Manufactured Housing Practice Test

Under what circumstance might a license be canceled?

1. Upon request of the dealer

2. If a felony conviction occurs

3. At the discretion of the salesperson

4. If a salesperson moves to another state

The correct answer is: If a felony conviction occurs

A license might be canceled due to a felony conviction because such convictions can significantly impact a person's ability to conduct business ethically and responsibly. The licensing authorities place a high importance on maintaining standards of integrity and legality within the industry. A felony conviction may indicate a breach of trust or a violation of laws that could pose risks to consumers and the overall marketplace. In contrast, a request from the dealer, the discretion of the salesperson, or relocation to another state do not typically serve as valid grounds for cancellation. A dealer's request might lead to other administrative actions but not outright cancellation; a salesperson's personal decision would not influence their license status; and while moving out of state can complicate licensing, it usually requires managing the transfer or application in the new state rather than immediate cancellation. Thus, the presence of a felony conviction creates a situation that necessitates the cancellation of a license to uphold regulatory standards and ensure robust consumer protection.