Registration for authorization to operate garage: Agreement to submit to binding arbitration; filing of bond or deposit of money or securities in lieu of agreement; procedure for conducting arbitration; penalty for failure to submit to arbitration as agreed.
1. Each person who submits an application for registration pursuant to the provisions of NRS 487.560 must include in the application a written statement to the Department that specifies whether he agrees to submit to binding arbitration any claims against him arising out of a contract for repairs made by him to a motor vehicle. If the person fails to submit the statement to the Department or specifies in the statement that he does not agree to arbitrate those claims, the person shall file with the Department a bond in the amount of $5,000, with a corporate surety for the bond that is licensed to do business in this State. The form of the bond must be approved by the Attorney General and be conditioned upon whether the applicant conducts his business as an owner or operator of a garage without fraud or fraudulent representation and in compliance with the provisions of NRS 487.035, 487.530 to 487.570, inclusive, and 597.480 to 597.590, inclusive.
2. The bond must be continuous in form and the total aggregate liability on the bond must be limited to the payment of the total amount of the bond.
3. In lieu of a bond required to be filed pursuant to the provisions of subsection 1, a person may deposit with the Department, pursuant to the terms prescribed by the Department:
(a) A like amount of money or bonds of the United States or of the State of Nevada of an actual market value of not less than the amount fixed by the Department; or
(b) A savings certificate of a bank or savings and loan association located in this State, which must indicate an account of an amount equal to the amount of the bond that would otherwise be required pursuant to this section and that the amount is unavailable for withdrawal except upon order of the Department. Interest earned on the certificate accrues to the account of the applicant.
4. If a claim is arbitrated pursuant to the provisions of this section, the proceedings for arbitration must be conducted in accordance with the provisions of NRS 38.206 to 38.248, inclusive.
5. If a person:
(a) Submits the statement to the Department specifying that he agrees to arbitrate a claim pursuant to the provisions of subsection 1; and
(b) Fails to submit to binding arbitration any claim specified in that subsection,
Ê the person asserting the claim may notify the Department of that fact. Upon receipt of the notice, the Department shall, after notice and hearing, revoke or refuse to renew the certificate of registration of the person who failed to submit the claim to arbitration.
6. If a person fails to comply with an order of a court that relates to the repair of a motor vehicle, the Department shall, after notice and hearing, revoke or refuse to renew the certificate of registration of the person who failed to comply with the order.
7. The Department may reinstate or renew a certificate of registration that is:
(a) Revoked pursuant to the provisions of subsection 5 if the person whose certificate of registration is revoked:
(1) Submits the claim to arbitration pursuant to the provisions of subsection 4 and notifies the Department of that fact; or
(2) Files a bond or makes a deposit with the Department pursuant to the provisions of this section.
(b) Revoked pursuant to the provisions of subsection 6 if the person whose certificate of registration is revoked complies with the order of the court.
Last modified: February 25, 2006