Manufactured Housing Practice Test

What is a valid cause for revoking a dealer's license?

1. Employing unlicensed salespersons

2. Selling used units without warranty

3. Selling new units below MSRP

4. All the above

The correct answer is: Employing unlicensed salespersons

Employing unlicensed salespersons is indeed a valid cause for revoking a dealer's license because it directly violates regulations that govern the sale of manufactured housing. Licensing requirements are in place to ensure that all salespersons are knowledgeable about the products they sell and the laws that govern those transactions. Unlicensed salespeople may not be familiar with safety standards, financing options, or consumer rights, leading to misleading sales practices and potential harm to consumers. While selling used units without warranty and selling new units below MSRP may raise ethical concerns or could be subject to regulatory scrutiny, they do not automatically warrant revocation of a dealer's license in the same way employing unlicensed salespersons does. The focus on licensing emphasizes accountability within the sales process, ensuring that all involved adhere to legal standards and obligations.