New Jersey Administrative Code › Title 13 - LAW AND PUBLIC SAFETY › Chapter 21 - LICENSING SERVICE › Subchapter 15 - NEW JERSEY LICENSED MOTOR VEHICLE DEALERS AND LEASING DEALERS › Section 13:21-15.5 - Grounds for rejection, suspension, or revocation of a dealer license; fines; or issuance of a cease and desist order

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Chief Administrator may deny an
				application for a license, revoke, suspend, or refuse to renew a license after
				it has been granted, issue fines as provided at N.J.S.A. 39:10-20, or issue a
				cease and desist order to a licensee or to an unlicensed person or entity
				engaged in activities for which a license is required pursuant to N.J.S.A.
				39:10-19 et seq., for any of the following reasons:
1. The applicant or licensee is not a proper
				person as defined in
				N.J.A.C.
				13:21-15.3;
2. The applicant has made a willful
				misrepresentation or omission in an application for a dealer license or renewal
				thereof under the provisions of this subchapter;
3. The applicant or licensee was a previous
				holder of a license that was suspended or revoked for cause or was subject to a
				fine by the Chief Administrator and the terms of such suspension have not been
				satisfied, the fine imposed has not been satisfied, and/or the license has not
				been reissued;
4. One or more of
				the partners, officers, directors, other persons with a controlling interest,
				or employees of the applicant or licensee previously held a license issued
				under the authority of the Commission, or one or more of the partners,
				officers, directors, other persons with a controlling interest, or employees of
				the applicant or licensee was a partner, officer, director, other persons with
				a controlling interest, or employee of an entity that previously held a license
				issued under the authority of the Commission, which license was revoked for
				cause and never reissued or was suspended for cause and the terms of suspension
				have not been satisfied, or whose privilege to reapply for any business license
				within the jurisdiction of the Commission was suspended or revoked, or who has
				willfully violated a cease and desist order issued by the Chief
				Administrator;
5. The licensee has
				willfully failed to comply with the requirements of N.J.S.A. 39:10-19 through
				25 and the rules promulgated thereunder;
6. The applicant or licensee seeks or has
				obtained a dealer license for the benefit of one who is not a proper person
				within the meaning of this subchapter;
7. The applicant or licensee knew or should
				have known that any employee, partner, officer, director, owner of a
				controlling interest, or agent of the applicant or licensee is an individual
				who has been convicted of a crime arising out of fraud or misrepresentation or
				previously held a license issued by the Chief Administrator or the Commission,
				which license was suspended or revoked for cause and not reissued;
8. The licensee fails to comply with the
				requirements of existing law governing the standards for used motor vehicles.
				(N.J.S.A. 39:10-26 through 39:10-30);
9. It is found by an administrative
				determination of the Commission that the subject applicant or licensee has
				engaged in the unlawful act of altering the true reading of an odometer (the
				mileage recording instrument of a motor vehicle). Evidence that such alteration
				was made while the vehicle was in the possession of the applicant or licensee
				shall be prima facie proof that such alteration was performed by the applicant
				or licensee or with his or her consent;
10. It is found by an administrative
				determination of the Commission that the subject applicant or licensee has
				engaged in the unlawful act of altering a vehicle identification number (VIN).
				Evidence that such alteration was made while the vehicle was in the possession
				of the applicant or licensee shall be prima facie proof that such alteration
				was performed by the applicant or licensee or with the applicant's or
				licensee's consent;
11. A person
				engages in activities regulated hereunder for which he or she does not hold the
				required license;
12. The licensee
				has failed to maintain any of the qualifications for a license set forth in
				this subchapter or otherwise set forth by law, including, but not limited to,
				the application requirements, as set forth at
				N.J.A.C.
				13:21-15.2, and failure to maintain an
				established place of business as set forth at
				N.J.A.C.
				13:21-15.4;
13. The licensee has employed call
				forwarding, telephone answering services, and/or mail forwarding services
				during scheduled business hours or otherwise buys, sells, or deals in motor
				vehicles from a remote or otherwise unlicensed location;
14. The licensee has engaged in buying,
				selling, or dealing in motor vehicles from a location other than the licensed
				location, except as authorized by law. The assertion by the licensee as a
				defense in any action that the licensee has engaged in buying, selling, or
				dealing in motor vehicles from a location other than the licensed location
				shall constitute conclusive proof of that fact;
15. The licensee has engaged in selling,
				leasing, or dealing in motor vehicles through a third-party engaged in the
				brokering of motor vehicles;
16.
				The licensee has failed to satisfy a valid, collectible judgment within 90 days
				of its entry against him or her;
17. The applicant or licensee has issued a
				check that was subsequently dishonored for insufficient funds or other reason
				caused by or within the control of the applicant or licensee;
18. The licensee has failed to comply with
				the requirements at N.J.S.A. 39:10-9 or
				49 U.S.C. §
											32705 and the rules promulgated thereunder;
				or
19. The licensee has violated
				this subchapter, or any statutes applicable to the licensing of dealers and the
				sale or lease of motor vehicles.