The Commission conducts the following types of investigations by physically visiting the licensee or through written correspondence:
Advertising Issues-The Commission has been granted the authority to review all advertising pertaining to new and used motor vehicles in accordance with Rule 3 Advertising. The Commission will review each advertisement for misleading and deceptive practices and will govern them accordingly.
Unlicensed Dealers-It shall be unlawful for any person to engage in business as, or serve in the capacity of, or act as a new motor vehicle dealer in Arkansas without first obtaining a license.
Unlicensed Salesperson-It shall be unlawful for any person to engage in business as, or serve in the capacity of, or act as a motor vehicle salesperson in Arkansas without first obtaining a license.
Unlicensed Manufacturer/Distributor-It shall be unlawful for any person to engage in business as, or service in capacity of, or act as manufacturer, distributor, factory branch or division, distributor branch or division, second-stage manufacturer, or converter as such, in Arkansas without first obtaining a license.
Dealer Title Issues- If after 30 days from date of purchase, the dealer fails to obtain a certificate of title in the name of the consumer; or The certificate of title for the vehicle indicates that it is a rebuilt salvage vehicle, and the fact that it is a rebuilt salvage vehicle was not disclosed to the consumer in writing before the execution of the purchase agreement; or The certificate of title for the vehicle indicates that the dealer has made an inaccurate odometer disclosure to the consumer.
Facilities Issues-Dealers are required to meet certain facility requirements as mandated by Rule 4 Facility Requirements for Locations Licensed by the Commission, which include, signage, service facilities and other basic dealership necessities.
Auction Sales-New motor vehicles cannot be sold in the State of Arkansas on an MSO at auction.
Off-Premise/Sales/Displays/Events-Dealers may conduct Off-Premise Sales, Displays and Events by obtaining proper approvals and meeting the requirements set forth in Rule 7 Off-Premise, Sales, Displays, & Events.
Warranty Violations-Dealerships are required to offer service and warranty work on the product offered and displayed for sale at their dealership.
*This is a partial list of the types of investigations the Commission conducts.
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