A. The director may suspend or cancel the license, off-premises exhibition permit, off-premises display and sales permit or special event permit of any licensee or exhibitor if the director determines that the licensee or exhibitor:

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Terms Used In Arizona Laws 28-4493

  • Dealer: means a person who is engaged in the business of buying, selling or exchanging motor vehicles, trailers or semitrailers and who has an established place of business and has paid fees pursuant to section 28-4302. See Arizona Laws 28-101
  • Director: means the director of the department of transportation. See Arizona Laws 28-101
  • Distributor: means a person who either:

    (a) Sells or distributes new motor vehicles to new motor vehicle dealers in this state. See Arizona Laws 28-4301

  • Exhibitor: means a manufacturer of new motor homes that exhibits new motor homes at a special event. See Arizona Laws 28-4301
  • Factory branch: means a branch office maintained or availed of by a manufacturer for either:

    (a) The sale of new motor vehicles to distributors or the sale of new motor vehicles to new motor vehicle dealers in this state. See Arizona Laws 28-4301

  • Franchise: means a contract between two or more persons if all of the following conditions are included:

    (a) A commercial relationship of definite duration or continuing indefinite duration is involved. See Arizona Laws 28-4301

  • Fraud: Intentional deception resulting in injury to another.
  • Manufacturer: means any person who either:

    (a) Manufactures or assembles new motor vehicles. See Arizona Laws 28-4301

  • Motor vehicle: means an automobile, motor bus, motorcycle, truck or truck tractor or any other self-propelled vehicle, trailer or semitrailer. See Arizona Laws 28-4301
  • New motor vehicle: means a motor vehicle, other than a used motor vehicle, that is held either for:

    (a) Sale by the franchisee who first acquired the vehicle from the manufacturer or distributor of the vehicle. See Arizona Laws 28-4301

  • Off-premises display and sales: means a promotion or sale of motor vehicles for a period of time as specified by the director that both:

    (a) Is sponsored by a licensed motor vehicle dealer, the licensed motor vehicle dealer's agents or the manufacturer. See Arizona Laws 28-4301

  • Off-premises exhibition: means the exhibition of a motor vehicle for a period of time as specified by the director at a location within the same county but not at the established place of business of a licensed motor vehicle dealer and at which a solicitation or sale does not occur. See Arizona Laws 28-4301
  • Service: means any service that is sold, leased or provided to retail consumers and that directly relates to the ownership or leasing of a new or used motor vehicle, including extended service contracts or motor vehicle warranty and nonwarranty repairs or maintenance, including both parts and labor. See Arizona Laws 28-4301
  • Special event: means an exhibition of new motor homes by a motor vehicle dealer licensed to sell new motor homes or an exhibitor for a period of time specified by the director at a location in this state other than the licensee's or exhibitor's established place of business. See Arizona Laws 28-4301
  • State: means a state of the United States and the District of Columbia. See Arizona Laws 28-101
  • United States: includes the District of Columbia and the territories. See Arizona Laws 1-215

1. Has made a material misrepresentation or misstatement in the licensee’s or exhibitor’s application for a license, off-premises exhibition permit, off-premises display and sales permit or special event permit.

2. Has used or is using any false advertising as prescribed by section 13-2203.

3. Has violated or is violating a law of this state or a rule adopted by the director pursuant to law.

4. Has failed or is failing to keep and maintain records required to be kept and maintained by the licensee or exhibitor.

5. Has no established place of business or principal place of business as required by this chapter.

6. Has knowingly dealt in stolen motor vehicles or parts or accessories of stolen motor vehicles.

7. Has failed or is failing or the licensee’s or exhibitor’s manager, agents or representatives have failed or are failing to devote a substantial portion of time to the business for which the licensee or exhibitor is licensed or to be actively or principally engaged in the business for which the licensee or exhibitor is licensed.

8. Has refused to service and fulfill the manufacturer‘s warranty.

9. Is offering for private sale a motor vehicle in the licensee’s or exhibitor’s inventory.

10. Has used or is using a private residence to illegally transact business regulated by this chapter.

11. As a manufacturer, factory branch, distributor, field representative, officer or agent or any representative of a manufacturer, factory branch, distributor, field representative, officer or agent without good cause has cancelled or failed to renew the franchise of a new motor vehicle dealer. All existing dealers’ franchises continue in full force and operation under a newly appointed distributor on the termination of an existing distributor unless otherwise mutually agreed by the newly appointed distributor and the dealer.

B. The director may suspend or cancel a license if the director determines that an individual included in the application for the license:

1. Made a misrepresentation, omission or misstatement in the application to conceal a matter that may cause the application to be denied.

2. Has been convicted of fraud or an auto related felony in a state, territory or possession of the United States or a foreign country within the past ten years immediately preceding the date a criminal records check is complete.

3. Has been convicted of a felony, other than a felony described in paragraph 2 of this subsection, in a state, territory or possession of the United States or a foreign country within the past five years immediately preceding the date a criminal records check is complete.