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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.

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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 -- <br>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; <br>(b) Material misstatement in application for license; <br>(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; <br>(f) Willful failure to perform any written agreement with any buyer; <br>(g) Failure or refusal to furnish and keep in force any bond required; <br>(h) Having made a fraudulent sale, transaction, or repossession; <br>(i) False or misleading advertising; <br>(j) Fraudulent misrepresentation, circumvention, or concealment through subterfuge or device of any of the material particulars or the nature of them <br>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 <br>to the retaking of goods under retail installment contracts and the redemption <br>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 <br>manufacturer or factory branch, who has induced, coerced, or attempted to <br>induce or coerce any automobile dealer to accept delivery of any motor <br>vehicle, vehicles, parts, accessories, or any other commodities that shall not <br>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 <br>manufacturer or factory branch, who has attempted to induce or coerce, or has <br>induced or coerced, any automobile dealer to enter into any agreement with a <br>manufacturer, factory branch, or representative, or to do any other act unfair to <br>the dealer, by threatening to cancel any franchise existing between a <br>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, <br>who has unfairly, without due regard to the equities of the dealer and without <br>just provocation, canceled the franchise of any motor vehicle dealer. The <br>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 <br>cancellation; (p) Being a manufacturer, factory branch, distributor, field representative, officer, agent, or any representative of a motor vehicle manufacturer or factory branch, <br>or wholesaler who makes, attempts to make, or aids or abets the making of a <br>sale of a motor vehicle to a person other than a licensed motor vehicle dealer. <br>This section shall not prevent any manufacturer from offering discounts or <br>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 <br>branch, or distributor authorizing the sale of the new motor vehicle being <br>advertised. (2) 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. <br>Upon request by the applicant whose license has been denied, the licensor shall set <br>the time and place of hearing a review of denial, to be conducted in accordance with <br>KRS Chapter 13B. (3) A license shall not be suspended or revoked except after a hearing conducted in accordance with KRS Chapter 13B. (4) The commission may inspect the pertinent books, letters, records, and contracts of a licensee. (5) 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 <br>or corporation, or any member in case of a partnership, has been guilty of any act or <br>omission which would be cause for refusing, suspending, or revoking a license to <br>the party as an individual. Each licensee shall be responsible for the acts of any or <br>all of his salesmen while acting as his agent, if the licensee approved of or had <br>knowledge of the acts and after approval or knowledge retained the benefit, <br>proceeds, profits, or advantages accruing from the acts. (6) 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 <br>the manner provided by KRS Chapter 13B. Effective: June 20, 2005 <br>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, <br>effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 111, sec. 3, effective July 15, <br>1996; and ch. 318, sec. 76, effective July 15, 1996. -- Amended 1992 Ky. Acts <br>ch. 452, sec. 4, effective July 14, 1992. -- Amended 1982 Ky. Acts ch. 374, sec. 7, <br>effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 74, Art. IV, sec. 20(2). -- <br>Amended 1972 Ky. Acts ch. 211, sec. 2. -- Amended 1966 Ky. Acts ch. 175, sec. 5. -<br>- Created 1956 Ky. Acts ch. 161, sec. 4.