RS 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 issued pursuant to the provisions of this Chapter 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.
(5) Where the applicant is an immediate family member of, the former employee of, or a former business associate of a dealer whose license was previously revoked or suspended by the commission, and the applicant intends to operate the same or substantially the same business as operated by the revoked licensee, or the revoked licensee will be participating in the business with the applicant. As used in this Paragraph, "immediate family" shall have the meaning ascribed in R.S. 42:1102(13).
B. The commission may revoke or suspend a license, issue a fine or penalty, or enjoin a used motor vehicle dealer, dealer in used parts or used accessories of motor vehicles, used motor vehicle auctioneer, 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(d) Repealed by Acts 2014, No. 423, §2.
(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) Failing to deliver any certificate of title to a consumer within the time limitations prescribed in R.S. 32:705.
(9) Failing to submit any monthly sales report to Motor Vehicle Audit by the twentieth day of the following month.
(10) Failing to remit sales tax where the tax has been collected by the dealer.
(11) Leaving the certificate of title open or unassigned to the dealer.
(12) 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 a consumer to sign and execute a voluntary surrender or other similar document at the time of the sale of a used motor vehicle.
(16) Violating any provision of this Chapter, any rule or regulation adopted by the commission, or any provision of law not administered by the Louisiana Motor Vehicle Commission, relating to a used motor vehicle transaction between a used motor vehicle dealer and a consumer.
(17) Use of false, misleading, or unsubstantiated advertising in connection with his business. For the purpose of this Paragraph, false, misleading, or unsubstantiated advertising in connection with the sale of a used motor vehicle shall include but not be limited to the following:
(a) Making any unsubstantiated claim regarding the dealership, such as being the "largest" or "biggest" dealer, or being the "number one dealer" in an area.
(b) Advertising that notes will not have to be paid by the customer for a certain period of time, unless the dealer can substantiate the delay in payment and unless the delay is offered to all customers without restriction or limitation.
(c) Advertising a loan interest rate without including all restrictions or limitations in the same size lettering.
(d) Advertising guaranteed credit approval without including all restrictions or limitations and any required credit rating in the same size lettering.
(e) Advertising a monthly note without restriction or limitation and without reference to an approved credit rating in the same size lettering.
(f) Advertising a guaranteed amount for trade-ins.
(g) Advertising a price other than the full cash price for which the vehicle will be sold, except for tax, title, and license, which must be referenced.
(h) Advertising a price without providing a complete and accurate description of the vehicle, including make, model, year, and any identification and serial number of the vehicle.
(i) Performing a "bait and switch" in which the dealer does not have the vehicle advertised for sale and has not had the vehicle within a reasonable time from the advertisement.
(j) Use of the words "certified", "certification", or other similar terms without having proof of a certification process approved by the commission.
(k) Advertising a down payment without including all restrictions or limitations in the same size lettering.
(18) Failing to comply with R.S. 32:705.
(19) Selling a used motor vehicle either with a waiver of warranties or "as is" without completing and providing to the purchaser a buyers guide if required by the Federal Trade Commission.
C. Repealed by Acts 2015, No. 119, §2.
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; Acts 2010, No. 987, §1; Acts 2012, No. 136, §1; Acts 2013, No. 204, §1; Acts 2014, No. 423, §§1, 2; Acts 2015, No. 119, §§1, 2; Acts 2016, No. 288, §1; Acts 2018, No. 435, §1, eff. May 23, 2018.