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LegalEagle1
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I live in Michigan and am interested in law 257.248

Resolved Question:

I live in Michigan and am interested in law 257.248 of Michigan law regarding the number of cars a "person" can legally buy and sell in any given 12 month period. Can a "person" be interpreted as a household or is it by dictionary definition, a sole individual? In other words can I as an individual buy and sell 4 cars and can my wife also buy and sell 4 cars as an individual? Also the law says nothing of repeated sales of cars: I.e.4 cars a year for multiple years. Can the state pursue an individual for repeated sales of 4 cars per year for multiple years without a dealers license,since the law reads the person must have a dealers license only if they buy and sell 5 or more vehicles. Any help in clarifying this would be great. thanks.

Submitted: 1 year ago.
Category: Legal
Expert:  LegalEagle1 replied 1 year ago.
I could find no published decisions which address the issue of whether two people in the same household selling more than four cars in a year is a violation of §257.248.

§257.248 is poorly written because it leaves the person open to interpretation.

§257.248 and the act the enacted do not define person. Person is defined several different ways in the Michigan statutes. One definition of person is that it "means an individual, sole proprietorship, partnership, limited partnership, limited liability partnership, limited liability company, joint venture, profit or nonprofit corporation including a public or private college or university, public utility, municipality, local industrial development corporation, economic development corporation, or other association of persons organized for agricultural, commercial, or industrial purposes." (See §125.2004.) So if you are assisting your wife in selling the vehicle you may run afoul of the statue. It is not clear how they will define a person.

Elsewhere in the code it is not as broad. I suspect if you sell another car they will argue that you part of an association of persons organized for commercial purposes.


If your wife sells cars completely independent of you that would most likely be permitted. The statute states "A person shall not carry on or conduct the business of buying, selling, brokering, leasing, negotiating a lease, or dealing in 5 or more [vehicles]" A person does not have title a vehicle in there name in order engage in the described conduct. So if you take part in a sale in which another person's name is on the title you could face sanctions under the statute.

The 12 month period is a rolling 12 month period. You have to 12 months between the 1st and 5th vehicle you sell. You can sell on a continuous cycle.


I hope that I have answered your question. Please let me know if you have more questions or need more information.

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Customer: replied 1 year ago.

First off-thanks for the assistance. I just have one thing that needs clarification. If I as an individual do 4 cars within any given 12 month period continually for multiple years am I violating the law in question? And can they legally keep me from selling any cars I may possess if I haven't gone over the limit of 4? Thanks again.

Expert:  LegalEagle1 replied 1 year ago.
If I as an individual do 4 cars within any given 12 month period continually for multiple years am I violating the law in question?

No you would not be in violation of §257.248.

And can they legally keep me from selling any cars I may possess if I haven't gone over the limit of 4?

No they cannot. You can only be involved in 4 transactions of buying, selling, brokering, leasing, negotiating a lease, or dealing of 4 vehicles during any 12 month period. So if you assist another person in selling 1 car you have 3 left that you can sell.

I hope that I have answered your question. Please let me know if you have more questions or need more information.

_________________________________________________________________
Please rate my answers with a positive rating (three or more stars) as this is the only way I receive credit and compensation for my work. If you have additional questions or need more information, please ask.

My goal is to provide with best assistance that I can. Please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

Also keep in mind that the law may not always be settled or may not support the position you want. My role is not to tell you what you want to hear. but to provide you accurate information as to what the law provides. Please do not rate me poorly just because the information I have provided does not support the outcome you desire.

You can always request me through my profile at http://www.justanswer.com/law/expert-legaleagle1 also begin your question with “For LegalEagle1”
_________________________________________________________________
Use of this service does not create any attorney client relationship. Information provided is intended to explain general legal principles and assist you in finding an attorney in your area.

Please click "Great" or better to rate service.
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