§ 44-20-121 — Licenses - grounds for denial, suspension, or revocation
Free access — add to your briefcase to read the full text and ask questions with AI
(1) A
manufacturer's or distributor's license may be denied, suspended, or revoked on the
following grounds:
(a) Material misstatement in an application for a license;
(b) Willful failure to comply with this part 1 or any rule promulgated by the
executive director;
(c) Engaging, in the past or present, in any illegal business practice;
(d) Failing to comply with article 10 of title 42.
(2) A manufacturer representative's license may be denied, suspended, or
revoked on the following grounds:
(a) Material misstatement in an application for a license;
(b) Willful failure to comply with any provision of this part 1 or any rule
promulgated by the executive director under this part 1;
(c) Having indulged in any unconscionable business practice pursuant to title
4;
(d) Having coerced or attempted to coerce any motor vehicle dealer to
accept delivery of any motor vehicle, parts or accessories therefor, or any other
commodities or services that have not been ordered by the dealer;
(e) Having coerced or attempted to coerce any motor vehicle dealer to enter
into any agreement to do any act unfair to the dealer by threatening to cause the
cancellation of the franchise of the dealer;
(f) Having withheld, threatened to withhold, reduced, or delayed without just
cause an order for motor vehicles, parts or accessories therefor, or any other
commodities or services that have been ordered by a motor vehicle dealer;
(g) Engaging, in the past or present, in any illegal business practice.
(3) A motor vehicle dealer's, wholesale motor vehicle auction dealer's,
wholesaler's, buyer agent's, or used motor vehicle dealer's license may be denied,
suspended, or revoked on the following grounds:
(a) Material misstatement in an application for a license;
(b) Violation of any of the terms and provisions of this part 1 or any rule
promulgated by the board under this part 1;
(c) Having been convicted of or pleaded nolo contendere to any felony, or
any crime pursuant to article 3, 4, or 5 of title 18, or any like crime pursuant to
federal law or the law of any other state. A certified copy of the judgment of
conviction by a court of competent jurisdiction shall be conclusive evidence of the
conviction in any hearing held pursuant to this article 20.
(d) Defrauding any buyer, seller, motor vehicle salesperson, or financial
institution to the person's damage;
(e) Intentional or negligent failure to perform any written agreement with
any buyer or seller;
(f) Failure or refusal to furnish and keep in force any bond required under
this part 1;
(g) Having made a fraudulent or illegal sale, transaction, or repossession;
(h) Willful misrepresentation, circumvention, or concealment of or failure to
disclose, through whatsoever subterfuge or device, any of the material particulars
or the nature thereof required to be stated or furnished to the buyer;
(i) Intentionally publishing or circulating any advertising that is misleading or
inaccurate in any material particular or that misrepresents any of the products sold
or furnished by a licensed dealer;
(j) Knowingly purchasing, selling, or otherwise acquiring or disposing of a
stolen motor vehicle;
(k) For a motor vehicle dealer or used motor vehicle dealer, engaging in the
business for which the dealer is licensed without at all times maintaining a principal
place of business as required by this part 1 during reasonable business hours;
except that the license of a motor vehicle dealer or used motor vehicle dealer is not
subject to denial, suspension, or revocation for engaging in activities at locations
away from the principal place of business as described in section 44-20-120 (2)(c);
(l) Engaging in the business through employment of an unlicensed motor
vehicle salesperson;
(m) Willfully violating any state or federal law respecting commerce or
motor vehicles, or any lawful rule respecting commerce or motor vehicles
promulgated by any licensing or regulating authority pertaining to motor vehicles,
under circumstances in which the act constituting the violation directly and
necessarily involves commerce or motor vehicles;
(n) Representing or selling as a new and unused motor vehicle any motor
vehicle that the dealer or salesperson knows has been used and operated for
demonstration purposes or which the dealer or salesperson knows is otherwise a
used motor vehicle;
(o) Violating any state or federal statute or regulation issued thereunder
dealing with odometers;
(p) Selling to a retail customer a motor vehicle that is not equipped or in
proper condition and adjustment as required by part 2 of article 4 of title 42 unless
the vehicle is sold as a tow away, not to be driven;
(q) Committing a fraudulent insurance act pursuant to section 10-1-128;
(r) Failure to give notice to a prospective buyer of the acceptance or
rejection of a motor vehicle purchase order agreement within a reasonable time
period, as determined by the board, when the licensee is working with the
prospective buyer on a finance sale or a consignment sale;
(s) Selling to a retail customer a motor vehicle that is not equipped with a
properly functioning emission control system, as determined based on an
enforcement action taken pursuant to sections 25-7-122 (1)(j) and 25-7-144, unless
the ownership document associated with the motor vehicle is a salvage certificate
of title, a nonrepairable title, or, if issued by another state, a similar document.
(4) A wholesaler's or wholesale motor vehicle auction dealer's license may
be denied, suspended, or revoked for the selling, leasing, or offering or attempting
to negotiate the sale, lease, or exchange of an interest in motor vehicles by the
wholesaler or wholesale motor vehicle auction dealer to persons other than motor
vehicle dealers, used motor vehicle dealers, or other wholesalers or wholesale
motor vehicle auction dealers.
(5) The license of a motor vehicle dealer may be denied, revoked, suspended,
or otherwise subject to discipline imposed under this part 1 if an owner is acting as a
salesperson without a motor vehicle salesperson license and the owner commits
any of the acts or omissions that subject a salesperson's license to denial,
revocation, or suspension under subsection (6) of this section.
(6) The license of a motor vehicle salesperson may be denied, revoked, or
suspended on the following grounds:
(a) Material misstatement in an application for a license;
(b) Failure to comply with any provision of this part 1 or any rule promulgated
by the board or executive director under this part 1;
(c) Engaging in the business for which the licensee is licensed without having
in force and effect a good and sufficient bond with corporate surety as provided in
this part 1;
(d) Intentionally publishing or circulating any advertising that is misleading
or inaccurate in any material particular or that misrepresents any motor vehicle
products sold or attempted to be sold by the salesperson;
(e) Indulging in any fraudulent business practice;
(f) Selling, offering, or attempting to negotiate the sale, exchange, or lease
of motor vehicles for any motor vehicle dealer or used motor vehicle dealer for
which the salesperson is not licensed; except that negotiation with a motor vehicle
dealer for the sale, exchange, or lease of new and used motor vehicles, except
those vehicles defined in section 42-1-102 (55) as motorcycles and section 33-14.5-101 (3) as off-highway vehicles, by a salesperson compensated for the negotiation
by the used motor vehicle dealer for which the salesperson is licensed shall not be
grounds for denial, revocation, or suspension;
(g) Representing oneself as a salesperson for any motor vehicle dealer or
used motor vehicle dealer when the salesperson is not so employed and licensed;
(h) Having been convicted of or pleaded nolo contendere to any felony, or
any crime pursuant to article 3, 4, or 5 of title 18, or any like crime pursuant to
federal law or the law of any other state. A certified copy of the judgment of
conviction by a court of competent jurisdiction shall be conclusive evidence of the
conviction in any hearing held pursuant to this article 20.
(i) Having knowingly purchased, sold, or otherwise acquired or disposed of a
stolen motor vehicle;
(j) Employing an unlicensed motor vehicle salesperson;
(k) Violating any state or federal statute or regulation issued thereunder
dealing with odometers;
(l) Defrauding any retail buyer to the person's damage;
(m) Representing or selling as a new and unused motor vehicle any motor
vehicle that the salesperson knows has been used and operated for demonstration
purposes or that the salesperson knows is otherwise a used motor vehicle;
(n) Selling to a retail customer a motor vehicle that is not equipped or in
proper condition and adjustment as required by part 2 of article 4 of title 42 unless
the vehicle is sold as a tow away, not to be driven;
(o) Willfully violating any state or federal law respecting commerce or motor
vehicles, or any lawful rule respecting commerce or motor vehicles promulgated by
any licensing or regulating authority pertaining to motor vehicles, under
circumstances in which the act constituting the violation directly and necessarily
involves commerce or motor vehicles;
(p) Improperly withholding, misappropriating, or converting to the
salesperson's own use any money belonging to customers or other persons,
received in the course of employment as a motor vehicle salesperson.
(6.5) A business disposal license may be denied, suspended, or revoked on
the following grounds:
(a) Making a material misstatement in an application for a license;
(b) Violating this part 1 or a rule promulgated by the board under this part 1;
(c) Having been convicted of or pleaded nolo contendere to a felony, a crime
under article 3, 4, or 5 of title 18, or any like crime under federal law or the law of
another state. A certified copy of the judgment of conviction by a court of
competent jurisdiction is conclusive evidence of the conviction in a hearing held
under this article 20.
(d) Defrauding a buyer, seller, motor vehicle salesperson, or financial
institution to the person's damage;
(e) Intentional or negligent failure to perform any written agreement with a
buyer or seller;
(f) Making a fraudulent or illegal sale, transaction, or repossession;
(g) Willful misrepresentation or circumvention of, concealment of, or failure
to disclose any of the material particulars required to or the nature of any of the
material particulars required to be stated or furnished to the buyer;
(h) Intentionally publishing or circulating an advertisement that is misleading
or inaccurate in any material particular or that misrepresents a product sold by or
furnished by a licensed dealer;
(i) Knowingly selling, acquiring, or disposing of a stolen motor vehicle;
(j) Willfully violating a state or federal law governing commerce or motor
vehicles or a rule governing commerce or motor vehicles promulgated by any
licensing or regulating authority governing motor vehicles if the act constituting
the violation directly and necessarily involves commerce or motor vehicles;
(k) Representing or selling as new a motor vehicle that the dealer or
salesperson knows:
(I) Has been used for and operated for demonstration purposes; or
(II) Is a used motor vehicle;
(l) Violating a state or federal statute, rule, or regulation dealing with
odometers;
(m) Selling to a retail customer a motor vehicle that is not equipped as
required by or in proper condition and adjustment as required by part 2 of article 4
of title 42 unless the vehicle is sold as a tow-away and not to be driven;
(n) Committing a fraudulent insurance act under section 10-1-128;
(o) Failing to notify a prospective buyer of the acceptance or rejection of a
motor vehicle purchase order agreement within a reasonable period, as determined
by the board, when the licensee is working with the prospective buyer on a finance
sale or a consignment sale;
(p) Failing to maintain in Colorado, when the business disposer is licensed, a
place of business that:
(I) Is maintained by the business disposer and is located at a fixed address,
other than solely a post office box or an electronic address; and
(II) Employs one or more individuals on a full-time basis.
(7) Any license issued pursuant to this part 1 may be denied, revoked, or
suspended if unfitness of the licensee or licensee applicant is shown in the
following:
(a) The licensing character or record of the licensee or licensee applicant;
(b) The criminal character or record of the licensee or licensee applicant;
(c) The financial character or record of the licensee or licensee applicant;
(d) Violation of any lawful order of the board.
(8) (a) A license issued or for which an application has been made pursuant
to this part 1 shall be revoked or denied if the licensee or applicant has been
convicted of or pleaded no contest to any of the following offenses in this state or
any other jurisdiction during the previous three years:
(I) A felony in violation of article 3, 4, or 5 of title 18 or any similar crime
under federal law or the law of any other state; or
(II) A crime involving odometer fraud, salvage fraud, motor vehicle title fraud,
or the defrauding of a retail consumer in a motor vehicle sale or lease transaction.
(a.5) In consideration of a revocation or denial of a license pursuant to
subsection (8)(a) of this section, a criminal conviction may only be considered for a
three-year period beginning on the date of conviction or the end of incarceration,
whichever date is later, if the applicant or licensee has not been convicted of any
other criminal offense during the three-year period. After the three-year period,
only the individual's application or license may be considered and only in the same
manner as that of an individual who does not possess a prior criminal record; except
that a conviction for a crime that is directly related to the auto industry may be
considered at any time.
(b) A certified copy of a judgment of conviction by a court of competent
jurisdiction of an offense under subsection (8)(a) of this section is conclusive
evidence of the conviction in any hearing held pursuant to this article 20.
(9) In any disciplinary hearing, action, or order of the board involving a
violation of section 42-6-112 or 42-6-119 (3), it is an affirmative defense that the
dealer has taken every reasonable action necessary to deliver or facilitate the
delivery of the certificate of title within thirty days. To qualify as having taken every
reasonable action to deliver or facilitate the delivery of the certificate of title, the
dealer must have, at a minimum:
(a) Processed and mailed any required loan payoffs in a reasonable amount
of time;
(b) Contacted the prior lender and taken any actions necessary to obtain a
certificate of title or duplicate certificate of title, either of which must be free of
liens;
(c) Taken any action necessary to obtain information or signatures from the
prior owner necessary to have a new certificate of title issued for the motor vehicle;
(d) Submitted all paperwork that the dealer has obtained to the authorized
agent and that is necessary to have a new certificate of title issued for the motor
vehicle; and
(e) Corrected any errors in any filings with the department in a reasonable
amount of time.
(10) A person whose license issued under this part 1 is revoked or who
surrenders a license to avoid discipline is ineligible to apply for a new license under
this part 1 for one year after the date of revocation or surrender of the license.
Colorado § 44-20-121 (Licenses - grounds for denial, suspension, or revocation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.