Skip to Content
If you are involved in the motor vehicle parts industry in Ohio, be aware of critical licensing requirements that may apply to your business operations. Ohio Revised Code Chapter 4738 mandates that individuals and entities engaged in the business of selling salvage motor vehicle parts at retail must obtain a motor vehicle salvage dealer’s license. This applies to anyone conducting business with the intent of financial gain or benefit. Casual sales, or transfers made during the disposition of substantially all assets, may be exempt, as the law primarily targets those selling parts from salvaged vehicles or vehicles in a wrecked, dismantled, or unfit condition.
If licensure is necessary, dealers must meet several stringent requirements. First, they must maintain a minimum net worth of $20,000. Their facilities must encompass a minimum area of 50,000 contiguous square feet, enclosed by a fence or hedge between six to ten feet in height, with all inventories stored within this area. Additionally, dealers must have an office space of at least 225 square feet, equipped with a dedicated sales area and a business telephone line.
Several documentation and procedural steps are required for licensure. Prospective dealers must register their business in Ohio, which can include sole proprietorship. Each business owner must complete a criminal background check and fingerprinting, submit the appropriate forms to the Ohio Department of Public Safety, and submit curtain required photographs of the proposed business location.
In addition, once licensed, dealers are obligated to maintain comprehensive records for three years, including sales invoices for salvage motor vehicle parts sold.
Failure to adhere to the regulations outlined in Ohio Revised Code Chapter 4738 can result in significant legal consequences. The Ohio Attorney General can seek temporary restraining orders, preliminary injunctions, or permanent injunctions to halt non-compliant activities. Additionally, fines of up to $5,000 per day may be imposed for violations of these orders.
Ensuring compliance with Ohio’s motor vehicle salvage dealer licensing requirements is crucial for individuals or businesses operating in this sector. Adhering to these regulations not only avoids legal penalties but also promotes a transparent and trustworthy business environment. For detailed assistance or to initiate the licensing process, please contact our law firm for professional guidance.
NOTE: This general summary of the law should not be used to solve individual problems since slight changes in the fact situation may require a material variance in the applicable legal advice.
Written by:
Nathan C. Newcomer, Esq.
Krugliak, Wilkins, Griffiths & Dougherty Co., L.P.A.
4775 Munson St. NW, Canton, OH 44718
330-497-0700
nnewcomer@kwgd.com