Current through Pa Acts 2024-53, 2024-56 through 2024-95
Section 818.303 - License to engage in business(a) License required.--(1) To promote the public safety and welfare, it shall be unlawful for any person to engage in the business as a salesperson, dealer, branch lot, wholesale vehicle auction, public or retail vehicle auction, manufacturer, factory branch, distributor, distributor branch, factory representative or distributor representative within this Commonwealth unless the person has secured a license as required under this chapter.(2) A person, including, but not limited to, salespersons, shall not engage in the business for his own benefit or profit unless he is licensed in accordance with this chapter.(3) A person shall not act as, offer to act as or hold himself out to be a broker in the advertising, buying or selling of any new or used vehicle.(b) Mobile home parks.--(1) It shall be unlawful for any person, for a commission, compensation or other consideration, to sell or act as salesperson, broker or sales agent in connection with the sale of one or more mobile homes located in a mobile home park, as provided for in section 11 of the act of November 24, 1976 ( P.L. 1176, No.261), known as the Mobile Home Park Rights Act, unless such person shall be licensed under this chapter, except as provided for in paragraph (2).(2) Any real estate salesperson or broker licensed under the act of February 19, 1980 ( P.L. 15, No.9), known as the Real Estate Licensing and Registration Act, may list for sale any preowned mobile home as defined by the Mobile Home Park Rights Act, whether or not the mobile home is located in a mobile home park, without being licensed under the provisions of this chapter. No mobile home park rule shall prevent the placement of a "for sale" sign on the home and on the property on which the home is located. Nothing in this paragraph shall authorize the listing for sale of preowned mobile homes at a sales lot by a licensed real estate salesperson or broker unless the salesperson or broker is also licensed under this chapter and has obtained a sales tax license from the Department of Revenue.(c) Salespersons to be employed.--It shall be unlawful for any salesperson who has not been issued a salesperson's license number by the board to engage in any activity related to the buying, selling or exchanging of a vehicle for a commission, compensation or other consideration. Any sale must be conducted pursuant to and as part of the normal business activities of the dealer by a person who is a licensed salesperson of the dealer, unless that person is the dealer. The salesperson shall be presently employed by the currently licensed vehicle dealer for whom the salesperson is buying, selling or exchanging. (1) Any salesperson licensed under this chapter shall be licensed to sell only for one dealer at a time and his license shall indicate the name of that dealer.(2) A licensed salesperson who is employed by a dealer who holds a dealer license in more than one category or at more than one facility may sell for each such dealer or at each such facility, provided there is common ownership.(d)Display of license.--Each person to whom a license is issued shall keep the license conspicuously displayed in his principal office or place of business and shall, when required, exhibit such license to any member or authorized representative of the board.(e)Facility requirements for dealers.-- (1) Dealers engaged in the business of buying, selling or exchanging new and used vehicles, trailers or semitrailers shall maintain an established place of business with a salesroom devoted principally to the vehicle business, and new vehicle dealers shall hold a franchise in writing with a manufacturer or distributor authorizing a new vehicle dealer to sell a particular line-make of vehicles from the address of the licensed facility. (i) A vehicle auction shall not be required to meet the facility requirements under this subsection.(ii) A branch lot shall be a separately licensed location which meets the facility requirements under this section and by the regulations as a main lot, unless used solely for the storage of vehicles.(2) Dealers engaged in the business of buying, selling or exchanging used vehicles, trailers or semitrailers shall maintain an established place of business with a salesroom devoted principally to the vehicle business which is a building or portion of a building where books and records are kept.(3) Dealers engaged in the business of buying, selling or exchanging new manufactured housing and used mobile homes or manufactured housing shall maintain a minimum usable display area of 5,000 square feet devoted principally to the mobile home or manufactured housing business, maintain an established place of business and hold a contract in writing with a buyer, seller or manufacturer giving such person buying or selling rights for new manufactured housing of that particular line from the address of the licensed facility. (i) Dealers engaged in the business of buying, selling or exchanging new manufactured housing, in lieu of maintaining the minimum usable display area requirements of this section, shall be authorized to display, sell, list or offer for sale new manufactured housing if the new manufactured housing is located on-site in a mobile home park or new manufactured housing is on real property owned or rented by a person who through a written agreement with the dealer authorizes the dealer to locate the new manufactured housing on the real property and the dealer is authorized to display, sell, list or offer the new manufactured housing at the real property location. Such dealers must maintain an established place of business and hold a contract in writing with a buyer, seller or manufacturer giving such person buying or selling rights for such new manufactured housing.(ii) A display, sale, listing or offer for sale from a site or location as permitted by subparagraph (i) shall not require the issuance of a branch lot license.(4) Dealers engaged in the business of buying, selling or exchanging used mobile homes or manufactured housing shall maintain a place of business and a building, or a portion of a building, where books and records are kept and which is devoted principally to the mobile home or manufactured housing business. There shall be no minimum square footage display area requirement for a used mobile home or manufactured housing dealer.(i) Dealers engaged in the business of buying, selling or exchanging new manufactured housing or used mobile homes or manufactured housing in addition to maintaining the business facility requirements of this section shall be authorized to display, sell, list or offer for sale used manufactured housing or mobile homes if the used manufactured housing or mobile homes are located on-site in a mobile home park or used manufactured housing or mobile homes are located on real property owned or rented by the person who owns the used manufactured housing or mobile home and the dealer possesses a written agreement with the person authorizing the dealer to sell, list or offer the used manufactured housing or mobile home on behalf of the person from the real property location.(ii) A display, sale, listing or offer for sale from a site or location as permitted by subparagraph (i) shall not require the issuance of a branch lot license.(5) Dealers engaged in the business of buying, selling or exchanging new or used recreational vehicles shall maintain an established place of business with a minimum usable display area of 5,000 square feet devoted principally to the recreational vehicle business and hold a franchise in writing with a buyer, seller or manufacturer giving such person buying or selling rights for new recreational vehicles of that particular line from the address of the licensed facility.(f) Wholesale vehicle auction activities.-- (1) Wholesale vehicle auctions in wholesale vehicle auction sales transactions shall permit only the following persons to sell vehicles at the auction: vehicle dealers licensed under this chapter or by any other state or jurisdiction, manufacturers, leasing companies, rental companies, financial institutions, insurance companies, charitable nonprofit organizations; persons who sell vehicles owned by their business which are utilized to accomplish their main business purpose and who do not engage in any vehicle buying, sales or repair business; and fleet owners.(2) Only vehicle dealers licensed under this chapter or by any other state or jurisdiction shall be permitted to purchase vehicles at wholesale vehicle auctions. In addition to dealers licensed under this chapter or by any other state or jurisdiction, a vehicle business, except for repair and towing, transporter, service, financier or collector/repossessor businesses, registered with the Department of Transportation and issued a Department of Transportation identification number or licensed or registered by any other state or jurisdiction for a similar activity without being licensed under this chapter shall be authorized at wholesale vehicle auctions only to buy, sell or exchange vehicles of the type for which the business is authorized to engage by the Department of Transportation or any other state or jurisdiction, provided that upon buying such vehicle, application for an appropriate certificate of title or certificate of salvage is made for the vehicle.(3) A dealer licensed under this chapter without possessing a wholesale vehicle auction or public or retail vehicle auction license shall be permitted to sell vehicles on consignment.(4) A vehicle auction shall only permit a person who is currently employed and licensed as a salesperson for a dealer who holds a license issued under this chapter or by any other state or jurisdiction to buy, sell or exchange vehicles at an auction on behalf of a dealer. This paragraph shall not apply to a salesperson who is buying, selling or exchanging vehicles at: (i) wholesale vehicle auctions which are either fleet sales or manufacturer's sales; or(ii) sales of vehicles for salvage, where the salesperson shall be permitted to buy, sell or exchange vehicles for no more than five dealers during the sale.(5) Any person who has had his license under this chapter or authority to engage as a dealer or salesperson in any other state or jurisdiction suspended or revoked shall not be authorized, while the license or authority is suspended or revoked, to be physically present at a wholesale vehicle auction during the auctioning of vehicles.(g) Public or retail vehicle auction activities.-- (1) Public or retail vehicle auctions shall not be limited as to who may commission them to sell vehicles or who may buy vehicles at public or retail auctions, provided that any buyer or seller is not engaging in the business as a dealer without a license or as any other person who would be required to be licensed under this chapter. Any person who has had his license under this chapter or authority to engage as a dealer or salesperson in any other state or jurisdiction suspended or revoked shall not be authorized, while the license or authority is suspended or revoked, to be physically present at a public or retail vehicle auction during the auctioning of vehicles. Public or retail vehicle auctions shall not be required to take title to the vehicles they offer for sale or have their auctioneers licensed as salespersons under this chapter. Public or retail vehicle auctions shall inquire of the seller of the vehicle and, if applicable, disclose to potential purchasers material information obtained from the seller regarding the vehicle being offered for sale as is required of all sellers under applicable Federal and Pennsylvania laws.(2) Public or retail vehicle auctions shall ensure all purchasers at the vehicle auction: (i) show proof of identification at the time of transfer of ownership;(ii) sign the identified name to the transfer of ownership documents;(iii) pay any applicable tax imposed under Article II of the act of March 4, 1971 ( P.L. 6, No.2), known as the Tax Reform Code of 1971, unless otherwise exempted by law; and(iv) submit transfer of ownership documents to the Department of Transportation as required under 75 Pa.C.S. (relating to vehicles).(g.1) Mobility vehicle dealers.--(1) A licensed dealer classified as a mobility vehicle dealer may do all of the following: (i) Display, inventory, advertise, solicit, demonstrate, sell, offer for sale or deliver new and used mobility vehicles.(ii) Arrange, negotiate and assist a customer regarding the purchase of a mobility vehicle.(iii) Sell and install equipment and accessories in and provide services for mobility vehicles, in order to meet the needs of persons with disabilities as drivers or passengers.(iv) Provide maintenance and repair services for mobility vehicles.(v) Acquire a new vehicle with a lowered floor or frame or a raised roof and door in order to fit or equip the vehicle for retail sale as a new mobility vehicle.(2) A licensed dealer that is classified only as a mobility vehicle dealer may not offer for sale or sell vehicles which are not mobility vehicles.(h) Notification of unlicensed persons.--Vehicle auctions shall post a listing supplied by the board containing the names of all licensees who are currently revoked or suspended and persons who were penalized for unlicensed activity within the past year. Amended by P.L. TBD 2018 No. 134, § 6, eff. 10/24/2019.Amended by P.L. TBD 2015 No. 78, § 2, eff. 2/15/2016.1983, Dec. 22, P.L. 306, No. 84, § 5, effective Jan. 1, 1984. Amended 1991, Dec. 20, P.L. 387, No. 41, § 2, effective in 60 days; 1996, April 19, P.L. 104, No. 27, §§ 3, 20, effective in 60 days.