2009 Louisiana Laws TITLE 32 Motor vehicles and traffic regulation :: RS 32:792 Denial, revocation, or suspension of license; grounds; unauthorized acts

§792.  Denial, revocation, or suspension of license; grounds; unauthorized acts

A.  Except as otherwise provided in this Section, the commission may deny an application for a license as a used motor vehicle dealer or salesperson for any of the following reasons:

(1)  On satisfactory proof of unfitness of the applicant under the standards established by this Part or in rules or regulations adopted and promulgated by the commission.

(2)  Being convicted of a felony crime.

(3)  Any material false statement made by the applicant on any application for licensure under the provisions of this Part.

(4)  Where the applicant has, under a previous license, committed a violation of any law or rule or regulation adopted and promulgated by the commission.

B.  The commission may revoke or suspend a license, issue a fine or penalty, or enjoin a used motor vehicle dealer or salesperson for any of the following conduct:

(1)  A change of condition after the license has been granted resulting in failure to maintain the qualifications for licensure, including but not limited to:

(a)  Failure to keep an established place of business.

(b)  Failure to furnish or keep in force garage liability insurance on any vehicle, except for trailers, offered for sale and otherwise required under the financial responsibility laws of this state.

(c)  Failure to furnish or keep in force any bond required under this Part.

(d)  Use of false, misleading, or unsubstantiated advertising in connection with his business.

(2)  Committing a fraudulent act in selling, purchasing, or dealing in used motor vehicles or misrepresenting the terms and conditions of a sale, purchase, or contract for sale or purchase of a used motor vehicle or any interest including an option to purchase.

(3)  Engaging in his business in such a manner as to cause injury to the public or those with whom he is dealing.

(4)  Knowingly engaging in tampering with, adjusting, altering, changing, setting back, disconnecting, or failing to connect the odometer of any motor vehicle, or causing any of the foregoing to occur to an odometer of a used motor vehicle, so as to reflect a lower mileage than the true mileage driven by the used motor vehicle.  The foregoing shall be applicable to any motor vehicle whether sold wholesale or retail or whether or not the foregoing occurred within or outside the state of Louisiana.

(5)  Employing unlicensed salespersons or other unlicensed persons in connection with the sale of used motor vehicles.

(6)  Not operating from the address shown on his license if this change has not been reported to the commission in either an application for an additional location, or not restricting the location of the display of motor vehicles exclusively to the address shown on his license, except pursuant to a permit for an approved off-site display.

(7)  Parking vehicles on any public roadway or right-of-way for the purpose of displaying vehicles for sale.

(8)  Engaging in a practice of failing to deliver certificates of title to a consumer within the time limitations prescribed in R.S. 32:705.

(9)  Engaging in a practice of failing to submit monthly sales reports to Motor Vehicle Audit by the twentieth day of the following month.

(10)  Engaging in a practice of failing to remit sales tax where the tax has been collected by the dealer.

(11)  Engaging in a practice of leaving the certificate of title open or unassigned to the dealer.

(12)  Engaging in a practice of issuing temporary license plates or temporary dealer's plates in violation of the law.

(13)  Failing to maintain records for a period of up to three years.

(14)  Repossessing a vehicle in any manner other than what is allowed by law.

(15)  Requiring consumers to sign and execute a voluntary surrender or other similar document at the time of the sale of a used motor vehicle.

C.  The commission may revoke or suspend a license, issue a fine or penalty, or enjoin a used motor vehicle broker for any of the following conduct:

(1)  Holding himself out to any person as a "broker", "purchasing company", "sales agent", or similar title, engaged in the business of a broker, or otherwise engaged in the solicitation or procurement of prospective purchasers for motor vehicles not titled in the name of and registered to the broker, unless the broker holds a valid used motor vehicle dealer's license and is in compliance with the terms of this Part.

(2)  Acting in the capacity of or engaging in the business of a broker without a valid used motor vehicle dealer license issued as provided by this Part.

(3)  Failing to execute a written brokering agreement and provide a completed copy to the following:

(a)  A consumer entering into the broker agreement.  The completed copy shall be provided prior to the consumer's signing an agreement for the purchase of the vehicle described in the brokering agreement, or prior to accepting one hundred dollars or more from the consumer, whichever comes first.

(b)  The selling dealer.  The completed copy shall be provided to the selling dealer entering into a purchase agreement with the consumer at the time of delivery.

(4)  Accepting a purchase deposit from any consumer that exceeds five percent of the selling price of the vehicle described in the brokering agreement.

(5)  Failing  to refund any purchase money, including purchase deposits, upon demand by a consumer at any time prior to the consumer's signing a vehicle purchase agreement with a selling dealer of the vehicle described in the brokering agreement.

(6)  Failing to cancel a brokering agreement and refund, upon demand, any money paid by a consumer, including any brokerage fee, under any of the following circumstances:

(a)  When the final price of the brokered vehicle exceeds the purchase price listed in the brokering agreement.

(b)  When the vehicle delivered is not as described in the brokering agreement.

(c)  When the brokering agreement expires prior to the customer's being presented with a purchase agreement from a selling dealer arranged through the brokering dealer that contains a purchase price at or below the price listed in the brokering agreement.

D.  The commission shall not deny an application for a used motor vehicle dealership based upon consideration of an existing or anticipated economic or competitive effect on other licenses in the surrounding community or territory.

E.  In the performance of its duties under this Section, the commission shall have the authority to obtain from the Department of Public Safety and Corrections and other governmental agencies information relating to the criminal records of applicants for licenses under this Part.

Acts 2006, No. 440, §1; Acts 2007, No. 446, §1.