Section 13-113.2 - Transfers of new vehicles to and from dealers - Two-stage vehicles. - Maryland Statutes

§ 13-113.2. Transfers of new vehicles to and from dealers - Two-stage vehicles.
 

(a)  Definitions.-  

(1) In this section the following words have the meanings indicated. 

(2) "Completed vehicle" means a two-stage vehicle that does not require any additional manufacturing operation to perform its intended function, except for the addition of readily attachable components or minor finishing operations. 

(3) "First-stage manufacturer" means: 

(i) Any person who manufactures an incomplete vehicle; 

(ii) Any person who distributes an incomplete vehicle of that manufacturer; and 

(iii) Any dealer who has a franchise for the particular make of the incomplete vehicle of that manufacturer. 

(4) "Incomplete vehicle" means an assemblage that: 

(i) Consists of at least a frame and chassis structure, power train, steering system, and braking system, to the extent that those systems are to be a part of the completed vehicle; and 

(ii) Requires additional manufacturing operations, other than the addition of readily attachable components or minor finishing operations, to become a completed vehicle. 

(5) "Minor finishing operations" includes painting, upholstering, or other cosmetic modifications. 

(6) "Readily attachable components" includes any mirror, extra light, or tire and rim assembly. 

(7) "Second-stage manufacturer" means: 

(i) A person who performs manufacturing operations on an incomplete vehicle so that it becomes a completed vehicle; and 

(ii) Any person who distributes a completed vehicle of that manufacturer. 

(8) "Two-stage vehicle" means a motor vehicle that requires manufacturing operations performed by two separate manufacturers to produce a completed vehicle capable of performing its intended function. 

(b)  Transfers by manufacturers - In general.- Transfers of two-stage vehicles by manufacturers shall be made as provided in subsections (c) and (d) of this section. 

(c)  Transfers by manufacturers - Transfers from first-stage manufacturers to second-stage manufacturers.- At the time that any first-stage manufacturer transfers to a second-stage manufacturer a new incomplete vehicle that is to be sold or registered in this State, the first-stage manufacturer shall give the second-stage manufacturer a manufacturer's certificate of origin for the incomplete vehicle, assigned to the second-stage manufacturer by the first-stage manufacturer. 

(d)  Transfers by manufacturers - Transfers from second-stage manufacturers to dealers.- At the time that any second-stage manufacturer transfers to a dealer a new completed vehicle that is to be sold or registered in this State, the second-stage manufacturer shall give the dealer the manufacturer's certificates of origin issued by both the second-stage manufacturer and the first-stage manufacturer and assigned to the dealer by the second-stage manufacturer. 

(e)  Transfers by dealers - In general.- Transfers of new completed vehicles by dealers shall be made as provided in subsections (f), (g), and (h) of this section. 

(f)  Transfers by dealers - In-State franchise required.- Each dealer who holds a new completed vehicle for sale shall have a franchise in this State for the particular make of at least one stage of that vehicle. 

(g)  Certain transfers without certificates permitted - In general.- If the dealer's franchise is for the make of only the first stage of the completed vehicle, the dealer may transfer the vehicle, without obtaining a certificate of title, by executing an assignment and warranty of title accompanied by the certificates of origin issued by the first-stage manufacturer and the second-stage manufacturer. 

(h)  Certain transfers without certificates permitted - Franchise for make of second stage of completed vehicle.- If the dealer's franchise is for the make of only the second stage of the completed vehicle, the dealer may transfer the vehicle, without obtaining a certificate of title, by executing an assignment and warranty of title accompanied by the certificates of origin issued by the first-stage manufacturer and the second-stage manufacturer, if the certificate of origin issued by the first-stage manufacturer is assigned to the second-stage manufacturer. 

(i)  Notice in contract of sale for completed vehicle.- A dealer shall include in a contract for sale of a completed vehicle a notice in writing of: 

(1) The make and year of the first stage; and 

(2) The make, model, and year of the second stage. 
 

[An. Code 1957, art. 661/2, § 3-113.1A; 1977, ch. 14, § 2; 1986, ch. 472, § 1; ch. 696; 1987, chs. 191, 272.]