Oklahoma Administrative Code › Title 765 - Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing Commission › Chapter 10 - Used Motor Vehicle Dealers › Subchapter 3 - Operation › Section 765:10-3-2 - Consignment sales

Current through Vol. 41, No. 20, July 1, 2024
(a)
Consignment.
A used motor vehicle dealer, whether acting as
				principal or agent, or by power of attorney, shall be responsible for complying
				with
				765:10-3-1 et seq.
				with regard to all vehicles purchased, sold, or transferred by the dealer
				whether or not any other party has any interest in the vehicle being purchased,
				sold, or transferred. The dealer need not disclose to a potential purchaser if
				the vehicle offered for sale has been consigned to the dealer by an individual.
				The individual consigning the vehicle shall provide a copy of the certificate
				of title to the dealer-consignee at the time of the execution of the
				consignment agreement. The certificate of title of a used motor vehicle owned
				by an individual consigned to a used motor vehicle dealer for sale by that
				dealer shall be assigned by the individual to the dealer, and shall be assigned
				to the purchaser contemporaneously with the transfer of funds from the buyer to
				the dealer, provided a consignment form approved by this Commission is used in
				the consignment transaction, and any other state and federal forms required are
				properly executed at the time of sale by the dealer as agent for the consignor.
				A used motor vehicle dealer's tax stamp shall be required in the assignment of
				the certificate of title from the dealer to the purchaser. The consignor shall
				have primary responsibility for the truthfulness of the information concerning
				the vehicle unless the dealer willfully, knowingly, or negligently with
				reckless disregard of the true facts, misrepresents or misstates the
				information on the forms and/or the certificate of title. The dealer, by acting
				as agent for the consignor, is deemed to be a transferor with regard to
				49 U.S.C. Section
				32701 et. seq. (Federal Odometer Act). The
				dealer and the consignor shall both be responsible to the consignor's lender,
				if any, to satisfy the lender's interest in the vehicle. A used motor vehicle
				dealer who has taken a used motor vehicle on consignment from an individual
				seller shall not consign the vehicle for sale to another used motor vehicle
				dealer without the knowledge and written consent of the individual seller and
				the execution of a consignment form among the three parties.
(b)
Consignments between
				dealers.
A used motor vehicle dealer who takes another used motor
				vehicle dealer's vehicle on consignment to sell the vehicle at the first
				dealer's licensed location shall be responsible for complying with
				765:10-3-1 et.
				seq. in all particulars, including execution of all forms required for the
				transaction. There shall be a written document of consignment of the vehicle
				from the consigning dealer to the selling dealer which may set forth the
				benefits, responsibilities, and duties of each dealer arising from the
				consignment transaction, and shall include a statement that the vehicle is
				subject to a lender's interest or that it is not. Both dealers shall be
				responsible to the lender to satisfy the lender's interest after the sale of
				the vehicle. The certificate of title to the vehicle consigned and sold shall
				be assigned from the consigning dealer to the selling dealer at the time of the
				sale of the vehicle and the certificate of title shall then be re-assigned to
				the purchaser. The selling dealer shall be responsible to the purchaser for any
				liability which may arise from or because of the sale of the vehicle,
				regardless of any statements to the contrary in the consignment form executed
				between the dealers. A used motor vehicle dealer's tax stamp shall be required
				in both transactions.
(c)
Consignments at auction.
In lieu of the procedure set forth in (a)
				and (b) above, a used motor vehicle dealer acting as an auction shall follow
				the procedure in this subsection. Sales by used motor vehicle dealers shall be
				evidenced by execution of an auction form approved by the Commission. An
				auction may provide by its own rules, the terms and conditions of sale and
				purchase between the consigner and the buyer. Said rules shall apply in all
				instances except where said rules are in conflict with state or federal statute
				or the Rules of this Commission. An auction, by acting as agent for the
				consignor, is not deemed to be a transferor with regard to Motor Vehicle
				Information and Cost Saving Act 15 U.S.C. Section 1981 et seq. (Federal
				Odometer Act.) A used motor vehicle dealer consigning a vehicle for sale at
				auction shall be responsible for complying with all record keeping requirements
				under the Rules of this Commission.