What must a dealer do when a salesperson voluntarily leaves or is discharged?

When a salesperson voluntarily leaves or is discharged, the dealer is required to return the salesperson's license to the Dealer Board. This is a crucial step because the state has specific regulations governing the licensing of motor vehicle salespersons. When a salesperson's employment with a dealership ends, their license is no longer valid under that dealership's sponsorship. The act of returning the license not only complies with legal requirements but also prevents any misuse of the license that could arise if it remained with the dealership.

Additionally, this process is integral to maintaining accurate records with the Dealer Board, ensuring that all licenses reflect current employment statuses. This contributes to regulatory compliance and helps uphold the integrity of the motor vehicle sales industry in Colorado. Other actions, such as retaining personal items, issuing warnings, or providing references, do not fulfill the legal obligations outlined by the state concerning licensing.