Ordinance No. 0525 12-18-19721�2
ORDINANCE NO. 525
AN ORDINRNCE REPEALING CHAPTER 19 "USED CAR IATS" OF THE CITY CODE
AND ADOPTING A"USED MOTOR VEHICLE" ORDINANCE AS CHAPTER I9
19.QI The fo2lowing definitions shaZ1 app2y in the intergretation and
appZication of this chapter and the folIowing words and teTllLs
wherever they occur in this chapter are defined as follows:
Z. A dealer in ased motor vehicles is any person engaged
in the bvsiness of sel2ing, exchanging or othezwise
disposing of, displaying, advertisinq or offering for
sa2e, used or secondhand motor vehicles as a principal
business or occupation, or as an adjunct or incident
to any other business or profession.
2. A motor vehicle is any new or used automobile, truc&,
motoroycle or other simi2ar vehic2e prope22ed by a
motor.
DEFZNITZONS
, Z9.02 No person, partnership, association or cvrporation sha21 engage LICENSE
in business as a dealer in used nrotor vehicles in the City without
first obtaining a 2icense as provided herein.
I9.03 The application for a Iicense shall. be made in writing, signed
and verified by the applicant on .forms provided by the City. The
application sha11 state the name of the applicant, his age, res-
idence, and if a partnership, the names of aII partners, and
sha11 be. verified bg one of them, and if a corporation, the
names of aIl the officers thereof and certified by an authorized
officer, and if additional licenses are a�plied for, for more
than one place of bvsiness, the addresses of such additional
places of business shall also be stated. The application sha1Z
state the business and residence addresses of the app�icant for
a period of f.ive years prior to the date r.'>�reof and whether
tFie app2icant is the sole owner of the business to be conducted
and sha12 state t';at no other persons than those named in the
application have any interest in the management and contrdl of
such husiness.
29.04 The annual license fee is $IDD/gear and expiration date shaZ2
be April 30.
29.05 Each Iicensee shaSl have an established place of business and
each Iicense shaZl autliorize bvsiness at on3g the designated
premises, If a licensee has more than one place of business,
a separate 3icense is required for each.
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SEPAftATE
LSCPNSES
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Ordinance �k525
Page 2
19.06 Licenses issued under this chapter may not be transferred from
' person to person, but may be transferred from place to place
with the consent of the City Covncil.
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29.07 Each application shall be accompanied bg a bond for $5,000.00
which sha11 run to the City and be for the benefit of any
person, firm, or wrporation who shaSl sustain any injury or
dam,aqe oovered by the bond. Such bond sha2l be executed by
the applicant as principal and, as surety, by a corporation
which is 2icensed in this state to transact the business of
fidelity and surety insurance. The bond sha11 be conditioned
that the principal will indemnify any and a2] persons, firms
or corporation for any direct Ioss caused by the principal,
or his agent:
1. Bg dishonesty in the substitation of a motor vehicle
or a part thereof other than the one selected bg the
purchaser;
2. For failvre to de2iver a clear title to those IegaZZy
entitled thereto;
3. For any misappropriation of moneys or property
belonging to a purchaser being made in payment of
a motor vehicle so2d by the principal;
4. For any loss due to an alteration of a motor
vehic2e on the part of the principal, oi his
agent, so as to deceive the purchaser as to
the year or rr�del of any motor vehicle sold; or
5. For the violation of any af t1�e provisions of this
chapter.
Any person, firm or corporation sustai.ning an injury covered by
this bond may, in addition to any oEher remedy that he may have,
bring an action in hiS own name upon the bond for the recovery
of any damage sustained by him. Each licensee need file only
one bond zegardless of the number of licenses held.
TRf1NSFER
BOND
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19.08 Each licensee sha12 at the time of any sale give to the purchaser SALES SLIP
of a motor vehieZe, a pZainZy written statement signed by the
licensee, his salesman or agent, showing t�e name of the Zicensee
and fiis address, the name of the person making the sale, the date
of the sa1e, the license ntunber, if avaiZab2e, and the serial
nvmber of such motor vehic2es, the purchase price, whether in
cash or on terms, and if on terms, the total time price, incZuding
insurance, if any, and if such price inclvdes the cost of insur-
ance, the type and coverage afforded bg svch insurance, together
' with the cost of each item of insvrance; no sale shaZl be deemed
to have been completed antil the foregoing statement in writing
sha11 have been delivered to the purchaser.
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Ordinance �6525
Page 3
19.091 The registration or titZe card or bi11 of sale for any motor
vehicle sold sha1l be forwarded by the deaZer to the Secretary
of the State of Minnesota not Iater than ten days after the date
of the sa1e. No dealer shall receive and refuse to return to
the owner any registration or title card for the purpose of cotrr
pelling the owner of sach card to purchase a motor vehicle from
the dea2er unless such dealer is ready, willing and ab2e to
comply with the terms of the contract or agreement for the sale
of the motor vehicle.
REGISTRATION
19.092 No deaZer or salesman, or employee of such dealer sha11 advertise ADPL'RTISING
any motor vehicle as being sold by the owner thereof at the
owner's home or residence, if such motor vehic2e is actuaZly
owned or consigned to by the licensee and sold as part of his
business. No ]icensee shall use any advertising whioh is not
accurate in a1Z its material parEiculars, or which misrepresents
merchandise, including its use, grade, quaZity, origin, or
preparation or credit terms, va].ues, po7�icies, or services; and
no Iicensee sha1l vse advertising or selling methods which tend
to or actually deceive or mis2ead the pablic.
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29.Z0 If any 2icensee shall knowingly se11 a motor vehicZe which is pIORTGAGE
subject to a mortgage, lien or payments, the licensee sha21 LIENS
furnish in writing to the purchaser defi.nitely stating the
amount of svch mortgage, lien or payments, and the name and �
address of the holder or owner of such a mortgage, lien or
other indebtedness.
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I9.11 Each 2icensee who se11s a used motor vehicle direct)y or indir- SALES ON CREDIT
ectly on credit shall di.scZose to the person purchasing such
motor vehicZe a1S charges payab2e directly or indi.rectlg by
the person to whom the credit is extended, including:
19.12
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Interest, time price differentiaZ, and ang amount
payable under a system of addi.tional charges.
Service charge.
3. Loan fee, finders fee, commission, rebate or
similar chan7e.
4. Identification or credit report fee.
5. Premium or other charge for Iife, accident,
health or other insurance, including cotrur+ission
or rebates.
No Zicensee sha12 use any pvblic street in the City for storage STORAGS
of motor vehicles.
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Ordinance �k525
Page 4
2°.13 No 2icensee sha1l obtain the signatvre of a purchaser to any
blank crontract, bi21 of sale, or other writing or memorandum
� relating to the sale of motor vehicles.
19.141 No Zicensee or agent of such licensee shaIl sell a vsed motor
vehicle intended for use upon the public highways without first
certifying in writin9 that said used motor vehicle oomplies
r+-ith the requirements of Minnesota Statutes, Chapter 169,
insofar as it relates to required equipment, and that to the
best of the Iicensee`s knowledge, it is in condition and repair
to render, under normal use, satisfactory and adequate service
' upon the highway at the time of delivery.
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BLANK CONTRACTS
CERTIFICATION
REQUIRED
i9.i42 The fai2ure of the licensee or his agent to deliver to the pur- FAILURE OF
chaser the certification required by this chaptes and the CERTIFICATION
delivery of such certification knowing the same to be false
or misleading shall constitute a violation of this section.
19.I5 No Iicensee or agent of such 2icensee shall fraudulentlg SPEEDON,ETER
change, set back, or disconnect, or fail to mnnect oT cavse TRMPERING
the failure to connect any speedometer of any used motor
rehicle for the purpose of effecting fi�e sa2e of suc�i used
rrator vehicle.
29.1E It sha.21 be unZawfu2 for any licensee �r �agen.� tr�� suei9 Zicensee PREVIOUS OWNER
� to �efuse to furnish, upon request c�€ a pr�spect::ve p�rc3iaser,. -
the name of the previous owner of ang r3sec arr7�err w�ra�Ye affered
_ for sale.
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19.I7 The provision of this chapter sIxaZl e�Iy to alI s�3e� calaetlzer APPLICABILITY
or not the rmtor vehicle sold or adcreriised far saZe ss e�ccrstea'
by suoh licensee, or whether he is acting as an ag�art �r r-ar�-
signee for the owneT.
19.18 Licensee or his agent, sha1l se1l omZy used ma�cr vehic3��s f�+ TITLE
which licensee has registered titl.e; and it sha]3 he wa3�w€e�I
for aay licensee, or his agent, to jump or transfeF Litle cr£
any rrotor vehcile from any se2ler to Iicensee or his ag�x�
directly to any purchaser of Iicenscae and/oa 3us agren�.
19.19 The City Coancil may revoke any 1ice�se issued �d'er fiFtis REVOCATION
chapter, vpon adequate notice and a hearing befar� k:Ia s�o�ncaZ,
if reqvested, on the fol2owing gm�dsa
1. Any violation of this enapter.
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Revocation of used or second han�I m�tor vehic3e
Iicense by the State of Minnesota.
Failure of crontinued occopancy of an established
place of business.
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Ordinance dk525
Page 5
4. Matetial misstatement or misrepresentation in applica-
tion for Iicense or renewal thereof. �
I9.2Q Any violation of this chapter is a misdemeanor svbject to aII PENALTIES
penalties pmvided for such violations under the pmvisions of
Chapter 105 of this Code.
PA5SED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY, THIS 18TH
DAY OF DECEMBER , 1972,
ATTEST:
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City C1erk - Marvin C. BrvnselS
First Reading: November 6, I972
Second Reading: Decem er ,
Publish: Decem er ,
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