605 KAR 1:050. Dealer and salesman.
RELATES TO: KRS 190.010, 190.030, 190.035
STATUTORY AUTHORITY: KRS 190.010, 190.030, 190.035
NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.010, 190.030, and 190.035 define what a motor vehicle salesman is and his relationship to his employing dealership. KRS 190.030 also provides for salesmen's licenses to indicate for whom they work and to be displayed upon request. This administrative regulation interprets the relationship between the dealership and salesman and implements statutory requirements to facilitate accurate recordkeeping by the Motor Vehicle Commission.
Section 1. A properly licensed motor vehicle salesman employed by a licensee may, in that capacity, sell or exchange a motor vehicle in Kentucky, subject to the following limitations:
(1) The activity must be pursuant to the salesman's employment by the licensee whose name appears on the salesman's license.
(2) No salesman shall establish a place of business separate from the location for which his employer holds a license.
(3) No salesman shall hold himself out to be a licensed dealer or conduct himself in any manner which would lead a prospective purchaser to believe he is a licensed dealer.
(4) No salesman shall advertise his sales activity at any location other than the location for which his employer holds a license.
Section 2. In the event a salesman changes his place of employment to another dealership, he shall return his license to the commission along with a properly completed salesman's license showing the name and address of the other dealership.
Section 3. Every dealer licensee shall display in a conspicuous place in the dealership office a copy of the license of each salesman employed by the dealership. Upon the termination of employment of a salesman, the licensee shall, within ten (10) days, notify the commission of the termination and return to the commission the dealer's copy of the salesman's license. (Recodified from 601 KAR 21:050, 7-13-84; Am. 18 Ky.R. 496; eff. 10-1-91.)