§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
(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(d) Repealed by Acts 2014, No. 423, §2.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
(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 relating to the proper disposition of certificates of title
or permits to dismantle in connection with the purchase or sale of any used motor vehicle.
(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
(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
(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.
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.