Ariz. Admin. Code § 17-5-406

Current through Register Vol. 30, No. 38, September 20, 2024

Section R17-5-406 - Dealer Consignment Contract

A. For the purposes of A.R.S. § 28-4410, a motor vehicle dealer shall prepare a dealer consignment contract on a form with contents as prescribed under subsection (B).

B. A dealer consignment contract shall contain the following information:

1. The heading "Dealer Consignment Contract;"

2. The dealer's name and dealer license number;

3. The dealer's business address and telephone number;

4. The owner's name, address, telephone number, driver license number or taxpayer identification number, and type of ownership;

5. The VIN; license plate number; licensing state; and model, make, and year of the motor vehicle that has a dealer consignment contract;

6. If there is a lien holder, for each lienholder:

a. The lien holder's name, address, and telephone number;

b. The lien balance;

c. The prepayment penalties, if any; and

d. Other information on the terms and conditions of the lien repayment;

7. A statement by the owner that the vehicle is free and clear of all liens and encumbrances, except those disclosed under subsection (B)(6)(a) and the lien balance is no greater than that disclosed under subsection (B)(6)(b);

8. An authorization by the owner permitting the dealer to market and sell the vehicle on behalf of the owner at a mutually-agreed upon, specified, minimum price;

9. An agreement by the dealer to inform any prospective purchaser that the vehicle is on consignment;

10. An agreement by the dealer that, upon receiving the sale proceeds, the dealer shall immediately satisfy all disclosed liens and ensure that the liens are released;

11. An agreement by the owner that, upon the completion of the sale and after receiving the sale proceeds, the owner shall promptly deliver and endorse the title certificate for reassignment to the purchaser;

12. The expiration date of the consignment contract;

13. An agreement by the dealer to deliver the motor vehicle to the owner at a specified location on the date that the contract expires or terminates;

14. An agreement by the owner to pay any specified fees due to the motor vehicle dealer on the return of the vehicle, after the expiration or termination of the consignment contract;

15. The date the contract is executed;

16. The dealer's signature; and

17. The owner's signature.

C. A dealer or an owner who adds to a dealer consignment contract a provision not described in this Section shall ensure that the provision does not conflict with or alter the meaning of a provision of this Section.

D. When a dealer prepares a dealer consignment contract as prescribed under this Section, the dealer shall give a copy to the owner and keep the original at the dealer's established place of business for three years after the date that the dealer consignment contract expires or terminates, or the vehicle is sold.

E. In complying with this Section, a dealer shall not interpret or claim compliance to be an approval by the state of the fairness, validity, or legality of a dealer consignment contract. This Section furnishes only information required in a dealer consignment contract. This Section does not detail any additional contractual requirements that may be defined under other Arizona statutes.

Ariz. Admin. Code § R17-5-406

New Section recodified from R17-4-246at 7 A.A.R. 3483, effective July 20, 2001 (Supp. 01-3). Amended by final rulemaking at 8 A.A.R. 4234, effective November 15, 2002 (Supp. 02-3). Amended by final rulemaking at 23 A.A.R. 1434, effective 7/4/2017.