605 KAR 1:060. Temporary off-site sale or
display event.
RELATES TO: KRS 186A.220(5), 190.030(7),
(11), 190.035, 190.047
STATUTORY AUTHORITY: KRS 190.020,
190.030(1), 190.073
NECESSITY, FUNCTION, AND CONFORMITY: KRS
190.030(7) requires a motor vehicle dealer to restrict the sale or display of
motor vehicles to the location of the dealer's licensed place of business
except that a motor vehicle dealer may have a temporary off-site sale or
display of motor vehicles at a location other than the licensed place of
business under certain conditions. KRS 190.030(1) authorizes the Motor Vehicle
Commission to provide by administrative regulation for "other licensee
activities and an appropriate fee". This administrative regulation
establishes the application requirements for holding a temporary sale or
display event.
Section 1. Definition.
"Display" means:
1. A showing of a motor vehicle or
vehicles with an intent to attract or further a sale of the motor vehicle or
vehicles or similar motor vehicles offered by a motor vehicle dealer at a location
in this state where no sale, transfer, or test drive takes place; or
2. Any showing of a motor vehicle at a
location for more than forty-eight (48) hours.
Section 2. (1) A motor vehicle dealer
shall not conduct or participate in a motor vehicle display event at any location
other than the dealer's licensed place of business unless an Application for a
Temporary Display Event is filed with the Motor Vehicle Commission and
approved.
(2) The application for a Temporary
Display Event shall be received a minimum of five (5) days prior to the next
regularly-scheduled meeting of the commission held before the requested permit
period.
(3) The temporary display permit
application shall state:
(a) The duration of the display which
shall not exceed sixty (60) successive days;
(b) The specific location of the
temporary display event for which the permit is requested;
(c) A complete list of all motor vehicle
dealers participating in the temporary display event; and
(d) Proof that the city, county, urban
county or consolidated local government where the temporary display event is to
occur has enacted an ordinance specifically allowing a motor vehicle dealer to
conduct a motor vehicle temporary display event in its jurisdiction at a
location other than the dealer's licensed place of business.
(4) A salesman shall not be present at a
temporary display event at any time. If a salesman of the participating motor
vehicle dealer is present at the temporary display event, the event shall be
deemed a temporary sale event.
(5) The dealership
name as stated on its license, the address of its established place of business
and contact information shall be placed on or near the vehicle or vehicles on
display.
Section 3. (1) A motor vehicle dealer
shall not conduct or participate in a motor vehicle sale event at any location
other than the dealer’s licensed place of business unless an Application for a
Temporary Sale Event
is filed with the Motor Vehicle Commission and approved.
(2) The application
for a Temporary Sale Event shall be received a minimum of forty-five (45) days
prior to the temporary sale event.
(3) The temporary
sale event application shall state:
(a) The duration
of the sale which shall not exceed five (5) successive days;
(b) The specific location of the
temporary sale event for which the permit is requested;
(c) A complete
list of all motor vehicle dealers participating in the temporary sale event;
(d)
Proof that the city, county, urban county or consolidated local government
where the temporary sale event is to occur has enacted an
ordinance specifically allowing a motor vehicle dealer to conduct a motor
vehicle temporary sale event in its jurisdiction at a
location other than the dealer’s licensed place of business;
(e)
That the temporary sale event has been, is being, or will be advertised as
being temporary in nature;
(f) That the temporary sale event shall include a representative
sampling of the inventory of the participating dealer or dealers; and
(g) In the case of
a sale of new motor vehicles:
1. That the sale
location is not within a five (5) mile radius of the licensed location of a
nonparticipating new motor vehicle dealer licensed to sell the same line make
of motor vehicles as will be displayed at the temporary sale event; and
2. That the
applicable franchisor or franchisors have approved or consented to the
temporary sale event if consent is required.
Section 4. (1) At every temporary sale
event each participating dealer shall display a sign easily visible from the
street identifying his business using his business name as stated on his
dealer’s license and indicating the address of his established place of business
as set forth in his dealer’s license.
(2) If applicable local ordinance
prohibits the signage, each dealer shall display allowable signage containing
the same information and provide customers with business cards containing the information
upon request.
Section 5. (1) All sales made at a
temporary sale event shall be evidenced by a written sales document or purchase
order containing the dealership’s licensed name and address of the dealership’s
established place of business, the address of the temporary sale and the
customer name, address and telephone number.
(2) The Documentation shall be retained
for six (6) months after the sale and shall be made available to the Motor
Vehicle Commission upon request.
Section 6. A certificate of title, and
other documents if appropriate, shall be present at the temporary sale event
location with respect to each motor vehicle offered for sale at the temporary
sale event and shall be made available to purchasers as set forth in KRS 186A.220(5).
Section 7. (1) All individuals involved
in attempting to make a sale as defined in KRS 190.010(25) at a temporary sale
event shall possess a valid salesman’s license issued by the Motor Vehicle
Commission in the name of the participating dealer or dealers prior to the date
of the temporary sale event.
(2) All salesmen
participating in or present at a temporary sale event shall have their valid
Kentucky license in their possession and available for display at all times
during the event.
Section 8. A temporary sale event
involving new motor vehicles shall not be allowed within a five (5) mile radius
of the licensed location of a nonparticipating new motor vehicle dealer licensed
to sell the same line make as will be displayed at the temporary sale event.
Section 9. (1) Unless good cause is shown
by the applicant, temporary display events shall not be approved for the same
location or the same jurisdiction unless there is at least a twenty-four (24)
hour period between the end of the last temporary display event held by the
applicant and the beginning of the next temporary display event to be held by
the applicant.
(2) Unless good cause is shown by the
applicant, temporary sale events shall not be approved for the same location or
the same jurisdiction unless there is at least a thirty (30) day period between
the end of the last temporary sale event held by the applicant and the
beginning of the next temporary sale event to be held by the applicant.
Section 10. (1) The fee for a temporary
sale event permit shall be $500 per participating dealer and shall be paid when
the application is submitted.
(2) If the application is only for a
temporary display event, the fee shall be twenty-five (25) dollars.
Section 11. Incorporation by Reference.
(1) "Application for Temporary Sale or Display Event", revised September
2008, is incorporated by reference.
(2) This material may be inspected,
copied, or obtained, subject to applicable copyright law, at the Kentucky Motor
Vehicle Commission, 105 Sea Hero Road, Suite 1, Frankfort, Kentucky 40601 Monday
through Friday, 8 a.m., to 4:30 p.m. (30 Ky.R. 2247; Am. 2465; eff. 7-7-2004;
35 Ky.R. 1016; 1752; eff. 3-6-09.)