Section 11806 Of Article 2. Vehicle Salespersons From California Vehicle Code >> Division 5. >> Chapter 4. >> Article 2.
11806
. The department, after notice and hearing, may refuse to
issue, or may suspend or revoke, a vehicle salesperson's license when
it makes any of the following findings and determinations:
(a) The applicant or licensee has outstanding an unsatisfied final
court judgment rendered in connection with an activity licensed
under this division.
(b) The applicant or licensee has failed to pay funds or property
received in the course of employment to a dealer entitled thereto.
(c) The applicant or licensee has failed to surrender possession
of, or failed to return, a vehicle to a dealer lawfully entitled
thereto upon termination of employment.
(d) A cause for refusal, suspension, or revocation exists under
any provision of Sections 11302 to 11909, inclusive.
(e) The applicant was previously the holder of an occupational
license issued by another state authorizing the same or similar
activities of a license issued under this division and that license
was revoked or suspended for cause and was never reissued, or was
suspended for cause, and the terms of suspension have not been
fulfilled.
(f) The applicant or licensee has acted as a dealer by purchasing
or selling vehicles while employed by a licensed dealer without
reporting that fact to the dealer or without utilizing the report of
sale documents issued to the dealer.
(g) The applicant or licensee has concurrently acted as a vehicle
salesperson and engaged in that activity for, or on behalf of, more
than one licensed dealer unless all of the licensed dealers for whom
that salesperson works have common controlling ownership. Nothing in
this section restricts the number of dealerships of which a person
may be an owner, officer, or director, or precludes a vehicle
salesperson from working for more than one dealer, provided that all
of the licensed dealers for whom that salesperson works have common
controlling ownership. For purposes of this subdivision, dealers have
common controlling ownership when more than 50 percent of the
ownership interests in each dealer are held by the same person or
persons, either directly or through one or more wholly owned
subsidiary entities.
(h) The applicant or licensee has acted as a vehicle salesperson
without having first complied with Section 11812.
(i) The applicant or licensee was a managerial employee of a
dealer during the time a person under the direction or control of the
managerial employee committed wrongful acts which resulted in the
suspension or revocation of the dealer's license.
(j) The applicant or licensee has acted as a dealer by purchasing
or selling any vehicle and using the license, report of sale books,
purchase drafts, financial institution accounts, or other supplies of
a dealer to facilitate that purchase or sale, when the applicant or
licensee is not acting on behalf of that dealer.