58-4211. Same; denial, suspension and revocation of licenses, when; procedure; civil penalties.
58-4211
58-4211. Same; denial, suspension and revocation of licenses, when;procedure; civil penalties.(a) A license may be denied, suspended or revoked or a renewal may berefused by the director on any of the following grounds:
(1) Proof of financial unfitness of the applicant;
(2) material false statement in an application for a license;
(3) filing a materially false or fraudulent tax return as certifiedby the director of taxation;
(4) negligently failing to comply with any applicable provision of theKansas manufactured housing act orany applicable rule or regulation adopted pursuant thereto;
(5) knowingly defrauding any retail buyer to the buyer's damage;
(6) negligently failing to perform any written agreement with anybuyer;
(7) failure or refusal to furnish and keep in force any requiredbond;
(8) knowingly making a fraudulent sale or transaction;
(9) knowingly engaging in false or misleading advertising;
(10) willful misrepresentation, circumvention or concealment,through a subterfuge or device, of any material particulars, or thenature thereof, required by law to be stated or furnished to the retailbuyer;
(11) negligent use of fraudulent devices, methods or practices incontravention of law with respect to the retaking of goods under retailinstallment contracts and the redemption and resale of such goods;
(12) knowingly violating any law relating to the sale, distributionor financing of manufactured homes or mobile homes, as the case may be;
(13) being a manufacturedhome manufactureror factory representative, officer,agent or any representative thereof, who has:
(A) Induced or has attempted to induce, by coercion, intimidation ordiscrimination, any dealer to involuntarily accept delivery ofany manufactured home or mobile home, parts or accessories therefor, or any form ofadvertisements or other commodities which shall not have been ordered by the dealer;
(B) unfairly, without due regard to the equities of thedealer, and without just provocation, canceled, terminated or failed torenew a manufactured home sales agreement with any new manufactured homedealer;
(C) induced, or has attempted to induce, by coercion, intimidationor discrimination, any dealer to involuntarily enter into anymanufactured home sales agreement with such manufacturer, factory branchor any representative thereof, or to do any other act to adealer which may be deemed a violation of the Kansas manufactured housingact, or the rulesand regulations adopted or orders promulgated under authority of thisact, by threatening to cancel or not renew a manufactured home sales agreementexisting between such parties;
(14) being a manufacturer who fails to specify in writingfor the protection of the buying public thedelivery and preparation obligations of its dealers prior todelivery of new manufactured homes or mobile homes to new manufactured homedealers. A copy of such writingshall be filed with the division by every licensed manufacturer of manufactured homes and the contents thereof shall constitutethedealer's only responsibility for product liability as betweenthe dealer and the manufacturer. Anymechanical, body or parts defects arising from any express or impliedwarranties of the manufacturer shall constitutethe product or warranty liability of themanufacturer. The manufacturer shall reasonablycompensate any authorized dealer for the performance of deliveryand preparation obligation;
(15) being a manufactured home manufacturer orfactory branch who fails to supply a new manufactured home dealerwith a reasonable quantity of new manufactured homes, partsand accessories, inaccordance with the manufactured home sales agreement. It shall not be deemedaviolation ofthe Kansas manufactured housing act, if such failure is attributable tofactors reasonably beyondthe control of such manufacturer or factory branch;
(16) knowingly used or permitted the use of dealer license platescontrary to law;
(17) has failed or refused to permit an agent of the division,during the licensee's regular business hours, to examine or inspect suchdealer's records pertaining to titles and purchases and sales ofmanufactured homes and mobile homes;
(18) failure to notify the division within 10 days of dealer's platesthat have been lost, stolen, mutilated ordestroyed;
(19) failure or refusal to surrender a dealer'slicense or dealer's plates to the division or its agent upondemand;
(20) has demonstrated that such person is not of good character andreputation in the community in which the dealer resides;
(21) has, within five years immediately preceding the date of makingapplication, been convicted of a felony or any crime involving moralturpitude, or has been adjudged guilty of the violations of any law ofany state or the United States in connection with such person's operationas a dealer or salesperson;
(22) has cross-titled a title to any purchaser of any manufactured home or mobile home.Cross-titling shall include, but not by way of limitation, adealer or broker or the authorized agent of either selling or causing tobe sold, exchanged or transferred any manufactured home or mobile home andnot showing a completechain of title on the papers necessary for the issuance of title for thepurchaser. The selling dealer's name must appear on theassigned manufacturer's statement of origin orreassigned certificate of title;
(23) has changed the location of such person's established place ofbusiness prior to approval of such change by the division;
(24) having in such person's possession a certificate of title which isnot properly completed, otherwise known as an "open title";
(25) failure to provide adequate proof of ownership for manufacturedhomes and mobile homes in the dealer's possession.
(b) The director may deny the application for a license within 30days after receipt thereof by written notice to theapplicant, stating the grounds for such denial. Upon request by theapplicant whose license has been so denied, the applicant shall be grantedan opportunity to be heardin accordance with the provisions of the Kansas administrative procedure act.
(c) If a licensee is a firm or corporation, it shall be sufficientcause for the denial, suspension or revocation of a license that anyofficer, director or trustee of the firm or corporation, or any memberin case of a partnership, has been guilty of any act or omission whichwould be good cause for refusing, suspending or revoking a license tosuch party as an individual. Each licensee shall be responsible for theacts of its salespersons or representatives while acting as its agents.
(d) When any licensee is found to be allegedly violating any of theapplicable provisions of the Kansas manufactured housing act, or any order orrule and regulation adopted pursuant thereto, the director, upon the director'sown motion or upon complaint, may commence a hearing against the licensee,which hearing shall be conducted in accordance with the provisions of theKansas administrative procedure act.
(e) Any person who is found to have violated any applicable provisions ofthe Kansas manufactured housing act, any rule and regulation adopted pursuantthereto or any applicable order of the director shall be subject to a civilpenalty of not less than $50 nor more than $1,000 for each violation or suchperson's license may be suspended or revoked or both civil penalty and licensesuspension or revocation.
(f) Any licensee or other person aggrieved bya final order of the director may appealto the district court as provided by theact for judicial review and civil enforcement of agency actions.
(g) The revocation or suspension of amanufacturer's license may be limited to one or moremunicipalities or counties or any other defined trade area.
History: L. 1991, ch. 33, § 11; July 1.