2013 Kentucky Revised Statutes CHAPTER 190 - MOTOR VEHICLE SALES 190.040 Grounds for denial, suspension, or revocation of license -- Notice of denial of application for license -- Hearings -- Inspection of licensee's records -- Appeals from order of commission.
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190.040 Grounds for denial, suspension, or revocation of license -- Notice of
denial of application for license -- Hearings -- Inspection of licensee's
records -- Appeals from order of commission.
(1)
A license may be denied, suspended, or revoked on the following grounds:
(a) Proof of financial or moral unfitness of applicant;
(b) Material misstatement in application for license;
(c) Filing a materially false or fraudulent tax return as certified by the
Department of Revenue;
(d) Willful failure to comply with any provision of this chapter or any
administrative regulation promulgated under this chapter;
(e) Willfully defrauding any retail buyer to the buyer's damage;
(f) Willful failure to perform any written agreement with any buyer;
(g) Failure or refusal to furnish and keep in force any bond required;
(h) Having made a fraudulent sale, transaction, or repossession;
(i) False or misleading advertising;
(j) Fraudulent misrepresentation, circumvention, or concealment through
subterfuge or device of any of the material particulars or the nature of
them required to be stated or furnished to the retail buyer;
(k) Employment of fraudulent devices, methods, or practices in connection
with compliance with the requirements under the statutes of this state with
respect to the retaking of goods under retail installment contracts and the
redemption and resale of goods;
(l) Having violated any law relating to the sale, distribution, or financing of
motor vehicles;
(m) Being a manufacturer of motor vehicles, factory branch, distributor, field
representative, officer, agent, or any representative of the motor vehicle
manufacturer or factory branch, who has induced, coerced, or attempted
to induce or coerce any automobile dealer to accept delivery of any motor
vehicle, vehicles, parts, accessories, or any other commodities that shall
not have been ordered by the dealer;
(n) Being a manufacturer of motor vehicles, factory branch, distributor, field
representative, officer, agent, or any representative of a motor vehicle
manufacturer or factory branch, who has attempted to induce or coerce,
or has induced or coerced, any automobile dealer to enter into any
agreement with a manufacturer, factory branch, or representative, or to do
any other act unfair to the dealer, by threatening to cancel any franchise
existing between a manufacturer, factory branch, or representative and
the dealer;
(o) Being a manufacturer, factory branch, distributor, field representative,
officer, agent, or any representative of a motor vehicle manufacturer or
factory branch, who has unfairly, without due regard to the equities of the
dealer and without just provocation, canceled the franchise of any motor
vehicle dealer. The nonrenewal of a franchise or selling agreement
without just provocation or cause shall be deemed an evasion of this
section and shall constitute an unfair cancellation;
(p)
(2)
(3)
(4)
(5)
(6)
Being a manufacturer, factory branch, distributor, field representative,
officer, agent, or any representative of a motor vehicle manufacturer or
factory branch, or wholesaler who makes, attempts to make, or aids or
abets the making of a sale of a motor vehicle to a person other than a
licensed motor vehicle dealer. This section shall not prevent any
manufacturer from offering discounts or rebates on any motor vehicle to
any of its employees; or
(q) Being a dealer who advertises for sale a new motor vehicle unless he is a
dealer operating under a franchise with a licensed manufacturer, factory
branch, or distributor authorizing the sale of the new motor vehicle being
advertised.
The licensor may deny the application for a license within thirty (30) days after
receipt thereof by written notice to the applicant, stating the grounds for denial.
Upon request by the applicant whose license has been denied, the licensor
shall set the time and place of hearing a review of denial, to be conducted in
accordance with KRS Chapter 13B.
A license shall not be suspended or revoked except after a hearing conducted
in accordance with KRS Chapter 13B.
The commission may inspect the pertinent books, letters, records, and
contracts of a licensee.
If a licensee is a firm or corporation, it shall be sufficient cause for the denial,
suspension, or revocation of a license that any officer, director, or trustee of the
firm or corporation, or any member in case of a partnership, has been guilty of
any act or omission which would be cause for refusing, suspending, or
revoking a license to the party as an individual. Each licensee shall be
responsible for the acts of any or all of his salesmen while acting as his agent,
if the licensee approved of or had knowledge of the acts and after approval or
knowledge retained the benefit, proceeds, profits, or advantages accruing from
the acts.
Any licensee or other person in interest who is dissatisfied with a final order of
the commission may appeal to the Franklin Circuit Court and to the Court of
Appeals in the manner provided by KRS Chapter 13B.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 616, effective June 20, 2005. -Amended 2000 Ky. Acts ch. 23, sec. 2, effective February 22, 2000; and
ch. 216, sec. 2, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 111,
sec. 3, effective July 15, 1996; and ch. 318, sec. 76, effective July 15, 1996. -Amended 1992 Ky. Acts ch. 452, sec. 4, effective July 14, 1992. -- Amended
1982 Ky. Acts ch. 374, sec. 7, effective July 15, 1982. -- Amended 1974 Ky.
Acts ch. 74, Art. IV, sec. 20(2). -- Amended 1972 Ky. Acts ch. 211, sec. 2. -Amended 1966 Ky. Acts ch. 175, sec. 5. -- Created 1956 Ky. Acts ch. 161,
sec. 4.
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