1. (a)

   1. (1) In this section the following words have the meanings indicated.
   2. (2) “Completed vehicle” means a two-stage vehicle that does not require any additional manufacturing operation to perform its intended function, except for the addition of readily attachable components or minor finishing operations.

   3. (3) “First-stage manufacturer” means:

      1. (i) Any person who manufactures an incomplete vehicle;
      2. (ii) Any person who distributes an incomplete vehicle of that manufacturer; and
      3. (iii) Any dealer who has a franchise for the particular make of the incomplete vehicle of that manufacturer.

   4. (4) “Incomplete vehicle” means an assemblage that:

      1. (i) Consists of at least a frame and chassis structure, power train, steering system, and braking system, to the extent that those systems are to be a part of the completed vehicle; and
      2. (ii) Requires additional manufacturing operations, other than the addition of readily attachable components or minor finishing operations, to become a completed vehicle.
   5. (5) “Minor finishing operations” includes painting, upholstering, or other cosmetic modifications.
   6. (6) “Readily attachable components” includes any mirror, extra light, or tire and rim assembly.

   7. (7) “Second-stage manufacturer” means:

      1. (i) A person who performs manufacturing operations on an incomplete vehicle so that it becomes a completed vehicle; and
      2. (ii) Any person who distributes a completed vehicle of that manufacturer.
   8. (8) “Two-stage vehicle” means a motor vehicle that requires manufacturing operations performed by two separate manufacturers to produce a completed vehicle capable of performing its intended function.
2. (b) Transfers of two-stage vehicles by manufacturers shall be made as provided in subsections (c) and (d) of this section.
3. (c) At the time that any first-stage manufacturer transfers to a second-stage manufacturer a new incomplete vehicle that is to be sold or registered in this State, the first-stage manufacturer shall give the second-stage manufacturer a manufacturer's certificate of origin for the incomplete vehicle, assigned to the second-stage manufacturer by the first-stage manufacturer.
4. (d) At the time that any second-stage manufacturer transfers to a dealer a new completed vehicle that is to be sold or registered in this State, the second-stage manufacturer shall give the dealer the manufacturer's certificates of origin issued by both the second-stage manufacturer and the first-stage manufacturer and assigned to the dealer by the second-stage manufacturer.
5. (e) Transfers of new completed vehicles by dealers shall be made as provided in subsections (f), (g), and (h) of this section.
6. (f) Each dealer who holds a new completed vehicle for sale shall have a franchise in this State for the particular make of at least one stage of that vehicle.
7. (g) If the dealer's franchise is for the make of only the first stage of the completed vehicle, the dealer may transfer the vehicle, without obtaining a certificate of title, by executing an assignment and warranty of title accompanied by the certificates of origin issued by the first-stage manufacturer and the second-stage manufacturer.
8. (h) If the dealer's franchise is for the make of only the second stage of the completed vehicle, the dealer may transfer the vehicle, without obtaining a certificate of title, by executing an assignment and warranty of title accompanied by the certificates of origin issued by the first-stage manufacturer and the second-stage manufacturer, if the certificate of origin issued by the first-stage manufacturer is assigned to the second-stage manufacturer.

9. (i) A dealer shall include in a contract for sale of a completed vehicle a notice in writing of:

   1. (1) The make and year of the first stage; and
   2. (2) The make, model, and year of the second stage.

Added by Acts 1977, c. 14, § 2, eff. July 1, 1977. Amended by Acts 1986, c. 472, § 1; Acts 1986, c. 696; Acts 1987, c. 191; Acts 1987, c. 272.

Formerly Art. 66 ½, § 3-113.1A.