{"data":{"id":"us-ky/krs-190.040","jurisdiction":"us-ky","citation":"KRS 190.040","heading":"Grounds for denial, suspension, or revocation of license -- Notice of denial","body":"of application for license -- Hearings -- Inspection of licensee's records --\nAppeals from order of commission.\n(1) A license may be denied, suspended, or revoked on the following grounds:\n(a) Proof of financial or moral unfitness of applicant;\n(b) Material misstatement in application for license;\n(c) Filing a materially false or fraudulent tax return as certified by the Department\nof Revenue;\n(d) Willful failure to comply w ith any provision of this chapter or any\nadministrative regulation promulgated under this chapter;\n(e) Willfully defrauding any retail buyer to the buyer's damage;\n(f) Willful failure to perform any written agreement with any buyer;\n(g) Failure or refusal to furnish and keep in force any bond required;\n(h) Having made a fraudulent sale, transaction, or repossession;\n(i) False or misleading advertising;\n(j) Fraudulent misrepresentation, circumvention, or concealment through\nsubterfuge or device of any of the  material particulars or the nature of them\nrequired to be stated or furnished to the retail buyer;\n(k) Employment of fraudulent devices, methods, or practices in connection with\ncompliance with the requirements under the statutes of this state with respec t\nto the retaking of goods under retail installment contracts and the redemption\nand resale of goods;\n(l) Having violated any law relating to the sale, distribution, or financing of\nmotor vehicles or new recreational vehicles;\n(m) Being a manufacturer of m otor vehicles or recreational vehicles, factory\nbranch, distributor, field representative, officer, agent, or any representative of\nthe motor vehicle manufacturer, recreational vehicle manufacturer, or factory\nbranch, who has induced, coerced, or attempted  to induce or coerce any\nautomobile dealer or new recreational vehicle dealer to accept delivery of any\nmotor vehicle, new recreational vehicle, vehicles, parts, accessories, or any\nother commodities that shall not have been ordered by the dealer;\n(n) Being a manufacturer of motor vehicles or recreational vehicles, factory\nbranch, distributor, field representative, officer, agent, or any representative of\na motor vehicle manufacturer or factory branch, who has attempted to induce\nor coerce, or has induc ed or coerced, any dealer to enter into any agreement\nwith a manufacturer, factory branch, or representative, or to do any other act\nunfair to the dealer, by threatening to cancel any franchise existing between a\nmanufacturer, factory branch, or representative and the dealer;\n(o) Being a manufacturer, factory branch, distributor, field representative, officer,\nagent, or any representative of a motor vehicle manufacturer or factory branch,\nwho has unfairly, without due regard to the equities of the dealer an d without\njust provocation, canceled the franchise of any motor vehicle dealer. The\nnonrenewal of a franchise or selling agreement without just provocation or\ncause shall be deemed an evasion of this section and shall constitute an unfair\ncancellation;\n(p) Being a manufacturer, factory branch, distributor, field representative, officer,\nagent, or any representative of a motor vehicle manufacturer, recreational\nvehicle manufacturer, or factory branch, or wholesaler who makes, attempts to\nmake, or aids or abe ts the making of a sale of a motor vehicle or a new\nrecreational vehicle to a person other than a licensed motor vehicle dealer or\nnew recreational vehicle dealer. This section shall not prevent any\nmanufacturer from offering discounts or rebates on any mo tor vehicle or new\nrecreational vehicle to any of its employees; or\n(q) Being a dealer who advertises for sale a new motor vehicle or new\nrecreational vehicle unless he is a dealer operating under a franchise with a\nlicensed manufacturer, factory branch, o r distributor authorizing the sale of\nthe new motor vehicle or the new recreational vehicle being advertised.\n(2) The licensor may deny the application for a license within thirty (30) days after\nreceipt thereof by written notice to the applicant, stating the grounds for denial.\nUpon request by the applicant whose license has been denied, the licensor shall set\nthe time and place of hearing a review of denial, to be conducted in accordance with\nKRS Chapter 13B.\n(3) A license shall not be suspended or revoke d except after a hearing conducted in\naccordance with KRS Chapter 13B.\n(4) The commission may inspect the pertinent books, letters, records, and contracts of a\nlicensee.\n(5) If a licensee is a firm or corporation, it shall be sufficient cause for the denia l,\nsuspension, or revocation of a license that any officer, director, or trustee of the firm\nor corporation, or any member in case of a partnership, has been guilty of any act or\nomission which would be cause for refusing, suspending, or revoking a license  to\nthe party as an individual. Each licensee shall be responsible for the acts of any or\nall of his salesmen while acting as his agent, if the licensee approved of or had\nknowledge of the acts and after approval or knowledge retained the benefit,\nproceeds, profits, or advantages accruing from the acts.\n(6) Any licensee or other person in interest who is dissatisfied with a final order of the\ncommission may appeal to the Franklin Circuit Court and to the Court of Appeals in\nthe manner provided by KRS Chapter 13B.","path":["KRS Chapter 190"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43566","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:45Z","sha256":"ea14778e377aeca6d3860b5e984ac4bd9bef0b51ae48bd427f1e4a8451da48c6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-190.038","next":"us-ky/krs-190.041"},"notice":"GroundRules: Original legal text. Not legal advice."}