CSHB 272(STA) am: "An Act relating to the advertising of motor vehicles, including trailers, for sale by motor vehicle dealers; relating to the financing of motor vehicle purchases; relating to motor vehicle sales contracts; relating to the disclosures required to be made by motor vehicle dealers when selling motor vehicles, including trailers, or when their service employees work on commission; relating to a motor vehicle dealer's selling as a new or current model vehicle, a motor vehicle required to be registered under AS 28.10; relating to a motor vehicle dealer's advertising an offer for the sale, lease, or purchase of a motor vehicle, including a trailer; relating to a motor vehicle dealer's conditioning the sale and delivery of a motor vehicle, including a trailer, on the buyer's purchase of other items; and relating to the return of a buyer's trade-in by a motor vehicle dealer."
00 CS FOR HOUSE BILL NO. 272(STA) am 01 "An Act relating to the advertising of motor vehicles, including trailers, for sale by 02 motor vehicle dealers; relating to the financing of motor vehicle purchases; relating to 03 motor vehicle sales contracts; relating to the disclosures required to be made by motor 04 vehicle dealers when selling motor vehicles, including trailers, or when their service 05 employees work on commission; relating to a motor vehicle dealer's selling as a new or 06 current model vehicle, a motor vehicle required to be registered under AS 28.10; 07 relating to a motor vehicle dealer's advertising an offer for the sale, lease, or purchase of 08 a motor vehicle, including a trailer; relating to a motor vehicle dealer's conditioning the 09 sale and delivery of a motor vehicle, including a trailer, on the buyer's purchase of other 10 items; and relating to the return of a buyer's trade-in by a motor vehicle dealer." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. AS 08.66.015 is amended to read:
01 Sec. 08.66.015. Sale of motor vehicle. (a) A person who does business as a 02 dealer in the state may not offer to sell or sell a motor vehicle as a new [OR 03 CURRENT MODEL] motor vehicle unless the motor vehicle retains the 04 manufacturer's certificate of origin. 05 (b) A person who does business as a dealer in the state may [NOT] offer to 06 sell or sell a motor vehicle as a [NEW OR] current model motor vehicle only if 07 [HAVING A MANUFACTURER'S WARRANTY UNLESS] 08 (1) the dealer has a current sales and service agreement with the 09 manufacturer [AND THE AGREEMENT REQUIRES THE DEALER, UPON 10 DEMAND OF THE MOTOR VEHICLE BUYER, TO PERFORM OR ARRANGE 11 FOR, WITHIN A REASONABLE DISTANCE OF THE DEALER'S PLACE OF 12 BUSINESS IN THE STATE, THE REPAIR AND REPLACEMENT WORK 13 REQUIRED OF THE MANUFACTURER UNDER THE WARRANTY]; [OR] 14 (2) the vehicle is a current model used vehicle received as a trade- 15 in in the normal course [DEALER OFFERS TO GIVE THE BUYER A REBATE 16 TO COVER THE REPAIR AND REPLACEMENT WORK THAT THE DEALER 17 CANNOT PERFORM OR ARRANGE FOR WITHIN A REASONABLE 18 DISTANCE OF THE DEALER'S PLACE] of business; 19 (3) the vehicle has been purchased directly from a consumer in the 20 United States for purposes of resale; 21 (4) the vehicle has been in service with a bona fide rental fleet for 22 at least four months; 23 (5) the vehicle is a current model used vehicle that has been leased 24 by a consumer and has been returned to the leasing dealer; 25 (6) the vehicle has been repossessed; or 26 (7) the vehicle was purchased at an auction and meets the 27 requirements of (2), (3), (4), (5), or (6) of this subsection. 28 * Sec. 2. AS 45.25.400(b) is amended to read: 29 (b) A motor vehicle dealer may use the term "manufacturer's suggested retail 30 price," "MSRP," or "list price" in an advertisement for the sale of a motor vehicle, 31 subject to the restriction on price comparisons in AS 45.25.450 and the following:
01 (1) the advertised price must reference the final price listed by the 02 manufacturer on the monroney sticker, including accessories and options physically 03 attached to the vehicle at the time of delivery to the dealer, plus any transportation 04 charges, and minus all manufacturer discounts and savings; 05 (2) the manufacturer's suggested retail price or the list price does not 06 include charges added by the dealer or options added to the vehicle by the dealer; and 07 (3) whenever using the term "manufacturer's suggested retail price," 08 "MSRP," or "list price," the dealer [SHALL PROVIDE IN THE ADVERTISEMENT 09 A CLEAR AND CONSPICUOUS DISCLOSURE THAT STATES THAT A SALE] 10 may not represent that a buyer would save money by paying a [HAVE 11 OCCURRED AT THAT] price that is lower than the "manufacturer's suggested 12 retail price," "MSRP," or "list price". 13 * Sec. 3. AS 45.25.410 is amended to read: 14 Sec. 45.25.410. Availability of advertised items. A motor vehicle dealer 15 may not advertise a new motor vehicle [VEHICLES AND RELATED GOODS OR 16 SERVICES] at a specified dealer price with the intent not to supply reasonably 17 expected demand, unless the advertisement discloses the number of vehicles in stock 18 at the advertised price. 19 * Sec. 4. AS 45.25.460(a) is amended to read: 20 (a) In addition to the provisions of AS 45.50.471 and regulations adopted 21 under AS 45.50.471, a motor vehicle dealer [MAY NOT] 22 (1) shall include in [EXCLUDE FROM] an advertisement of a motor 23 vehicle for sale all [THAT TAXES, IF APPLICABLE, VEHICLE REGISTRATION 24 FEES, FINANCE CHARGES, CHARGES FOR THE ISSUANCE OF ANY 25 CERTIFICATE OF COMPLIANCE OR NONCOMPLIANCE REQUIRED BY 26 STATUTE, OR OTHER] fees or charges, except fees or charges to be paid to a third 27 party [THAT ARE NOT OTHERWISE INCLUDED IN THE ADVERTISED PRICE 28 WILL BE ADDED TO THE ADVERTISED PRICE AT THE TIME OF THE SALE]; 29 (2) may not represent the dealer document preparation fee as a 30 government fee; 31 (3) may not advertise a specific motor vehicle for sale without
01 identifying the vehicle by either its vehicle identification number, vehicle stocking 02 number, or license number; 03 (4) may not advertise that free merchandise, gifts, or services will be 04 provided by the dealer if a vehicle is purchased; in this paragraph, "free" includes 05 merchandise or services offered for sale at a price less than the dealer's cost for the 06 merchandise or services; 07 (5) may not use the term "rebate," "cash back," or a similar term in 08 advertising the sale of a motor vehicle unless the rebate is expressed in a specific 09 dollar amount and is in fact a rebate offered by the vehicle manufacturer or distributor 10 directly to the retail buyer of the vehicle; 11 (6) may not require a person, in order to receive the advertised credit 12 terms, to pay a higher price for a motor vehicle and any related goods or services than 13 the cash price the same person would have to pay to purchase the same vehicle and 14 related goods or services; 15 (7) may not advertise a guaranteed trade-in allowance or range of 16 allowances unless the guarantee is provided by the manufacturer or distributor; 17 (8) may not affix to a new motor vehicle a supplemental price sticker 18 containing a price that represents the dealer's asking price if the supplemental price 19 sticker exceeds the manufacturer's suggested retail price, unless the supplemental 20 sticker 21 (A) clearly and conspicuously, in the largest print appearing on 22 the sticker other than the print size used for the dealer's name, discloses that 23 the supplemental sticker price is the dealer's asking price, or words of similar 24 meaning, and is not the manufacturer's suggested retail price; 25 (B) clearly and conspicuously discloses the manufacturer's 26 suggested retail price; and 27 (C) states, if the supplemental sticker price is greater than the 28 sum of the manufacturer's suggested retail price and the price of the items 29 added by the dealer, the difference and describes it as additional dealer mark- 30 up; 31 (9) may not advertise or otherwise represent, or knowingly allow to be
01 advertised or represented on behalf of the dealer, that a down payment is not required 02 in connection with the sale of a motor vehicle when a down payment is in fact 03 required; 04 (10) may not advertise an offer for the sale, lease, or purchase of a 05 motor vehicle that [CREATES THE FALSE IMPRESSION THAT THE VEHICLE IS 06 BEING OFFERED BY A PRIVATE PARTY OR A MOTOR VEHICLE AGENT OR 07 THAT] does not contain the name of the dealer; 08 (11) may not [USE AN ADVERTISEMENT FOR A MOTOR 09 VEHICLE THAT CONTAINS LANGUAGE THAT FALSELY, IMPLICITLY, OR 10 EXPLICITLY SUGGESTS THAT, TO TAKE ADVANTAGE OF AN OFFER, A 11 CONSUMER MUST ACT WITHIN A CERTAIN PERIOD OF TIME WHEN, IN 12 FACT, THE VEHICLES WILL CONTINUE TO BE AVAILABLE AT THE 13 ADVERTISED PRICE BEYOND THAT TIME PERIOD; 14 (12) REQUIRE A BUYER OF A NEW MOTOR VEHICLE, AS A 15 CONDITION OF SALE AND DELIVERY, TO ALSO PURCHASE SPECIAL 16 FEATURES, APPLIANCES, ACCESSORIES, OR EQUIPMENT NOT DESIRED 17 OR REQUESTED BY THE BUYER UNLESS THE SPECIAL FEATURES, 18 APPLIANCES, EQUIPMENT, OR ACCESSORIES ARE ALREADY INSTALLED 19 ON THE VEHICLE WHEN RECEIVED BY THE DEALER; 20 (13)] represent and sell as a new motor vehicle a demonstrator vehicle 21 or a motor vehicle that is a used motor vehicle; in this paragraph, "demonstrator 22 vehicle" 23 (A) means a motor vehicle 24 (i) that has been assigned by a dealer for use by the 25 dealership as an executive vehicle for promotional purposes, including 26 being driven in the community; 27 (ii) that has not been licensed by a retail buyer; and 28 (iii) the title of which has not been transferred to a retail 29 buyer; 30 (B) does not include a motor vehicle that has only been driven 31 to demonstrate the motor vehicle to a prospective buyer;
01 (12) may not [(14)] advertise that the dealer finances any person or 02 does not reject any person's credit, or make similar claims; 03 (13) may not [(15)] advertise or make a statement, declaration, or 04 representation in an advertisement that cannot be substantiated in fact; the burden of 05 proof of the factual basis for the statement, declaration, or representation is on the 06 dealer. 07 * Sec. 5. AS 45.25.465 is amended by adding a new subsection to read: 08 (c) When a motor vehicle dealer sells a used motor vehicle or a current model 09 used motor vehicle, the motor vehicle dealer shall disclose to the buyer in writing in a 10 manner that is clear and conspicuous and posted in the window of the vehicle 11 (1) that the warranty provisions of AS 45.45.300 - 45.45.360 do not 12 apply to the purchase of the motor vehicle; 13 (2) that, if applicable, the vehicle is not subject to a manufacturer's 14 warranty; and 15 (3) that, if applicable, the vehicle was originally manufactured for sale 16 in Canada or another foreign country. 17 * Sec. 6. AS 45.25.510(a) is amended to read: 18 (a) Before entering into a new motor vehicle sales contract, a new motor 19 vehicle dealer shall disclose in writing to a buyer of the new motor vehicle any known 20 damage and repair to the new motor vehicle if the damage exceeds five percent of the 21 manufacturer's suggested retail price as calculated at the dealer's authorized warranty 22 rate for labor and parts, or $1,000, whichever amount is greater. A new motor 23 vehicle dealer is not required to disclose to a buyer that glass, tires, bumpers, or 24 cosmetic parts of a new motor vehicle were damaged at any time if the damaged item 25 has been replaced with original or comparable equipment. A replaced part is not part 26 of the cumulative damage required to be disclosed under this subsection. 27 * Sec. 7. AS 45.25 is amended by adding a new section to read: 28 Sec. 45.25.530. Disclosure regarding receipt of commissions. If a motor 29 vehicle dealer's service operations employees receive a commission for the amount of 30 work they perform, the motor vehicle dealer shall post a conspicuous sign that is 31 visible to service customers that the dealer's service operations employees work on
01 commission. 02 * Sec. 8. AS 45.25.610(c) is amended to read: 03 (c) If [NOTWITHSTANDING THE REQUIREMENTS OF THIS SECTION, 04 IF] a motor vehicle dealer arranges financing for a buyer, the motor vehicle dealer 05 may deliver the motor vehicle to the buyer before final approval by the financing 06 entity if 07 (1) the buyer and seller sign an agreement separate from the motor 08 vehicle installment contract on an 8 1/2 x 11 inch sheet of paper that clearly and 09 conspicuously informs the buyer that final financing arrangements have not yet been 10 approved and that clearly sets out the amount that will be financed, the annual 11 percentage rate of the finance charge, the amount of the finance charge, the number 12 and frequency of payments, and the amount of each payment; 13 (2) the separate agreement clearly and conspicuously informs the 14 buyer that accepting delivery of the vehicle before final financing approval obligates 15 the buyer to terms of the motor vehicle sales contract if the terms on the separate 16 agreement are identical to the terms finally approved by the financing entity; and 17 (3) the separate agreement provides that the separate agreement, the 18 motor vehicle sales contract, and any and all other conditions of the purchase will be 19 void if any of the terms contained in the separate agreement are changed by either the 20 motor vehicle dealer or the financing institution as a condition of sale or final 21 financing approval. 22 * Sec. 9. AS 45.25.610(d) is amended to read: 23 (d) If a buyer's final financing is not approved [WITHIN SEVEN BUSINESS 24 DAYS FROM THE DATE OF THE SEPARATE AGREEMENT] and, as a result, the 25 transaction is not completed, the motor vehicle dealer shall return the buyer's entire 26 down payment, and the buyer's trade-in, if any, shall be returned to the buyer in the 27 same condition and with not more than 100 [10] miles accumulated on the odometer 28 from when the motor vehicle was delivered to the motor vehicle dealer. 29 * Sec. 10. AS 45.25.460(b) and 45.25.610(b) are repealed.