KRS § 190.040 — KY Code / Title XVI / Chapter 190 / Section 190.040
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
Status: in_force

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.

(1) A license may be denied, suspended, or revoked on the following grounds:

(a) Proof of financial or moral unfitness of applicant;

(b) Material misstatement in application for license;

(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;

(f) Willful failure to perform any written agreement with any buyer;

(g) Failure or refusal to furnish and keep in force any bond required;

(h) Having made a fraudulent sale, transaction, or repossession;

(i) False or misleading advertising;

(j) Fraudulent misrepresentation, circumvention, or concealment through

subterfuge or device of any of the material particulars or the nature of them

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

to the retaking of goods under retail installment contracts and the redemption

and resale of goods;

(l) Having violated any law relating to the sale, distribution, or financing of

motor vehicles or new recreational vehicles;

(m) Being a manufacturer of motor vehicles or recreational vehicles, factory

branch, distributor, field representative, officer, agent, or any representative of

the motor vehicle manufacturer, recreational vehicle manufacturer, or factory

branch, who has induced, coerced, or attempted to induce or coerce any

automobile dealer or new recreational vehicle dealer to accept delivery of any

motor vehicle, new recreational vehicle, vehicles, parts, accessories, or any

other commodities that shall not have been ordered by the dealer;

(n) Being a manufacturer of motor vehicles or recreational vehicles, factory

branch, distributor, field representative, officer, agent, or any representative of

a motor vehicle manufacturer or factory branch, who has attempted to induce

or coerce, or has induced or coerced, any dealer to enter into any agreement

with a manufacturer, factory branch, or representative, or to do any other act

unfair to the dealer, by threatening to cancel any franchise existing between a

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,

who has unfairly, without due regard to the equities of the dealer and without

just provocation, canceled the franchise of any motor vehicle dealer. The

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

cancellation;

(p) Being a manufacturer, factory branch, distributor, field representative, officer,

agent, or any representative of a motor vehicle manufacturer, recreational

vehicle manufacturer, or factory branch, or wholesaler who makes, attempts to

make, or aids or abets the making of a sale of a motor vehicle or a new

recreational vehicle to a person other than a licensed motor vehicle dealer or

new recreational vehicle dealer. This section shall not prevent any

manufacturer from offering discounts or rebates on any motor vehicle or new

recreational vehicle to any of its employees; or

(q) Being a dealer who advertises for sale a new motor vehicle or new

recreational vehicle unless he is a dealer operating under a franchise with a

licensed manufacturer, factory branch, or distributor authorizing the sale of

the new motor vehicle or the new recreational vehicle being 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.

Upon request by the applicant whose license has been denied, the licensor shall set

the time and place of hearing a review of denial, to be conducted in accordance with

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

or corporation, or any member in case of a partnership, has been guilty of any act or

omission which would be cause for refusing, suspending, or revoking a license to

the party as an individual. Each licensee shall be responsible for the acts of any or

all of his salesmen while acting as his agent, if the licensee approved of or had

knowledge of the acts and after approval or knowledge retained the benefit,

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

the manner provided by KRS Chapter 13B.