| (a) A dealer must provide written authorization to
each person with whom the dealer's agent or employee will conduct
business on behalf of the dealer, including to a person that:
(1) buys and sells motor vehicles for resale; or
(2) operates a licensed auction.
(b) If a dealer's agent or employee that conducts business
on behalf of the dealer commits an act or omission that would be cause
for denial, revocation, or suspension of a license in accordance with
Occupations Code, Chapter 2301, the board may:
(1) deny an application for a license; or
(2) revoke or suspend a license.
(c) The board may take action described in subsection
(b) of this section after notice and an opportunity for hearing, in
accordance with Occupations Code, Chapter 2301.
(d) A dealer's authorization to an agent or employee
shall:
(1) be in writing;
(2) be signed by the dealer principal or person in
charge of daily activities of the dealership;
(3) include the agent's or employee's name, current
mailing address, and telephone number;
(4) include the dealer's business name, address, and
dealer license number or numbers;
(5) expressly authorize buying or selling by the specified
agent or employee;
(6) state that the dealer is liable for any act or
omission regarding a duty or obligation of the dealer that is caused
by that agent or employee, including any financial considerations
to be paid for the vehicle;
(7) state that the dealer's authorization remains in
effect until the recipient of the written authorization is notified
in writing of the revocation of the authority; and
(8) be maintained as a required dealer's record and
made available upon request by a representative of the department,
in accordance with the requirements of §215.144 of this title
(relating to Records).
(e) A license holder, including a wholesale motor vehicle
auction license holder that buys and sells vehicles on a wholesale
basis, including by sealed bid, is required to verify the authority
of any person claiming to be an agent or employee of a licensed dealer
who purports to be buying or selling a motor vehicle:
(1) on behalf of a licensed dealer; or
(2) under the written authority of a licensed dealer.
(f) A title to a vehicle bought by an agent or employee
of a dealer shall be:
(1) reassigned to the dealer by the seller or by the
auction; and
(2) shall not be delivered to the agent or employee,
but delivered only to the dealer or the dealer's financial institution.
(g) Notwithstanding the prohibitions in this section,
an authorized agent or employee may sign a required odometer statement.
(h) In a wholesale transaction for the purchase of
a motor vehicle, the seller may accept as consideration only:
(1) a check or a draft drawn on the purchasing dealer's
account;
(2) a cashier's check in the name of the purchasing
dealer; or
(3) a wire transfer from the purchasing dealer's bank
account.
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