Manufactured Housing Practice Test

When does a dealer's license get automatically cancelled?

1. When the business is abandoned

2. If the place of business is changed without notice

3. When there is a change in the designated licensee

4. All of the above

The correct answer is: All of the above

A dealer's license can be automatically cancelled in several situations that reflect a fundamental change in the business's operational status or compliance with licensing requirements. These circumstances include the abandonment of the business, which signals that the dealer is no longer actively engaged in selling or leasing manufactured homes. Additionally, if there is a change in the place of business and it occurs without providing the necessary notice, this can disrupt the business's licensing status, as the licensing authority needs to maintain accurate records of where licensed operations are conducted. Furthermore, a change in the designated licensee—who is the individual responsible for ensuring that the business complies with relevant laws and regulations—can also lead to automatic cancellation. If the individual primarily responsible for the license is no longer associated with the business, it creates a liability in ensuring compliance. When all these factors are considered, they collectively contribute to the automatic cancellation of a dealer's license, emphasizing the importance of maintaining transparency and consistency in business operations. Thus, the correct answer encompasses all the provided scenarios, illustrating that the dealer's license does indeed undergo automatic cancellation when any of these conditions are met.