Exceptions for new automobiles and truck sales and/or displays and used vehicle sales
Arkansas Code § 23-112-204
(a) New and used vehicle displays. A new motor vehicle dealer licensed by the Arkansas Motor Vehicle Commission may display not more than five (5) new vehicles per franchise held without obtaining prior written approval from the commission as long as:
- (1) The display is at a public venue and within the licensed dealer’s relevant market area; and
- (2) No sales or management personnel are present nor sales solicitations made.
(b) Used vehicle sales. A new motor vehicle dealer licensed by the commission may conduct off-premises sales of used motor vehicles, without obtaining prior written approval from the commission as long as:
- (1) The sale location is at a public venue within the geographical limits of the licensed dealer’s relevant market area; and
- (2) No new vehicles are displayed or offered for sale.
(c)
- (1) Sponsored sales of new or used automobiles or trucks by a regional dealer association representing no more than two (2) contiguous counties may request a variance from the commission to allow dealers from outside the host county to be invited and participate in the off-premises sale and/or event.
- (2) Any dealer in the host county has the right to enforce its franchise agreement and refuse to allow a dealer carrying the same franchise line to be invited or to participate in the off-premises sale and/or event.
(3) In order to obtain approval for this exception, the following qualifications must be met:
- (A)
(i) The request must be sent to the commission forty-five (45) days prior to the opening day of the event.
(ii) The forty-five-day requirement may be waived by the Director of the Arkansas Motor Vehicle Commission for good cause shown;
(B)
- (i) The sale and/or event sponsor must invite all new automobile or truck dealers in the two (2) contiguous counties.
- (ii) A majority of dealers from both counties must agree to the sponsored sale occurring in the two-county region, and proof must be provided to the commission of this agreement;
(C) The following must be provided to the commission forty-five (45) days prior to the opening day of the event:
- (i) A list of all new motor vehicle dealers to whom invitations have been extended, with the address, telephone, and name of the contact person;
- (ii) A statement signed by the sponsor assuring that adequate space will be made available for all invited new motor vehicle dealers and/or the commission-licensed branches;
- (iii) A sample:
- (a) (a) Notice;
(b) (b) Invitation; or
(c) (c) Registration form;
(iv) Two (2) tickets to the off-premises sale, if there is an admission fee; and
- (v) If approval is obtained, a copy of the approved form from the commission must be forwarded to each participant.
- (d) Promotions or contests. A person or entity who promotes a dealer’s product to be used in promotions or contest shall:
- (1) Use dealership’s products in promotions as a means of attracting attention or participation in a promoter’s event;
- (2) Identify the dealer only by means of notation in all promotions and advertisements, by stating, “vehicle provided courtesy of (name of dealership)” or similar language;
- (3) Ensure the promoter’s notation identifying the dealership is the smallest print in the promotional or advertisement material;
- (4) Ensure the dealer providing the vehicle remove all dealer-identifying items;
- (5) Ensure all federal- and state-required information be left on the vehicle; and
- (6) Ensure no dealer personnel are present during the promotion or contest.