is under any obligation whatsoever
to sell, assign or transfer any of his retail sales contracts, in this State,
on motor vehicles manufactured or sold by such manufacturer, whole-
saler or distributor to such finance company, or class of companies, or other
specified person, because of any relationship or affiliation between such
manufacturer, wholesaler or distributor and such finance company or
companies or such specified person or persons.

(b) Any such statements, threats, promises, acts, contracts or offers
of contracts, when the effect thereof may be to lessen or eliminate competi-
tion or tend to create a monopoly, are declared unfair trade practices and
unfair methods of competition and against the policy of this State, are
unlawful and are hereby prohibited.

46.1-547. It is unlawful for any manufacturer, factory branch,
distributor or distributor branch, or any field representative, officer, agent
or any representative whatsoever of any of them:

(a) To coerce, or attempt to coerce any dealer to accept delivery of
any motor vehicle or vehicles, parts or accessories therefor, or any other
commodities, which shall not have been ordered by such dealer;

(b) To coerce, or attempt to coerce any dealer to enter into any agree-
ment with such manufacturer, factory branch, distributor or distributor
branch, or representative thereof, or do any other act unfair to such dealer,
by threatening to cancel any franchise existing between such manufacturer,
factory branch, distributor, distributor branch or representative thereof
and such dealer; or

(c) Unfairly, without due regard to the equities of a dealer and
without just provocation, to cancel] the franchise of such dealer.

§ 46.1-548. It is unlawful for any dealer or salesman or any em-
ployee of a dealer or representative of either to coerce or offer anything
of value to any purchaser of a motor vehicle to provide any type of
insurance coverage on the motor vehicle.

46.1-549. It is unlawful for any motor vehicle dealer or salesman
licensed under the provisions of this chapter, directly or indirectly, to
solicit the sale of a motor vehicle through a pecuniarily interested person;
or to pay, or cause to be paid, any commission or compensation in any form
whatsoever to any person in connection with the sale of a motor vehicle,
aa such person is duly licensed as a salesman in the employ of such

ealer.

§ 46.1-550. It is unlawful for any motor vehicle salesman licensed
under this chapter to sell or exchange or offer or attempt to sell or ex-
change any motor vehicle except for the licensed motor vehicle dealer by
whom he is employed, or to offer, transfer or assign any sale or exchange
that he may have negotiated to any other dealer or salesman.

PART V
Parking Facilities and Open Air Theatres