Well I needed a hobby and wanted to start a new business and fell into this MB thing. Things started out great and I have sold 6 units, 2 motors and 4 bikes. I am currently assisting on 3 builds ( getting paid) and have 4 orders to complete (full builds). All this happened in less then 2 months and I also have 6 tentative orders being worked out and several planned assists.
It seemed like immediate success, despite a few ordering glitches, and people just keep calling after a direct mail advertising test. Originally I was thinking people with suspended licenses would be a niche market and the demand would be high. I was right as everyone of my customers, except one motor sale and one bike sale, are in this situation.
SO I start looking into the legal stuff and consult my attorney and insurance agent to get everything in line. I live in Oregon so these things below I ran into are Oregon specific and/or State Farm specific.
Oregon Law:
Moped defined as no more then 50CC and can not go over 30 mph level ground.
Pedal assisted Bike (Street Legal) no more the 35 CC or 25 mph level ground.
Business Crushing (game over) laws:
No insurance available on Pedal assisted bikes unless registered as moped (which is possible) but then you must have class C license.
If on road and in wreck on pedal assisted bike between 35 cc and 50cc (or larger law defines that as moped) your at fault regardless of situation as no registration, insurance, or possible license. No way to skirt CC motor size law with such ramifications. Over 50cc you need motorcycle endorsement to drive "moped" legally.
If there was a less then 35 cc motor available and I built bikes with those, even though no license or registration are required, you still have insurance issue but the crushing blow is you must be eligible for a license (not suspended or revoked) to drive it legally.
I am glad I talked with attorney because after he reviewed all the laws it put me at great risk advertising no license required. He also suggested that even selling the motors may open me up to liability - especially advertising no license or registration.
Most police are over looking the CC law or misunderstand it as I called many different precincts and counties and asked. All told me under 50 cc does not need to be registered or that you don’t need a license to operate.
So in good conscience I can not go forward with the original business plan or go after the original niche. I will continue to assist builds and consult but for liability reasons I won’t order parts or build bikes for sale.
What a bummer as there is money to be made but I guess that’s the way it goes some times Now I will just build my bad arse bike I wanted as a hobby bike and it will stay a consulting service. If I can meet all the legal requirements for someone as stated above I will do that but the demand just isn’t there for "normal" situations to justify the investment.
So anyone in Oregon these are the laws regardless if the police understand it or not. If you get into a wreck, your fault or not, I am sure the attorney representing the other person can rip into your wallet or worse!
It seemed like immediate success, despite a few ordering glitches, and people just keep calling after a direct mail advertising test. Originally I was thinking people with suspended licenses would be a niche market and the demand would be high. I was right as everyone of my customers, except one motor sale and one bike sale, are in this situation.
SO I start looking into the legal stuff and consult my attorney and insurance agent to get everything in line. I live in Oregon so these things below I ran into are Oregon specific and/or State Farm specific.
Oregon Law:
Moped defined as no more then 50CC and can not go over 30 mph level ground.
Pedal assisted Bike (Street Legal) no more the 35 CC or 25 mph level ground.
Business Crushing (game over) laws:
No insurance available on Pedal assisted bikes unless registered as moped (which is possible) but then you must have class C license.
If on road and in wreck on pedal assisted bike between 35 cc and 50cc (or larger law defines that as moped) your at fault regardless of situation as no registration, insurance, or possible license. No way to skirt CC motor size law with such ramifications. Over 50cc you need motorcycle endorsement to drive "moped" legally.
If there was a less then 35 cc motor available and I built bikes with those, even though no license or registration are required, you still have insurance issue but the crushing blow is you must be eligible for a license (not suspended or revoked) to drive it legally.
I am glad I talked with attorney because after he reviewed all the laws it put me at great risk advertising no license required. He also suggested that even selling the motors may open me up to liability - especially advertising no license or registration.
Most police are over looking the CC law or misunderstand it as I called many different precincts and counties and asked. All told me under 50 cc does not need to be registered or that you don’t need a license to operate.
So in good conscience I can not go forward with the original business plan or go after the original niche. I will continue to assist builds and consult but for liability reasons I won’t order parts or build bikes for sale.
What a bummer as there is money to be made but I guess that’s the way it goes some times Now I will just build my bad arse bike I wanted as a hobby bike and it will stay a consulting service. If I can meet all the legal requirements for someone as stated above I will do that but the demand just isn’t there for "normal" situations to justify the investment.
So anyone in Oregon these are the laws regardless if the police understand it or not. If you get into a wreck, your fault or not, I am sure the attorney representing the other person can rip into your wallet or worse!