(1)
Contract.
How must I handle a consignment transaction?
(a) It shall be considered an unlawful
practice within the meaning of
RCW
46.70.180(2) for a vehicle
dealer to accept any vehicle on consignment without first reducing the terms of
the consignment to writing.
(b) All consignment contracts must
include:
(i) The names of the parties
to the contract including the identity of the legal owner of the consigned
vehicle.
(ii) The consignor's
statement that guarantees to deliver the title to the dealer-consignee upon
sale of the vehicle which identifies the location of the title and states the
unpaid balance owing on the vehicle, if any.
(iii) The date of the consignment
agreement.
(iv) The specific
effective duration of the contract.
(v) The agreed upon amount which will be paid
to the consignor.
(vi) The
description of the consigned vehicle, by make, model, vehicle identification
number, and license number.
(vii)
The signatures of the parties to the contract.
(viii) If no amount has been specified in (v)
above, then the minimum retail price and the commission, fee, or compensation
to which the dealer-consignee will be entitled upon the sale of the consigned
vehicle.
(2)
In the event the dealer-consignee and the consignor shall deem it appropriate
to vary the terms of the written contract, the dealer-consignee shall obtain
written authorization from the consignor prior to the sale of the subject
vehicle.
(3)
Requirements for
selling consigned vehicles.
(a) All
funds received, including deposits or payments in full or proceeds from the
sale of trade-ins, must be placed in a trust account as required under
RCW
46.70.180(9), and said funds
must remain in that trust account until the consignor's and any lienholder
interests have been fully satisfied. It shall be considered an unlawful
practice for a vehicle dealer or salesperson to commingle funds received on a
consigned vehicle with the assets of the dealer and/or the salesperson until
all terms of the agreement have been completed.
(b) The amount due a consignor and any
lienholder from the sale of the consigned vehicle must be paid by the consignee
within ten days following delivery of the vehicle to the purchaser.
(c) At the same time payment is made pursuant
to (b) of this subsection, the dealer must give to the consignor a copy of the
purchase order used in the sale.
(4)
Consignee's duty to transfer title.
(a) The sale of consigned vehicles
imposes upon the consignee-dealer the same duty under
RCW
46.70.122 to promptly transfer title into the
name of the purchaser as in any other sale.
(b) Prior to accepting a vehicle for
consignment and offering it for sale, it shall be the duty of the consignee to
verify or confirm the title location. Failure to do so shall be considered an
unlawful and deceptive practice under
RCW
46.70.180(2).