Monday, October 24, 2011

Advertising Violations

Here are two violations that have been seen lately, don’t let it be your dealership.

R877-23V-7. Misleading Advertising Pursuant to Utah Code Ann.

Section 41-3-210.

(f) Trade-in Allowance. Statements representing that no other dealer grants greater allowances for trade-ins may not be used. A specific trade-in amount or range of trade-in amounts may not be used in advertising.

(n) Free. "Free" may be used in advertising only when the advertiser is offering a gift that is not conditional on the purchase of any property or service.

Salespersons - When can they start working?

We are seeing individuals that have been denied a salesperson license, come to an appeal and state that they have been working as a salesperson since the application was submitted. The person CANNOT act as a salesperson until the dealership receives the license issued from MVED. Just because the application has been submitted, doesn’t mean the license has been issued. By allowing a person to work without a license, the dealership can be charged criminally and receive a civil penalty as well. Please don’t put your dealership in this situation. Once the license is in hand, the person is good, not before.

41-3-203. Licenses -- Form -- Seal -- Custody of salesperson's license -- Display of salesperson and dealer licenses -- Licensee's pocket card.

(c) Each salesperson shall on request display his pocket card.

41-3-210. License holders -- Prohibitions and requirements.
(1) The holder of any license issued under this chapter may not:
(m) as anyone other than a salesperson licensed under this chapter, be present on a dealer display space and contact prospective customers to promote the sale of the dealer's vehicles;
(6) A dealer may not assist an unlicensed dealer or salesperson in unlawful activity through active or passive participation in sales, or by allowing use of his facilities or dealer license number, or by any other means.