N.J. Admin. Code § 13:21-15.5

Current through Register Vol. 56, No. 11, June 3, 2024

Section 13:21-15.5 - Grounds for rejection, suspension, or revocation of a dealer license; fines; or issuance of a cease and desist order

(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or employee of an entity that previously held a license issued under the authority of the Commission, which license was revoked for cause and never reissued or was suspended for cause and the terms of suspension have not been satisfied, or whose privilege to reapply for any business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.

N.J. Admin. Code § 13:21-15.5

Amended by 49 N.J.R. 1443(b), effective 6/5/2017

Amended by 56 N.J.R. 1032(a), effective 6/3/2024