§ 19.22. Investigation.

 The Board will investigate on its own initiative or upon the verified complaint in writing of a person, allegations of the wrongful act of a licensee of the act and will have the power to suspend or revoke licenses issued by the Board if, after notice and hearing, the person charged is found guilty of committing or attempting to commit the following acts, in addition to those acts enumerated in the act:

   (1)  Has required a purchaser of a new vehicle, as a condition of sale and delivery of the vehicle, to also purchase special features, appliances, accessories or equipment not desired or requested by the purchaser.

   (2)  Has willfully failed or refused to perform a written agreement with a retail buyer involving the sale of a vehicle.

   (3)  Has used the words ‘‘lease’’ or ‘‘leasing’’ in a dealer’s trade name.

   (4)  Has with intent to sell or in any way dispose of vehicles, or with intent to increase the volume of sales of vehicles or to induce the public in any manner to enter into an obligation relating thereto, or to acquire title thereto or an interest therein, made, published, disseminated, or caused, directly or indirectly, the same to be made, published, disseminated, circulated or placed before the public, in a newspaper or other publication in the form of a book, notice, handbill, poster, sign, bill circular, pamphlet or letter, or over a radio or television station or other medium of wireless communication, or in another way, similar or dissimilar to the foregoing, an advertisement, announcement, or statement, of any sort regarding the vehicles so offered to the public or concerning the quantity, quality, value, merit, use, present or former price, cost, reason for price, motive for sale or concerning the method of pricing, or the possession of rewards, prizes or distinctions conferred, regarding the vehicles which advertisement contains an assertion, representation, or statement of fact which is untrue, deceptive or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue, deceptive or misleading.

   (5)  Has advertised a vehicle for sale, in a manner indicating that the sale is being made by a private party or household not engaged in the vehicle business, unless that advertisement shall affirmatively and unmistakably indicate and state that the seller is a dealer or salesperson and not a private party.

   (6)  Has advertised misrepresenting the true nature of the business by the use of the words ‘‘manufacturer,’’ ‘‘importer’’ or ‘‘wholesaler’’ or has represented that he is selling at wholesale in any form of sale or advertising unless the dealer is actually selling at wholesale for the purpose of resale, or unless the dealer is in fact advertising true wholesale prices.

   (7)  Has misrepresented the true nature of the business by the use of the words ‘‘sale at wholesale’’, ‘‘sales at wholesale,’’ ‘‘wholesale sale,’’ ‘‘wholesale prices’’ or words of similar import containing the word ‘‘wholesale’’ unless vehicles listed or sold under the claims are sales to a purchaser for the purpose of resale.

   (8)  Has advertised a vehicle for sale and then has refused to show, demonstrate or sell the vehicle offered in accordance with the terms of the offer, subject to prior sale.

   (9)  Has used the word ‘‘new’’ in the trade name, in the advertising, or on the checks or business stationery of a dealer who engages only in the sale, purchase or exchange of used vehicles.

   (10)  Has used the words ‘‘broker’’ or ‘‘brokering’’ in the trade name, in the advertising, or on the checks or business stationery of a dealer or auction.

Authority

   The provisions of this §  19.22 issued under sections 2, 4(9) and 5(e) of the Board of Vehicles Act (63 P. S. § §  818.2, 818.4(9) and 818.5(e)).

Source

   The provisions of this §  19.22 adopted July 18, 1968; amended May 30, 1975, effective May 31, 1975, 5 Pa.B. 1403; amended December 30, 1977, effective December 31, 1977, 7 Pa.B. 3972; amended March 7, 1986, effective March 8, 1986, 16 Pa.B. 673; amended July 19, 2002, effective July 20, 2002, 32 Pa.B. 3485. Immediately preceding text appears at serial pages (261714) to (261715).

Notes of Decisions

   New Car Dealers

   The requirement in 49 Pa. Code §  19.22(19) (relating to investigation) that new car dealers have a franchise before selling new cars is an example of the difference in protection and regulation which is required for new car dealers and for used car dealers. D & B Auto Sales v. State Board of Motor Vehicle Manufacturers, Dealers and Salesmen, 370 A.2d 428 (Pa. Cmwlth. 1977).



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