19A NCAC 03D .0226 VEHICLES OFFERED FOR SALE ON CONSIGNMENT
(a) Any dealer offering a vehicle for sale that is on consignment from a manufacturer, distributor, factory branch, distributor branch, wholesaler or individual shall have in his possession a consignment contract for each vehicle, executed by both parties.
(b) The consignment contract shall consist of the following:
(1) The effective dates of the contract.
(2) The complete name, address, and the telephone number, if available, of the owner.
(3) A complete description of the vehicle on consignment, including the make, model, body style, year, and vehicle identification number.
(4) The listing charges.
(5) The percentage of commission or the amount of the commission the dealer is to get if the vehicle is sold.
(6) The right of the dealer to receive the agreed upon commission, if vehicle is sold after the termination of the agreement and as a result of the dealer's effort, which shall not exceed 30 days.
(c) Any dealer offering a vehicle for sale on consignment must tell the prospective customer that the vehicle is on consignment unless the dealer is going to take ownership of the vehicle by completing a re‑assignment on the title documents. Any dealer selling a vehicle on consignment from a wholesaler must take ownership of that vehicle prior to its retail sale.
(d) Dealer plates cannot be used to demonstrate a vehicle on consignment. The consignee's plate may be used if liability insurance is in effect.
(e) In addition to a consignment contract, the dealer shall have in his possession an equipment listing of the vehicle, consisting of, but not limited to, the following:
(1) Owners name and address.
(2) Complete description of the vehicle which shall include the year, make, model, body style, color, odometer reading, special or extra equipment, and the disclosure of known defects.
(f) The ownership documents of any vehicle on consignment must be made available to any authorized agent of the North Carolina Division of Motor Vehicles on request. The ownership documents must be readily available from the owner.
(g) The owner must execute the ownership documents and deliver them to the purchaser at the time the vehicle is delivered.
(h) The vehicle must display a current safety inspection certificate.
History Note: Authority G.S. 20‑302;
Eff. June 1, 1988;
Amended Eff. January 1, 1994; October 1, 1991.