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
Universal Citation: NJ Admin Code 13:21-15.5
Current through Register Vol. 56, No. 18, September 16, 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the Commission, which license was revoked for cause and never reissued or was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.
(b) Upon suspension, revocation, or denial of renewal of a license, or upon voluntary relinquishment of the license or dissolution of the dealership, the licensee shall forthwith return all Commission property, including, but not limited to, the dealer license, dealer plates, dealer reassignments, and temporary registrations, and shall account for all those not returned without refund for unused stock; failure to do so may result in suspension or revocation of the privilege to reapply for any business license within the jurisdiction of the Commission.
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