When a salesperson leaves a dealer, what must the dealer do with the salesperson's license?

Prepare for the Colorado Motor Vehicle Salesperson Exam. Study with flashcards and multiple choice questions, each question includes hints and explanations. Ensure you're ready to excel!

When a salesperson leaves a dealership, the appropriate action the dealer must take is to return the salesperson's license to the Auto Industry Division. This is necessary because the license is issued in connection with that specific dealer, and it becomes invalid once the salesperson is no longer associated with the dealership. Returning the license ensures that the Auto Industry Division maintains accurate and up-to-date records of licensed salespersons, which is crucial for regulatory compliance and accountability in the automotive sales industry.

In this context, retaining the license for future reference or transferring it to another salesperson does not align with regulatory practices; each license is personally tied to the individual salesperson and their specific dealership. Any improper disposal of the license could also violate regulations, emphasizing the importance of proper procedures in maintaining the integrity of licensing within the industry.

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