For which ground can the license of a dealer be denied or suspended?

The basis for denying or suspending a dealer's license primarily revolves around maintaining the integrity and legality of dealership operations. One significant ground for such action is providing false information during the licensing process. When a dealership applies for a license, it is crucial to provide accurate and truthful information, as this ensures compliance with state regulations and fosters public trust. If a dealer submits false information, it can be viewed as dishonest behavior, which undermines the regulatory framework designed to protect consumers and ensure fair market practices. This can lead to serious consequences, including denial or suspension of the dealer's license.

In contrast, maintaining a dealership location, employing a properly licensed salesperson, and failing to pay taxes, while important aspects of operating a dealership, do not directly correlate with the integrity of the information provided during licensing as a reason for denial or suspension. The focus is on ensuring that dealers act transparently and honestly from the outset of the licensing process.