When a dealer takes over another dealer's account, which action is not a legal requirement?

When a dealer takes over another dealer's account, ensuring all financial obligations to the previous dealer have been satisfied is not a legal requirement. Instead, this step is generally considered a matter of ethical business practice rather than a legal obligation. The transfer of dealer accounts involves handling ongoing customer relationships and contracts, which typically means notifying the previous dealer, compensating them for their goodwill or established business, and transferring ownership documents to maintain continuity in service and compliance with regulations.

Legal requirements often focus on the transfer of responsibilities and documentation rather than the fulfillment of financial agreements, which can be more subjective and dependent on the specific circumstances of the ownership change. While it may be prudent to settle any debts to prevent disputes or potential legal issues down the line, it is not mandated as a part of the account takeover process.