GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION

CHAPTER 527
HOUSE BILL 330

AN ACT TO AMEND THE DEFINITION OF MOTOR VEHICLE DEALER.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 20-286(11) reads as rewritten:
"(11)	'Motor vehicle dealer' and 'dealer' mean any person who does any of the following:
a.	For commission, money, or other thing of value, buys, sells, or exchanges, whether outright or on conditional sale, bailment lease, chattel mortgage, or otherwise, five or more motor vehicles within any 12 consecutive months, regardless of who owns the motor vehicles.
b.	On behalf of another and for commission, money, or other thing of value, arranges, offers, attempts to solicit, or attempts to negotiate the sale, purchase, or exchange of an interest in five or more motor vehicles within any 12 consecutive months, regardless of who owns the motor vehicles.
c.	Engages, wholly or in part, in the business of selling new motor vehicles or new or used motor vehicles, or used motor vehicles only, whether or not the motor vehicles are owned by that person, and sells five or more motor vehicles within any 12 consecutive months.
d.	Offers to sell, displays, or permits the display for sale for any form of compensation five or more motor vehicles within any 12 consecutive months.
e.	Primarily engages in the leasing or renting of motor vehicles to others and sells or offers to sell those vehicles at retail.
	The term 'motor vehicle dealer' or 'dealer' does not include any of the following:
a.	Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court.
b.	Public officers while performing their official duties.
c.	Persons disposing of motor vehicles acquired for their own use or the use of a family member, and actually so used, when the vehicles have been acquired and used in good faith and not for the purpose of avoiding the provisions of this Article.
d.	Persons who sell motor vehicles as an incident to their principal business but who are not engaged primarily in the selling of motor vehicles. This category includes financial institutions who sell repossessed motor vehicles and insurance companies who sell motor vehicles to which they have taken title as an incident of payments made under policies of insurance and who do not maintain a used car lot or building with one or more employed motor vehicle salesmen.
e.	Persons manufacturing, distributing or selling trailers and semitrailers weighing not more than 750 pounds and carrying not more than a 1,500 pound load.
f.	A licensed real estate broker or salesman who sells a mobile home for the owner as an incident to the sale of land upon which the mobile home is located.
g.	An employee of an organization arranging for the purchase or lease by the organization of vehicles for use in the organization's business.
h.	Any publication, broadcast, or other communications media when engaged in the business of advertising, but not otherwise arranging for the sale of motor vehicles owned by others.
i.	Any person dealing solely in the sale or lease of vehicles designed exclusively for off-road use.
j.	Any real property owner who leases any interest in property for use by a dealer.
k.	Any person acquiring any interest in a motor vehicle for a family member."
Sec. 2.  This act becomes effective October 1, 1991.
In the General Assembly read three times and ratified this the 3rd day of July, 1991.
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James C. Gardner
President of the Senate

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Daniel Blue, Jr.
Speaker of the House of Representatives