27-14-2301. Definitions.
As used in this subchapter, unless the context otherwise
requires:
(1)(A) "Dealer" means
any person or business who sells or offers for sale a motor
vehicle after selling or offering for sale five (5) or
more motor vehicles in the previous twelve (12) months
or who is a new or used motor vehicle dealer licensed by
or with the State of Arkansas.
(B) Persons or businesses that operate as salvage
vehicle pools or salvage vehicle auctions are not dealers
under this subchapter when selling vehicle parts to a dealer;
(2) "Motor vehicle" means every self-propelled
vehicle, except motorcycles, motor-driven cycles, and trucks
with an unladen weight of ten thousand pounds (10,000 lbs.)
or more, in, upon, or by which any person or property is
or may be transported upon a street or highway;
(3) "Office of Motor Vehicle" or "office" means
the Office of Motor Vehicle of the Revenue Division of
the Department of Finance and Administration;
(4) "Owner" means an individual, insurance
company, or other entity with legal title to the motor
vehicle; and
(5) "Water-damaged" means damage to a
motor vehicle caused by submerging or partially submerging
the vehicle in water to the extent that the vehicle was
submerged or partially submerged at any water level above
the dashboard of the vehicle, regardless of the actual
dollar amount of the damage.
History. Acts 1993, No. 614, § 1.
27-14-2301. Definitions.
As used in this subchapter, unless the context otherwise
requires:
History. Acts 1993, No. 614, § 1.
27-14-2302. Issuance of damage certificate.
(a) When a motor vehicle is water-damaged or sustains
damage in an amount equal to or exceeding seventy percent
(70%) of its average retail value, as found in the National
Automobile Dealers' Association Official Price Guide,
or other source approved by the Office of Motor Vehicle,
the owner, or insurance company if it obtains ownership
of the vehicle through transfer of title as the result
of a settlement of an insurance claim, shall forward
the properly endorsed certificate of title to the office
together with a fee in the amount now or hereafter prescribed
by law for the registration and issuance of a certificate
of title.
(b) Upon receipt of such title, there shall be
issued a new certificate of title with the word "damaged" printed
in the remarks section on the face of the title.
(c)(1) An Arkansas certificate of title issued
from an out-of-state certificate of title or comparable
ownership document which carries a designation such as "damaged", "=scsalvaged", "water-damaged", "reconstructed", "rebuilt",
or other similar classification shall have a brand notation
printed in the remarks section on its face as would be
required by this subchapter to be printed on an Arkansas
certificate of title issued under the provisions of either
subsection (b) or subsection (e) of this section.
(2)(A) Provided, however, an Arkansas certificate
of title shall not be issued from an out-of-state junking
certificate or other ownership document bearing a designation
of "junk", "nonrepairable",
or similar classification, it being the intent of this
section that any motor vehicle damaged to the extent
that it has been so designated shall be dismantled for
parts or scrap and shall not be titled in the State of
Arkansas.
(B)(i) An Arkansas title may be issued only if
the state that placed the designation on the certificate
of title or issued the junking certificate removes the
designation or cancels the junking certificate and replaces
it with a certificate of title.
(ii) The designation placed on the certificate
of title or issuance of junking certificate may be modified
or removed only by that state.
(iii) No court of this state shall have jurisdiction
to change or modify the designation or finding of another
state issuing a certificate of title or the junking certificate.
(d)(1) When any motor vehicle issued a "damaged" certificate
of title, or similar branded title by another state,
is rebuilt or reconstructed, the owner shall, within
ten (10) working days, make application to the office
for the registration and issuance of a new certificate
of title to the motor vehicle.
(2) The application shall be accompanied by the "damaged" certificate
of title, or similar title issued by another state, a
fee in the amount now or hereafter prescribed by law
for the registration and issuance of a certificate of
title, and a sworn statement executed by the rebuilder
or restorer on a form prescribed by the office describing
the types of repairs performed, listing all parts replaced,
and including the vehicle identification number of any
parts bearing such a number or a derivative thereof.
(e)(1) Upon receipt of such "damaged" certificate
of title, or similar title issued by another state, and
the sworn statement required to be submitted by subsection
(d) of this section, there shall be issued a new certificate
of title with the words "previous damage" printed
in the remarks section on the face of the title.
(2) Such brand shall be carried forward and printed
in the remarks section on the face of all titles issued
thereafter for such motor vehicle.
(f) The sworn statement submitted pursuant to
subsection (d) of this section shall be maintained by
the office as a part of the permanent title record of
the motor vehicle in question, and the information contained
therein shall be made available to any prospective buyer
or transferee upon request.
History. Acts 1993, No. 614, § 2;
2001, No. 328, § 2.
27-14-2303. Disclosure requirements.
(a)(1) When any dealer in this state offers for
sale a motor vehicle which carries a title branded pursuant
to this subchapter, the dealer shall disclose to any
prospective buyer or purchaser prior to sale the nature
of the title brand and shall furnish him or her a description
of the damage sustained by the motor vehicle on file
with the Office of Motor Vehicle.
(2) The disclosure shall be
on a buyer's notification form to be prescribed by the
Consumer Protection Division of the Office of the Attorney
General.
(3)(A) The form shall be fully filled out and
affixed to a side window of the motor vehicle with the
title "Buyer's Notification" facing to the
outside.
(B) The form may be removed temporarily from the
window during any test drive, but it shall be replaced
as soon as the test drive is over.
(b)(1) When any motor vehicle owner who is not
a dealer knowingly offers for sale or trade a motor vehicle
which carries a title branded pursuant to this subchapter,
such owner shall disclose to any prospective buyer or
purchaser prior to the sale or trade the nature of the
title brand and shall furnish him or her a description
of the damage sustained by the motor vehicle as on file
with the office.
(2) The disclosure shall be on a buyer's notification
form to be prescribed by the division.
(c)(1) The form to be prescribed by the division
shall have an acknowledgment section that the seller
shall require the buyer to sign prior to completing a
sales transaction on a motor vehicle that carries a branded
title.
(2) The seller shall retain a copy of the signed
notification form.
(d)(1) Failure of the seller to procure the buyer's
acknowledgment signature shall render the sale voidable
at the election of the buyer.
(2) The election to render the sale voidable shall
be limited to sixty (60) days after the sales transaction.
(3) The buyer's right to render voidable the purchase
is in addition to any other right or remedy which may
be available to the buyer. In the event that the seller
makes full refund of the purchase price to the buyer
within ten (10) days after receipt of the buyer's election
to void the sales transaction, the seller shall be subject
to no further liability in connection with the sales
transaction.
History. Acts 1993, No.614, §3;
1995, No.620, §1; 1999, No.1303, §1; 1999,
No.1572, §1.
27-14-2304. Violations - Penalties.
(a) Any repairer, rebuilder, or restorer who pleads
guilty or nolo contendere to or who is found guilty of
failing to provide to a motor vehicle owner the sworn
statement required by § 27-14-2302 to
be submitted to the Office of Motor Vehicle, or, if the
repairer, rebuilder, or restorer is the motor vehicle
owner, failing to submit the sworn statement required
by § 27-14-2302 to
be submitted to the office, or any motor vehicle owner
who conceals or attempts to conceal the fact that the
motor vehicle has been damaged from any prospective buyer
or transferee in violation of this subchapter shall be
guilty of a Class A misdemeanor and shall be punished
as provided by law.
(b) Any dealer who pleads
guilty or nolo contendere to or who is found guilty of
failing to disclose the information provided for in § 27-14-2302 or
any motor vehicle owner who conceals or attempts to conceal
the fact that the motor vehicle has been damaged from
any prospective buyer or purchaser in violation of this
subchapter shall be guilty of a Class A misdemeanor and
shall be punished as provided by law.
(c) Any sale, attempted sale, or transfer of a
motor vehicle in violation of the provisions of this
subchapter shall constitute an unfair or deceptive act
or practice under the provisions of the Deceptive Trade
Practices Act, § 4-88-101 et
seq.
History. Acts 1993, No. 614, § 4.
27-14-2305. Applicability of subchapter.
The provisions of this subchapter shall not apply to
motor vehicles more than five (5) model years old. Any
title which is branded pursuant to this subchapter shall
retain the brand on the title for the life of the vehicle.
History. Acts 1993, No. 614, § 5;
1999, No. 1572, § 2.
27-14-2306. Exemption from sales or use tax.
Any person licensed by the State of Arkansas as a dealer
in motor vehicles who is required under the provisions
of this subchapter to register and title a motor vehicle
in the name of such dealership shall be exempt from the
payment of sales or use taxes on such transaction.
History. Acts 1993, No. 614, § 6.
27-14-2307. Rules and regulations.
The Director of the Department of Finance and Administration
shall promulgate necessary rules and regulations for
the proper enforcement and administration of this subchapter.
History. Acts 1993, No. 614, § 7.
