§437-2 Licenses. (a) No person shall engage in the business as or serve in the capacity of, or act as a motor vehicle dealer, salesperson, auction, manufacturer, or distributor in this State, or otherwise engage in the business of selling or negotiating for the purchase of motor vehicles in this State without being licensed as provided in this chapter. A license issued under this chapter shall authorize the holder to engage in the business or activities permitted by the license, only in the county for which the license is issued.
(b) A license issued under this chapter shall authorize the holder to engage in the same business at:
(1) Branch locations in the same county for which the license is issued during the term thereof; provided that each branch location of a motor vehicle dealer is approved by the board; or
(2) Other motor vehicle dealer locations located in the same county and affiliated by common ownership with the location for which the license is issued during the term thereof; provided that each motor vehicle dealer location affiliated by common ownership shall obtain prior approval from the board before transferring salespersons between dealer locations.
For purposes of this subsection, "common ownership" shall include entities that have the same exact ownership, whether through individuals, corporations, trusts, or other entities.
(c) A dealer's license issued to a sole proprietorship or partnership shall authorize the sole proprietor or general partner to engage in the business of a salesperson without a license therefor, only for and in the business of the holder of the dealer's license and only for the county in which the license is issued.
(d) In the event of the dissolution of a partnership, holding a current license issued under this chapter, due to the death of one or more partners, the surviving partners may operate the business under the license for the remaining effective term of the license but not to exceed sixty days. In the event of the death or bankruptcy of the holder of a current license issued under this chapter, the duly appointed personal representative or receiver or trustee in bankruptcy, whichever the case may be, may operate the business under the license for the remaining effective term of the license.
(e) Notwithstanding any provisions of this chapter, the authority of any state or county agency to purchase motor vehicles for state or county use from any dealer licensed under this chapter shall not be limited or conditioned. Any dealer licensed under this chapter may sell vehicles to any state or county agency. [L 1939, c 258, §2; RL 1945, §7362; am L 1951, c 90, pt of §1; RL 1955, §160-161; am L 1957, c 302, §1(2); am L 1961, c 59, §1(2); am L 1963, c 199, §1b; HRS §437-2; am L 1969, c 263, §1(4); am L 1976, c 200, pt of §1; am L 1992, c 45, §1; gen ch 1992; am L 1996, c 264, §3; am L 2003, c 126, §4; am L 2018, c 163, §3]
Structure Hawaii Revised Statutes
Title 25. Professions and Occupations
437. Motor Vehicle Industry Licensing Act
437-1 Legislative findings and declaration.
437-2.5 REPEALED. L 1996, c 264, §15.
437-3 Prohibited acts for dealer or auction.
437-6 Powers and duties of the board.
437-7 Application for issuance or renewal of license.
437-11 Additional requirements for dealer's and auction's license.
437-12 Legal ownership certificates.
437-14 Delivery of contract required.
437-15 Principals held responsible.
437-24 Licenses terminate, when.
437-26 License not transferable; other requirements.
437-27 Change of status, notice.
437-27.5 Requirements to maintain license.
437-28 Suspension; revocation; fine; denial of issuance or renewal of a license.
437-29 Discretionary powers of board.
437-31.5 New or used motor vehicle sales and lease contracts.
437-32 Credit sale contracts; agreements concerning, unlawful.
437-33 Coercion by manufacturer or distributor unlawful.
437-34 Credit sale contracts, when purchase of unlawful.
437-37 Credit sale contract violations; penalty.
437-37.5 Cumulative penalties.
437-40 Information in applications, confidential; penalty for divulging.
437-41 Liberal interpretation.
437-42 Sections 445-171 and 445-172 not to apply.
437-53 Sale, assignment, or transfer of franchise to qualified purchaser.
437-54 Transfer of franchise to successor who is not a qualified purchaser.
437-55 Establishment or relocation of franchise within relevant market area.
437-56 Reimbursement for parts.
437-57 Warranty and incentive audits.
437-58 Cancellation or failure to renew franchise agreement.