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«Instructions for completing application: TYPE OF LICENSE: CLASS I & II AUTO DEALER Applications submitted without all the required documentation will ...»

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CITY OF PITTSFIELD

Licensing Board, City Hall, 70 Allen Street, Room 103,

Pittsfield, MA 01201, (413) 499-9363 Fax (413) 499-9463

Instructions for completing application:

TYPE OF LICENSE: CLASS I & II AUTO DEALER

Applications submitted without all the required documentation will not be accepted.

1. Obtain a Federal Identification (FID) Number from Internal Revenue Service located at 333 East Street, Pittsfield: (413) 499-2206.

2. If new business or new ownership: File with Assessor’s Office for personal property taxes and file business certificate (doing business as) in City Clerk’s office for $25.00.

3. Submit completed application, which must include:

Zoning verification from the Building Inspector that premises are properly zoned for auto dealer sales, a copy of floor plan and plot plans signed by Building Inspector and Fire Department.

4. Five (5) copies of the completed application.

5. If the applicant does not own premises, submit a letter from the owner granting permission to operate an auto lot.

6. A Public hearing is required and a legal notice must be published. Please include a check in the amount of $13.50, payable to the Pittsfield Gazette to be submitted with application. A hearing will be scheduled at next licensing board meeting following receipt of application. Legal ad must be published at least ten (10) days prior to hearing.

7. Applicant must notify abutters of premises, within three (3) days of publication of legal ad, by certified mail, return receipt requested. Affidavit of such mailing to be filed with this office together with return certified receipt(s) and copy of legal notice attached. An abutter is a person whose property directly touches the proposed premises and within 300 feet of premises. It is recommended that the applicant also notify all tenants of building proposed business is located by first class mail or hand deliver.

8. Proof of workmen’s compensation must be submitted when picking up the license.

ALL CLASS II LICENSEES MUST PROVIDE, THE LOCAL BOARD WHEN PICKING UP LICENSE, PROOF

OF $25,000 BOND.

FEES: CLASS I $100.00 – Make checks payable to the City of Pittsfield CLASS II $50.00 License period runs January 1 – December 31

CITY OF PITTSFIELD

Licensing Board, City Hall, 70 Allen Street, Room 103, Pittsfield, MA 01201, (413) 499-9363 Fax (413) 499-9463

APPLICATION FOR CLASS I & II AUTO DEALER’S LICENSE

Business Information:

Name: d/b/a Address:

–  –  –

Class of License: Map & Lot Number:

Name of Property Owner:

Address of Property Owner:

Description of Premise (please include all buildings on property & what they are used for):

Maximum Number of Vehicles to Be Parked:

Automobiles Based on Area of 9’x20’:

Motorcycles Based on Area of 4’x6’:

Trucks Over on Axel Based on Area of 12’x25’:

One Original and Five (5) copies of the application and plot plans. Yes No

THE ISSUANCE OF A LICENSE HEREIN IS BASED IN PART FROM THE PRESENTATION CONTAINED IN THE

APPLICATION. ANY MISREPRESENTATION MAY BE CAUSE FOR REVOCATION BY THE LICENSING AUTHORITY.

–  –  –

Section 58. (a) Licenses granted under sections 59 and 59A shall be classified in accordance with subsections (b) to (d), inclusive.

(b) Class 1. Any person who is a recognized agent of a motor vehicle manufacturer or a seller of motor vehicles made by such manufacturer whose authority to sell the same is created by a written contract with such manufacturer or with some person authorized in writing by such manufacturer to enter into such contract, and whose principal business is the sale of new motor vehicles, the purchase and sale of second hand motor vehicles being incidental or secondary thereto, may be granted an agent’s or a seller’s license; provided, that with respect to second hand motor vehicles purchased for the purpose of sale or exchange and not taken in trade for new motor vehicles, such dealer shall be subject to all provisions of this chapter applicable to holders of licenses of Class 2, except subsection (c), and to rules and regulations made under those provisions; and provided further, that such dealer maintains or demonstrates access to repair facilities sufficient to enable him to satisfy the warranty repair obligations imposed by section 7N1/4 of chapter 90, and shall remain liable for all warranty repairs made and other obligations imposed by said section 7N1/4 of said chapter 90.

(c) Class 2. A person whose principal business is the buying or selling of second hand motor vehicles, a person who purchases and displays second hand motor vehicles for resale in retail transactions, and any other person who displays second hand motor vehicles not owned by him pursuant to an agreement in which he receives compensation, whether solely for displaying the vehicles, upon the sale of each vehicle, or otherwise, may be granted a used car dealer’s license and shall be subject to the following





conditions:

(1) The person shall obtain a bond, or equivalent proof of financial responsibility as described in paragraph (5), and continue in effect a surety bond or other equivalent proof of financial responsibility satisfactory to the municipal licensing authority in the amount of $25,000 executed by a surety company authorized by the insurance department to transact business in the commonwealth. The bond or its equivalent shall be for the benefit of a person who purchases a vehicle from a Class 2 licensee, and who suffers loss on account of:i) the dealer’s default or nonpayment of valid bank drafts, including checks drawn by the dealer for the purchase of motor vehicles;

(ii) the dealer’s failure to deliver, in conjunction with the sale of a motor vehicle, a valid motor vehicle title certificate free and clear of any prior owner’s interests and all liens except a lien created by or expressly assumed in writing by the buyer of the vehicle;

(iii) the fact that the motor vehicle purchased from the dealer was a stolen vehicle;

(iv) the dealer’s failure to disclose the vehicle’s actual mileage at the time of sale;

(v) the dealer’s unfair and deceptive acts or practices, misrepresentations, failure to disclose material facts or failure to honor a warranty claim or arbitration order in a retail transaction; or (vi) the dealer’s failure to pay off a lien on a vehicle traded in as part of a transaction to purchase a vehicle when the dealer had assumed the obligation to pay off the lien.

(2) Recovery against the bond or its equivalent may be made by any person who obtains a final judgment in a court of competent jurisdiction against the dealer for an act or omission on which the bond is conditioned if the act or omission occurred during the term of the bond. Every bond shall also provide that no suit may be maintained to enforce any liability on the bond unless brought within 1 year after the event giving rise to the cause of action.

4 (3) The bond or its equivalent shall cover only those acts and omissions described in clauses (i) to (vi), inclusive, of paragraph (1). The surety on a bond shall not be liable for total claims in excess of the bond amount, regardless of the number of claims made against the bond or the number of years the bond remained in force.

(4) A separate bond shall be required for each different name under which the dealer conducts his business and for each city or town in which the dealer has a place of business.

(5) In lieu of the bond required by this section, the municipal licensing authority may allow the dealer to deposit collateral in the form of a certificate of deposit or irrevocable letter of credit, as authorized by the banking laws of the commonwealth, which has a face value equal to the amount of the bond otherwise required. The collateral may be deposited with or executed through any authorized state depository designated by the commissioner. Interest on the certificate of deposit shall be payable to the dealer who has deposited it as collateral, or to a person as the dealer or the certificate may direct.

(6) A surety shall provide to the municipal licensing authority notice of cancellation of the bond within 30 days of the cancellation.

(7) Upon receipt of notification from a surety that a bond has been cancelled, the municipal licensing authority shall notify the licensee that he has 10 days to comply with the bonding requirement. If the licensee does not comply within the 10 day period, the municipal licensing authority shall revoke the Class 2 license and shall notify the registrar who shall suspend or revoke any dealer plate issued to the licensee pursuant to section 5 of chapter 90.

(8) A municipal licensing authority shall not issue or renew a Class 2 license unless it is satisfied that a bond or equivalent proof of financial responsibility meeting the requirements of this section is in effect during the term under which the license shall be issued or renewed, and that the licensee maintains or demonstrates access to repair facilities sufficient to enable him to satisfy the warranty repair obligations imposed by section 7N1/4 of chapter 90. A used car dealer shall remain liable for all warranty repairs made and other obligations imposed by said section 7N1/4 of said chapter 90.

(d) Class 3. A person whose principal business is the buying of second hand motor vehicles for the purpose of remodeling, taking apart or rebuilding and selling the same, or the buying or selling of parts of second hand motor vehicles or tires, or the assembling of second hand motor vehicle parts may be granted a motor vehicle junk license.

(e) The registrar of motor vehicles, after consulting the office of consumer affairs and business regulation, shall adopt rules and regulations defining sufficient repair facilities for the purposes of subsection (b) and paragraph (8) of subsection (c).

–  –  –

Section 7N1/4. (1) For the purposes of this section the following words shall have the following meanings:— “Business day”, Monday to Friday, inclusive, except for state or federal holidays.

“Consumer”, a buyer, other than for purposes of resale, of a motor vehicle, any person to whom such motor vehicle is transferred during the period of any express or statutory warranty under this section applicable to such motor vehicle, and any other person entitled by the terms of such warranty to enforce its obligations.

“Dealer”, any person engaged in the business of selling, offering for sale, or negotiating the retail sale of used motor vehicles or selling motor vehicles as broker or agent for another, including the officers, agents and employees of such person and any combination or association of dealers, but not including a bank or other financial institution, or the commonwealth, its agencies, bureaus, boards, commissions, authorities, nor any of its political subdivisions. A person shall be deemed to be engaged in the business of selling used motor vehicles if such person has sold more than three used motor vehicles in the preceding twelve months.

“Motor vehicle” or “vehicle”, any motor vehicle as defined in section one, sold or replaced by a dealer or manufacturer, except that it shall not include auto homes, vehicles built primarily for off-road use or any vehicle used primarily for business purposes.

“Private seller”, any person who is not a dealer and who offers to sell or sells a used motor vehicle to a consumer.

“Purchase price”, the total of all payments made for the purchase of a vehicle, including but not limited to any finance charges, registration fees, payments made for credit life, accident, health, and damage insurance, and collision and related comprehensive insurance coverages and service contracts and the value of a trade-in.

“Repurchase price”, the purchase price, as defined above, less any cash award that was made by the dealer in an attempt to resolve the dispute and was accepted by the consumer, and less any refunds or rebates to which the consumer is entitled, plus any incidental damages not previously reimbursed, including but not limited to the reasonable costs of towing from point of breakdown up to thirty miles to obtain required repairs or to return the vehicle under this section, and the reasonable costs of obtaining alternative transportation during the applicable warranty period after the second day following each such breakdown not to exceed fifteen dollars vehicle rental charges for each day in which the cost of such alternative transportation is reimbursable.

“Used motor vehicle” or “used vehicle”, any vehicle driven more than the limited use necessary in moving or road testing a new vehicle prior to delivery to a consumer, including a demonstrator vehicle, except that it shall not include auto homes, vehicles built primarily for off road use, motorcycles, or any vehicle used primarily for business purposes.

(2) (A) (i) No used motor vehicle shall be sold in the commonwealth by a dealer to a consumer unless accompanied by an express written warranty covering the full cost of both parts and labor necessary to repair any defect that impairs the said used motor vehicle’s safety or use; provided, however, that the consumer may be required to pay no more than one hundred dollars total toward the repair of any covered defect, series of defects or combination of defects during the warranty period. Defects that affect only appearance shall not be deemed to impair safety or use for the purposes of this section. For the purposes of this section, defect shall include defect, malfunction or any combination or defects or malfunctions.



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