reglab/statecodes huggingface dataset:
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-47. Designation of successor to the dealership in the event of death or incapacity of motor vehicle dealer; requirements; burden of proof.

A manufacturer may not prevent a motor vehicle dealer from designating a successor to the dealership in the event of death or incapacity of the motor vehicle dealer. The designation may be made by the motor vehicle dealer by will or other written instrument or, in the event of his death or incapacity, by the qualified executor or personal representative of the motor vehicle dealer by will or other written instrument. No individual may succeed to a franchise until the franchisor has been given written notice as to the identity, financial ability, and qualifications of the successor in question. The manufacturer or distributor is not required to accept a succession which does not meet the manufacturer's or distributor's written, reasonable, and uniformly applied minimal standard qualifications. The burden of proof shall be on the manufacturer or distributor to show that the succession does not meet the manufacturer's or distributor's written, reasonable, and uniformly applied minimal standard qualifications.
HISTORY: 2013 Act No. 44, Section 3, eff June 7, 2013.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-50. Manufacturers shall specify delivery and preparation obligations of dealers; filing of copy of obligations and schedule of compensation; indemnification.

(A) Every manufacturer shall specify to the dealer the delivery and preparation obligations of its motor vehicle dealers prior to delivery of new motor vehicles to retail buyers. A copy of the delivery and preparation obligations of its motor vehicle dealers and a schedule or statement of the compensation to be paid or credited to its motor vehicle dealers for the work and services they shall be required to perform in connection with such delivery and preparation obligations shall be filed with the Department of Motor Vehicles by every motor vehicle manufacturer and shall constitute any such dealer's only responsibility for product liability as between such dealer and such manufacturer. The compensation as set forth on such schedule or statement shall be reasonable and paid or credited as set out in Section 56-15-60.
(B) Every manufacturer and franchisor shall indemnify and hold harmless its franchised dealers licensed in this State against any judgment for damages or settlements agreed to by the manufacturer or franchisor including, but not limited to, court costs and reasonable attorneys' fees of the motor vehicle dealer arising out of complaints, claims, or lawsuits including, but not limited to, strict liability, negligence, misrepresentation, express or implied warranty, or recision or revocation of acceptance of the sale of a motor vehicle to the extent that the judgment or settlement relates to the alleged defective negligent manufacture, assembly, or design of new motor vehicles, parts, or accessories or other functions by the manufacturer or franchisor, but excluding any judgment or settlement that is the result, in whole or in part, of the dealer's negligence or wrong doing.
HISTORY: 1962 Code Section 46-150.155; 1972 (57) 2419; 1993 Act No. 181, Section 1484; 2021 Act No. 31 (S.510), Section 7, eff August 4, 2021.
Editor's Note
2021 Act No. 31, Section 14, provides as follows:
"SECTION 14. This act takes effect ninety days after approval by the Governor and applies to all current and future franchises and other agreements in existence between any franchisee located in this State and a franchisor as of the effective date of this act."
Effect of Amendment
2021 Act No. 31, Section 7, inserted the (A) designator, and added (B).
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-65. Requiring change of location or alteration of dealership.

(A) It is unlawful for any manufacturer, distributor, factory representative, or distributor representative to require, coerce, or attempt to coerce any motor vehicle dealer to change the location of the motor vehicle dealership or to make any substantial alterations to the dealer's premises or facilities unless:
(1) the manufacturer demonstrates that such change or alteration is reasonable in light of the current market and economic conditions; and
(2) the motor vehicle dealer has been provided written assurance from the manufacturer or distributor of a sufficient supply of motor vehicles to justify such change or alteration.
(B)(1) It is unlawful for any manufacturer, distributor, factory representative, or distributor representative to require, coerce, or attempt to coerce any motor vehicle dealer to change the location of the dealership, or to make any substantial alterations to its dealership premises or facilities if:
(a) the dealer changed the location of the dealership or made substantial alterations to the same signs, franchisor image elements, or other improvements to its premises or facilities within the preceding ten years; and
(b) the change in location or alteration was made pursuing compliance with a facility initiative or program that was sponsored or supported by the manufacturer, factory branch, distributor, or distributor branch, with the approval of the manufacturer, factory branch, distributor, or distributor branch.
(2) This subsection does not apply if the required facility alteration or improvement is necessary to comply with health and safety requirements or are necessary in order to sell and service a motor vehicle offered for sale by the dealer.
HISTORY: 2009 Act No. 52, Section 1, eff upon approval (became law without the Governor's signature on June 3, 2009); 2021 Act No. 31 (S.510), Section 9, eff August 4, 2021.
Editor's Note
2021 Act No. 31, Section 14, provides as follows:
"SECTION 14. This act takes effect ninety days after approval by the Governor and applies to all current and future franchises and other agreements in existence between any franchisee located in this State and a franchisor as of the effective date of this act."
Effect of Amendment
2021 Act No. 31, Section 9, inserted the (A) designator, and added (B).
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-70. Certain unreasonable restrictions on dealers or franchisees unlawful.

It is unlawful to directly or indirectly impose unreasonable restrictions on the motor vehicle dealer or franchisee relative to transfer, sale, relocation, right to renew, termination, discipline, noncompetition covenants, site-control (whether by sublease, collateral pledge of lease, or otherwise), or to exercise a right of first refusal to purchase, option to purchase, or compliance with subjective standards and assertion of legal or equitable rights.
HISTORY: 1962 Code Section 46-150.157; 1972 (57) 2419; 2021 Act No. 31 (S.510), Section 10, eff August 4, 2021.
Editor's Note
2021 Act No. 31, Section 14, provides as follows:
"SECTION 14. This act takes effect ninety days after approval by the Governor and applies to all current and future franchises and other agreements in existence between any franchisee located in this State and a franchisor as of the effective date of this act."
Effect of Amendment
2021 Act No. 31, Section 10, substituted "It is unlawful to directly or indirectly" for "It shall be unlawful directly or indirectly to", inserted "relocation," and "or to exercise a", and "or" following "option to purchase,".
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-75. Requiring dealer to refrain from acquiring another line of new motor vehicles.

It is unlawful for any manufacturer, distributor, factory branch, distributor branch, factory representative, or distributor representative to require, coerce, or attempt to coerce any motor vehicle dealer to refrain from participation in the management of, investment in, or acquisition of any other make or line of new motor vehicles or related products if:
(1) the requirements are unreasonable considering current economic conditions and are not otherwise justified by reasonable business considerations;
(2) the motor vehicle dealer has maintained a reasonable line of credit for each make or line of a new motor vehicle; and
(3) the motor vehicle dealer remains in compliance with reasonable capital standards and reasonable facilities requirements specified by the manufacturer.
Reasonable facilities requirements shall not include any requirement that a motor vehicle dealer establish or maintain exclusive facilities, personnel, or display space, unless the manufacturer or distributor establishes by a preponderance of the evidence that such requirements are justified by current economic conditions or reasonable business considerations.
HISTORY: 2009 Act No. 52, Section 2, eff upon approval (became law without the Governor's signature on June 3, 2009).
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-80. Agreements to which chapter applies.

The provisions of this chapter shall apply to all written or oral agreements between a manufacturer, wholesaler or distributor with a motor vehicle dealer including, but not limited to, the franchise offering, the franchise agreement, sales of goods, services or advertising, leases or mortgages of real or personal property, promises to pay, security interests, pledges, insurance contracts, advertising contracts, construction or installation contracts, servicing contracts, and all other such agreements in which the manufacturer, wholesaler or distributor has any direct or indirect interest.
HISTORY: 1962 Code Section 46-150.158; 1972 (57) 2419.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-85. Electronic sale of vehicles.

This chapter does not prohibit a dealership located in this State from contracting with an on-line electronic service to provide motor vehicles to consumers in this State.
HISTORY: 2000 Act No. 287, Section 4.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-95. Termination or cancellation of franchise or selling agreement; determination of due cause.

(A) A manufacturer may not terminate or cancel a franchise or selling agreement of a motor vehicle dealer without due cause.
(B) The nonrenewal of a franchise or selling agreement, without due cause, shall constitute an unfair termination or cancellation regardless of the terms of the franchise or selling agreement.
(C) In determining whether due cause exists, the court shall take into consideration:
(1) the motor vehicle dealer's sales in relation to the business available to the motor vehicle dealer;
(2) the motor vehicle dealer's investments and obligations;
(3) whether the motor vehicle dealer was provided adequate inventory;
(4) injury to the public welfare;
(5) the adequacy of the motor vehicle dealer's sales and service facilities, equipment, and parts;
(6) the qualifications of the management, sales, and service personnel to provide the consumer with reasonably good service and care of new motor vehicles;
(7) the motor vehicle dealer's failure to comply with the requirements of the franchise agreement;
(8) the opportunity to cure the alleged breach; and
(9) the harm caused to the manufacturer or distributor.
HISTORY: 2013 Act No. 44, Section 5, eff June 7, 2013.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-96. Measurement of dealership performance; burden of proof.

(A) A performance standard, sales effectiveness standard, sales objective, or program for measuring dealership performance that may have a material effect on a motor vehicle dealer including, but not limited to, his right to payment under any incentive or reimbursement program, shall be fair, reasonable, equitable, based on accurate information, and uniformly applied to other similarly situated motor vehicle dealers.
(B) If a motor vehicle dealer protests a new performance standard, sales effectiveness standard, sales objective, or program for measuring dealership performance, the burden of proof shall be on the manufacturer to show the action is reasonable and justifiable in light of the market conditions.
HISTORY:2013 Act No. 44, Section 6, eff June 7, 2013.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-98. Alteration of area of responsibility; notice; appeal and injunction; time for performance.

(A) A manufacturer or distributor, officer, agent, or any representative of a manufacturer or distributor may not unreasonably alter a new motor vehicle dealer's area of responsibility.
(B) To alter a new motor vehicle dealer's area of responsibility, a manufacturer or distributor, officer, agent, or any representative of a manufacturer or distributor must provide advance notice to the motor vehicle dealer including an explanation of the basis for the alteration at least sixty days before the effective date of the alteration.
(C)(1) At any time prior to the effective date of an alteration of a new motor vehicle dealer's area of responsibility, and after the completion of any internal appeal process pursuant to the manufacturer's or distributor's policy manual, the motor vehicle dealer may petition the court to enjoin or prohibit the alteration.
(2) The court shall enjoin or prohibit the alteration of a motor vehicle dealer's area of responsibility unless the franchisor shows, by a preponderance of the evidence, that the alteration is reasonable and justifiable in light of market conditions.
(3) If a motor vehicle dealer petitions the court, no alteration to a motor vehicle dealer's area of responsibility shall become effective until a final determination by the court.
(D) If a new motor vehicle dealer's area of responsibility is altered, the manufacturer shall allow twenty-four months for the motor vehicle dealer to become sales effective prior to taking any action claiming a breach or nonperformance of the motor vehicle dealer's sales performance responsibilities.
HISTORY:2013 Act No. 44, Section 7, eff June 7, 2013.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-100. Discounts, refunds, and other inducements to dealers.

In connection with a sale of a motor vehicle or vehicles to the State or to any political subdivision thereof, no manufacturer, distributor or wholesaler shall offer any discounts, refunds or any other similar type of inducement to any dealer without making the same offer or offers to all other of its dealers within the relevant market area, and if such inducements are made, the manufacturer, distributor or wholesaler shall give simultaneous notice thereof to all of its dealers within the relevant market area who have requested such notice.
HISTORY: 1962 Code Section 46-150.160; 1972 (57) 2419.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-110. Suits for damages.

(1) In addition to temporary or permanent injunctive relief as provided in Section 56-15-40(3)(c), any person who shall be injured in his business or property by reason of anything forbidden in this chapter may sue therefor in the court of common pleas and shall recover double the actual damages by him sustained, and the cost of suit, including a reasonable attorney's fee.
(2) When such action is one of common or general interest to many persons or when the parties are numerous and it is impracticable to bring them all before the court, one or more may sue for the benefit of the whole, including actions for injunctive relief.
(3) In an action for money damages, if the jury finds that the defendant acted maliciously, the jury may award punitive damages not to exceed three times the actual damages.
(4) A final judgment, order or decree rendered against a person in any civil, criminal or administrative proceeding under the United States antitrust laws, under the Federal Trade Commission Act, or under this chapter shall constitute prima facie evidence against such person subject to the conditions of the United States Antitrust Law (15 U.S.C. 16).
HISTORY: 1962 Code Section 46-150.161; 1972 (57) 2419.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-120. Limitation of actions.

Actions rising out of any provision of this chapter shall be commenced within four years next after the cause of action accrues; provided, however, that if a person liable hereunder conceals the cause of action from the knowledge of the person entitled to bring it, the period prior to the discovery of his cause of action by the person so entitled shall be excluded in determining the time limited for the commencement of the action. If a cause of action accrues during the pendency of any civil, criminal or administrative proceeding against a person brought by the United States, or any of its agencies, under the antitrust laws, the Federal Trade Commission Act, or any other Federal act, or the laws of the State related to antitrust laws or to franchising, such actions may be commenced within one year after the final disposition of such civil, criminal or administrative proceeding.
HISTORY: 1962 Code Section 46-150.163; 1972 (57) 2419.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-130. Contracts in violation of chapter void.

Any contract or part thereof or practice thereunder in violation of any provision of this chapter shall be deemed against public policy and shall be void and unenforceable.
HISTORY: 1962 Code Section 46-150.162; 1972 (57) 2419.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-140. Venue.

In an action brought pursuant to this article, venue is in the state courts of South Carolina. A provision of a franchise or other agreement with contrary provisions is void and unenforceable.
HISTORY: 2000 Act No. 287, Section 5; 2021 Act No. 31 (S.510), Section 12, eff August 4, 2021.
Editor's Note
2021 Act No. 31, Section 14, provides as follows:
"SECTION 14. This act takes effect ninety days after approval by the Governor and applies to all current and future franchises and other agreements in existence between any franchisee located in this State and a franchisor as of the effective date of this act."
Effect of Amendment
2021 Act No. 31, Section 12, in the first sentence, substituted "state courts" for "State".
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-310. License required; term of license; fee; scope of license; penalty for violation.

Section effective until January 1, 2024. See, also, Section 56-15-310 effective January 1, 2024.
(A) Before engaging in business as a dealer or wholesaler in this State, a person first must make application to the Department of Motor Vehicles for a license. Each license issued expires twelve months from the month of issue (licensing period) and must be displayed prominently at the established place of business. The fee for the license is fifty dollars. The license applies to only one place of business of the applicant and is not transferable to another person or place of business except that a licensed dealer may exhibit and sell motor homes, as defined by Section 56-15-10, at fairs, recreational or sports shows, vacation shows, and other similar events or shows upon obtaining a temporary dealer's license in the manner required by this section. No other exhibitions may be allowed, except as may be permitted by this section. Before exhibiting and selling motor homes at temporary locations as permitted above, the dealer shall first make application to the department for a license. To be eligible for a temporary license, a dealer shall hold a valid dealer's license issued pursuant to this chapter. Every temporary dealer's license issued is valid for a period not to exceed ten consecutive days and must be prominently displayed at the temporary place of business. No dealer may purchase more than six temporary licenses in any one licensing period. The fee for each temporary license issued is twenty dollars. A temporary license applies to only one dealer operating in a temporary location and is not transferable to any other dealer or location.
Any person failing to secure a temporary license as required by this section is guilty of a misdemeanor and, upon conviction, must be punished in the same manner as he would be punished for failure to secure his regular dealer's license.
The provisions of this section may not be construed as allowing the sale of any type of motor vehicles other than motor homes at authorized temporary locations.
(B) A person who fails to secure either a temporary or a permanent license as required in this chapter is guilty of a misdemeanor and, upon conviction, must be fined:
(1) not less than fifty dollars or more than two hundred dollars or imprisoned for not more than thirty days for the first offense;
(2) not less than two hundred dollars or more than one thousand dollars or imprisoned for not more than six months, or both, for the second offense; and
(3) not less than one thousand dollars or more than ten thousand dollars or imprisoned for not more than two years, or both, for the third or any subsequent offense.
For purposes of this section, the sale of each motor vehicle constitutes a separate offense.
HISTORY: 1983 Act No. 118 Section 12; 1988 Act No. 603, Section 2; 1996 Act No. 459, Section 225.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-315. Off-site displays of automobiles or trucks.

(A) Notwithstanding another provision of law, off-site displays of automobiles or trucks are prohibited except as provided in this section. A licensed South Carolina automobile dealer or dealer of trucks may display not more than ten automobiles or trucks per licensed dealership off-site only at nonselling temporary events lasting no more than ten days hosted by a South Carolina based: charitable organization as defined in the South Carolina Solicitation of Charitable Funds Act for fundraising purposes; school fundraising event; church fundraising event; town fair, town festival; or any other similar festival or event.
(B) Used automobile or truck dealers may display used automobiles or trucks off-site as provided in this section in the county in which their dealership is located.
(C) Displays may be conducted only by South Carolina licensed dealers. Any automobile or truck displayed must be owned by the dealer. Any person or automobile or truck dealer who violates these provisions is subject to a five hundred dollar fine.
(D) Off-site displays are for display purposes only. Sales or attempts to sell as defined in Section 56-15-10(L), or both, are not permitted off-site. An automobile or truck dealer who sells or attempts to affect the off-site sale of any automobile or truck is in violation of this section and is subject to a two thousand dollar fine. An agent of an automobile or truck dealer who sells or attempts to affect the off-site sale of an automobile or truck is subject to a five hundred dollar fine.
(E) A motor vehicle manufacturer cannot require a franchised automobile or truck dealer to display automobiles or trucks off-site.
(F) Nothing in this section shall prohibit an automobile or truck dealer from participating in one nonselling statewide motor vehicle show in South Carolina per year, or a manufacturer, individual automobile owner or truck owner from displaying their vehicles.
(G) Nothing in this section shall be construed to prevent a licensed dealer from providing vehicles for demonstration or test driving purposes specified in Section 56-3-2320.
(H) The department of Motor Vehicles shall enforce the provisions contained in this section.
HISTORY: 2012 Act No. 181, Section 1, eff May 25, 2012.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-320. Application for license; bond; duties upon change of circumstances and termination of business.

Section effective until January 1, 2024. See, also, Section 56-15-320 effective January 1, 2024.
(A) Before a license as a "wholesaler" or "dealer" is issued to an applicant, he shall file an application with the Department of Motor Vehicles and furnish the information the department may require including, but not limited to, information adequately identifying by name and address individuals who own or control ten percent or more of the interest in the business. The policy of this section is full disclosure.
(B) Each applicant for licensure as a dealer or wholesaler shall furnish a surety bond in the penal amount of thirty thousand dollars on a form prescribed by the director of the department. The bond must be given to the department and executed by the applicant, as principal, and by a corporate surety company authorized to do business in this State, as surety. The bond must be conditioned upon the applicant or licensee complying with the statutes applicable to the license and as indemnification for loss or damage suffered by an owner of a motor vehicle, or his legal representative, by reason of fraud practiced or fraudulent representation made in connection with the sale or transfer of a motor vehicle by a licensed dealer or wholesaler or the dealer's or wholesaler's agent acting for the dealer or wholesaler or within the scope of employment of the agent or loss or damage suffered by reason of the violation by the dealer or wholesaler or his agent of this chapter. An owner or his legal representative who suffers the loss or damage has a right of action against the dealer or wholesaler and against the dealer's or wholesaler's surety upon the bond and may recover damages as provided in this chapter. However, regardless of the number of years a bond remains in effect, the aggregate liability of the surety for claims is limited to thirty thousand dollars on each bond and to the amount of the actual loss incurred. The surety may terminate its liability under the bond by giving the department thirty days' written notice of its intent to cancel the bond. The cancellation does not affect liability incurred or accrued before the cancellation.
(C) If, during a license year, there is a change in the information a dealer or wholesaler gave the department in obtaining or retaining a license under this section, the licensee shall report the change to the department within thirty days after the change occurs on the form the department requires.
(D) If a licensee ceases being a dealer or wholesaler, within ten days of that time, he shall notify the department of this fact and return to the department a license issued pursuant to this chapter and all current dealer license plates issued to the dealer or wholesaler.
HISTORY: 1983 Act No. 118 Section 12; 1993 Act No. 181, Section 1485; 1994 Act No. 497, Part II, Section 121L; 2006 Act No. 298, Section 1, eff May 31, 2006.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-330. Facilities required for issuance of dealer's license.

Section effective until January 1, 2024. See, also, section 56-15-330 effective January 1, 2024.
No dealer may be issued or allowed to maintain a motor vehicle dealer's license unless:
(1) The dealer maintains a bona fide established place of business for conducting the business of selling or exchanging motor vehicles which must be the principal business conducted from the fixed location. The sale of motorcycle or motor driven cycles need not be the principal business conducted from the fixed location. A bona fide established place of business for any motor vehicle dealer includes a permanent, enclosed building or structure, not excluding a permanently installed mobile home containing at least ninety-six square feet of floor space, actually occupied by the applicant and easily accessible by the public, at which a permanent business of bartering, trading, or selling of motor vehicles or displaying vehicles for bartering, trading, or selling is carried on, wherein the public may contact the owner or operator at all reasonable times and in which must be kept and maintained the books, records, and files required by this chapter. A bona fide established place of business does not mean a residence, tent, temporary stand, or other temporary quarters.
(2) The dealer's place of business must display a permanent sign with letters at least six inches in height, clearly readable from the nearest major avenue of traffic. The sign must clearly identify the licensed business.
(3) The dealer's place of business must have a reasonable area or lot to properly display motor vehicles.
HISTORY: 1983 Act No. 118 Section 12.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-340. Records.

(A) Every dealer or wholesaler shall keep complete records of each transaction under which a motor vehicle is transferred for a period of not less than four years from the date of the transaction. The records must show the true name and correct address of the person or persons from whom the motor vehicle was acquired and the date of the transaction; a correct description of the vehicle, when transferred; the true name and correct address of the person to whom the motor vehicle was transferred; and the date of the transaction. The description of the motor vehicle must include the vehicle identification number, make, model, type of body, and the odometer readings at the time the motor vehicle was transferred to and from the dealer or wholesaler. These records must be open at all reasonable times for inspection and copying by the Department of Motor Vehicles or any of its duly authorized agents.
(B) The records kept by the dealer or wholesaler must be maintained in a reasonably organized and orderly fashion with all entries being legible to the ordinary person upon inspection. Any records which are illegible or incapable of accurate interpretation by either the recordkeeper or the department's inspector or agent are not in compliance with this section.
(C) If any dealer or wholesaler fails to keep the required records or fails to make them available to the department or its duly authorized agents immediately upon a reasonable request, the dealer or wholesaler is guilty of a misdemeanor and, upon conviction, must be fined not less than fifty dollars nor more than two hundred dollars or imprisoned for up to thirty days. The failure to keep or to make available to the department or its duly authorized agents complete records on each separate motor vehicle constitutes a separate offense.
HISTORY: 1983 Act No. 118 Section 12; 1996 Act No. 459, Section 226.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-410. Required pre-licensing education courses.

An applicant for an initial nonfranchise automobile dealer license must complete successfully at least eight hours of pre-licensing education courses before he may be issued a license. At least one shareholder listed on the application for an initial nonfranchise automobile dealer license must comply with the education requirement contained in this section.
HISTORY: 2005 Act No. 9, Section 1, eff January 1, 2004.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-420. Promulgation of regulations.

The Department of Motor Vehicles shall promulgate regulations to implement the provisions contained in this article.
HISTORY: 2005 Act No. 9, Section 1, eff January 13, 2005; 2012 Act No. 264, Section 7, eff June 18, 2012.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-430. Applicability to franchised automobile dealers or nonfranchised dealers owned and operated by franchised dealers.

The provisions contained in Sections 56-15-410 and 56-15-420 shall not apply to a franchised automobile dealer or a nonfranchised automobile dealer owned and operated by a franchised automobile dealer.
HISTORY: 2005 Act No. 9, Section 1, eff January 1, 2004.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-440. Applicability to dealers engaged primarily in motor vehicle salvage.

The provisions contained in Sections 56-15-410 and 56-15-420 shall not apply to a nonfranchised automobile dealer whose primary business is salvage motor vehicles, regulated by Title 56.
HISTORY: 2005 Act No. 9, Section 1, eff January 1, 2004.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-450. Applicability to dealers primarily engaged in rental of motor vehicles.

The provisions contained in Sections 56-15-410 and 56-15-420 shall not apply to a nonfranchised automobile dealer whose primary business objective and substantial business activity is the rental of motor vehicles, regulated by Title 56.
HISTORY: 2005 Act No. 9, Section 1, eff January 1, 2004.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-510. Definitions.

As used in this article:
(1) "Wholesale motor vehicle auction" is an entity in the business of providing auction services in wholesale transactions at its established place of business, and which does not buy, sell, or own the motor vehicles it auctions in the ordinary course of its business.
(2) "Motor vehicles' with regard to transactions taking place at a wholesale motor vehicle auction include, but are not limited to, motor homes, manufactured homes, recreational vehicles, boats, motorcycles, and motor vehicles as provided for in Section 56-3-20.
HISTORY: 1995 Act No. 70, Section 1.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-520. Transfer of title at wholesale motor vehicle auction; content of reassignment of title or bill of sale.

When a transfer of title is made as a result of a transaction at a wholesale motor vehicle auction, the reassignment of title or bill of sale must note the name and address of the wholesale motor vehicle auction. However, the wholesale motor vehicle auction is not deemed to be the owner, seller, transferor, or assignor of title of a motor vehicle by reason of its name appearing on a reassignment of title or bill of sale or by reason of its payment of a guarantee of payment to a seller, receipt of payment from a purchaser, or the reservation of a lien or security interest for the purpose of securing payment from a purchaser.
HISTORY: 1995 Act No. 70, Section 1.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-530. Buying or selling motor vehicles in name of wholesale motor vehicle auction.

A wholesale motor vehicle auction is not prohibited from buying or selling motor vehicles in its own name. However, in that instance, it shall comply with the provisions of South Carolina law pertaining to reassignment and delivery of title documents and disclosures to buyers.
HISTORY: 1995 Act No. 70, Section 1.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-540. Dealers and persons required by agency or law may purchase or sell at wholesale motor vehicle auction.

A motor vehicle dealer licensed by this or another jurisdiction may purchase or sell motor vehicles at a wholesale motor vehicle auction. A person may purchase or sell motor vehicles at a wholesale motor vehicle auction if required by an agency of government or by law.
HISTORY: 1995 Act No. 70, Section 1.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-550. Sales through auction of motor vehicles acquired incident to regular business.

The following may sell motor vehicles through a wholesale motor vehicle auction if the motor vehicles are acquired as an incident to regular business:
(1) manufacturers;
(2) marine dealers;
(3) motor vehicle rental businesses;
(4) motor vehicle lease businesses;
(5) recreation vehicle dealers;
(6) sellers of motor vehicle fleets;
(7) manufacturers;
(8) public officers while performing their official duties;
(9) receivers;
(10) trustees;
(11) administrators;
(12) executors;
(13) guardians;
(14) insurance companies;
(15) banks;
(16) finance companies;
(17) other loan agencies or their agents.
HISTORY: 1995 Act No. 70, Section 1.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-560. Application for license for wholesale motor vehicle auction; fee.

Before engaging in business as a wholesale motor vehicle auction in this State, an application must be filed with the Department of Motor Vehicles furnishing the information it requires including, but not limited to, information adequately identifying by name and address individuals who own or control ten percent or more of the interest of the applicant. Each license issued expires twelve months from the month of issuance and must be displayed prominently at the established place of business. The license applies to only one place of business of the applicant and is not transferable to another person or place of business. The fee for the license is fifty dollars.
HISTORY: 1995 Act No. 70, Section 1; 1996 Act No. 459, Section 227.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-570. Surety bond required.

(A) Each applicant for licensure as a wholesale motor vehicle auction shall furnish a surety bond in the penal amount of fifteen thousand dollars on a form prescribed by the Department of Motor Vehicles. The bond must be given to the department and executed by the applicant as principal and by a corporate surety company authorized to do business in this State as surety. The bond must be conditioned upon the applicant or licensee complying with the statutes applicable to the license and as indemnification for loss or damage suffered by an owner of a motor vehicle, or his legal representative, by reason of fraud practiced or fraudulent representation made by the licensee in connection with the sale or transfer of a motor vehicle by the licensee or its agent acting for it or within the scope of employment of the agent or loss or damage suffered by reason of a violation by the licensee or its agent of this chapter.
(B) An owner or his legal representative who suffers loss or damage has a right of action against the wholesale motor vehicle auction and against the licensee's surety upon the bond and may recover damages as provided in this chapter. However, regardless of the number of years a bond remains in effect, the aggregate liability of the surety for all claims is limited to fifteen thousand dollars on each bond and to the amount of the actual loss incurred. The surety may terminate its liability under the bond by giving the department thirty days' written notice of its intent to cancel the bond. The surety shall notify the department if the bond is canceled. The cancellation does not affect liability incurred or accrued before the cancellation.
HISTORY: 1995 Act No. 70, Section 1; 1996 Act No. 459, Section 228.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-580. Change of information on application must be reported.

During a license year, if there is a change in the information that a wholesale motor vehicle auction gave the Department of Motor Vehicles to obtain or retain a license under this section, the licensee shall report the change to the department within thirty days after the change occurs on the form the department requires.
HISTORY: 1995 Act No. 70, Section 1.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-590. Establishment and retention of records.

(A) A wholesale motor vehicle auction shall establish and retain at its primary place of business complete records in an order appropriate for business requirements and that permits systematic retrieval for five years following the date of sale of each motor vehicle. The records must show the name of the most recent owner other than the wholesale motor vehicle auction, the name of the buyer, the vehicle identification number, and the odometer reading on the date which the wholesale motor vehicle auction took possession of the motor vehicle.
(B) The records kept by the wholesale motor vehicle auction must be maintained in a reasonably organized and orderly fashion with all entries being legible to the ordinary person upon inspection. Records which are illegible or incapable of accurate interpretation by the recordkeeper or the Department of Motor Vehicles' inspector or agent are not in compliance with this section.
(C) If a wholesale motor vehicle auction fails to keep the required records or fails to make them available to the department or its authorized agents immediately upon a reasonable request, the wholesale motor vehicle auction is guilty of a misdemeanor and, upon conviction, is subject to the provisions of Chapter 54 of Title 12.
HISTORY: 1995 Act No. 70, Section 1.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 15 - Regulation Of Manufacturers, Distributors And Dealers › Section 56-15-600. Wholesale motor vehicle auction license plates.

(A) The Department of Motor Vehicles may issue to a licensed wholesale motor vehicle auction, upon application and payment of the required fee to the department, wholesale motor vehicle auction license plates. The license plates are exclusively for the use of transporting motor vehicles in the course of doing business as a wholesale motor vehicle auction and must not be attached permanently. The license plate expires twelve months from the month of issuance. The documentation evidencing transport in the ordinary course of doing business as a wholesale motor vehicle auction must be by form approved by the Department of Revenue. The form at all times must accompany the license plates. A person who does not use the license plate exclusively to transport motor vehicles in the course of doing business as a wholesale motor vehicle auction is guilty of a misdemeanor and, upon conviction, must be fined five hundred dollars.
(B) Wholesale motor vehicle auction license plates must not be issued by the department unless the wholesale motor vehicle auction furnishes proof in a form acceptable to the department that it has a wholesale motor vehicle auction license as required by this article and that at least twenty sales of motor vehicles have taken place through the wholesale motor vehicle auction in the twelve months preceding its application for a license. The sales requirement may be waived by the department if the wholesale motor vehicle auction has been licensed for less than one year.
(C) A wholesale motor vehicle auction may be issued two license plates for the first twenty vehicles auctioned during the preceding year and one additional license plate for each fifty vehicles auctioned beyond the initial twenty during the preceding year but not to exceed seventy-five license plates. For good cause shown, the department in its discretion may issue additional license plates. If the wholesale motor vehicle auction has been licensed less than one year, the department shall issue a number of license plates based on an estimated number of sales for the coming year. The department may increase or decrease the number of license plates issued based on actual sales made.
(D) The cost of each wholesale motor vehicle auction license plate issued is twenty dollars annually.
HISTORY: 1995 Act No. 70, Section 1.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 16 - Regulation Of Motorcycle Manufacturers, Distributors, Dealers, And Wholesalers › Section 56-16-20. Manufacturer's specification of dealer's delivery and preparation obligations.

Every manufacturer shall specify to the dealer the delivery and preparation obligations of its motorcycle dealers prior to delivery of new motorcycles to retail buyers. A copy of the delivery and preparation obligations of its motorcycle dealers and a schedule or statement of the compensation to be paid or credited to its motorcycle dealers for the work and services they are required to perform in connection with the delivery and preparation obligations must be filed with the Department of Motor Vehicles by every motorcycle manufacturer and is a dealer's only responsibility for product liability as between dealer and manufacturer. The compensation as set forth on such schedule or statement must be reasonable and paid or credited as set out in Section 56-16-30.
HISTORY: 1984 Act No. 511, Section 1; 1993 Act No. 181, Section 1487.
2023 South Carolina Code of Laws › Title 56 - Motor Vehicles › Chapter 16 - Regulation Of Motorcycle Manufacturers, Distributors, Dealers, And Wholesalers › Section 56-16-30. Obligation to fulfill warranty agreement.

Every manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division shall fulfill any warranty agreement and compensate each of its motorcycle dealers for labor and parts. In determination of what constitutes reasonable compensation under this section, the principal factor to be given consideration is the prevailing wage rates paid by dealers in the community in which the dealer is doing business. The hourly labor rate paid to a dealer for warranty services must not be less than the rate charged by the dealer for like service to nonwarranty customers for nonwarranty service and repairs unless the rate is determined to be unreasonable. Dealers must be reimbursed for the current manufacturer suggested retail price for parts used on warranty work. All claims made by motorcycle dealers hereunder and under Section 56-16-20 for labor and parts must be paid within thirty days following their approval. All such claims are either approved or disapproved within thirty days after their receipt. When any claim is disapproved the motorcycle dealer who submits it must be notified in writing of its disapproval within such period, and each notice shall state the specific grounds upon which the disapproval is based. Any special handling of claims required by the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, which is not uniformly required of all dealers of the type make, may be enforced after thirty days' notice in writing and upon good and sufficient reason.
HISTORY: 1984 Act No. 511, Section 1.