§ 20-286. Definitions.
§ 20‑286. Definitions.
The following definitionsapply in this Article:
(1), (2) Repealed bySession Law 1973, c. 1330, s. 39.
(2a) Dealershipfacilities. The real estate, buildings, fixtures and improvements devoted tothe conduct of business under a franchise.
(2b) Designated familymember. The spouse, child, grandchild, parent, brother, or sister of adealer, who, in the case of a deceased dealer, is entitled to inherit thedealer's ownership interest in the dealership under the terms of the dealer'swill; or who has otherwise been designated in writing by a deceased dealer tosucceed him in the motor vehicle dealership; or who under the laws of intestatesuccession of this State is entitled to inherit the interest; or who, in thecase of an incapacitated dealer, has been appointed by a court as the legalrepresentative of the dealer's property. The term includes the appointed andqualified personal representative and testamentary trustee of a deceaseddealer.
(3) Distributor. Aperson, resident or nonresident of this State, who sells or distributes newmotor vehicles to new motor vehicle dealers in this State, maintains adistributor representative in this State, controls any person, resident ornonresident, who in whole or in part offers for sale, sells or distributes anynew motor vehicle to any motor vehicle dealer in this State.
(4) Distributor branch. A branch office maintained by a distributor for the sale of new motorvehicles to new motor vehicle dealers, or for directing or supervising thedistributor's representatives in this State.
(5) Distributorrepresentative. A person employed by a distributor or a distributor branchfor the purpose of selling or promoting the sale of new motor vehicles orotherwise conducting the business of the distributor or distributor branch.
(5a) Established office. An office that meets the following requirements:
a. Contains at least 96square feet of floor space in a permanent enclosed building.
b. Is a place where thebooks, records, and files required by the Division under this Article are kept.
(6) Establishedsalesroom. A salesroom that meets the following requirements:
a. Contains at least 96square feet of floor space in a permanent enclosed building.
b. Displays, or islocated immediately adjacent to, a sign having block letters not less thanthree inches in height on contrasting background, clearly and distinctlydesignating the trade name of the business.
c. Is a place at whicha permanent business of bartering, trading, and selling motor vehicles will becarried on in good faith on an ongoing basis whereby the dealer can becontacted by the public at reasonable times.
d. Is a place where thebooks, records, and files required by the Division under this Article are kept.
Theterm includes the area contiguous to or located within 500 feet of the premiseson which the salesroom is located. The term does not include a tent, atemporary stand, or other temporary quarters. The minimum area requirement doesnot apply to any place of business lawfully in existence and duly licensed onor before January 1, 1978.
(7) Factory branch. Abranch office, maintained for the sale of new motor vehicles to new motorvehicle dealers, or for directing or supervising the factory branch'srepresentatives in this State.
(8) Factoryrepresentative. A person employed by a manufacturer or a factory branch forthe purpose of selling or promoting the sale of the manufacturer's motorvehicles or otherwise conducting the business of the manufacturer or factorybranch.
(8a) Franchise. Awritten agreement or contract between any new motor vehicle manufacturer, andany new motor vehicle dealer which purports to fix the legal rights andliabilities of the parties to such agreement or contract, and pursuant to whichthe dealer purchases and resells the franchised product or leases or rents thedealership premises.
(8b) Franchised motorvehicle dealer. A dealer who holds a currently valid franchise as defined inG.S. 20‑286(8a) with a manufacturer or distributor of new motor vehicles,trailers, or semitrailers.
(8c) Good faith. Honestyin fact and the observation of reasonable commercial standards of fair dealingas defined and interpreted in G.S. 25‑1‑201(b)(20).
(8d) Independent motorvehicle dealer. A dealer in used motor vehicles.
(8e) Manufacturer. Aperson, resident or nonresident, who manufactures or assembles new motorvehicles, or who imports new motor vehicles for distribution through adistributor, including any person who acts for and is under the control of themanufacturer or assembler in connection with the distribution of the motorvehicles. Additionally, the term "manufacturer" shall include theterms "distributor" and "factory branch."
(9) Repealed by SessionLaw 1973, c. 1330, s. 39.
(10) Motor vehicle. Any motorpropelled vehicle, trailer or semitrailer, required to be registered under thelaws of this State.
a. "New motorvehicle" means a motor vehicle that has never been the subject of acompleted, successful, or conditional sale that was subsequently approved otherthan between new motor vehicle dealers, or between manufacturer and dealer ofthe same franchise.
b. "Used motorvehicle" means a motor vehicle other than described in paragraph (10)aabove.
(11) Motor vehicle dealeror dealer.
a. A person who doesany of the following:
1. For commission,money, or other thing of value, buys, sells, or exchanges, whether outright oron conditional sale, bailment lease, chattel mortgage, or otherwise, five ormore motor vehicles within any 12 consecutive months, regardless of who ownsthe motor vehicles.
2. On behalf of anotherand for commission, money, or other thing of value, arranges, offers, attemptsto solicit, or attempts to negotiate the sale, purchase, or exchange of aninterest in five or more motor vehicles within any 12 consecutive months,regardless of who owns the motor vehicles.
3. Engages, wholly orin part, in the business of selling new motor vehicles or new or used motorvehicles, or used motor vehicles only, whether or not the motor vehicles areowned by that person, and sells five or more motor vehicles within any 12consecutive months.
4. Offers to sell,displays, or permits the display for sale for any form of compensation five ormore motor vehicles within any 12 consecutive months.
5. Primarily engages inthe leasing or renting of motor vehicles to others and sells or offers to sellthose vehicles at retail.
b. The term "motorvehicle dealer" or "dealer" does not include any of thefollowing:
1. Receivers, trustees,administrators, executors, guardians, or other persons appointed by or actingunder the judgment or order of any court.
2. Public officerswhile performing their official duties.
3. Persons disposing ofmotor vehicles acquired for their own use or the use of a family member, and actuallyso used, when the vehicles have been acquired and used in good faith and notfor the purpose of avoiding the provisions of this Article.
4. Persons who sellmotor vehicles as an incident to their principal business but who are notengaged primarily in the selling of motor vehicles. This category includesfinancial institutions who sell repossessed motor vehicles and insurancecompanies who sell motor vehicles to which they have taken title as an incidentof payments made under policies of insurance, and auctioneers who sell motorvehicles for the owners or the heirs of the owners of those vehicles as part ofan auction of other personal or real property or for the purpose of settling anestate or closing a business or who sell motor vehicles on behalf of agovernmental entity, and who do not maintain a used car lot or building withone or more employed motor vehicle sales representatives.
5. Personsmanufacturing, distributing or selling trailers and semitrailers weighing notmore than 2,500 pounds unloaded weight.
6. A licensed realestate broker or salesman who sells a mobile home for the owner as an incidentto the sale of land upon which the mobile home is located.
7. An employee of anorganization arranging for the purchase or lease by the organization ofvehicles for use in the organization's business.
8. Any publication,broadcast, or other communications media when engaged in the business ofadvertising, but not otherwise arranging for the sale of motor vehicles ownedby others.
9. Any person dealingsolely in the sale or lease of vehicles designed exclusively for off‑roaduse.
10. Any real propertyowner who leases any interest in property for use by a dealer.
11. Any person acquiringany interest in a motor vehicle for a family member.
12. Any auctioneerlicensed pursuant to Chapter 85B of the General Statutes employed to be anauctioneer of motor vehicles for a licensed motor vehicle dealer, whileconducting an auction for that dealer.
(12) Motor vehicle salesrepresentative or salesman. A person who is employed as a salesrepresentative by, or has an agreement with, a motor vehicle dealer or awholesaler to sell or exchange motor vehicles.
(13) New motor vehicledealer. A motor vehicle dealer who buys, sells or exchanges, or offers orattempts to negotiate a sale or exchange of an interest in, or who is engaged,wholly or in part, in the business of selling, new or new and used motorvehicles.
(13a) Person. Defined inG.S. 20‑4.01.
(13b) Relevant market areaor trade area. The area within a radius of 20 miles around an existing dealeror the area of responsibility defined in the franchise, whichever is greater;except that, where a manufacturer is seeking to establish an additional newmotor vehicle dealer the relevant market area shall be as follows:
a. If the population inan area within a radius of 10 miles around the proposed site is 250,000 ormore, the relevant market area shall be that area within the 10 mile radius; or
b. If the population inan area within a radius of 10 miles around the proposed site is less than250,000, but the population in an area within a radius of 15 miles around theproposed site is 150,000 or more, the relevant market area shall be that areawithin the 15 mile radius; or
c. Except as defined insubparts a. and b., the relevant market area shall be the area within a radiusof 20 miles around an existing dealer.
Indetermining population for this definition the most recent census by the U.S.Bureau of the Census or the most recent population update either from ClaritasInc. or other similar recognized source shall be accumulated for all censustracts either wholly or partially within the relevant market area. Inaccumulating population for this definition, block group and block level datashall be used to apportion the population of census tracts which are onlypartially within the relevant market area so that population outside of theapplicable radius is not included in the count.
(14) Repealed by SessionLaw 1973, c. 1330, s. 39.
(15) Retail installmentsale. A sale of one or more motor vehicles to a buyer for the buyer's use andnot for resale, in which the price thereof is payable in one or moreinstallments over a period of time and in which the seller has either retainedtitle to the goods or has taken or retained a security interest in the goodsunder a form of contract designated as a conditional sale, bailment lease,chattel mortgage or otherwise.
(16) Used motor vehicledealer. A motor vehicle dealer who buys, sells or exchanges, or offers orattempts to negotiate a sale or exchange of an interest in, or who is engaged,wholly or in part, in the business of selling, used motor vehicles only.
(17) Wholesaler. Aperson who sells or distributes used motor vehicles to motor vehicle dealers inthis State, has a sales representative in this State, or controls any personwho in whole or in part offers for sale, sells, or distributes any used motorvehicle to a motor vehicle dealer in this State. The provisions of G.S. 20‑302,20‑305.1, and 20‑305.2 that apply to distributors also apply towholesalers. (1955,c. 1243, s. 2; 1967, c. 1126, s. 1; c. 1173; 1973, c. 1330, s. 39; 1977, c.560, s. 1; 1983, c. 312; c. 704, ss. 2, 3, 21; 1987, c. 381; 1991, c. 527, s.1; c. 662, s. 1; 1991 (Reg. Sess., 1992), c. 819, s. 23; 1993, c. 331, s. 1;1995, c. 234, s. 1; 1997‑456. s. 27; 2003‑254, s. 1; 2003‑265,s. 1; 2005‑409, s. 7; 2007‑484, s. 6.)