Cal. Bus. & Prof. Code § 9841

(a) The director may deny, suspend, revoke, or place on probation the registration of a service dealer for any of the following acts or omissions done by himself or herself or any employee, partner, officer, or member of the service dealer and related to the conduct of his or her business:
1. (1) Making or authorizing any statement or advertisement that is untrue or misleading, and that is known, or which by the exercise of reasonable care should be known, to be untrue or misleading.
2. (2) Making any false promises of a character likely to influence, persuade, or induce a customer to authorize the repair, installation, service, or maintenance of the equipment as specified by this chapter.
3. (3) Any other conduct that constitutes fraud or dishonest dealing.
4. (4) Conduct constituting incompetence or negligence.
5. (5) Failure to comply with the provisions of this chapter or any regulation, rule, or standard established pursuant to this chapter.
6. (6) Any willful departure from or disregard of accepted trade standards for good and workmanlike installation or repair.
7. (7) Conviction of a crime that has a substantial relationship to the qualifications, functions and duties of a registrant under this chapter, in which event the record of the conviction shall be conclusive evidence thereof.
8. (8) A violation of any order of the bureau made pursuant to this chapter.
(b) The director may also deny, or may suspend, revoke, or place on probation, the registration of a service dealer if the applicant or registrant, as the case may be, has committed acts or crimes constituting grounds for denial of licensure under Section 480.
(c) The director may also deny, or may suspend, revoke, or place on probation, the registration of a service dealer if the applicant or registrant, as the case may be, will be or is holding the registration for the benefit of a former registrant whose registration has been suspended or revoked and who will continue to have some involvement in the applicant’s or new registrant’s business.