210                                        LAWS OF MARYLAND                                Ch. 140

CHAPTER 140
(House Bill 251)

AN ACT to repeal and re-enact, with amendments, Section 5-401(a) of Article 66
1/2 of the Annotated Code of Maryland (1970 Replacement Volume), title
"Vehicle Laws," subtitle "5, Licensing of Dealers. Wreckers. Scrap Processors
and Vehicle Salesmen." subheading "Part IV. Unlawful Acts by Dealers and
Vehicle Salesmen," to make unlawful a motor vehicle dealer, salesman, agent,
or employee Hallowing]] knowingly permitting a person to road test a motor
vehicle without ascertaining that the person has a [[proper driver's license.]]
VALID DRIVER'S LICENSE, OF THE APPROPRIATE
CLASSIFICATION.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 5-401 (a) of Article 66 1/2 of the Annotated Code of
Maryland (1970 Replacement Volume), title "Vehicle Laws," subtitle "5.
Licensing of Dealers. Wreckers. Scrap Processors and Vehicle Salesmen."
subheading "Part IV. Unlawful Acts by Dealers and Vehicle Salesmen," be and it
is hereby repealed and re-enacted, with amendments, to read as follows:

5-401.

(a) The following acts of any dealer, vehicle salesman, or agent or employee of a
dealer are unlawful, and are misdemeanors:

1.   Wilful failure to perform, without justification, any valid vehicle sales
contract; or material deviation from or disregard of the original terms without the
consent of the purchaser;

2.   Failure of a salesman to account for and to remit to the dealership, any
payment received in connection with a vehicle sales contract;

3.  Making any material misrepresentation in the procurement of a vehicle sales
contract;

4.  Any fraud in the execution or material alteration of any contract, power of
attorney, or other document incident to a sales transaction;

5.    Preparing or accepting any promissory note, or other evidence of
indebtedness upon the obligations of a vehicle sales transaction with knowledge
that it recites a greater monetary obligation than the consideration together with
finance charges and other valid legal charges originally agreed upon in writing by
the buyer and seller;

6.   Directly or indirectly publishing any advertisement relating to vehicle sales
which contains an insertion, representation or statement of fact which is false,
deceptive, or misleading; provided that any advertisement which is subject to and
complies with the then existing rules, regulations, or guides of the Federal Trade
Commission shall not be deemed false, deceptive, or misleading; or by any means
advertising or purporting to offer the general public any vehicle with the intent not
to accept contracts for that particular vehicle or at the price which is advertised or
offered to the public;

7.  Wilful or deliberate disregard and violation of the dealer license laws of this
State;

8.  Doing any vehicle sales business with or through any person who is subject to
the licensing requirements of this subtitle with the knowledge that subject person is
not licensed as required;