Title 25, Professions And Occupations

PART I. GENERAL PROVISIONS §437-1 Legislative findings and declaration. The legislature finds that: The legislature declares, on the basis of the foregoing findings, that it is necessary to regulate and to license motor vehicle manufacturers, distributors, dealers, salespersons, …

§437-1.1 Definitions. As used in this chapter: "Attachment hardware" means the components and associated fasteners that directly attach the bumper to the chassis frame. "Auction" means any person engaged in the business of selling only motor vehicles by means of bidding at a publ…

§437-11 Additional requirements for dealer's and auction's license. (a) Requirements to be met before issuance of dealer's and auction's license. (b) Other related uses permissible. The site may be used for other purposes which are accessory or customarily associated with the ret…

§437-12 Legal ownership certificates. (a) Possession of or right to possess legal ownership certificate. No dealer shall sell or advertise for sale a new motor vehicle unless the dealer has in the dealer's possession the actual legal ownership certificate or a certificate of orig…

§437-13 Disclosure of dealer. Where a person licensed according to this chapter represents a buyer in the State in purchasing or attempting to purchase a motor vehicle from or through a dealer or broker not licensed in the State (hereinafter called "nonresident") residing or doin…

§437-14 Delivery of contract required. In the event any person licensed according to this chapter represents a buyer in the State in purchasing or attempting to purchase a motor vehicle from or through a dealer or broker not licensed in the State (hereinafter called "nonresident"…

§437-15 Principals held responsible. Every holder of a license issued under this chapter may be held responsible for the conduct of the holder's agents and employees in all transactions regarding motor vehicles, motor vehicle parts, franchises, and transactions involving a subjec…

§437-16 Records to be kept. Every motor vehicle dealer shall keep a record of the purchases, consignments, sales and exchanges, moneys, commissions, or any other thing of value paid or agreed to be paid to any person for each motor vehicle purchased, sold, consigned to be sold, o…

§437-18 Bond of broker. (a) Each broker receiving a license shall give to the motor vehicle industry licensing board and keep in force a bond or bonds in the penal sum totaling not less than $200,000. (b) More than one bond may be furnished by the same applicant, provided they ag…

§437-2 Licenses. (a) No person shall engage in the business as or serve in the capacity of, or act as a motor vehicle dealer, salesperson, auction, manufacturer, or distributor in this State, or otherwise engage in the business of selling or negotiating for the purchase of motor …

§437-21.1 Bonds of auctions. The bond of an auction shall be in the same amount and under the same terms and conditions as required for a new motor vehicle dealer in accordance with rules adopted by the motor vehicle industry licensing board. [L 1969, c 263, §1(17); am L 1971, c …

§437-23 Term of license. (a) Expiration. All licenses issued pursuant to this chapter shall expire on June 30 of each even-numbered year unless sooner terminated, suspended, or revoked. All applications for renewal of license shall be filed on or before June 30 of each even-numbe…

§437-24 Licenses terminate, when. (a) Any license issued pursuant to this chapter shall terminate upon the permanent or temporary cessation of the business or activity for which it was issued. (b) A salesperson's license shall terminate upon the termination of the license of the …

§437-25 Amended licenses. (a) Prior to entering the employ of a dealer, other than the one for which the salesperson's license was issued, a salesperson shall apply to the board for an amended license authorizing the new employment. Prior to moving or amending the premises or add…

§437-26 License not transferable; other requirements. (a) Nontransferable. No license issued under this chapter shall be transferable. (b) License to be posted. Each dealer shall keep the license or a certified copy thereof posted in a conspicuous place on each premises. (c) Lice…

§437-27 Change of status, notice. If the status of any licensee changes during the period for which the license is issued because of: the licensee shall within fifteen days thereafter file with the board notice of such change containing such information as may be required by the …

§437-27.5 Requirements to maintain license. A broker shall have and maintain in full force and effect a bond as required under section 437-18. Failure, refusal, or neglect to maintain in full force and effect a bond shall cause the automatic suspension of the license effective as…

§437-28 Suspension; revocation; fine; denial of issuance or renewal of a license. (a) In addition to any other actions authorized by law, the board, after notice and hearing as provided in chapter 91, and subject to appeal to the circuit court of the circuit in which the board ha…

§437-28.5 Procedures, protections, rights, and remedies made available to licensees. (a) The same procedures, protections, rights, and remedies provided to a dealer under section 437-3.6, section 437‑28(a)(21), and part II shall apply to a distributor that is not a manufacturer. …

§437-29 Discretionary powers of board. (a) Where any applicant for a license or stockholder owning more than a ten per cent interest in the applicant or any officer, director, trustee, employee, or partner of the applicant has been guilty of any act or omission involving personal…

§437-3 Prohibited acts for dealer or auction. No dealer or auction shall sell or bring or cause to be brought into this State for purposes of sale any new motor vehicle for which the dealer or auction is not franchised. [L 1963, c 199, §1c; Supp, §160-161.1; HRS §437-3; am L 1969…

[§437-3.6] Waivers void. Any condition, stipulation, or provision in a franchise or distributorship agreement purporting to bind any person acquiring or holding any franchise or distributorship to waive compliance with any provision of this chapter or any other law of the State i…

[§437-31.5] New or used motor vehicle sales and lease contracts. Regardless of whether or not the buyer has taken possession of the motor vehicle, a new or used motor vehicle purchase or lease agreement by a salesperson or dealer shall be void if the agreement is contingent upon …

§437-32 Credit sale contracts; agreements concerning, unlawful. No person who is engaged in, or about to engage in, the business of selling motor vehicles at retail shall enter into any contract, agreement, or understanding, express or implied, with any manufacturer or distributo…

§437-33 Coercion by manufacturer or distributor unlawful. No person, being a manufacturer or distributor of motor vehicles, or being an officer, agent, or representative of such manufacturer or distributor, shall induce or coerce, or attempt to induce or coerce, any retail motor …

§437-34 Credit sale contracts, when purchase of unlawful. No person engaged in the business of buying credit sale contracts from motor vehicle dealers in this State, and no officer, agent, or representative of such person, shall purchase or attempt to purchase any such credit sal…

§437-35 Penalty. Any person who violates any provision of this chapter or rules of the board, or who engages in the business as, or serves in the capacity of, or acts as a motor vehicle dealer, salesperson, auction, manufacturer, or distributor in the State or otherwise engages i…

§437-35.5 Misdemeanor. Any person who is convicted of violating any provision of this chapter or rules of the board, or who engages in the business as or serves in the capacity of, or acts as a motor vehicle dealer, salesperson, auction, manufacturer, or distributor in the State …

§437-36 Injunction; damages. The motor vehicle industry licensing board or any person, firm, or corporation or any trade association may maintain a suit to enjoin the performance or the continuance of any act or acts by a person acting without a license where a license is require…

§437-37 Credit sale contract violations; penalty. Whoever violates any of the provisions of sections 437-32 to 437-34 relating to sales or purchase of credit sale contracts shall be fined not less than $25 nor more than $1,000. [L 1939, c 258, §20; RL 1945, §7381; am L 1951, c 90…

[§437-37.5] Cumulative penalties. Unless otherwise expressly provided, the remedies or penalties provided by this chapter are cumulative to each other and to the remedies or penalties available under all other laws of this State. [L 1986, c 152, §2]

§437-39 Enforcement. When necessary, the board may enforce this chapter, including any rule adopted thereunder or decision rendered thereunder by applying to the circuit court for any relief which may be appropriate, including injunctive relief. Further, the board may apply to th…

§437-4 Advertising. (a) Motor vehicle, availability of. No new or used motor vehicle dealer shall advertise or offer for sale or exchange in any newspaper, or through any other medium, any motor vehicle not actually for sale at the premises of the dealer or available to the deale…

[§437-4.5] Vehicle bumper impact notice. (a) Every manufacturer or distributor of new passenger vehicles for sale in this State shall affix to a window or the windshield of the vehicle a notice with either of the following statements, whichever is appropriate: (b) The notice requ…

§437-40 Information in applications, confidential; penalty for divulging. The applications for license and contracts required by section 437-7 shall not be deemed a part of the public records but shall be confidential information for use of the treasurer and the motor vehicle ind…

§437-41 Liberal interpretation. All provisions in this chapter shall be liberally interpreted to protect the public from fraud in the business of purchasing or selling motor vehicles and to protect the investments of its citizens in motor vehicles and dealerships and to protect t…

§437-42 Sections 445-171 and 445-172 not to apply. Sections 445-171 and 445-172 do not apply to dealers and salespersons licensed under this chapter. [L 1939, c 258, §25; RL 1945, §7385; am L 1951, c 90, pt of §1; RL 1955, §160-186; am L 1957, c 302, §1(27); am L 1961, c 59, §1(1…

§437-5 Board. A motor vehicle industry licensing board is created and shall consist of seven members. Three of the members shall be engaged in the motor vehicle industry and four of the members shall be private citizens not connected with the industry. [L 1939, c 258, §9; RL 1945…

Part II. Manufacturer, distributor, and dealer disputes [§437-51] Dispute resolution. (a) In any dispute among a manufacturer, distributor, or dealer on matters governed by this part, the manufacturer, distributor, or dealer may seek a hearing from the department of commerce and …

§437-52 Reciprocal rights and obligations among dealers, manufacturers, and distributors of motor vehicles. (a) A manufacturer or distributor shall not: (b) Notwithstanding the provisions of any franchise agreement, a manufacturer or distributor shall not require a dealer to prov…

[§437-53] Sale, assignment, or transfer of franchise to qualified purchaser. (a) A manufacturer or distributor shall not unreasonably withhold consent to the sale, assignment, or transfer of the franchise to a qualified purchaser capable of being licensed as a dealer. (b) The dea…

[§437-54] Transfer of franchise to successor who is not a qualified purchaser. (a) A manufacturer or distributor shall not refuse or fail to give effect, unless it has good cause, to the dealer's designated successor, whether designated by will, other estate planning document, or…

[§437-55] Establishment or relocation of franchise within relevant market area. (a) When a manufacturer or distributor establishes or relocates a franchise within the relevant market area of an existing dealer with a franchise for the same line make, the manufacturer or distribut…

§437-56 Reimbursement for parts. (a) In no event shall any manufacturer or distributor pay its dealers a markup on parts for warranty work that is less than that charged by the dealer to the retail customers of the dealer; provided that such dealer's retail parts markup is not un…

[§437-57] Warranty and incentive audits. (a) No manufacturer or distributor shall conduct a warranty or incentive audit on previously paid claims or chargeback any warranty or incentive payment previously made more than one year after the date the manufacturer or distributor made…

[§437-58] Cancellation or failure to renew franchise agreement. (a) A manufacturer or distributor shall give written notice to the dealer and the board of the manufacturer's intent to terminate, discontinue, cancel, or fail to renew a franchise agreement at least sixty days befor…

[§437-59] Used vehicle recall; stop-sale orders. (a) A manufacturer shall compensate its new motor vehicle dealers for all labor and parts required by the manufacturer to perform recall repairs. Compensation for recall repairs shall be reasonable as described in subsection (e). I…

§437-6 Powers and duties of the board. In addition to any other powers and duties authorized by law, the board shall:

§437-7 Application for issuance or renewal of license. (a) Any person desiring the issuance of a license under this chapter shall file an application therefor with the motor vehicle industry licensing board. Prior to the expiration of the term of a license, the holder shall file …