As used in this chapter:

(a) "Motorcycle" is defined in Section 56-1-10. This chapter does not apply to bicycles with helper motors.

(b) "Manufacturer" means any person, resident, or nonresident who manufacturers or assembles new motorcycles, or imports for distribution through distributors of motor vehicles, including any person, partnership, or corporation which acts for and is under the control of a manufacturer or assembler in connection with the distribution of motorcycles and includes distributor and factory branch.

(c) "Dealership facilities" means the real estate, buildings, fixtures, and improvements devoted to the conduct of business under the franchise by the new motorcycle dealer.

(d) "Franchise" means the written agreement or contract between any new motorcycle manufacturer, and any new motorcycle 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 resells the franchised product or leases or rents the dealership premises.

(e) "Factory branch" means a branch office maintained by a manufacturer which manufactures or assembles motorcycles for sale to distributors or motorcycle dealers or which is maintained for directing and supervising the representatives of the manufacturer.

(f) "Distributor branch" means a branch office maintained by a distributor who sells or distributes new or used motorcycles to motorcycle dealers.

(g) "Factory representative" means a representative employed by a manufacturer or by a factory branch for the purpose of making or promoting the sale of motorcycles or for supervising, servicing, instructing, or contracting with motorcycle dealers or prospective motorcycle dealers.

(h) "Distributor representative" means a representative employed by a distributor branch or distributor.

(i) "Franchiser" means a manufacturer, distributor, or wholesaler who grants a franchise to a motorcycle dealer.

(j) "Franchisee" means a motorcycle dealer to whom a franchise is offered or granted.

(k) "Sale" means the issuance, transfer, agreement for transfer, exchange, pledge, hypothecation, mortgage in any form, whether by transfer in trust or otherwise, of any motorcycle or interest therein or of any franchise related thereto and any option, subscription, or other contract, or solicitation, looking to a sale, or offer or attempt to sell in any form, whether spoken or written. A gift or delivery of any motorcycle or franchise with respect thereto, with or as a bonus on account of the sale of anything, is a sale of such motorcycle or franchise.

(l) "Fraud" means, in addition to its normal legal connotation: 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.

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

(n) "New motorcycle" means a motorcycle which has not been previously sold to any person except a distributor or wholesaler or motorcycle dealer for resale.

(o) "Distributor" means any person who sells or distributes new motorcycles to motorcycle dealers or who maintains distributor representatives within the State.

(p) "Dealer" or "motorcycle dealer" means any person who sells or attempts to effect the sale of any motorcycle. These terms do not include:

(1) distributors or wholesalers.

(2) receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment, or order of any court.

(3) public officers while performing their official duties.

(4) persons disposing of motorcycles acquired for their own use and so used in good faith and not for the purpose of avoiding the provisions of law. Any person who effects or attempts to effect the sale of more than five motorcycles in any one calendar year is considered a dealer or wholesaler, as appropriate, for purposes of this chapter.

(5) finance companies or other financial institutions who sell repossessed motorcycles and insurance companies who sell motorcycles they own as an incident to payment made under policies of insurance.

(q) "Wholesaler" or "motorcycle wholesaler" means any person who sells or attempts to effect the sale of any used motorcycle exclusively to motorcycle dealers or to other wholesalers.

(r) [Deleted]

HISTORY: 1984 Act No. 511, Section 1; 1993 Act No. 181, Section 1486; 1996 Act No. 459, Section 246A; 2017 Act No. 89 (H.3247), Section 30, eff November 19, 2018.

Effect of Amendment

2017 Act No. 89, Section 30, rewrote (a), providing that "motorcycle" is defined in Section 56-1-10.