Del. Code tit. 21 § 6302

Current through 2024 Legislative Session Act Chapter 531

Section 6302 - License requirements

(a) Department approval. - No person, corporation, partnership, proprietorship or any other legal entity shall carry on or conduct the business of buying, selling or dealing in new or used vehicles unless issued a dealer's license by the Department. A dealer license issued under this title is not transferrable.

(b) Application. - Application for a dealer's license shall be made upon the form prescribed by the Department and shall contain the name and address of the applicant. When the applicant is a partnership the name and address of each partner shall appear on the application. When the application is a corporation, the names of the principal officers of the corporation, the state in which incorporated, the place or places where the business is to be conducted and such other information as may be required by the Department shall appear on the application. Every such application shall contain a certification by the applicant that the information provided is true and accurate to the best of the applicant's knowledge.

(c) Resident requirements. - The owner of a dealership must have been issued a Delaware driver's license and established residency in Delaware at least 90 days prior to the time of application. Franchised and new vehicle dealers are exempted from this requirement.

(d) Age requirement. - The applicant must be at least 18 years of age on the date the application is submitted to the Department.

(e) Fingerprinting requirement.

(1) An applicant seeking a license or license renewal, if more than 5 years have passed since original licensure process, must submit fingerprints and other necessary information in order to obtain a report of the applicant's entire criminal history record from the State Bureau of Identification or a statement from the State Bureau of Identification that the State Central Repository contains no such information relating to the applicant.

(2) All information obtained under this subsection shall be forwarded to the Division for review to determine the applicant's suitability for licensure pursuant to § 6313 of this title. Information obtained under this subsection is confidential and may only be disclosed to the Director of the Division or the Director's designee. The State Bureau of Identification may release subsequent criminal history to the Division.

(f) Fee. - No fee for a license is charged by the Department. However, all dealerships must obtain a yearly dealer business license from the Department of Finance, Division of Revenue. Wholesale dealers shall also obtain an additional wholesale license pursuant to § 6307 of this title. The business license(s) must be kept at the business location and be available for inspection by the Department.

(g) Restriction upon ownership of dealership by manufacturer, importer or distributor

A manufacturer, importer, or distributor, or agent of a manufacturer, importer, or distributor, or parent, subsidiary, common entity, officer, or currently employed representative of the manufacturer, importer, or distributor, may not directly or indirectly own, operate, or control, by contract, agreement, or otherwise, a motor vehicle dealership in this state if the manufacturer, importer, or distributor has manufactured, imported, or distributed motor vehicles of any line-make which have been or are offered for sale under a franchise agreement in this state with an independent person. Any person who is not prohibited by this section from owning, operating, or controlling a motor vehicle dealership may be issued a dealer license, provided that all applicable licensing requirements are satisfied. Any person prohibited by this section from owning, operating, or controlling a motor vehicle dealership may not be issued a dealer license.

Whenever used in this section, unless the context otherwise requires, the following words and terms have the following meanings:

(1) "Common entity" means a person:

a. Who is directly or indirectly controlled by or has more than 30% of its equity interest directly or indirectly owned, beneficially or of record, through any form of ownership structure, by a manufacturer, an importer, a distributor, or a licensee, or an affiliate thereof; or

b. Who has more than 30% of its equity interest directly or indirectly controlled or owned, beneficially or of record, through any form of ownership structure, by one or more persons who also directly or indirectly control or own, beneficially or of record, more than 30% of the equity interests of a manufacturer, an importer, or any affiliate thereof.

(2) "Importer" means any person who imports motor vehicles from a foreign country into the United States or into this state for the purpose of sale or lease.

(3) "Independent person" means a person who is not an agent, a parent, a subsidiary, a common entity, an officer, a director, or an employed representative of a manufacturer, importer, or distributor.

21 Del. C. § 6302

Amended by Laws 2023, ch. 389,s 8, eff. 8/29/2024.

Amended by Laws 2021 , ch. 511, s 1, eff. 10/26/2022.

36 Del. Laws, c. 10, § 46; Code 1935, § 5583; 21 Del. C. 1953, § 6301; 65 Del. Laws, c. 79, §§1 - 4; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 449, § 1.;