Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 30 - Division of Motor Vehicles
Subchapter 20 - Dealer Licensing and Registration
Part 1 - Dealers, Manufacturers, and Rental Licenses
Section 280-RICR-30-20-1.5 - Definitions

1. "Advertisement" (including the terms "advertise" and "advertising") means any oral, written or graphic statement made by a seller in any manner in connection with the solicitation of business and includes, without limitation because of statements and representations made in a newspaper or other publication or on radio or television or via the internet or contained in any notice, handbill, sign, billboard, poster, bill, circular, brochure, pamphlet, catalogue or letter, or printed on or contained in any tag or label which is attached to or accompanies any merchandise offered for sale.

2. "Agent" means an individual or groups of individuals authorized by another to act for the licensed dealer.

3. "Annex" means a location within the radius of two (2) roadway miles where the business of a licensed used motor vehicle dealership is carried on in addition to the place of business designated on the dealer's license.

4. "Applicant" means a person, partnership, corporation or association which has filed an application for a license from the Rhode Island Department of Revenue under these Regulations.

5. "Auction" means a person, firm, partnership, corporation or association who engages in the business of auctioning motor vehicles to and for licensed motor vehicle dealers only, on a wholesale basis.

6. "Auctioneer" means a person who sells motor vehicles at an auction for another on commission or for recompense and is licensed and bonded by the State of Rhode Island Department of Business Regulations.

7. "Authorized dealer representative" means a salesperson, sales manager or other agent or employee of a motor vehicle dealer or auction who is authorized to represent or act for the dealer or the auction in connection with the acceptance, rejection or modification of motor vehicle purchase contracts.

8. "Branch" means a location where the business of a motor vehicle dealership is carried on and where all minimum requirements are in effect.

9. "Clear and conspicuous" means that the statement, representation or term being disclosed is of such size, sound or color contrast and is so placed as to be readily noticeable to the person to whom it is being disclosed. A statement contained in a printed contract, form or notice is not clear and conspicuous unless it is printed in at least ten-point type or its equivalent.

10. "Dealer" means any person, firm or corporation who sells or acts as a broker with respect to the sale of more than four (4) vehicles in any one calendar year shall be considered a motor vehicle dealer. Any person, firm or corporation who, prior to the retail sale of a motor vehicle, converts or otherwise assembles, installs or affixes a body, cab or special equipment to a chassis or who adds to, subtracts from or modifies a previously assembled or manufactured motor vehicle shall be considered a motor vehicle dealer.

11. "Demonstrator" means a new motor vehicle used for demonstration purposes by a licensed dealership which has a certificate of origin, a factory warranty, and a written disclosure identifying the vehicle as a demonstrator vehicle. The written disclosure shall include the number of miles that the vehicle has been driven and the terms of the factory warranty. Any motor vehicle used for demonstration purposes by a licensed dealership that has been previously titled shall not be considered a demonstrator vehicle.

12. "Department" shall mean the Rhode Island Department of Revenue.

13. "Designated family member" means the spouse, child, grandchild, parent, brother or sister of the owner of a new motor vehicle dealer

14. "Franchise" means the agreement or contract between any new motor vehicle manufacturer, written or otherwise, and any new motor vehicle dealer which purports to fix the legal rights and liabilities of the parties to such agreement or contract, and pursuant to which the dealer purchases and re-sells the franchise product or leases or rents the dealership premises.

15. "Franchised dealer" means a licensed dealer who holds a franchise agreement or more with a licensed manufacturer or distributor to sell new motorized vehicles of a type to be registered and has received approval from the Department.

16. "Fraud" includes, in addition to its normal legal connotation, the following: a misrepresentation in any manner, whether intentionally false or due to gross negligence, of a material fact; a promise or representation not made honestly and in good faith; and an intentional failure to disclose a material fact.

17. "Good faith" means honesty in fact and the observation of reasonable commercial standards of fair dealing in the trade as is defined and interpreted in R.I. Gen. Laws § 6A-2-103.

18. "Manufacturer" means any person, partnership, firm, association, corporation or trust, resident or nonresident who manufacturers or assembles new motor vehicles, or imports for distribution through distributors of motor vehicles, or any partnership, firm, association, joint venture, corporation or trust, resident or nonresident, which is controlled by the manufacturer. Additionally, the term manufacturer shall include the following terms:

19. "Motor vehicle" means every vehicle intended primarily for use and operation on the public highways which is self- propelled, not including farm tractors and other machines and tools used in the production, harvesting and care of farm products.

20. "New motor vehicle dealer" means any person engaged in the business of selling, offering to sell, soliciting or advertising the sale of new motor vehicles and who holds or held at the time a cause of action under this chapter accrued, a valid sales and service agreement, franchise or contract, granted by the manufacturer or distributor for the retail sale of said manufacturer's or distributor's new motor vehicle.

21. "New or unused motor vehicle" means a motor vehicle that is transferred from either a manufacturer or a distributor to a franchised dealer of the same line make with a certificate or origin and carries a full factory warranty. Any motor vehicle that is transferred from one franchised dealer to another same line make franchised dealer with a certificate of origin and a full-factory warranty shall also be considered a new or unused motor vehicle.

22. "Person" means a natural person, corporation, partnership, trust or other entity, and, in case of an entity it shall include any other entity in which it has a majority interest or effectively controls as well the individual officers, directors and other persons in active control of the activities of each such entity.

23. "Place of business" means a designated location at which the business of the dealer or auction is conducted and facilities for displaying new or used motor vehicles are maintained.

24. "Rental vehicle business" means any person, firm or corporation, whether resident or nonresident, engaging in, granting a franchise or license to engage in, or granting use of its name, trademark or trade name, for the business or renting motor vehicles for the transportation of persons or property.

25. "Used motor vehicle" means any motor vehicle that does not fall within the definition of a new or unused motor vehicle or demonstrator vehicle shall be considered a used motor vehicle.

26. "Relevant market area" shall mean