C.R.S. Section 44-20-420
Licenses

  • grounds for denial, suspension, or revocation

(1)

A powersports vehicle manufacturer’s or distributor’s license may be denied, suspended, or revoked on the following grounds:

(a)

Material misstatement in an application for a license;

(b)

Willful failure to comply with this part 4 or any rule promulgated by the executive director under this part 4;

(c)

Engaging, in the past or present, in any illegal business practice.

(2)

A powersports vehicle manufacturer representative’s license may be denied, suspended, or revoked on the following grounds:

(a)

Material misstatement in an application for a license;

(b)

Willful failure to comply with this part 4 or any rules promulgated by the executive director under this part 4;

(c)

Committing any unconscionable business practice under title 4;

(d)

Having coerced or attempted to coerce a powersports vehicle dealer to accept delivery of any powersports vehicle, parts or accessories therefore, or any other commodities or services that have not been ordered by the dealer;

(e)

Having coerced or attempted to coerce a powersports vehicle dealer to enter into any agreement to do an act unfair to the dealer by threatening to cause the cancellation of the dealer’s franchise;

(f)

Having withheld, threatened to withhold, reduced, or delayed without just cause an order for powersports vehicles, parts or accessories therefore, or any other commodities or services that have been ordered by a powersports vehicle dealer; or

(g)

Engaging, in the past or present, in any illegal business practice.

(3)

A wholesaler’s license, powersports vehicle dealer’s license, or a used powersports vehicle dealer’s license may be denied, suspended, or revoked on the following grounds:

(a)

Material misstatement in an application for a license;

(b)

Willful failure to comply with this part 4 or any rule promulgated by the executive director under this part 4;

(c)

Having been convicted of or pleaded nolo contendere to any felony or crime pursuant to article 3, 4, or 5 of title 18 or any like crime pursuant to federal law or the law of another state. A certified copy of the judgment of conviction by a court of competent jurisdiction shall be conclusive evidence of the conviction in a hearing held pursuant to this article 20.

(d)

Defrauding any buyer, seller, powersports vehicle salesperson, or financial institution to the person’s damage;

(e)

Intentionally or negligently failing to perform any written agreement with any buyer or seller;

(f)

Failing or refusing to furnish and keep in force a bond required under this part 4;

(g)

Making a fraudulent or illegal sale, transaction, or repossession;

(h)

Willfully misrepresenting, circumventing, concealing, or failing to disclose, through subterfuge or device, any of the material particulars or the nature thereof required to be stated or furnished to the buyer;

(i)

Intentionally publishing or circulating advertising that is misleading or inaccurate in any material particular or that misrepresents a product sold or furnished by a licensed dealer;

(j)

Knowingly purchasing, selling, or otherwise acquiring or disposing of a stolen powersports vehicle;

(k)

Engaging in the business for which the dealer is licensed without at all times maintaining a principal place of business as required by this part 4 during reasonable business hours; except that the license of a powersports vehicle dealer or used powersports vehicle dealer is not subject to denial, suspension, or revocation for engaging in activities at locations away from the principal place of business as described in section 44-20-419 (2)(b);

(l)

Engaging in the business through employment of an unlicensed powersports vehicle salesperson;

(m)

Willfully violating any state or federal law respecting commerce or powersports vehicles, or any lawful rule respecting commerce or powersports vehicles promulgated by any licensing or regulating authority pertaining to powersports vehicles, under circumstances in which the act constituting the violation directly and necessarily involves commerce or powersports vehicles;

(n)

Representing or selling as a new and unused powersports vehicle any powersports vehicle that the dealer or salesperson knows is otherwise a used powersports vehicle;

(o)

Committing a fraudulent insurance act pursuant to section 10-1-128;

(p)

Failing to give notice to a prospective buyer of the acceptance or rejection of a powersports vehicle purchase order agreement within a reasonable time period, as determined by the board, when the licensee is working with the prospective buyer on a finance sale or a consignment sale.

(4)

A wholesaler’s license may be denied, suspended, or revoked for the selling, leasing, or offering or attempting to negotiate the sale, lease, or exchange of an interest in motor vehicles to persons other than powersports vehicle dealers, used powersports vehicle dealers, or other wholesalers.

(5)

The license of a powersports vehicle salesperson may be denied, revoked, or suspended on the following grounds:

(a)

Material misstatement in an application for a license;

(b)

Failure to comply with any provision of this part 4 or any rule promulgated by the board or executive director under this part 4;

(c)

Engaging in the business for which the licensee is licensed without having in force and effect a good and sufficient bond with corporate surety as provided in this part 4;

(d)

Intentionally publishing or circulating an advertisement that is misleading or inaccurate in any material particular or that misrepresents a powersports vehicle product sold or attempted to be sold by the salesperson;

(e)

Having indulged in any fraudulent business practice;

(f)

Selling, offering, or attempting to negotiate the sale, exchange, or lease of powersports vehicles for a powersports vehicle dealer or used powersports vehicle dealer for which the salesperson is not licensed; except that negotiation with a powersports vehicle dealer or used powersports vehicle dealer for the sale, exchange, or lease of new and used powersports vehicles, by a salesperson compensated for the negotiation by a powersports vehicle dealer or used powersports vehicle dealer for which the salesperson is licensed shall not be grounds for denial, revocation, or suspension;

(g)

Representing oneself as a salesperson for a powersports vehicle dealer when the salesperson is not so employed and licensed;

(h)

Having been convicted of or pleaded nolo contendere to any felony or any crime pursuant to article 3, 4, or 5 of title 18 or any like crime pursuant to federal law or the law of another state. A certified copy of the judgment of conviction by a court of competent jurisdiction shall be conclusive evidence of the conviction in a hearing held pursuant to this article 20.

(i)

Having knowingly purchased, sold, or otherwise acquired or disposed of a stolen powersports vehicle;

(j)

Employing an unlicensed powersports vehicle salesperson;

(k)

Defrauding any retail buyer to the person’s damage;

(l)

Representing or selling as a new and unused powersports vehicle a powersports vehicle that the salesperson knows is otherwise a used powersports vehicle;

(m)

Willfully violating any state or federal law respecting commerce or powersports vehicles, or any lawful rule respecting commerce or powersports vehicles promulgated by any licensing or regulating authority pertaining to powersports vehicles, under circumstances in which the act constituting the violation directly and necessarily involves commerce or powersports vehicles;

(n)

Improperly withholding, misappropriating, or converting to the salesperson’s own use any money belonging to customers or other persons received in the course of employment as a powersports vehicle salesperson.

(6)

A license issued pursuant to this part 4 may be denied, revoked, or suspended if unfitness of the licensee or licensee applicant is shown in the following:

(a)

The licensing character or record of the licensee or licensee applicant;

(b)

The criminal character or record of the licensee or licensee applicant;

(c)

The financial character or record of the licensee or licensee applicant;

(d)

A violation of any lawful order of the board.

(7)

The license of a powersports vehicle dealer may be denied, revoked, suspended, or otherwise subject to discipline imposed under this part 4 if an owner is acting as a salesperson without a motor vehicle salesperson license and the owner commits any of the acts or omissions that subject a salesperson’s license to denial, revocation, or suspension under subsection (6) of this section.

(8)

Intentionally left blank —Ed.

(a)

A license issued or applied for pursuant to this part 4 shall be revoked or denied if the licensee or applicant has been convicted of or pleaded no contest to any of the following offenses in this state or another jurisdiction during the previous ten years:

(I)

A felony in violation of article 3, 4, or 5 of title 18 or any similar crime under federal law or the law of another state; or

(II)

A crime involving salvage fraud or the defrauding of a retail consumer in a powersports vehicle sale or lease transaction.

(b)

A certified copy of a judgment of conviction by a court of competent jurisdiction of an offense under subsection (8)(a)(I) of this section is conclusive evidence of the conviction in any hearing held pursuant to this article 20.

(9)

A person whose license issued under this part 4 is revoked or who surrenders a license to avoid discipline is ineligible to apply for a new license under this part 4 for one year after the date of revocation or surrender of the license.

Source: Section 44-20-420 — Licenses - grounds for denial, suspension, or revocation, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-44.­pdf (accessed Oct. 20, 2023).

44‑20‑101
Legislative declaration
44‑20‑102
Definitions
44‑20‑103
Motor vehicle dealer board - creation
44‑20‑104
Board - oath - meetings - powers and duties - rules
44‑20‑105
Auto industry division - creation - powers and duties of executive director and director
44‑20‑106
Records as evidence
44‑20‑107
Attorney general to advise and represent
44‑20‑108
Classes of licenses
44‑20‑109
Temporary motor vehicle dealer license
44‑20‑110
Display, form, custody, and use of licenses
44‑20‑111
Fees - disposition - expenses - expiration of licenses
44‑20‑112
Bond of licensee
44‑20‑113
Motor vehicle salesperson’s bond
44‑20‑114
Buyer agent bonds
44‑20‑115
Notice of claims honored against bond
44‑20‑116
Testing licensees
44‑20‑117
Filing of written warranties
44‑20‑118
Application - prelicensing education - fingerprint-based criminal history record check - rules
44‑20‑119
Notice of change of address or status
44‑20‑120
Principal place of business - requirements
44‑20‑121
Licenses - grounds for denial, suspension, or revocation
44‑20‑122
Procedure for denial, suspension, or revocation of license - judicial review
44‑20‑123
Sales activity following license denial, suspension, or revocation - unlawful act - penalty
44‑20‑124
Unlawful acts
44‑20‑125
New, reopened, or relocated dealer - notice required - grounds for refusal of dealer license - definitions - rules
44‑20‑126
Independent control of dealer - definitions
44‑20‑127
Successor under existing franchise agreement - duties of manufacturer
44‑20‑128
Penalty
44‑20‑129
Fines - disposition - unlicensed sales
44‑20‑130
Drafts not honored for payment - penalties
44‑20‑131
Right of action for loss
44‑20‑132
Contract disputes - venue - choice of law
44‑20‑133
Disposition of fees - auto dealers license fund - created
44‑20‑134
Advertisement - inclusion of dealer name
44‑20‑135
Audit reimbursement limitations - dealer claims
44‑20‑136
Reimbursement for right of first refusal
44‑20‑137
Payout exemption to execution
44‑20‑138
Site control extinguishes
44‑20‑139
Modification voidable
44‑20‑140
Termination appeal
44‑20‑141
Stop-sale directives - used motor vehicles - definitions
44‑20‑141.5
Fulfillment and compensation for warranty and recall obligations - definitions
44‑20‑141.6
Fulfillment of warranty and recall obligations - recreational vehicles - definitions
44‑20‑142
Repeal of part
44‑20‑201
Definitions
44‑20‑202
Exclusive finance agreements void - when
44‑20‑203
Threat prima facie evidence of violation
44‑20‑204
Threat by agent as evidence of violation
44‑20‑205
Offering consideration to eliminate competition
44‑20‑206
Accepting consideration to eliminate competition
44‑20‑207
Recipient of consideration shall not buy mortgages
44‑20‑208
Quo warranto action
44‑20‑209
Violation by foreign corporation - penalty
44‑20‑210
Penalty
44‑20‑211
Contract void
44‑20‑212
Provisions cumulative
44‑20‑213
Damages
44‑20‑214
Repeal of part
44‑20‑301
Definitions
44‑20‑302
Sunday closing
44‑20‑303
Penalties
44‑20‑304
Repeal of part
44‑20‑401
Legislative declaration
44‑20‑402
Definitions
44‑20‑403
Motor vehicle dealer board
44‑20‑404
Board - powers and duties - rules
44‑20‑405
Powers and duties of executive director and director
44‑20‑406
Records as evidence
44‑20‑407
Attorney general to advise and represent
44‑20‑408
Classes of licenses
44‑20‑409
Temporary powersports vehicle dealer license
44‑20‑410
Display, form, custody, and use of licenses
44‑20‑411
Fees - disposition - expenses - expiration of licenses
44‑20‑412
Bond of licensee
44‑20‑413
Powersports vehicle salesperson’s bond
44‑20‑414
Notice of claims honored against bond
44‑20‑415
Testing licensees
44‑20‑416
Filing of written warranties
44‑20‑417
Application - fingerprint-based criminal history record check - rules
44‑20‑418
Notice of change of address or status
44‑20‑419
Principal place of business - requirements - exceptions
44‑20‑420
Licenses - grounds for denial, suspension, or revocation
44‑20‑421
Procedure for denial, suspension, or revocation of license - judicial review
44‑20‑422
Sales activity following license denial, suspension, or revocation - unlawful act - penalty
44‑20‑423
Unlawful acts
44‑20‑424
New, reopened, or relocated dealer - notice required - grounds for refusal of dealer license - definitions - rules
44‑20‑425
Independent control of dealer - definitions
44‑20‑426
Successor under existing franchise agreement - duties of powersports vehicle manufacturer
44‑20‑427
Audit reimbursement limitations - dealer claims
44‑20‑428
Reimbursement for disapproving sale
44‑20‑429
Penalty
44‑20‑430
Fines - disposition - unlicensed sales
44‑20‑431
Drafts or checks not honored for payment - penalties
44‑20‑432
Right of action for loss
44‑20‑433
Contract disputes - venue - choice of law
44‑20‑434
Advertisement - inclusion of dealer name
44‑20‑435
Payout exemption to execution
44‑20‑436
Site control extinguishes
44‑20‑437
Modification voidable
44‑20‑438
Termination appeal
44‑20‑439
Stop-sale directives - used powersports vehicles - definitions
44‑20‑439.5
Fulfillment and compensation for warranty and recall obligations - definitions
44‑20‑440
Repeal of part
Green check means up to date. Up to date

Current through Fall 2024

§ 44-20-420’s source at colorado​.gov