1. (a) In regard to the duties and obligations of a dealer, a dealer is responsible for the acts and omissions of any agent, representative, or employee if that dealer has given authority to any person for that agent, representative, or employee to act on the behalf of the dealer. This section is not to be construed in any manner to allow retail sales by any dealer agent or representative. The term "employee" used in this section includes only those persons paid by the licensee and reported on the federal form W-2, Wage and Tax Statement.

2. (b) A dealer must provide written authorization to any person buying or selling motor vehicles for resale or operating a licensed auction for the sale of motor vehicles for resale with which an agent, representative, or employee will be conducting business or acting on the dealer's behalf.

   1. (1) Once a dealer has given written authorization for an agent, representative, or employee to buy and sell motor vehicles for resale for that dealer, the dealer shall be liable for any acts or omissions regarding duties and obligations of dealers caused by that agent, representative, or employee unless and until either the earlier of written notification of revocation of the agent's, representative's or employee's authority or revocation of the dealer's license.
   2. (2) Written authorization shall be a letter on the dealership letterhead of the dealer authorizing buying or selling, or on a form approved by the director, and stating that the dealer is liable for any acts or omissions regarding duties and obligations of dealers, caused by that agent, representative, or employee including any financial considerations to be paid for the vehicle unless and until the recipient is notified in writing of the revocation of the authority. The letter or form shall be signed by the dealer principal or person in charge of daily activities of the dealership.
   3. (3) The written authorization shall include the employee, agent or representative's name; current mailing address; phone number; the business name, address, and license number of the dealer with whom the employee or agent is associated. The written authorization is a record that must be kept as all other records set out in §215.144 of this subchapter (relating to Record of Sales and Inventory) and shall be made available to a division representative upon request.
3. (c) Any licensee, including wholesale auctions who act on behalf of others, who buys and sells vehicles on a wholesale basis, including by sealed bid, is required to verify the authority of any person claiming to be either an employee, agent or representative who represents they are buying or selling motor vehicles on behalf of a licensed dealer.
4. (d) Titles to vehicles bought by an employee, agent or representative of a dealer shall be reassigned to the dealer by the seller or auction and shall not be delivered to the agent or representative but delivered only to the dealer, the dealer's employee, or the dealer's financial institution. Notwithstanding the prohibitions in this section, an authorized agent, representative or employee may sign any required odometer statements.
5. (e) Only checks or drafts drawn on the purchasing dealer's account, or cashiers checks in the name of the dealer, or wire transfers from the dealer's bank account shall be accepted for motor vehicles purchased in a wholesale transaction.

Source Note:The provisions of this §215.148 adopted to be effective February 11, 2010, 35 TexReg 883.