Court Opinion

ID: 9793419
Source: CourtListenerOpinion
Date Created: 2023-08-31 02:47:16.552182+00
Date Added: 2024-06-11T08:04:54.266207
License: Public Domain

STRUCKMEYER, Justice
(dissenting in part).
I concur with the principal opinion in this case that Rules 16 and 17 are beyond the rule-making power of the Superintendent of Motor Vehicles. I must, however, dissent from the conclusion that the provision of paragraph 2, A.R.S. § 28-1301 relating to new motor vehicle dealers is unconstitutional.
A.R.S. § 28-1304 provides by section A thereof that
“No person shall engage in the business of a motor vehicle dealer, motor dealer or wrecker except from an established place of business, * *
The legislature has specified what constitutes an “established place of business” in paragraph 2 of A.R.S. § 28-1301, and distinguished between new motor vehicle dealers, used motor vehicle dealers, and motor dealers or wreckers. The first sentence relates to new motor vehicle dealers:
“ ‘Established place of business’ means a permanent enclosed building or structure owned either in fee or leased with sufficient space to display two or more motor vehicles of a kind and type which the dealer is licensed to sell and which is devoted principally to the use of a motor vehicle dealer in the conduct of the business of the dealer.”
The second sentence relates to used motor vehicle dealers: .
“In the case of a used motor vehicle dealer, trailer dealer or semi-trailer dealer an established place of business need not be a permanent building or structure or part thereof, but may be a vacant lot or part thereof, but the term shall not mean or include a residence, tent, temporary stand or temporary quarters or permanent quarters occupied pursuant to a temporary arrangement.”
*86The third sentence relates to motor dealers or wreckers:
“In the case of a motor dealer or wrecker an established place of business means a permanent site or location at which the business of a motor dealer or wrecker is or will be conducted.”
There can be no doubt as to the inherent right of the state in the exercise of the police power to classify occupations and businesses according to natural and reasonable lines of distinction.
“ * * * A principle which none can dispute is that a statute may be allowed to operate unequally between classes if it operates uniformly upon all members of a class, provided the classification is founded upon reason and is not whimsical, capricious, or arbitrary. Valley Nat. Bank of Phoenix v. Glover, 62 Ariz. 538, 159 P.2d 292.
“The cases are virtually unlimited upon the question of what is or is not legitimate classification. In an effort to sustain legislation if possible, the court, disregarding matters of exclusive legislative concern such as the necessity, wisdom, propriety, or expediency of the law and looking only to the constitutional power of the lawmaking body, will attempt to discover the basis, if any, for a challenged disparity. In looking to the object of the Act, if it is found that there’is a difference between the class favorea and others not included therein and that such difference bears a natural and reasonable connection with the object of the Act, such Act will not be stricken down. In judging the reasonableness of the foundation for classification, if the court is in doubt as to whether there is or is not a reasonable basis, such doubt will be resolved in favor of the constitutionality of the law. These principles are fundamental.” Schrey v. Allison Steel Mfg. Co., 75 Ariz. 282, 255 P.2d 604, 606-607.
This classification should be held within the legitimate exercise of the police power of the state and legislature unless it plainly appears that it has no reasonable basis, the rule being that intendment is in favor of the constitutionality of a statute. General Electric Co. v. Telco Supply, Inc., 84 Ariz. 132, 325 P.2d 394.
The differences and distinctions between new motor vehicle dealers and used motor vehicle dealers are so commonly known that it scarcely seems necessary to comment thereon. A few of the more obvious are pointed out as they bear on the ultimate constitutionality of the Act. The new motor vehicle dealer, before being franchised by the manufacturer, is required to establish his financial stability; and thereafter is required to financially contribute to the sales promotion of the maunfacturer’s *87product. In order to maintain good will, a franchised dealer is required to carry a substantial stock of spare parts and to undertake the repairs and replacements on behalf of the manufacturer on the new car warranty. None of these are, of course, a requisite to the business of a used motor vehicle dealer. The ownership of a few “clunkers” of doubtful vintage is sufficient to put an individual in the business. Little recourse less than outright fraud is to be had against such a dealer, for there the doctrine of caveat emptor truly applies.
A classification founded upon such valid distinctions and differences cannot be unreasonable. Hence, the only remaining question is whether there is an obvious and real connection between the provisions of the law and its avowed purpose. Edwards v. State Board of Barber Examiners, 72 Ariz. 108, 231 P.2d 450; Atchison, T. & S. F. Ry. Co. v. State, 33 Ariz. 440, 265 P. 602, 58 A.L.R. 563. If the enactment has any reasonable relationship to the end sought, the court will not substitute its judgment for the judgment of the legislature.
The connection between the statute (the first sentence of paragraph 2, § 28-1301) and its obvious purpose to minimize the evils occurring in the retail sales of the automobile industry is real and apparent. Appellant points out the necessity of establishing the permanency and stability of new motor vehicle dealers in order to eliminate or minimize evils of the “fly-by-night” operator who, having no investment of a permanent nature, can escape the responsibilities of a licensed new motor vehicle dealer. The statute tends to eliminate the financially irresponsible who, while contributing nothing to the promotion of sales or good will of the product, unrestrainedly move in and out of business, ultimately destroying the market created by years of effort of the franchised dealer. Such unrestrained practices in destroying markets tend to eliminate the responsible dealers who through large capital investment have made it possible for the public to enjoy a ready supply of parts for repairs and replacement. The statute does not prohibit the unlicensed dealer; nonetheless, it removes the ease with which the irresponsible and the unconscionable can set up business here in an area where the public has a real stake. The capital expenditure by way of ownership or leasehold investment of the type required tends to eliminate the financial advantage of the “fast dollar” and the quick move when sales and good will are exhausted.
That the same requirements are not imposed upon used motor vehicle dealers is wholly aside the point. This is a matter of legislative discretion and of legislative wisdom and expediency. Our only concern as a court is whether the statute acting in the *88area in which it purports to embrace tends to reasonably accomplish its- avowed purpose. Since it does, I am of the opinion that it is neither arbitrary, unreasonable nor discriminatory and does not violate the equal protection clause of the Fourteenth Amendment of the Constitution of the United States nor Article 2, section 13 of the Constitution of Arizona.