§ 23-112-308 — Denial, revocation, and suspension

(a) Notwithstanding any other statute, the Arkansas Motor Vehicle Commission may deny an application for a license or revoke or suspend a license after it has been granted for any of the following reasons: (1) (A) For selling or soliciting sales of a motor vehicle without: (i) A motor vehicle dealer license issued by the commission; or (ii) Being a bona fide employee or agent of a licensed motor vehicle dealer. (B) The unlawful sale or solicitation of each motor vehicle shall constitute a separate offense; (2) On satisfactory proof of the unfitness of the applicant or the licensee, as the case may be, under the standards established and set out in this chapter; (3) For fraud practiced or any material misstatement made by an applicant in any application for license under the provisions of this chapter; (4) For failure to comply with any provision of this chapter or with any rule promulgated by the commission under authority vested in it by this chapter; (5) Change of condition after license is granted or failure to maintain the qualifications for license; (6) Continued violation of any of the provisions of this chapter or of any of the rules of the commission; (7) For any violation of any law relating to the sale, distribution, or financing of motor vehicles; (8) Defrauding any retail buyer to the buyer's damage; (9) Failure to perform any written agreement with any retail buyer; (10) Selling, attempting to sell, or advertising for sale vehicles from a location other than that set forth on the license; (11) Falsifying, altering, or neglecting to endorse or deliver a certificate of title to a transferee or lawful owner or failing to properly designate a transferee on a document of assignment or certificate of title; (12) Knowingly purchasing, selling, or otherwise acquiring or disposing of a stolen motor vehicle; (13) Submitting a false affidavit setting forth that a title has been lost or destroyed; (14) Passing title or reassigning title as a dealer without a dealer's license or when the dealer's license has been suspended or revoked; (15) For a person representing that he or she is a dealer or salesperson, either verbally or in any advertisement, when the person is not licensed as such; (16) Assisting any person in the sale of a motor vehicle who is not licensed as a dealer by the commission; (17) Being a manufacturer who fails to specify the delivery and preparation obligations of its motor vehicle dealers, as is required for the protection of the buying public, prior to delivery of new motor vehicles to retail buyers; (18) (A) On satisfactory proof that any manufacturer, distributor, distributor branch or division, or factory branch or division has unfairly and without due regard to the equities of the parties or to the detriment of the public welfare failed to properly fulfill any warranty agreement or to adequately and fairly compensate any of its motor vehicle dealers for labor, parts, or incidental expenses incurred by the dealer with regard to factory warranty agreements performed by the dealer. (B) Compensation for parts for two-wheeled, three-wheeled, and four-wheeled motorcycles and motor-driven all-terrain vehicles must be at the manufacturer's suggested retail price; (19) For the commission of any act prohibited by §§ 23-112-301 - 23-112-307 , 23-112-402 , and 23-112-403 , or the failure to perform any of the requirements of those sections; (20) Using or permitting the use of special license plates assigned to him or her for any other purpose than those permitted by law; (21) Disconnecting, turning back, or resetting the odometer of any motor vehicle in violation of state or federal law; (22) Accepting an open assignment of title or bill of sale for a motor vehicle which is not completed by identifying the licensee as the purchaser or assignee of the motor vehicle; (23) (A) Failure to notify the commission of a change in ownership, location, or franchise, or any other matters the commission may require by regulation. (B) The notification shall be in written form and submitted to the commission at least fifteen (15) days prior to the effective date of the change; (24) Failure to endorse and deliver an assignment and warranty of title to the buyer pursuant to § 27-14-902 ; (25) Using or permitting the use of a temporary cardboard buyer's tag assigned to the dealer for any purpose other than permitted under § 27-14-1705 ; and (26) Failure of a dealer to submit or deliver a certificate of title or manufacturer's certificate of origin within a reasonable period of time. (b) The revocation or suspension of the license of a manufacturer, factory branch or division, distributor, or distributor branch or division may be limited to: (1) One (1) or more municipalities or counties; (2) (A) The sales area of any dealer whose franchise is unfairly cancelled or terminated within the purview of this chapter or whose franchise is not renewed in violation of the provisions of this chapter. (B) However, when a franchise is unfairly cancelled or terminated within the purview of this chapter or is not renewed in violation of the provisions of this chapter in a metropolitan area serviced by several motor vehicle dealers handling the same motor vehicles, the revocation or suspension shall not be applicable to the remaining motor vehicle dealers in the metropolitan area.

Legislative History

Amended by Act 2021, No. 504,§ 10, eff. 7/28/2021. Amended by Act 2019, No. 315,§ 2831, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 2830, eff. 7/24/2019. Acts 1975, No. 388, § 6; 1985, No. 1032, § 5; 1985, No. 1058, § 5; A.S.A. 1947, § 75-2306; Acts 1991, No. 411, § 1; 1993, No. 383, § 4; 2001, No. 1053, § 9; 2009, No. 756, § 9.