605 KAR 1:090. Business names.

      RELATES TO: KRS 190.040

      STATUTORY AUTHORITY: KRS 190.040

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.040(1)(i) provides that a license can be denied, suspended, or revoked for false or misleading advertising. This administrative regulation interprets that proscription against false or misleading advertising to include the use of the name of a make of motor vehicle in the business name of a used motor vehicle dealer, a practice which infringes on trademark law and would cause a consumer to think that a new motor vehicle may be obtained from that dealer.

      Section 1. The trade name of a licensee shall incorporate the words used cars, auto sales, auto mart, or other similar wording clearly identifiable as a motor vehicle licensee. No licensee other than a franchised new motor vehicle dealer may use the name of any make of motor vehicle as a part of the dealership business name. The adoption of the name of a make of motor vehicle in a trade name or advertising in this manner shall be deemed to constitute false or misleading advertising within the meaning of KRS 190.040 and shall be considered grounds for the denial, suspension or revocation of a license. (Recodified from 601 KAR 21:090, 7-13-84; Am. 18 Ky.R. 470; eff. 10-1-91.)