1. No person shall engage in this state in the business of selling at retail new motor vehicles of any make or represent or advertise that the person is engaged or intends to engage in such business in this state unless the person is authorized by a contract in writing with the manufacturer or distributor of such make of new motor vehicles to so dispose thereof in this state and unless the department has licensed the person as a motor vehicle dealer in this state in motor vehicles of such make and has issued to the person a license in writing as in this chapter provided.
2. No person, other than a licensed dealer in new motor vehicles, shall engage in this state in the business of selling at retail used motor vehicles or represent or advertise that the person is engaged or intends to engage in such business in this state unless and until the department has licensed such person as a used motor vehicle dealer in the state and has issued to the person a license in writing as in this chapter provided.
3. Nothing contained in subsections 1 and 2 hereof shall be construed as requiring the separate licensing of persons employed as salespersons of motor vehicles by a retail motor vehicle dealer hereunder, but the department is hereby authorized and empowered to make, publish, and promulgate such reasonable rules and regulations as it may deem necessary for the proper identification of persons so employed as salespersons by any such licensee.
4. No person, who is engaged in the business of selling at retail motor vehicles, shall enter into any contract, agreement, or understanding, express or implied, with any manufacturer or distributor of any such motor vehicles that the person will sell, assign, or transfer any retail installment contracts arising from the retail installment sale of such motor vehicles or any one or more thereof only to a designated person or class of persons. Any such condition, agreement, or understanding between any manufacturer or distributor and a motor vehicle dealer in this state is hereby declared to be against the public policy of this state and to be unlawful and void.
5. No manufacturer or distributor of motor vehicles or any agent or representative of such manufacturer or distributor, shall terminate or threaten to terminate, or fail to renew any contract, agreement, or understanding for the sale of new motor vehicles to any motor vehicle dealer in this state without just, reasonable and lawful cause therefor or because such motor vehicle dealer failed to sell, assign, or transfer any retail installment contract arising from the retail sale of such motor vehicles or any one or more of them to a person or a class of persons designated by such manufacturer or distributor. Provided, however, that the provisions of this subsection relating to "failure to renew" shall not apply to any contract, agreement, or understanding, which is for a term of five or more years.
6. No person, who is engaged in the business of selling at retail motor vehicles, shall make and enter into a retail installment contract unless such contract meets the following requirements:
a. Every retail installment contract shall be in writing, shall be signed by both the buyer and the seller and shall be completed as to all essential provisions prior to the signing of the contract by the buyer except that, if delivery of the motor vehicle is not made at the time of the execution of the contract, the identifying numbers or marks of the motor vehicle or similar information and the due date of the first installment may be inserted in the contract after its execution.
b. The contract shall comply with the Iowa consumer credit code, where applicable.
7. Nothing contained herein shall be construed to require that a place of business as defined in this chapter shall be maintained by a person selling motor vehicles at retail solely for the purpose of disposing of motor vehicles acquired or repossessed by such person in exercise of powers or rights granted by lien or title-retention instruments or contracts given as security for loans or purchase money obligations.
8. No manufacturer or distributor of motor vehicles or agent or representative of such manufacturer or distributor shall coerce or attempt to coerce any motor vehicle dealer to accept delivery of any motor vehicle or vehicles, parts, or accessories thereof, or any other commodity or commodities which shall not have been ordered by such dealer.
9. No person licensed under this chapter shall, either directly or through an agent, salesperson or employee, engage in this state, or represent or advertise that the person is engaged or intends to engage in this state, in the business of buying or selling at retail new or used motor vehicles, other than mobile homes more than eight feet in width or more than thirty-two feet in length as defined in section 321.1, on the first day of the week, commonly known and designated as Sunday.
10. A manufacturer, distributor, or importer of motor vehicles or agent or representative of such manufacturer, distributor, or importer shall not require a motor vehicle dealer to submit to arbitration to resolve a controversy before the controversy arises. The parties may enter into a voluntary agreement to arbitrate a controversy after it arises. Such an agreement shall require that the arbitrator apply Iowa law in resolving the controversy. Either party may appeal a decision of an arbitrator to the district court on the grounds that the arbitrator failed to apply Iowa law.
[C39, § 5039.03; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 322.3]
90 Acts, ch 1061, §1
Referred to in § 322.5, 322.6, 322.14
Iowa General Assembly
Search: Iowa Code 1995
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