NY Veh & Traf L § 415 (2021)
2021 New York Laws VAT - Vehicle and Traffic Title 4 - Registration of Vehicles Article 16 - Registration of Dealers and Transporters 415 - Registration of Manufacturers, Dealers, Repairmen and Others.

§ 415. Registration  of  manufacturers, dealers, repairmen and others. 1. Definitions. The following terms when used in this article, shall  be deemed to mean and include:   a.  "Dealer" means a person engaged in the business of buying, selling or dealing in motor vehicles, motorcycles or trailers, other than mobile homes or manufactured homes, at retail or  wholesale;  except,  however, trailers  with  an  unladen weight of less than one thousand pounds. For the purposes of this section, a "mobile  home"  or  "manufactured  home" means  a  mobile  home  or  manufactured  home as defined in section one hundred twenty-two-c of this chapter. Any person who  sells,  or  offers for  sale  more than five motor vehicles, motorcycles or trailers in any calendar year or who displays or permits the display of  three  or  more motor  vehicles,  motorcycles  or  trailers  for sale at any one time or within any one calendar month upon premises owned or controlled  by  him or  her, if such vehicles were purchased, acquired or otherwise obtained by such person for the purpose of resale, will be regarded as a  dealer. Except  as  otherwise  provided  in subdivisions three, five, six-b, and seven of this section, the term "dealer"  shall  include  a  "new  motor vehicle  dealer"  as  defined  by  paragraph f of this subdivision and a "qualified dealer" as defined in paragraph g of this subdivision.   b. "Person" means any natural person, firm, corporation,  partnership, limited   liability  company,  entity,  joint  venture,  association  or organization.   c. "Place of business"  means  a  designated  location  at  which  the business  of  the  dealer  is  conducted,  and,  in relation to a retail dealer, facilities for displaying new or used motor vehicles.   d. "Retail dealer" means a dealer whose business consists in whole  or in  part of buying, selling or dealing in motor vehicles, motorcycles or trailers at retail.   e.  "Wholesale  dealer"  means  a  dealer  whose   business   consists exclusively of buying, selling or dealing in motor vehicles, motorcycles or trailers at wholesale.   f.  "New  motor  vehicle  dealer"  means  a  dealer who engages in the activities  described  in  paragraph  a  of  this  subdivision  if  such activities relate to new motor vehicles and if such dealer is party to a franchise,  as the terms "new motor vehicle" and "franchise" are defined in section four hundred sixty-two of this title; provided, however,  for purposes  of  this  definition,  a  new motor vehicle shall include only those motor vehicles commonly  classified  as  a  passenger  automobile, sport  utility  vehicle,  light  truck,  pickup  truck, van, minivan, or suburban, with a gross vehicle weight rating of ten thousand  pounds  or less,  and  shall  not  include  (i)  any  such  vehicle  which has been converted for use as a tow truck, or (ii) a motor vehicle for which  the current ownership document is a statement of acquisition issued pursuant to   section   four   hundred  twenty-nine  of  this  title,  a  salvage certificate, salvage certificate of title, nonrepairable certificate, or similar document issued by any state or jurisdiction; or (iii) any motor vehicle commonly classified as a bus, school bus, garbage truck,  marine trailer,   tow  truck,  motorcycle,  recreational  vehicle,  snowmobile, trailer, mobile home or construction  equipment;  and  provided  further that:  (i)  a  dealer is a new motor vehicle dealer only with respect to those vehicles which are of the same make as those which that dealer  is authorized  to  sell  at  that  location  pursuant  to a valid franchise agreement; and (ii) a dealer is not acting as a new motor vehicle dealer when  displaying,  advertising,  storing  and/or  demonstrating  a   new mobility vehicle.    g.  "Qualified  dealer" means a dealer, other than a new motor vehicle dealer or a dealer owned in whole or in part, directly or indirectly, by a manufacturer, who:  (i)  acting  through  a  single  person,  but operating at one or more locations of such single person, has displayed new  motor  vehicles  for sale and/or lease, and has sold and/or leased (excluding sales or leases of  any  affiliates)  a  minimum  of four thousand new and/or used motor vehicles annually (of which at least forty  percent  annually  were  new motor  vehicles)  at  retail regardless of make or model from any one or more locations of such single person within the state, in each year from nineteen hundred ninety-five  through  and  including  nineteen  hundred ninety-eight, exclusively; or  (ii)  has  displayed new motor vehicles for sale and/or lease, and has sold and/or leased (excluding sales  or  leases  of  any  affiliates)  a minimum  of  two  hundred twenty-five new and/or used motor vehicles (of which at  least  thirty-three  and  one-third  percent  were  new  motor vehicles)  at  retail, regardless of make or model, from any one or more locations within the state, in the twelve-month period preceding  August thirty-first, nineteen hundred ninety-nine; or  (iii)  was  issued an original certificate of registration as a dealer with a  validation  date  of  May,  nineteen  hundred  ninety-nine,  has displayed  new motor vehicles for sale and/or lease, and has sold and/or leased (excluding sales or leases of any affiliates) a  minimum  of  one hundred  fifty  new  and/or used motor vehicles (of which at least fifty were new motor vehicles), regardless of make or model, from any  one  or more  locations  within  the  state,  in  the period between July first, nineteen hundred ninety-nine and the effective date of chapter seven  of the  laws of two thousand. Notwithstanding the provisions of subdivision eighteen of this section, the total number of  locations  from  which  a qualified  dealer  eligible  pursuant  to  this subparagraph may operate shall not exceed that number of locations  operated  by  such  qualified dealer on August thirty-first, nineteen hundred ninety-nine; or  (iv) was issued a certificate of registration as a dealer new and used with  a  validation  date of February, nineteen hundred ninety-eight and has continuously held a certificate of registration as a dealer for  the ten  years  preceding the effective date of chapter seven of the laws of two thousand, and has sold and/or leased (excluding sales or  leases  of any  affiliates) a minimum of two hundred new and/or used motor vehicles (of which at least twenty percent were new motor vehicles) regardless of make or model, from one or more locations within the state in the period between September  first,  nineteen  hundred  ninety-eight  through  and including August thirty-first, nineteen hundred ninety-nine.   h. For the purposes of this section, "new motor vehicle" means a motor vehicle  commonly  classified  as  a passenger automobile, sport utility vehicle, light truck, pick up truck,  van,  minivan  or  suburban  which meets any one or more of the following criteria:  (i) a motor vehicle which has not been placed in consumer use; or  (ii)  a  motor vehicle which has not been transferred to someone other than a distributor, new motor vehicle dealer, or qualified dealer; or  (iii) a motor vehicle which has less than one thousand  miles  on  the odometer.   Provided,  however,  that such term shall not include any such vehicle which has been converted for use as a tow truck  or  any  motor  vehicle commonly classified as a bus, school bus, garbage truck, marine trailer, tow truck, motorcycle, recreational vehicle, snowmobile, trailer, mobile home or construction equipment.   i.  "Used  motor  vehicle"  means  any  vehicle  not  included  in the definition of a new motor vehicle. Provided, however, that such term  as  used  in  paragraph g of this subdivision shall include only those motor vehicles commonly classified as a passenger  automobile,  sport  utility vehicle,  light  truck,  pick up truck, van, minivan or suburban, with a gross vehicle weight rating of ten thousand pounds or less, which (i) is not  deemed  to be a "new motor vehicle" pursuant to paragraph h of this subdivision, or (ii) has not been converted for use as a tow  truck,  or (iii)  is  not  commonly classified as a bus, school bus, garbage truck, marine trailer, tow truck, motorcycle, recreational vehicle, snowmobile, trailer, mobile home, or construction equipment.   j. "Lease" means to arrange for a person to enter  into  an  agreement subject  to  the  provisions  of article nine-A of the personal property law, or to act as a lessor as defined in such article.   k.  "Mobility  vehicle"  means  a  motor  vehicle  that  is  specially converted  and  equipped  to transport a person with a disability and is altered  or  modified  for  such  use  by  an  alterer  or  final  stage manufacturer  pursuant  to  parts 567 and 568 of title 49 of the code of federal regulations or a modifier pursuant to part 595 of  title  49  of the code of federal regulations and that:  (i)  has  a  chassis that contains: (A) a permanently lowered floor or permanently lowered frame; or (B) a permanently raised roof  and  raised door; and  (ii)  contains  at  least  one  of the following: (A) an electronic or mechanical wheelchair, scooter, or platform lift that enables  a  person to  enter  or  exit the vehicle while occupying a wheelchair or scooter; (B) an electronic or mechanical wheelchair ramp that is installed as  an integral part or permanent attachment to the motor vehicle.   For the purposes of this section, the terms "alterer" and "final-stage manufacturer"  shall have the same meanings as such terms are defined in part 567.3 of title 49 of the code of federal regulations, and the  term "modifier"  shall mean any motor vehicle repair business that modifies a motor vehicle to enable a person with a disability to operate,  or  ride as a passenger in, the motor vehicle.   l.  "New  mobility  vehicle"  means  a  mobility  vehicle that has not previously been titled or registered for operation by a consumer, either as a mobility vehicle or as a motor vehicle.   m. "Automobile broker business" shall have the meaning  set  forth  in subdivision  one  of  section  seven  hundred  thirty-six of the general business law.   2. Registration of manufacturers,  repairmen  and  certain  others.  A person  engaged  in  a business requiring the limited operation of motor vehicles, motorcycles or trailers in order to facilitate  the  delivery, repair  or  improvement  thereof,  or  the  foreclosure  or repossession thereof or the installation of something thereon or for the  purpose  of dismantling  such  motor vehicle, motorcycle or trailer, may, instead of obtaining vehicle registration, as provided by sections four hundred one and four hundred ten of this chapter,  apply  to  the  commissioner  for registration under this section.   3.  Registration  of new motor vehicle dealers, qualified dealers, and other motor vehicle dealers. a. No person shall engage in business as  a new  motor  vehicle  dealer,  or represent, advertise, or otherwise hold himself or herself out as engaged or intending to engage in the business of selling new motor vehicles in this state,  unless  there  shall  have been  issued  to  him  or  her,  for a particular make, a certificate of registration as a new motor vehicle dealer as  provided  in  subdivision seven  of this section, or unless there shall have been issued to him or her a certificate of registration as a qualified dealer  as  defined  in paragraph  g  of subdivision one of this section; provided, however, for purposes of this subdivision, a new motor vehicle shall  have  the  same  meaning  as set forth in paragraph h of subdivision one of this section, but shall not include a motor vehicle for which  the  current  ownership document  is  a statement of acquisition issued pursuant to section four hundred  twenty-nine  of  this  title,  a  salvage  certificate, salvage certificate of title, nonrepairable  certificate,  or  similar  document issued by any state or jurisdiction. Only a person who has been issued a certificate as a new motor vehicle dealer or a qualified dealer shall be entitled  to  engage  in  all  dealer  activities  authorized under this article and shall not be required to obtain an additional certificate of registration under paragraph c of subdivision seven of this  section.  A qualified  dealer  shall  be  entitled to sell new motor vehicles of any make.   b. No person shall  engage  in  the  business  of  selling  new  motor vehicles, or represent or advertise that he or she is engaged or intends to  engage  in the business of selling new motor vehicles in this state, unless there shall have been issued to  him  or  her  a  certificate  of registration  as  a new motor vehicle dealer or as a qualified dealer as provided in subdivision seven of this section. No person shall engage in business as a dealer, or represent  or  advertise  that  he  or  she  is engaged  or  intends  to  engage  in such business in this state, unless there shall have been issued to him or her a certificate of registration as provided in subdivision seven of this section. No provision  of  this section  shall  be  deemed to prohibit any dealer located outside of the state from selling a new motor vehicle to a new motor vehicle dealer  or a  qualified  dealer.    No provision of this section shall be deemed to prohibit any person engaged in the leasing of new  motor  vehicles  from selling  a  new  motor vehicle to a third-party bank, finance company or other commercial lending institution, provided that such  sale  is  made incidental  to and concurrently with the lease of such new motor vehicle by such third party bank, finance company, or other  commercial  lending institution as the lessor, to a retail customer.   c.  The  issuance  of  such certificate of registration to a new motor vehicle dealer, a qualified dealer, or other motor vehicle dealer  shall be  deemed  to  include the right to operate motor vehicles, motorcycles and trailers to the  extent  permitted  by  subdivision  eight  of  this section,  instead  of  obtaining  vehicle  registration  as  provided by sections four hundred one and  four  hundred  ten  of  this  title.  The provisions  of  this  section  shall not apply to persons engaged in the business of buying,  selling  or  dealing  in  snowmobiles  and/or  snow travellers.   3-a.  Automobile  broker business registration. No person shall engage in the automobile broker business or represent or advertise that  he  or she is engaged or intends to engage in the automobile broker business in this  state,  unless  there  shall  have  been  issued  to  him or her a certificate of registration as an  automobile  broker  business  by  the commissioner   under   this  section  pursuant  to  an  application  for registration submitted pursuant to subdivision five of this section.   4. Number plates. A dealer, manufacturer, or other person,  qualifying for  limited  use  of  motor  vehicles,  motorcycles  or  trailers under subdivisions two and three of this section, shall be entitled to receive one  or  more  sets  of  number  plates  for  display  thereon  as   the commissioner  may  determine,  upon payment of the required fee for each set. Number plates issued to  dealers  under  this  section  shall  bear distinctive  marks to distinguish them from manufacturer and transporter plates to be issued to other  persons  qualifying  under  this  section. Number  plates  issued  to  manufacturers  under this section shall bear distinctive marks to distinguish them from dealer and transporter plates to be issued to other persons qualifying under this section.  A  set  of  number plates shall consist of two plates in the case of a motor vehicle and one plate in the case of a motorcycle or trailer; provided, however, that  the  commissioner,  in  his  or her discretion, may issue, for any registration  year,  only  one  number  as a set for a motor vehicle, in which event a set of number plates for a motor vehicle shall consist  of one plate.   5.  Application  for  registration.  The  application for registration under this section shall be filed with the commissioner in such form and detail as the commissioner shall prescribe, setting forth:   a. Name and residence address of applicant; if an individual, the name under which he intends to conduct business;  if  a  co-partnership,  the name  and  residence  address of each member thereof, and the name under which the business is to be conducted; if a corporation, the name of the corporation and the name and residence address of each of the officers.   b. The place or places, including the complete  address  or  addresses where the business is to be conducted and, in the case of an application to  do business as a new motor vehicle dealer, the names of each line or make of new motor  vehicle  which  a  manufacturer  or  distributor  has authorized  the  applicant  to  sell  from each location and the date of inception of the franchise, as defined in section four hundred sixty-two of this title, which authorizes the applicant to sell such line or  make from   each   location.   A  copy  of  each  such  franchise,  or  other documentation in lieu thereof satisfactory to the commissioner, shall be submitted to the commissioner at the time of application and  upon  each renewal  of  each  certificate  to  do  business  as a new motor vehicle dealer.   b-1. The name and address of the surety company which will  issue  the bond required by subdivision six-b of this section. If the bond is to be issued  by  an  authorized  agent  of the surety company licensed by the state, then the name and address of that agent may be provided  in  lieu of the information concerning the surety company.   b-2.  A statement indicating any interest in the applicant's franchise entity by a person or entity described in  paragraph  f  of  subdivision seven of this section.   b-3.  In  the case of an application for registration as an automobile broker business, the name and address of the surety company  which  will issue  the  bond  required  by  subdivision one of section seven hundred forty-a of the general business law. If the bond is to be issued  by  an authorized  agent  of the surety company licensed by the state, then the name and  address  of  that  agent  may  be  provided  in  lieu  of  the information concerning the surety company.   c.  Such  further  information  as  the  commissioner  may  reasonably prescribe.   d. Before an application for an original certificate  of  registration is  approved,  the  applicant  must  have on the premises to be licensed adequate space and proper facilities to retain and safeguard all records and documents he must maintain upon the licensed premises as required by the vehicle and traffic law and the regulations of the commissioner.   The commissioner may require the applicant for registration to  appear at  such  time  and  place  as may be designated by the commissioner for examination to enable him to determine the accuracy  of  the  facts  set forth  in  the  written  application, either for initial registration or renewal thereof.   Every  application  under  this  section  shall  be  verified  by  the applicant.   * 6.  Fees.  Every  original application for registration as a dealer, automobile broker or transporter shall be accompanied by an  application fee  of thirty-seven dollars and fifty cents, which shall in no event be  refunded. The annual fee for registration as a dealer, automobile broker or transporter or for renewal thereof shall be two  hundred  twenty-five dollars.  The  annual  fee for any other registration under this section shall  be  fifty  dollars.  However, the commissioner may, in his or her discretion, issue a renewal of either registration for a period  of  two years. The fee for a two-year renewal shall be twice the annual fee. The annual  fee for dealer, manufacturer, or transporter number plates shall be twenty dollars for each set. If the commissioner issues to dealers  a document  which is required to be used by a dealer to sell or transfer a vehicle, the fee for the issuance of each such document  shall  be  five dollars. There shall be no refund of registration fee or fees for number plates  in the event of suspension, revocation or voluntary cancellation of registration. The fee for any such transfer document  issued  by  the commissioner  shall be refunded only upon the surrender of such document upon voluntary cancellation of registration.   * NB Effective until April 1, 2022   * 6. Fees. Every original application for registration  as  a  dealer, automobile  broker or transporter shall be accompanied by an application fee of twenty-five dollars, which shall in no  event  be  refunded.  The annual   fee   for  registration  as  a  dealer,  automobile  broker  or transporter or for renewal thereof shall be one hundred  fifty  dollars. The  annual  fee  for any other registration under this section shall be fifty dollars. However, the commissioner may, in his or her  discretion, issue  a  renewal  of either registration for a period of two years. The fee for a two-year renewal shall be twice the annual fee. The annual fee for dealer, manufacturer, or transporter number plates shall  be  twenty dollars  for  each set. If the commissioner issues to dealers a document which is required to be used by a dealer to sell or transfer a  vehicle, the  fee  for  the  issuance  of each such document shall be one dollar. There shall be no refund of registration fee or fees for  number  plates in  the  event  of  suspension,  revocation or voluntary cancellation of registration. The fee for any  such  transfer  document  issued  by  the commissioner  shall be refunded only upon the surrender of such document upon voluntary cancellation of registration.   * NB Effective April 1, 2022   * 6-a. Fees; deposited. Fees assessed under this section shall be paid to the commissioner for deposit to the general fund, with the  exception of  the four dollar increase in the fee for issuance of a document to be used by a dealer to sell or transfer a  vehicle  collected  pursuant  to subdivision six of this section, which shall be deposited to the general fund through March thirty-first, two thousand four and from April first, two  thousand  four  and  thereafter to the dedicated highway and bridge trust fund; and with the exception of the twelve dollar and  fifty  cent increase  in  the  fee  for  original  application for registration as a dealer or transporter pursuant to subdivision six of  this  section  and the seventy-five dollar increase in the annual fee for registration as a dealer or transporter or for renewal pursuant to subdivision six of this section,  which  shall  be deposited to the dedicated highway and bridge trust fund established pursuant to section eighty-nine-b  of  the  state finance  law  and  the  dedicated  mass  transportation fund established pursuant  to  section  eighty-nine-c  of  the  state  finance  law   and distributed  according  to  the provisions of subdivision (d) of section three hundred one-j of the tax law.   * NB Effective until April 1, 2022   * 6-a. Fees; deposited. Fees assessed under this section shall be paid to the commissioner for deposit to the general fund.   * NB Effective April 1, 2022    6-b. Dealer, qualified dealer, and new  motor  vehicle  dealer  surety bond.    a.  As  a  condition  to  obtaining  a registration certificate pursuant to this section, every new motor vehicle dealer  applicant  and every  qualified  dealer applicant shall obtain and continue in effect a surety  bond in an amount of fifty thousand dollars executed by a surety company authorized to transact business in the state by  the  department of  financial  services  of  the  state.  As  a condition to obtaining a registration  certificate  pursuant  to  this  section,   every   dealer applicant  who  is  applying for a registration certificate in the first instance or who sold fifty motor  vehicles  or  fewer  in  the  previous calendar  year  shall  obtain and continue in effect a surety bond in an amount  of  twenty  thousand  dollars  executed  by  a  surety   company authorized  to  transact  business  in  the  state  by the department of financial  services  of  the  state.  As  a  condition  of  obtaining  a registration   certificate   pursuant  to  this  section,  every  dealer applicant who sold more  than  fifty  motor  vehicles  in  the  previous calendar  year  shall  obtain and continue in effect a surety bond in an amount of one hundred thousand dollars  executed  by  a  surety  company authorized  to  transact  business  in  the  state  by the department of financial services of the state. The bonds shall be approved as to  form by  the  commissioner  and shall be conditioned on the new motor vehicle dealer's, qualified dealer's, and dealer's: payment of  all  valid  bank drafts, including checks, drawn by such dealer for the purchase of motor vehicles;  transfer  of  good  title  to  each motor vehicle such dealer sells; safekeeping of all customer deposits related to  the  sale  of  a motor  vehicle  between the time of receipt of such customer deposit and the transfer of good title to the vehicle to the customer;  payment  for all  fines  imposed upon the new motor vehicle dealer, qualified dealer, or dealer by  the  commissioner  pursuant  to  the  provisions  of  this chapter; and such dealer's repayment of any overcharges of a customer by such  dealer for the vehicle registration and titling charges payable to the commissioner for registering and titling the sold vehicle. Any  such dealer  which  is bonded pursuant to this section prior to the effective date of the chapter of the laws of two thousand  sixteen  which  amended this  paragraph  shall be required to comply with the amendments made by such chapter upon renewal, replacement, alteration, or extension of such dealer's current surety bond.   b. Recovery against a bond may be made  by  a  person,  including  the state,  who  obtains  a  judgment  against the new motor vehicle dealer, qualified dealer, or dealer for an act or omission on which the bond  is conditioned if the act or omission occurred during the term of the bond. The  total  liability  imposed  on the surety under this section for all breaches of the bond condition is limited to  the  face  amount  of  the bond.  Such  liability may include, but is not limited to, the amount of the valid bank drafts, including checks, drawn by the new motor  vehicle dealer,  qualified  dealer, or dealer for the purchase of motor vehicles or the amount of overcharge by such dealer  for  registration  or  title fees  or  the amount paid to such dealer or the deposit, as the case may be, for the motor vehicle for which good title was not delivered. In  no event shall the surety on a bond be liable for total claims in excess of the  bond  amount,  regardless  of  the  number or nature of claims made against the bond or the number of years the bond remained in force,  nor shall  any  such surety bond provide coverage for transactions involving sales of any motor vehicles for which a bond is not required pursuant to the provisions of paragraph d of this subdivision.   c. Any surety issuing a bond pursuant to  this  subdivision  shall  be required  to provide sixty days' notice to the commissioner prior to the effective date of cancellation or lapse of the bond, and  shall  provide  additional  notice to the commissioner upon the date of the cancellation or lapse of such bond. Upon the cancellation or lapse of any surety bond required by this subdivision, the commissioner shall, within  five  days of  such  cancellation  or  lapse, verify that the dealer holds a surety bond which meets the requirements of this subdivision.   d. For purposes of this subdivision, the term "motor vehicle" means  a motor  vehicle  commonly  classified  as  a  passenger automobile, sport utility vehicle, light truck, pick up truck, van, minivan, or  suburban, with  a  gross  vehicle  weight  rating  of ten thousand pounds or less. Notwithstanding  the  provisions  of  paragraphs  a  and   b   of   this subdivision,  the requirement to post a surety bond as set forth in this subdivision shall not apply to any dealer who is engaged exclusively  in the  business of buying, selling or dealing in motor vehicles other than those motor vehicles with a gross vehicle weight rating of ten  thousand pounds  or  less  and  which  are  commonly  classified  as  a passenger automobile, sport utility vehicle, light  truck,  pick  up  truck,  van, minivan,  or  suburban,  such  as  buses,  school buses, garbage trucks, marine  trailers,  tow  trucks,  motorcycles,   recreational   vehicles, snowmobiles,   trailers,   mobile   homes,  or  construction  equipment. Provided, further, that such requirement also shall  not  apply  to  any dealer  who is engaged exclusively in the business of buying, selling or dealing in motor vehicles solely for conversion for use as a tow truck.   7. Issuance of certificate. a. If the commissioner is  satisfied  that the applicant for a new motor vehicle dealer registration certificate is party to a franchise or franchises authorizing such applicant to sell or lease  lines or makes of new motor vehicles which the applicant proposes to sell or lease from the locations described in the application for the sale or lease of such lines or makes and if the  commissioner  otherwise approves  the application, upon payment of the prescribed fee, he or she shall issue a new motor vehicle dealer registration certificate in  such form  as  he  or  she  may  prescribe.  Every  new  motor vehicle dealer registration certificate shall by its terms permit the sale or lease  of the particular lines or makes of new motor vehicles only from a location or  locations  authorized  for  such  sale  or lease in the franchise or franchises between such new motor vehicle dealer and  the  manufacturers or distributors of such new motor vehicles. The commissioner may, in his or  her  discretion,  issue such certificates of registration and number plates on a staggered expiration basis, in  which  event  the  fees  set forth  in  subdivision six of this section for such certificate shall be prorated on a monthly basis. A new motor vehicle dealer registered under this section shall notify the commissioner of any change of  address  of the  locations  of his or her place or places of business and whether or not such locations are approved as locations for the sale  or  lease  of new  motor  vehicles  in  a  franchise  and  which lines or makes are so approved for sale or lease at each location pursuant to the franchise or franchises within thirty  days  after  such  change  is  made,  and  the commissioner shall be authorized to cancel the registration upon failure to  give  such  notice.  A  copy  of each franchise affected by any such change or other proof satisfactory to the commissioner  shall  accompany the  notice  to  the  commissioner.  If  any  location shall cease to be approved by the new motor vehicle manufacturer or  distributor  for  the sale  or  lease  of the line or make of new motor vehicle, then such new motor vehicle dealer shall immediately cease  selling  or  leasing  such line  or  make  of new motor vehicle from such location and shall notify the commissioner within thirty days of such change, after which such new motor vehicle dealer  registration  certificate  shall  be  modified  to reflect such change.    b.  Registration  certificate  for qualified dealer. If a dealer makes application, under penalty of perjury, for a registration certificate as a qualified dealer, the commissioner shall issue  a  registration  as  a qualified dealer to such dealer upon payment of the prescribed fee.   c. Registration certificate for other than new motor vehicle dealer or qualified  dealer.  If  the  commissioner approves the application of an applicant for a registration certificate other than a new motor  vehicle dealer  certificate  or  a qualified dealer certificate, upon payment of the prescribed fee, he or she shall issue a registration certificate  in such form as he or she may prescribe.   c-1. Special provisions relating to mobility vehicles. (i) Any dealer, other   than   a  new  motor  vehicle  dealer,  engaged  in  displaying, advertising, storing and/or demonstrating mobility vehicles shall notify prospective  purchasers  regarding  any   warranty   on   the   mobility modifications and the effect of any such modifications or alterations on any  warranty  on the underlying motor vehicle and, upon the sale of any such  mobility  vehicle,  provide  the  purchaser  with   any   warranty information  available  to  any  such  dealer relating to the underlying motor vehicle.  (ii) Notwithstanding  the  provisions  of  article  twelve-A  of  this chapter,  a  dealer  engaged  in displaying, advertising, storing and/or demonstrating mobility vehicles may, without  obtaining  a  repair  shop license  pursuant  to  such  article  twelve-A, perform repairs on those parts of the mobility vehicle that are unique to the modifications  made thereto  and  which  are  not  part  of  the original manufactured motor vehicle.   d. The  commissioner  may,  in  his  or  her  discretion,  issue  such certificates of registration and number plates on a staggered expiration basis,  in  which  event  the  fees set forth in subdivision six of this section for such certificate shall be prorated on  a  monthly  basis.  A registrant shall notify the commissioner of any change of address of his or  her principal place of business within thirty days after such change is made,  and  the  commissioner  shall  be  authorized  to  cancel  the registration upon failure to give such notice.   e.  A  registration  issued  under  this  section  may be renewed upon application therefor in such form as  the  commissioner  may  prescribe, upon payment of the fee as herein prescribed.   f.  Except as provided in paragraph (bb) of subdivision two of section four hundred sixty-three of this title and subparagraph  (iii)  of  this paragraph:  (i)  The  commissioner shall not issue any certificate of registration authorized by this section to any franchisor, manufacturer, distributor, distributor branch or factory branch,  as  such  terms  are  defined  in section  four  hundred  sixty-two  of  this title, or to any subsidiary, affiliate or controlled entity thereof, except that the commissioner may renew such  certificate  previously  issued  or  otherwise  approved  to operate  to  a franchisor prior to July first, two thousand six. Nothing in this section shall preclude  the  establishment  of  such  facilities necessary  to  continue  the  ongoing  operation  of  any  holder  of  a certificate of registration authorized  by  this  section  or  otherwise approved  to  operate to a franchisor provided such original certificate or approval was granted prior to July first, two thousand six.  (ii) On  or  after  the  effective  date  of  this  subparagraph,  the commissioner  shall  not issue any certificate of registration, or renew any certificate, unless the original certificate was issued before  July first,  two  thousand  six,  to  any  motor  vehicle  dealer  in which a franchisor, manufacturer, distributor,  distributor  branch  or  factory branch,  as  such terms are defined in section four hundred sixty-two of  this title, or any subsidiary, affiliate or controlled  entity  thereof, has  acquired,  or  possesses,  a  controlling interest in the franchise entity except:  (1)  when  operating  such  franchise  for  a temporary period, not to exceed one year, during the transition  from  one  owner  of  the  motor vehicle  dealership  to  another, provided, however, that such temporary period may be extended once for an additional period not to  exceed  one year for good cause. Provided that for franchisors of house coaches, the period of temporary ownership of a franchised house coach dealership may be extended in one year increments for good cause shown, except that the aggregate of such extensions shall not exceed five years; or  (2)  when  operating  such  franchise temporarily under a plan with an independent individual who is obligated to make a significant investment in the dealership that is subject to loss and has an ownership  interest or  expects  to  acquire  full  ownership  in  a reasonable period under reasonable terms and conditions, provided that a reasonable period shall be presumed to not exceed eight years.  (iii) Notwithstanding any other provision of  this  paragraph  or  any provision  of  paragraph (bb) of subdivision two of section four hundred sixty-three of this title, the commissioner may renew any certificate of registration that was issued to a franchisor, manufacturer, distributor, distributor branch or factory branch,  as  such  terms  are  defined  in section  four  hundred  sixty-two  of  this title, or to any subsidiary, affiliate or controlled entity thereof, prior to March twenty-sixth, two thousand   fourteen;   provided,   however,   that   such    franchisor, manufacturer,  distributor, distributor branch or factory branch, or any subsidiary, affiliate or controlled entity thereof,  is  a  manufacturer that  manufactures  or assembles exclusively zero emissions vehicles, or is a subsidiary, affiliate, or controlled entity of such a manufacturer; and provided further  that  a  controlling  interest  in  such  original franchisor,  manufacturer,  distributor,  distributor  branch or factory branch or  any  subsidiary,  affiliate  or  controlled  entity  was  not transferred, sold or conveyed to another person or entity, other than to a  subsidiary,  affiliate  or  controlled  entity  of  such  franchisor, manufacturer, distributor, distributor branch  or  factory  branch.  For purposes  of  this paragraph, zero emission vehicles shall have the same meaning as under part two hundred eighteen of title six of the New  York code of rules and regulations.   8.  Use.  Transporter number plates issued under this section shall be used only for the limited operation of vehicles owned or  controlled  by the  registrant  for  the  purpose  of  weighing,  testing, dismantling, transporting or delivering the same, or for the purpose of  moving  such vehicles in connection with making installations thereon or improvements thereto,  or  the  repossession  or  foreclosure  thereof,  or  for  the operation, for  demonstration  purposes,  of  any  vehicle  owned  by  a manufacturer,  or  for transporting or delivering the vehicle upon which the plates are displayed and additional vehicles carried in whole or  in part upon such vehicle.   Except  as  provided  in section four hundred sixteen of this article, dealer number plates issued under this  section  may  be  used  for  all purposes  for which transporter plates may be used and, in addition, may be used for the operation of any vehicle  owned  or  controlled  by  the registrant  and  held for sale or demonstration, except a vehicle rented to another, a vehicle used to transport passengers for hire,  a  vehicle commonly  called  a  "tow truck" or "wrecker" and used by the dealer for such purposes, a vehicle equipped for the purpose of towing  or  pushing disabled  or  nonoperated  vehicles  or  a  commercial  or suburban type vehicle used by the dealer for commercial purposes other  than  directly  affecting  the  sale  or  demonstration  of  that particular vehicle. In addition, dealer, manufacturer, or transporter number plates may be used for any non-self-propelled device used  for  the  transport  of  modular homes.  Except  as  provided  in  section  four  hundred sixteen of this article, manufacturer number plates issued under  this  section  may  be used  for  all purposes for which transporter plates may be used and, in addition, may be  used  for  the  operation  of  any  vehicle  owned  or controlled  by  the  registrant  and  held  for  demonstration, except a vehicle rented to another, a vehicle used to  transport  passengers  for hire,  a  vehicle commonly called a "tow truck" or "wrecker" and used by the manufacturer for such purposes, a vehicle equipped for  the  purpose of towing or pushing disabled or nonoperated vehicles or a commercial or suburban  type  vehicle used by the manufacturer for commercial purposes other than directly  affecting  the  demonstration  of  that  particular vehicle.   Dealer, manufacturer, or transporter number plates issued upon renewal of  a  dealer,  manufacturer,  or  transporter  registration may be used during the thirty day period immediately preceding the  expiration  date of such registration, including such expiration date.   9.  Suspension,  revocation  and  refusal  to  issue  or  to  renew  a registration. The commissioner or any person deputized by him  may  deny the  application  of  any person for registration under this section and suspend or revoke a registration under this section or refuse to issue a renewal thereof if he or such deputy determines that such  applicant  or registrant  or  any  officer,  director, stockholder, or partner, or any other person directly or indirectly interested in the business:   a. Has made a material false statement in his application; or   b. Has used or permitted the use of number plates contrary to law; or   c. Has been guilty of fraud or fraudulent practices, or has  practiced dishonest or misleading advertising; or   d.  Has  failed to comply with any of the rules and regulations of the commissioner for the enforcement of this article or with  any  provision of  this  chapter  or  article thirty-five-B of the general business law applicable thereto; or   e. Has wilfully violated any provisions of the  motor  vehicle  retail instalment  sales  act,  the motor vehicle retail leasing act or section one hundred ninety-eight-c of the general business law; or   f. Does not have a place  of  business  within  the  meaning  of  this section; or   g. Has been convicted of any crime involving dishonesty or deceit; or   h. Was the former holder, or was an officer, director, stockholder, or partner,  in a corporation or partnership which was the former holder of a  dealer's  registration,  which  was  suspended  or  revoked  by   the commissioner.   9-a.  Hearings;  temporary  suspension.  (a)  No registration shall be suspended or revoked, or renewal refused,  except  upon  notice  to  the registrant  and after an opportunity to be heard. Provided however, upon a written notice of temporary suspension delivered by certified mail  to the  registrant,  a  registration may be temporarily suspended pending a hearing. Any such notice of temporary suspension shall provide that  the suspension  is  effective seventy-two hours after mailing of such notice and shall provide that a hearing be scheduled within ten days after  the effective date of the temporary suspension.  (b)  The  applicant  may be heard in person or by counsel. The hearing shall be at such time and place as the commissioner shall prescribe. The commissioner or the commissioner's designee may  inspect  the  pertinent books,  records,  letters  and contracts of a registrant relating to any written complaint or charge against such registrant. The commissioner or  the commissioner's designee shall have the power to subpoena  and  bring before  a  hearing  officer  any person in this state, and administer an oath to  and  take  testimony  of  any  person  or  cause  the  person's deposition  to  be  taken. A subpoena issued under this section shall be regulated by the civil practice law and rules.   10. Suspension and revocation of number plates. The  commissioner  may suspend  or  revoke number plates issued pursuant to subdivision four of this section, if he determines that the registrant to whom these  plates have  been  issued  has  used or permitted the use of such number plates contrary to law or to the regulations of the commissioner  with  respect to  the use thereof. The registrant to whom such number plates have been issued shall have an opportunity to be  heard,  and  the  provisions  of subdivision nine of this section shall apply to hearings held under this subdivision,  and  to  review of determinations made by the commissioner hereunder.   11. Following the suspension  or  revocation  of  the  certificate  of registration of a dealer, manufacturer, or transporter or number plates, pursuant  to this section, the failure of the holder or any other person possessing  the  certificate   of   registration,   number   plates   or certificates  of  sale issued to a dealer pursuant to the regulations of the commissioner, to deliver the same  to  the  suspending  or  revoking officer,  peace  officer  acting  pursuant to his or her special duties, police  officer  directed  by  the  commissioner  to  secure  possession thereof,  or  agent of the commissioner, displaying authorization to act in such capacity along with a certified copy of the  order  revoking  or suspending such registration or number plates, shall be a misdemeanor.   If  any  person  shall  fail to deliver a certificate of registration, number  plates  or  certificates  of  sale  as  provided   herein,   the commissioner shall forthwith direct any peace officer acting pursuant to his or her special duties or police officer to secure possession thereof and to return the same to the commissioner.   12.  The  commissioner, or any person deputized by him, in addition to or in lieu of revoking or suspending the certificate of registration  of a  registrant  in accordance with the provisions of this article, may in any one proceeding by order require the registrant to pay to the  people of  this  state  a penalty for a first violation a sum not exceeding one thousand dollars for each violation found to have  been  committed;  and for  a  second  or  subsequent  violation  not  arising  out of the same incident both of which were committed within a period of thirty  months, a  sum  of  not  more  than  one  thousand five hundred dollars for each violation found to have been committed; provided, however,  the  penalty for  each  and  any violation of paragraph c of subdivision nine of this section found to have been committed shall be no less than three hundred and fifty dollars and no more than one thousand  five  hundred  dollars, except  that  if  a  finding of financial loss has been made pursuant to subdivision fourteen of this section, the amount of such penalty may  be increased by the amount of financial loss so found, and upon the failure of  such  registrant  to  pay  such penalty within twenty days after the mailing of such order, postage prepaid,  registered  or  certified,  and addressed to the last known place of business of such registrant, unless such  order  is stayed by an order of a court of competent jurisdiction, the commissioner may revoke the  certificate  of  registration  of  such registrant  or may suspend the same for such period as he may determine. Civil penalties assessed under this subdivision shall  be  paid  to  the commissioner  for  deposit  into  the  state  treasury, and unpaid civil penalties may be recovered by the commissioner in a civil action in  the name of the commissioner.    13.  In  addition, as an alternative to such civil action and provided that no proceeding for judicial review shall then  be  pending  and  the time   for  initiation  of  such  proceeding  shall  have  expired,  the commissioner may file with the county clerk of the county in  which  the registrant  is  located a final order of the commissioner containing the amount of the penalty assessed. The filing of  such  final  order  shall have the full force and effect of a judgment duly docketed in the office of  such  clerk and may be enforced in the same manner and with the same effect as that provided by law in respect to executions  issued  against property upon judgments of a court of record.   14. Restitution; assessment. a. Upon a determination that a registrant has  done  or  failed  to  do  any  act  for  which  suspension  of  the registrant's registration or a  civil  penalty  against  the  registrant could  be  imposed,  the  person  making  such  determination may make a finding of financial loss to any complainant or  complainants  resulting from  the  actions of the registrant. The person making such finding may provide that if the registrant makes restitution to the  complainant  or complainants  for  the  amount or amounts so found, that payment of such restitution may be substituted  in  lieu  of  any  suspension  or  civil penalty,  or  a  specified  portion thereof imposed upon the registrant. However, a  finding  of  financial  loss  shall  only  be  made  if  the complainant  (i) agrees to accept the amount so found, if offered by the registrant, and (ii) is not a party to any litigation which  is  pending or  which  has  gone  to  judgment in relation to the same matter in any civil court.   b. The amount of financial loss which may be  found  and  proposed  as restitution  shall  be  limited to an amount necessary to compensate the complainant or complainants for actual losses caused by the registrant's improper activity.  Neither  punitive  nor  incidental  damages  may  be included in the finding of financial loss.   c.  If payment of restitution to the complainant is authorized in lieu of all or a portion of a suspension or civil penalty, in order  for  the registrant  to  exercise  the  option to make such payment, such payment must be made by means of a certified check or money order payable to the complainant or complainants delivered to an office of the department  as directed by the commissioner or his agent within thirty days of the date of  notice  of  suspension  and/or  civil  penalty. Upon receipt of such certified check or money order, the department shall forward the same to the complainant or complainants. In the event that the registrant should fail to make payment for restitution within such thirty days, but, at  a later  time,  pays  such civil penalty, the department shall deduct from such civil penalty the amount assessed for restitution, and shall mail a check for such amount to the complainant or complainants.   d. If payment of restitution may be substituted in  lieu  of  a  civil penalty  or  portion  of  a  civil  penalty, and the registrant does not exercise the option to make such payment, the civil penalty becomes  due as  provided in subdivision twelve of this section and the provisions of that subdivision and subdivision thirteen of this  section  relating  to suspension of registration and recovery of civil penalties shall apply.   e.  Any  payment  made  in compliance with such a finding of financial loss shall not preclude any civil action which may be brought by  either the  complainant  or  registrant, and any such finding may be considered but shall not be binding upon any court before which any such action  is brought.   15.  Miscellaneous  provisions.  The  commissioner  may, in his or her discretion, limit the number of sets of number  plates  which  shall  be issued to any registrant. The provisions of subdivision three of section four  hundred  one  of  this  title  with  respect  to the fee for lost,  mutilated or destroyed certificates and number  plates  shall  apply  to certificates and number plates issued under this section.   In  the  event  of  the  loss or theft of any dealer, manufacturer, or transporter number plate or set of such number plates  whether  with  or without  a  date  tag  or tags, or any date tag or set of date tags, the dealer or manufacturer must immediately notify the police of  such  fact and  in  the event of loss, theft, mutilation or destruction of any such items the dealer or manufacturer must immediately file a  statement  and proof  of the facts as the commissioner shall require. The provisions of section four hundred two and four hundred  eleven  of  this  title  with respect  to  the care and display of number plates shall apply to number plates issued under this section. Registration under this section  shall be  upon  the  condition  that  the  registrant  shall  conform  to such reasonable requirements as shall be prescribed by the commissioner.   The commissioner may, in his or her discretion, require  a  registrant to  maintain  a  record in a prescribed form of all vehicles received or disposed of by him or her, which records shall be open at all times  for inspection by the commissioner, his or her representatives and any peace officer,  acting  pursuant  to  his  or  her  special  duties, or police officer.   If registration under this section shall be issued in the names of two or more persons as partners and a change occurs  in  the  membership  of such  partnership,  the registration shall not expire so long as any one of the persons named in such registration is a member of the partnership or carries on the business of the partnership as surviving member of the partnership. However, when any such change occurs and  the  registration does  not  expire,  the  partners  or surviving member after such change shall forthwith file with the commissioner a  statement  regarding  such partnership in such form and giving such information as the commissioner shall  require,  and  the  commissioner shall issue a new certificate of registration.   16. Unregistered operation;  operation  while  suspended  or  revoked; procedures and penalties. a. The commissioner or any person deputized by him  shall  hear and determine any allegation that a person has operated as a dealer without being registered as required by subdivision three of this section or while registration  is  suspended  or  revoked.  Upon  a determination  that a person has so operated, the commissioner or person deputized by him shall assess civil penalties as provided in  paragraphs b and c of this subdivision.   b.  Except  as provided in paragraph c of this subdivision, any person who operates as a dealer without being registered shall be  required  to pay  to  the  people  of  this  state  a civil penalty in the sum of one thousand dollars. However, any such person against whom such penalty has been assessed may avoid all but five hundred dollars of such penalty  by obtaining  a  registration  as  required  by this article, provided that application for such registration is made not more than ten  days  after the imposition of such penalty.   c.  (i)  Any person who operates as a dealer while his registration is revoked or suspended, shall pay to the people  of  this  state  a  civil penalty  in  the sum of one thousand dollars. Such civil penalty may not be avoided.  (ii) Any person who operates as a dealer without being  registered  as required  by  subdivision three of this section who has previously had a civil penalty assessed for  unregistered  operation  shall  pay  to  the people of this state a civil penalty in the sum of one thousand dollars. Any person who operates as a dealer without being registered as required by  subdivision  three  of  this  section who has had two previous civil penalties assessed for unregistered operation not arising from the  same  incident  all  of  which were committed within a period of thirty months shall pay to the people of this state a civil penalty in the sum of four thousand ten dollars. Such civil penalties may not be avoided.  (iii)  No  person who operates as a dealer without being registered as required by subdivision three of  this  section  or  while  his  or  her registration  is  revoked or suspended shall park a motor vehicle, which he or she owns or controls and holds for sale or demonstration,  upon  a public   highway  of  this  state  without  first  being  registered  in accordance with the provisions of  section  four  hundred  one  of  this chapter.  Any  such  person  shall, in addition to any penalties imposed pursuant to paragraph b of this subdivision or subparagraph (ii) of this paragraph, be required to pay to the people of this state an  additional civil  penalty  of three hundred dollars for each motor vehicle owned or controlled and held for sale or demonstration by such  person  which  is parked  upon  the  public  highways  of  this  state without first being registered in accordance with the provisions of section four hundred one of this chapter.   d. The commissioner, or any person deputized by him,  in  addition  to imposing a civil penalty for unregistered operation as a dealer, may, in any  one  proceeding,  make a determination that the unregistered dealer has caused a financial loss to a complainant  or  complainants  and  may increase  the  civil penalty by the amount of financial loss. The person making such finding may provide that if the  unregistered  dealer  makes restitution to the complainant or complainants for the amount or amounts so  found,  that  payment of such restitution may be substituted for the increase in the civil penalty caused by the finding of  financial  loss. However,  a  finding  of  financial  loss  shall  only  be  made  if the complainant (i) agrees to accept the amount so found, if offered by  the unregistered  dealer, and (ii) is not a party to any litigation which is pending or in which judgment has been entered in any civil action in any court of competent jurisdiction.   e. Civil penalties assessed under this section shall be  paid  to  the commissioner  for  deposit  into  the  state  treasury, and unpaid civil penalties may be recovered by the commissioner in a civil action in  the name  of  the commissioner. In addition, as an alternative to such civil action and provided that no proceeding for judicial review shall then be pending and the time  for  initiation  of  such  proceeding  shall  have expired,  the  commissioner may file with the county clerk of the county in which the registrant is located a final  order  of  the  commissioner containing  the amount of the penalty assessed. The filing of such final order shall have the full force and effect of a judgment  duly  docketed in  the  office of such clerk and may be enforced in the same manner and with the same effect as that provided by law in  respect  to  executions issued against property upon judgments of a court of record.   f.  No allegation of unregistered operation as a dealer shall be heard or determined unless notice of such allegation has been mailed  to  such person  within  two  years  after  the  date of the alleged unregistered operation.   17. Improper display of signs. a. The holder of a dealer  registration shall  remove  or  cause  to  be  removed  any  sign  which contains the registration number of the dealer which is visible  to  the  public  and which  is  required  to  be  displayed  by  this  article or regulations promulgated thereunder if the registration is revoked  or  suspended  or the  dealer  is  out of business. If the registration is only suspended, the holder may cover up the sign instead of removing it.   b. No person shall permit the display  of  any  sign  required  to  be displayed   by   this  article  or  regulations  promulgated  thereunder indicating to the public that an official dealer is operating  unless  a  dealer  registration  has  been  issued  to that person and is currently valid.   18.  Rights  of  dealers.  The rights of all new motor vehicle dealers under this article may be exercised from any location or locations which are from time to time approved by their franchisors and the commissioner as prescribed in this article. The rights of all qualified dealers under this article may be exercised from any location or locations from  which they  operate  from  time  to time; provided, however, that no qualified dealer shall operate from  more  than  two  locations  within  the  four counties  of  Kings,  Queens,  Nassau, and Suffolk; and provided further that no qualified dealer shall operate from more than  one  location  in any  one  county.  The  total number of locations from which a qualified dealer may operate shall not exceed that number of locations operated by such  qualified  dealer  on  December  thirty-first,  nineteen   hundred ninety-eight.  It shall be unlawful for any person to interfere with the rights of, or discriminate against, any new motor vehicle dealer or  any qualified  dealer  under  this  article. The commissioner shall penalize those persons who violate the provisions of this section as  enacted  by chapter   four  hundred  fifty-one  of  the  laws  of  nineteen  hundred ninety-nine and the chapter of the laws of two  thousand  which  amended this  subdivision as provided by this section. Nothing contained in this article shall be construed to prohibit a new  motor  vehicle  dealer,  a qualified dealer, or a dealer, respectively, from utilizing the internet to  engage  in  such activities as each are respectively permitted under this article and under other applicable laws,  or  affect  where  a  new motor  vehicle  dealer  or  a  qualified  dealer may deliver a new motor vehicle.   19. Disclosures by qualified dealers; penalties.  a.  Every  qualified dealer  who  advertises  in newspapers, magazines, or by direct mail the availability of new motor vehicles for sale shall clearly disclose  that such qualified dealer is not a franchised new motor vehicle dealer.   b.  Every  qualified dealer shall prominently and conspicuously post a sign, in such a manner that it is likely  to  be  noticeable  to  anyone entering  the  premises,  which  sign  shall  clearly  state:  "(name of qualified dealer) is not a franchised dealership and does not  represent a  manufacturer.  We  are  not  authorized to perform recall or original factory warranty work."   c. Every contract for the sale of a new motor vehicle entered into  by a  qualified  dealer  and  the  purchaser  shall  contain  the following statement: "(name of qualified dealer) is not  a  franchised  dealership and  does not represent a manufacturer. We are not authorized to perform recall or original factory warranty work."   d. A qualified dealer who fails to comply  with  the  requirements  of this  subdivision,  shall  be  subject to the penalties provided by this section.  Further, a person who has purchased a new motor vehicle from a qualified dealer pursuant to a  contract  which  does  not  contain  the disclosure  required  under  paragraph  c  of this subdivision, shall be entitled to rescind the sale and obtain full restitution of any  amounts paid, plus reasonable court costs and attorneys fees, within four months of the date of purchase.   20. Restrictions on transferability and operation of certain qualified dealerships.  a.  A qualified dealer may sell, devise, assign, convey or otherwise  transfer  any  or  all  of  its  assets,  including   without limitation  all  rights  to conduct the activities of a qualified dealer hereunder and further, the owner of an equity interest  in  a  qualified dealership may sell, devise, assign, convey or otherwise transfer any or all  of its equity interest in such qualified dealership, subject to the conditions set forth in  this  subdivision.  To  the  extent  that  such  qualified  dealer  conducts such activities at more than one location as permitted under this article, then such qualified  dealer  may  transfer such  rights  on  a  location by location basis; provided, however, that such a transferee shall acquire no greater rights to relocate than those of  his  or  her  transferor,  and  provided  further  below,  that such transferee shall remain subject to the provisions  of  this  subdivision exactly as they applied to his or her transferor.   b. A transferee who acquires the assets and/or an equity interest in a qualified  dealer  as  defined  in  subparagraph  (ii), (iii) or (iv) of paragraph g of subdivision one  of  this  section  and  is  the  parent, spouse,  child  or  sibling of an individual who was an equity holder of such qualified dealer may conduct activities as  specified  pursuant  to this section without restriction.   c.  A transferee who acquires substantially all of the assets and/or a controlling  equity  interest  in  a  qualified  dealer  as  defined  in subparagraph  (ii),  (iii)  or (iv) of paragraph g of subdivision one of this section who is not the parent,  spouse,  child  or  sibling  of  an individual who was an equity holder of such qualified dealer may conduct activities  as  specified  pursuant  to this section; provided, however, that such transferee, in any calendar year, shall not  be  permitted  to sell  more  than  one  hundred  ten  percent  of the number of new motor vehicles sold by the transferor or qualified dealer  during  the  twelve month  period ending on the last day of the calendar month preceding the date of transfer of such rights.   d. A transferee who acquires  ten  per  cent  or  more  of  an  equity interest  after  August  31,  1999  in  a qualified dealer as defined in subparagraph (ii), (iii), or (iv) of paragragh g of subdivision  one  of this section and is a publicly traded corporation may conduct activities as  specified  pursuant  to  this  section; provided, however, that such transferee, in any calendar year, shall not be permitted  to  sell  more than one hundred ten percent of the number of new motor vehicles sold by the transferor or qualified dealer during the twelve month period ending on  the last day of the calendar month preceding the date of transfer of such rights.   e. Each transferee who acquires substantially all of the assets and/or a controlling equity interest in a qualified dealer from a transferee as defined in paragraph b,  c  or  d  of  this  subdivision  shall  not  be permitted to sell a number of new motor vehicles in any calendar year in excess  of  the  number  of  new  motor vehicles sold by such transferor qualified dealer during the twelve month period ending on the  last  day of the calendar month preceding the date of transfer of such rights.   f.  The rights of a qualified dealer under subparagraph (ii), (iii) or (iv) of paragraph g of subdivision one of this section are  also  deemed transferred  for  purposes  hereof  in  the  event  that,  after  August thirty-first, nineteen hundred ninety-nine, (i) the  controlling  equity interest  of  such qualified dealer is transferred (in any one or series of transactions) to any  person  or  persons,  other  than  the  parent, spouse,  child  or  sibling  of an individual who is an equity holder of such qualified dealer, or (ii) there occurs any merger,  combination  or consolidation  of,  with  or  into the business entity which constitutes such qualified dealer.   g. Nothing contained herein shall (i) prohibit a qualified  dealer  or the  parent,  spouse,  child or sibling who is the equity holder of such qualified dealer from forming a corporation or limited liability company to operate and wholly  own  the  qualified  dealer;  (ii)  restrict  the ability  of a qualified dealer to transfer a controlling equity interest to a corporation or a limited  liability  company  operated  and  wholly owned by an individual who is an equity holder of such qualified dealer;  or  (iii)  restrict  the  ability  of  a qualified dealer to transfer an equity interest in the stock and/or assets of a qualified  dealer  to  a full-time employee of such qualified dealer.