Louisiana Administrative Code › Title 46 - PROFESSIONAL AND OCCUPATIONAL STANDARDS › Part V - Automotive Industry › Subpart 1 - Motor Vehicle Commission › Chapter 1 - General Requirements › Section V-101 - Definitions [Formerly Section 707]

Current through Register Vol. 50, No. 6, June 20, 2024
A. Definitions
Abbreviations
-using shortened terms for
					 words or initials for groups of words. Commonly understood abbreviations, such
					 as " 2 DR', " " AM/FM', " " APR', " " WAC'," " DEMO'," " EXEC'," " DOC FEE', "
					 may be used. Trade industry abbreviations which are not commonly understood,
					 such as " FTB', " " A/R', " " TOP' ," " POF' ," " DOC' ," may not be used. This
					 rule does not contain a list of all the abbreviations one may not use.
Advertisement
-an oral, written,
					 telecommunicated, graphic, or pictorial statement made in the course of
					 soliciting business, including, without limitation, a statement or
					 representation made in a newspaper, magazine, or other publication, or
					 contained in a notice, sign, poster, display, circular, pamphlet, letter,
					 flyer, price tag, window sticker, banners, billboards, handbills, or on radio,
					 the Internet, or via on-line computer service, or on television or on-hold
					 messaging, any medium.
Bait Advertisement
-an alluring but
					 insincere offer to sell or lease a product of which the primary purpose is to
					 obtain leads to persons interested in buying or leasing merchandise of the type
					 advertised and to switch consumers from buying or leasing the advertised
					 product in order to sell some other product at a higher price or on a basis
					 more advantageous to the advertiser.
Balloon Payment
-any scheduled payment
					 required by a consumer credit sale or consumer loan that is more than twice as
					 large as the average of all prior scheduled payments except the down
					 payment.
Commission
-the Louisiana Motor Vehicle
					 Commission.
Dealership Addendum
-a form which is to be
					 displayed on a window of a motor vehicle when the dealership installs special
					 features, equipment, parts or accessories, or charges for services not already
					 compensated by the manufacturer or distributor for work required to prepare a
					 vehicle for delivery to a buyer.
a. The addendum is to disclose:
i. that it is supplemental;
ii. any added feature, service, equipment, part, or
					 accessory charged and added by the dealership and the retail price
					 therefore;
iii. any additional charge to the selling price
					 manufacturer's suggested retail price (MSRP) such as additional dealership
					 markup; and
iv. the total dealer retail price.
b. The dealership addendum form shall not be deceptively
					 similar in appearance to the manufacturer's label, which is required to be
					 affixed by every manufacturer to the windshield or side window of each new
					 motor vehicle under the Automobile Information Disclosure Act.
Demonstrator
-a new motor vehicle that is
					 currently in the inventory of the automobile dealership and used or has been
					 used primarily for test drives by customers and other dealership purposes and
					 so designated by the dealership.
Demonstrators
may be
					 advertised for sale as such only by an authorized dealer in the same make of
					 motor vehicle.
Disclaimer
-those words or phrases used to
					 provide a clear understanding of any advertised statement, but not used to
					 contradict or change the meaning of the statement.
Disclosure
-a clear and conspicuous
					 statement made in such size, color, contrast, location, duration, and
					 audibility that it is readily noticeable, readable and understandable. The
					 disclosure may not contradict or be inconsistent with any other information
					 with which it is presented. If the
disclosure
modifies,
					 explains, or clarifies other information with which it is presented, or states
					 "see dealership for details," then it must be presented in proximity to the
					 information it modifies, in a manner readily noticeable, readable, and
					 understandable, and it must not be obscured in any manner.
a. An audio
disclosure
must be delivered
					 in a volume and cadence sufficient for a consumer to hear and comprehend
					 it.
b. A visual
disclosure
for television must
					 appear on the screen for a duration sufficient for a consumer to read and
					 comprehend it.
c. In a print or internet advertisement or promotional
					 material, including without limitation point of sale display or brochure
					 materials directed to consumers, a disclosure must be in a type size and
					 location sufficiently noticeable for a consumer to read and comprehend it, in a
					 print that contrasts with the background against which it appears.
d. For purposes of these rules, qualifying terms and
					 phrases will be considered to be clearly, conspicuously and accurately set
					 forth if they are:
i. in bold print and type of such size that is capable of
					 being read without unreasonable extra effort;
ii. expressed in terms that are understandable to the
					 buying public; and
iii. in close proximity to the qualified representation and
					 not separated or buried by asterisk in some other part of the
					 advertisement.
Factory Executive/Official Vehicle
-a new
					 motor vehicle that has been used exclusively by an executive or official of the
					 dealer's franchising manufacturer, distributor or their subsidiaries.
Internet
-a system that connects computers
					 or computer network.
Licensee
-any person required to obtain a
					 license from the commission.
Manufacture's Certificate of Origin (MCO),
a
Manufacture's Statement of Origin (MSO)
or a
Certificate of Origin
-
a transitional
					 ownership document issued by a manufacturer to a specific vehicle, or if a
					 multi-stage vehicle, to a specific component of the vehicle and includes a
manufacturer's statement of origin (MSO)
, a
certificate of origin
or similar term. An
MCO
is used to convey ownership from the manufacturer to a franchised dealer or
					 distributor and from the franchised dealer or distributor to a
					 purchaser.
Manufacturer's Label
-the label required by
					 the Automobile Information Disclosure Act,
					 15
					 U.S.C. 1231 -
					 1233, to
					 be affixed by the manufacturer to the windshield or side window of each new
					 automobile delivered to the dealer.
Program Vehicle
-a used vehicle that is
					 purchased at a manufacturer's closed auction or sold by or directly from the
					 manufacturer or distributor which is current or previous year model, that has
					 been previously tagged and/or titled, and returned to the manufacturer for
					 disposal.
Rebate
or
Cash Back
-a
					 sum of money refunded to a purchaser for their benefit by the manufacturer or
					 distributor after full payment has been rendered. The purchaser may choose to
					 reduce the amount of the purchase price by the sum of money or the purchaser
					 may opt for the money to be returned to himself or for his benefit subsequent
					 to payment in full.
Vehicle
-any motor vehicle or recreational
					 product subject to regulation by the commission.
VIN
- a series of Arabic numbers and Roman
					 letters that are assigned to a vehicle for identification.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 32:1253(E) and
					 R.S.
					 49:953(C).