Section 322.7B - Consignment sales of motor trucks.

IA Code § 322.7B (2019) (N/A)

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322.7B Consignment sales of motor trucks.

A licensed motor vehicle dealer may sell a used motor truck on a consignment basis if all of the following conditions apply:

1. The dealer is licensed to sell used motor vehicles.

2. The motor truck offered for sale has a gross vehicle weight rating of twenty-six thousand one or more pounds.

3. The dealer prominently displays the words “consignment vehicle” on the motor truck and indicates clearly in the sales documentation that the motor truck is a consignment vehicle. The dealer shall put customers on notice that the dealer does not have title to the vehicle and does not warranty the title.

4. The purchaser certifies to the dealer that the person is either a corporation, limited liability company, or partnership or a person who files a schedule C or schedule F form for federal income tax purposes, and that the motor truck is being purchased for business purposes, and not for personal use.

5. The dealer assumes no liability for damages resulting from a customer’s test drive of the motor truck, and the consignor maintains financial liability coverage as required under section 321.20B or 325A.6, as appropriate, for the motor truck throughout the term of the consignment.

2014 Acts, ch 1123, §32

Referred to in §321.48, 322.9

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