Cal. VEH § 11736
This is the official text of Cal. VEH § 11736, part of California’s Vehicle Code — governs traffic laws, driver's licenses, and vehicle registration.
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Official statutory text
It is unlawful for any dealer licensed under this article to do any of the following when brokering a retail sale:
(a) Fail to execute a written brokering agreement, as described in Section 11738, and provide a completed copy to both of the following:
(1) Any consumer entering into the brokering agreement. The completed copy shall be provided prior to the consumer’s signing of an agreement for the purchase of the vehicle described in the brokering agreement or, prior to accepting one hundred dollars ($100) or more from that consumer, whichever occurs first.
(2) The selling dealer. The completed copy shall be provided prior to the selling dealer’s entering into a purchase agreement with the consumer.
(b) Accept a purchase deposit from any consumer that exceeds 2.5 percent of the selling price of the vehicle described in the brokering agreement.
(c) Fail to refund any purchase money, including purchase deposits, upon demand by a consumer at any time prior to the consumer’s signing of a vehicle purchase agreement with a selling dealer and taking delivery of the vehicle described in the brokering agreement.
(d) Fail to cancel a brokering agreement and refund, upon demand, any money paid by a consumer, including any brokerage fee, under any of the following circumstances:
(1) When the final price of the brokered vehicle exceeds the purchase price listed in the brokering agreement.
(2) When the vehicle delivered is not as described in the brokering agreement.
(3) When the brokering agreement expires prior to the customer being presented with a purchase agreement from a selling dealer arranged through the brokering dealer that contains a purchase price at or below the price listed in the brokering agreement.
(e) Act as a seller and provide brokering services, both in the same transaction.
(f) Fail to disclose to the consumer and selling dealer, as soon as practicable, whether the autobroker receives or does not receive a fee or other compensation, regardless of the form or time of payment, from the selling dealer and the dollar amount of any fee that the consumer is obligated to pay to the autobroker. This arrangement shall be confirmed in a brokering agreement.
(g) Fail to record in the dealer’s autobroker log, for each brokered sale, all of the information specified in subdivision (c) of Section 11735.
(h) Fail to maintain for a minimum of three years a copy of the executed brokering agreement and other notices and documents related to each brokered transaction.
(i) Fail to advise the consumer, prior to accepting any money, that a full refund will be given if the motor vehicle ordered through the autobroker is not obtained for the consumer or if the service orally contracted for is not provided.
(a) Fail to execute a written brokering agreement, as described in Section 11738, and provide a completed copy to both of the following:
(1) Any consumer entering into the brokering agreement. The completed copy shall be provided prior to the consumer’s signing of an agreement for the purchase of the vehicle described in the brokering agreement or, prior to accepting one hundred dollars ($100) or more from that consumer, whichever occurs first.
(2) The selling dealer. The completed copy shall be provided prior to the selling dealer’s entering into a purchase agreement with the consumer.
(b) Accept a purchase deposit from any consumer that exceeds 2.5 percent of the selling price of the vehicle described in the brokering agreement.
(c) Fail to refund any purchase money, including purchase deposits, upon demand by a consumer at any time prior to the consumer’s signing of a vehicle purchase agreement with a selling dealer and taking delivery of the vehicle described in the brokering agreement.
(d) Fail to cancel a brokering agreement and refund, upon demand, any money paid by a consumer, including any brokerage fee, under any of the following circumstances:
(1) When the final price of the brokered vehicle exceeds the purchase price listed in the brokering agreement.
(2) When the vehicle delivered is not as described in the brokering agreement.
(3) When the brokering agreement expires prior to the customer being presented with a purchase agreement from a selling dealer arranged through the brokering dealer that contains a purchase price at or below the price listed in the brokering agreement.
(e) Act as a seller and provide brokering services, both in the same transaction.
(f) Fail to disclose to the consumer and selling dealer, as soon as practicable, whether the autobroker receives or does not receive a fee or other compensation, regardless of the form or time of payment, from the selling dealer and the dollar amount of any fee that the consumer is obligated to pay to the autobroker. This arrangement shall be confirmed in a brokering agreement.
(g) Fail to record in the dealer’s autobroker log, for each brokered sale, all of the information specified in subdivision (c) of Section 11735.
(h) Fail to maintain for a minimum of three years a copy of the executed brokering agreement and other notices and documents related to each brokered transaction.
(i) Fail to advise the consumer, prior to accepting any money, that a full refund will be given if the motor vehicle ordered through the autobroker is not obtained for the consumer or if the service orally contracted for is not provided.
Status: in_force · Read it on the official government site
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