                                 CODE OF VIRGINIA

DEFINITIONS (§ 29.1-801)

Unless the context otherwise requires, the following words and terms for the
purpose of this chapter shall have the following meanings:
		&#8220;Certificate of origin&#8221; means the document provided by the
manufacturer of a new watercraft, or its distributor, which is the only valid
indication of ownership between the manufacturer, its distributor, its
franchised new watercraft dealers, and the original purchaser not for resale.
		&#8220;Distributor&#8221; means a person who sells or distributes new
watercraft, pursuant to a written agreement with the manufacturer, to new
watercraft dealers in this Commonwealth.
		&#8220;Distributor branch&#8221; means a branch office maintained by a
distributor for the sale of watercraft to watercraft dealers or for directing or
supervising, in whole or in part, its representatives in this Commonwealth.
		&#8220;Distributor representative&#8221; means a person employed by a
distributor or wholesaler, or by a distributor branch, for the purpose of making
or promoting the sale of watercraft dealt in by it or for supervising or
contacting its dealers, prospective dealers, or representatives in this
Commonwealth.
		&#8220;Established place of business&#8221; means a salesroom in a permanent
enclosed building or structure, either owned in fee or leased, at which a
permanent business of bartering, trading and selling of watercraft will be
carried on as such in good faith and at which place of business shall be kept
and maintained the books, records, and files necessary to conduct the business
at such place. &#8220;Established place of business&#8221; does not mean
residences, tents, temporary stands, or other temporary quarters, nor permanent
quarters occupied pursuant to any temporary arrangement, devoted principally to
the business of a watercraft dealer, as defined in this section.
		&#8220;Factory branch&#8221; means a branch office, maintained by a person for
the sale of watercraft to distributors or for the sale of watercraft to
watercraft dealers, or for directing or supervising, in whole or in part, its
representatives in this Commonwealth.
		&#8220;Factory representative&#8221; means a person employed by a person who
manufactures or assembles watercraft or by a factory branch for the purpose of
making or promoting the sale of its watercraft or for supervising or contacting
its dealers, prospective dealers, or representatives in this Commonwealth.
		&#8220;Franchise&#8221; means a written contract or agreement between two or
more persons whereby one person, the franchisee, is granted the right to engage
in the business of offering, selling and servicing new watercraft manufactured
or distributed by the grantor of the right, the franchisor, and where the
operation of the franchisee&#8217;s business is substantially associated with
the franchisor&#8217;s trademark, trade name, advertising, or other commercial
symbol designating the franchisor, the watercraft or its manufacturer or
distributor.
		&#8220;Manufacturer&#8221; means a person engaged in the business of
constructing or assembling new watercraft.
		&#8220;New watercraft&#8221; means any watercraft that (i) has not been
previously sold except in good faith for the purpose of resale; (ii) has not
been used as a rental or demonstration watercraft, or for the personal and
business transportation of the manufacturer or dealer or any of their employees,
for any use other than the limited use necessary in testing the watercraft prior
to delivery to a customer; (iii) is transferred by a certificate of origin; and
(iv) has the manufacturer&#8217;s certification that it conforms to all
applicable federal watercraft safety standards.
		&#8220;New watercraft dealer&#8221; means a dealer in new watercraft or new
and used watercraft.
		&#8220;Person&#8221; means any natural person or individual, partnership,
firm, association, corporation, or other entity.
		&#8220;Retail installment sale&#8221; means and includes every sale of one or
more watercraft to a buyer for his use and not for resale, in which the price
thereof is payable in one or more installments over a period of time and in
which the seller has either retained title to the goods or has taken or retained
a security interest in the goods under form of contract designated either as a
conditional sale, bailment lease, chattel mortgage or otherwise.
		&#8220;Sale at retail&#8221; or &#8220;retail sale&#8221; means the act or
attempted act of selling, bartering, exchanging, or otherwise disposing of a
watercraft to a buyer for his personal use and not for resale.
		&#8220;Sale at wholesale&#8221; or &#8220;wholesale&#8221; means a sale to
watercraft dealers or wholesalers other than to consumers or a sale to one who
intends to resell.
		&#8220;Used watercraft&#8221; means any watercraft other than a new watercraft
as defined in this section.
		&#8220;Used watercraft dealer&#8221; means a dealer in used watercraft that
does not deal in new watercraft.
		&#8220;Watercraft&#8221; means the same as that term is defined in §
29.1-733.2 except that (i) United States naval watercraft, (ii) watercraft that
have a valid marine document issued by the United States Coast Guard other than
recreational watercraft under 70 feet in length, and (iii) watercraft documented
outside the United States are not included in such definition for purposes of
this chapter.
		&#8220;Watercraft dealer&#8221; means any person that:

1. For commission, money, or other thing of value, buys, sells, exchanges,
either outright or on conditional sale, bailment lease, chattel mortgage, or
otherwise howsoever, or arranges or offers or attempts to solicit or negotiate
on behalf of others a sale, purchase, or exchange of an interest in, new
watercraft or new and used watercraft or used watercraft alone whether or not
such watercraft are owned by such person;

2. Is engaged, wholly or in part, in the business of selling new watercraft or
new and used watercraft, or used watercraft only, whether or not such watercraft
are owned by such person; or

3. Sells, offers to sell, displays, or permits the display for sale of two or
more watercraft within any 12 consecutive months.
			For the purpose of this chapter, &#8220;watercraft dealer&#8221; does not
include:

1. Receivers, trustees, administrators, executors, guardians, conservators, or
other persons appointed by or acting under judgment or order of any court or
their employees when engaged in the specific performance of their duties as such
employees;

2. Public officers, their deputies, assistants, or employees, while performing
their official duties;

3. Persons, other than corporations or other business entities primarily engaged
in the leasing or renting of watercraft to others, (i) when selling or offering
such watercraft for sale at retail or (ii) disposing of watercraft acquired for
their own use and actually so used, when the same shall have been so acquired
and used in good faith and not for the purpose of avoiding the provisions of
this chapter;

4. Any corporation duly chartered or authorized to do a banking or trust
business under the authority of the laws of this Commonwealth, or the United
States, that may have received title to a watercraft in the normal course of its
business by reason of a foreclosure, other taking, repossession or voluntary
reconveyance to said corporation arising or occurring as a result of any loan
secured by a lien on said watercraft;

5. An employee of an organization arranging for the purchase or lease by the
organization of watercraft for use in the organization&#8217;s business;

6. Any person who permits the operation of a watercraft show or permits the
display of watercraft for sale by any watercraft dealer licensed under this
chapter; or

7. An insurance company licensed or otherwise authorized to do business in this
Commonwealth that sells or disposes of watercraft under a contract with its
insured and in the regular course of its business.
			&#8220;Watercraft demonstrator&#8221; means any person who is employed or
contracted by a watercraft dealer to demonstrate watercraft to prospective
buyers.
			&#8220;Watercraft salesman&#8221; or &#8220;salesman&#8221; means any person
who is employed as a salesman by, or has an agreement with, a watercraft dealer
to sell or exchange watercraft.
			&#8220;Watercraft show&#8221; means a display of watercraft to the general
public at a location other than a dealer&#8217;s location licensed under this
chapter where such watercraft may be offered for sale or exchange during or as
part of the display.

HISTORY: 1988, c. 592; 1989, c. 140; 1997, c. 801; 1998, c. 515; 2013, c. 787;
2020, c. 958.