A. The director may suspend or cancel the license, off-premises exhibition permit, off-premises display and sales permit or special event permit of any licensee or exhibitor if the director determines that the licensee or exhibitor:

1. 1. Has made a material misrepresentation or misstatement in the licensee's or exhibitor's application for a license, off-premises exhibition permit, off-premises display and sales permit or special event permit.
2. 2. Has used or is using any false advertising as prescribed by section 13-2203.
3. 3. Has violated or is violating a law of this state or a rule adopted by the director pursuant to law.
4. 4. Has failed or is failing to keep and maintain records required to be kept and maintained by the licensee or exhibitor.
5. 5. Has no established place of business or principal place of business as required by this chapter.
6. 6. Has knowingly dealt in stolen motor vehicles or parts or accessories of stolen motor vehicles.
7. 7. Has failed or is failing or the licensee's or exhibitor's manager, agents or representatives have failed or are failing to devote a substantial portion of time to the business for which the licensee or exhibitor is licensed or to be actively or principally engaged in the business for which the licensee or exhibitor is licensed.
8. 8. Has refused to service and fulfill the manufacturer's warranty.
9. 9. Is offering for private sale a motor vehicle in the licensee's or exhibitor's inventory.
10. 10. Has used or is using a private residence to illegally transact business regulated by this chapter.
11. 11. As a manufacturer, factory branch, distributor, field representative, officer or agent or any representative of a manufacturer, factory branch, distributor, field representative, officer or agent without good cause has cancelled or failed to renew the franchise of a new motor vehicle dealer. All existing dealers' franchises continue in full force and operation under a newly appointed distributor on the termination of an existing distributor unless otherwise mutually agreed by the newly appointed distributor and the dealer.

B. The director may suspend or cancel a license if the director determines that an individual included in the application for the license:

1. 1. Made a misrepresentation, omission or misstatement in the application to conceal a matter that may cause the application to be denied.
2. 2. Has been convicted of fraud or an auto related felony in a state, territory or possession of the United States or a foreign country within the past ten years immediately preceding the date a criminal records check is complete.
3. 3. Has been convicted of a felony, other than a felony described in paragraph 2 of this subsection, in a state, territory or possession of the United States or a foreign country within the past five years immediately preceding the date a criminal records check is complete.