(1) A
powersports vehicle 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 4 or any rule promulgated by the
executive director under this part 4;
(c) Engaging, in the past or present, in any illegal business practice.
(2) A powersports vehicle 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 this part 4 or any rules promulgated by the
executive director under this part 4;
(c) Committing any unconscionable business practice under title 4;
(d) Having coerced or attempted to coerce a powersports vehicle dealer to
accept delivery of any powersports vehicle, parts or accessories therefore, or any
other commodities or services that have not been ordered by the dealer;
(e) Having coerced or attempted to coerce a powersports vehicle dealer to
enter into any agreement to do an act unfair to the dealer by threatening to cause
the cancellation of the dealer's franchise;
(f) Having withheld, threatened to withhold, reduced, or delayed without just
cause an order for powersports vehicles, parts or accessories therefore, or any
other commodities or services that have been ordered by a powersports vehicle
dealer; or
(g) Engaging, in the past or present, in any illegal business practice.
(3) A wholesaler's license, powersports vehicle dealer's license, or a used
powersports vehicle dealer'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 4 or any rule promulgated by the
executive director under this part 4;
(c) Having been convicted of or pleaded nolo contendere to any felony or
crime pursuant to article 3, 4, or 5 of title 18 or any like crime pursuant to federal
law or the law of another state. A certified copy of the judgment of conviction by a
court of competent jurisdiction shall be conclusive evidence of the conviction in a
hearing held pursuant to this article 20.
(d) Defrauding any buyer, seller, powersports vehicle salesperson, or
financial institution to the person's damage;
(e) Intentionally or negligently failing to perform any written agreement with
any buyer or seller;
(f) Failing or refusing to furnish and keep in force a bond required under this
part 4;
(g) Making a fraudulent or illegal sale, transaction, or repossession;
(h) Willfully misrepresenting, circumventing, concealing, or failing to
disclose, through 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 advertising that is misleading or
inaccurate in any material particular or that misrepresents a product sold or
furnished by a licensed dealer;
(j) Knowingly purchasing, selling, or otherwise acquiring or disposing of a
stolen powersports vehicle;
(k) 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 4 during
reasonable business hours; except that the license of a powersports vehicle dealer
or used powersports 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 44-20-419 (2)(b);
(l) Engaging in the business through employment of an unlicensed
powersports vehicle salesperson;
(m) Willfully violating any state or federal law respecting commerce or
powersports vehicles, or any lawful rule respecting commerce or powersports
vehicles promulgated by any licensing or regulating authority pertaining to
powersports vehicles, under circumstances in which the act constituting the
violation directly and necessarily involves commerce or powersports vehicles;
(n) Representing or selling as a new and unused powersports vehicle any
powersports vehicle that the dealer or salesperson knows is otherwise a used
powersports vehicle;
(o) Committing a fraudulent insurance act pursuant to section 10-1-128;
(p) Failing to give notice to a prospective buyer of the acceptance or
rejection of a powersports 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.
(4) A wholesaler'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 to persons other than powersports vehicle dealers,
used powersports vehicle dealers, or other wholesalers.
(5) The license of a powersports 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 4 or any rule
promulgated by the board or executive director under this part 4;
(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 4;
(d) Intentionally publishing or circulating an advertisement that is misleading
or inaccurate in any material particular or that misrepresents a powersports vehicle
product sold or attempted to be sold by the salesperson;
(e) Having indulged in any fraudulent business practice;
(f) Selling, offering, or attempting to negotiate the sale, exchange, or lease
of powersports vehicles for a powersports vehicle dealer or used powersports
vehicle dealer for which the salesperson is not licensed; except that negotiation
with a powersports vehicle dealer or used powersports vehicle dealer for the sale,
exchange, or lease of new and used powersports vehicles, by a salesperson
compensated for the negotiation by a powersports vehicle dealer or used
powersports vehicle dealer for which the salesperson is licensed shall not be
grounds for denial, revocation, or suspension;
(g) Representing oneself as a salesperson for a powersports 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 another state. A certified copy of the judgment of conviction by a
court of competent jurisdiction shall be conclusive evidence of the conviction in a
hearing held pursuant to this article 20.
(i) Having knowingly purchased, sold, or otherwise acquired or disposed of a
stolen powersports vehicle;
(j) Employing an unlicensed powersports vehicle salesperson;
(k) Defrauding any retail buyer to the person's damage;
(l) Representing or selling as a new and unused powersports vehicle a
powersports vehicle that the salesperson knows is otherwise a used powersports
vehicle;
(m) Willfully violating any state or federal law respecting commerce or
powersports vehicles, or any lawful rule respecting commerce or powersports
vehicles promulgated by any licensing or regulating authority pertaining to
powersports vehicles, under circumstances in which the act constituting the
violation directly and necessarily involves commerce or powersports vehicles;
(n) 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 powersports vehicle salesperson.
(6) A license issued pursuant to this part 4 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) A violation of any lawful order of the board.
(7) The license of a powersports vehicle dealer may be denied, revoked,
suspended, or otherwise subject to discipline imposed under this part 4 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.
(8) (a) A license issued or applied for pursuant to this part 4 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 another 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 another state; or
(II) A crime involving salvage fraud or the defrauding of a retail consumer in
a powersports 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 shall 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)(I) of this section is conclusive
evidence of the conviction in any hearing held pursuant to this article 20.
(9) A person whose license issued under this part 4 is revoked or who
surrenders a license to avoid discipline is ineligible to apply for a new license under
this part 4 for one year after the date of revocation or surrender of the license.