The director may deny a license under this chapter when the application is a subterfuge that conceals the real person in interest whose license has been denied, suspended, or revoked for cause under this chapter and the terms have not been fulfilled or a civil penalty has not been paid, the director finds that the application was not filed in good faith, or the issuance of a new license or subagency would cause a manufacturer, distributor, factory branch, or factory representative, or an agent, officer, parent company, wholly or partially owned subsidiary, affiliated entity, or other person controlled by or under common control with a manufacturer, distributor, factory branch, or factory representative, to be in violation of chapter 46.96 RCW. This section does not preclude the department from taking an action against a current licensee.

NOTES:

Application—2014 c 214: “This act applies to all franchises and contracts between manufacturers and new motor vehicle dealers amended, renewed, or entered into after June 12, 2014. For purposes of chapter 46.96 RCW, an agreement between a manufacturer and new motor vehicle dealer entered into after June 12, 2014, addressing any issues governed by chapter 46.96 RCW, is considered an amendment to an existing franchise.” [ 2014 c 214 § 9.]

Terms Used In Washington Code 46.70.045

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Department: means the department of licensing, which shall administer and enforce the provisions of this chapter. See Washington Code 46.70.011
  • Director: means the director of licensing. See Washington Code 46.70.011
  • Distributor: which means any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new and unused vehicle to vehicle dealers or who maintains factory representatives. See Washington Code 46.70.011
  • Factory branch: which means a branch office maintained by a manufacturer for the purpose of selling or offering for sale, vehicles to a distributor, wholesaler, or vehicle dealer, or for directing or supervising in whole or in part factory or distributor representatives, and further includes any sales promotion organization, whether a person, firm, or corporation, which is engaged in promoting the sale of new and unused vehicles in this state of a particular brand or make to vehicle dealers. See Washington Code 46.70.011
  • Factory representative: which means a representative employed by a manufacturer, distributor, or factory branch for the purpose of making or promoting for the sale of their vehicles or for supervising or contracting with their dealers or prospective dealers. See Washington Code 46.70.011
  • Manufacturer: means any person, firm, association, corporation, or trust, resident or nonresident, who manufactures or assembles new and unused vehicles or remanufactures vehicles in whole or in part and further includes the terms:
Washington Code 46.70.011
  • Motor vehicle: means every vehicle which is self-propelled and every vehicle which is propelled by electric power obtained from overhead trolley wires, but not operated upon rails, and which is required to be registered and titled under this title. See Washington Code 46.70.011
  • motor vehicle dealer: is a vehicle dealer that deals in new or used motor vehicles, or both;
    • Washington Code 46.70.011
  • person: may be construed to include the United States, this state, or any state or territory, or any public or private corporation or limited liability company, as well as an individual. See Washington Code 1.16.080
  • Subagency: means any place of business of a vehicle dealer within the state, which place is physically and geographically separated from the principal place of business of the firm or any place of business of a vehicle dealer within the state, at which place the firm does business using a name other than the principal name of the firm, or both. See Washington Code 46.70.011
  • Vehicle: means and includes every device capable of being moved upon a public highway and in, upon, or by which any persons or property is or may be transported or drawn upon a public highway, excepting devices moved by human or animal power or used exclusively upon stationary rails or tracks. See Washington Code 46.70.011
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