Vehicle Dealer and Salesperson License Defense
Representation Before the Board
The State Board of Vehicle Manufacturers, Dealers and Salespersons licenses vehicle dealers, salespersons, manufacturers, distributors, their representatives, branch lots and vehicle auctions in the Commonwealth. The Board enforces requirements concerning dealer premises, records, advertising, the handling of taxes and fees, and the conduct of sales.
Board matters most often arise from consumer complaints, inspections of dealer premises, title and tax irregularities, advertising, and criminal charges. Because the Act makes a dealer answerable for employing unlicensed salespersons, for letting others use its dealer license or plates, and for collecting and remitting taxes and fees, a single transaction may lead to proceedings against both the dealership and the individual salesperson.
Mimm Law, LLC represents dealers, salespersons and other Board licensees at every stage of a Board matter, from the initial inquiry or inspection through final order.
Governing Law
- Board
- State Board of Vehicle Manufacturers, Dealers and Salespersons
- Statute
- Board of Vehicles Act, Act of December 22, 1983, P.L. 306, No. 84, as amended
- Regulations
- 49 Pa. Code Chapter 19
- Licensees
- Dealers, manufacturers and salespersons
- Renewal
- Biennial
Who the Board Regulates
- Vehicle dealer license
- Vehicle salesperson license
- Manufacturer, distributor and branch licenses
- Factory representative and distributor representative licenses
- Wholesale and public or retail vehicle auction licenses
- Vehicle branch lot license
Grounds for Discipline
Section 318 of the Board of Vehicles Act (63 P.S. § 818.318) lists some forty grounds for discipline, including:
- Discipline in another jurisdiction on similar grounds
- Substantial misrepresentation, or false promises
- For a dealer or salesperson, a conviction or plea for forgery, embezzlement, false pretenses, extortion, conspiracy to defraud, bribery, odometer tampering or another crime of moral turpitude within five years before applying for or receiving a license, or while the license is in force
- Failure to account for money belonging to others
- Deceptive advertising
- Unprofessional conduct or incompetency
- False statements on an application, oath or affidavit
- Failure to maintain an established place of business
- Employing an unlicensed salesperson
- Failure to collect, report or remit sales tax and fees
- Bushing, meaning raising the price or lowering the trade-in allowance after the buyer has signed a purchase order that is subject to the seller's acceptance
- Failure to produce records at the request of the Board's agent
Sanctions the Board May Impose
The Board may issue a formal reprimand, suspend or revoke a license, and may impose civil penalties of up to $1,000 under the Act. Bureau agents may also issue citations under the Bureau's schedule (for example, $500 for a first offense and $1,000 for a second for employing an unlicensed salesperson). Unless a court orders otherwise, the Board may not reinstate a revoked license; a person whose license was revoked who wishes to resume operating must apply for a new license, which may be done after five years. Unlicensed activity is subject to criminal penalties, and each vehicle sold may be treated as a separate offense.
In addition to the sanctions in the Board's own statute, Chapter 31 of Title 63 of the Pennsylvania Consolidated Statutes authorizes each licensing board to impose a civil penalty of up to $10,000 per violation and to assess the costs of investigation against a licensee found to have violated the law.
Obligations That Often Lead to Board Matters
Established Place of Business
A dealer must maintain an established place of business meeting the Board's requirements, including a permanent building, an office with records storage, display space, signage, posted hours and a business telephone.
Salespersons
A salesperson may sell for only one dealer at a time, and the license identifies that dealer. A dealer may not employ an unlicensed salesperson.
Taxes, Fees and Records
Dealers must collect and remit sales tax and registration fees properly and must produce their records when the Board's agents request them. Tax and title irregularities are among the most serious matters the Board considers.
Matters We Handle
- Consumer complaints concerning sales and financing
- Title, registration and tag issues
- Established place of business requirements
- Sales by unlicensed salespersons
- Advertising issues
- Criminal charges and convictions affecting licensure
How We Can Help
Board Investigations
Upon receipt of a letter of inquiry, a subpoena or contact from an investigator, the firm evaluates the allegations, reviews the licensee's records, prepares a written response and attends any investigative interview. In some matters, an early, well-documented response may resolve the matter before formal charges are filed.
Formal Charges and Hearings
When the Commonwealth files an Order to Show Cause, the time to respond is short, and a respondent who misses the deadline may be held in default and the facts alleged deemed admitted. The firm prepares and files the answer, negotiates a consent agreement where one serves the client's interests, and tries the matter before the hearing examiner or the Board where it does not.
Applications and Reinstatement
For applicants whose history may raise questions, and for licensees seeking reinstatement after suspension, revocation or lapse, the firm assembles the application and supporting record and presents the matter to the Board.
Questions Licensees Ask
A customer says the terms of the deal changed after signing. What should we do?
Gather the buyer's order, the financing documents and all communications. Raising the price or lowering the trade-in allowance after the buyer has signed a purchase order that is subject to subsequent acceptance by the seller (bushing) is a specific ground for discipline, and the sequence of documents is often decisive.
An inspector found problems with our lot. Is our license at risk?
It may be. Failure to maintain an established place of business meeting the Board's requirements is a ground for discipline. Deficiencies should be corrected promptly and the corrections documented.
Can a salesperson's conduct lead to action against the dealership?
Yes. The Act makes a dealer answerable for specific conduct, including employing an unlicensed salesperson, and the Board may proceed against both the dealer and the salesperson. Written policies and training records are important evidence.
Should I speak with an investigator before I have counsel?
A licensee who receives a letter of inquiry, a subpoena or a telephone call from an investigator with the Bureau of Enforcement and Investigation should be courteous and should note the investigator's name and contact information, but should not give a substantive statement before obtaining advice. Anything said to an investigator may be included in the report reviewed by the prosecuting attorney and, later, by the Board. Counsel can determine what is being alleged, gather the relevant records and prepare a response that is accurate, complete and appropriately limited.
Must I report a criminal conviction, plea or ARD, or discipline in another state?
Yes. Pennsylvania law requires every licensee to notify the licensing board in writing within 30 days of discipline imposed by a licensing authority in another jurisdiction and of a finding of guilt, guilty plea, plea of nolo contendere, probation without verdict, disposition in lieu of trial or Accelerated Rehabilitative Disposition on a felony or misdemeanor charge. Some boards' regulations impose additional or earlier reporting duties, including, for nurses and massage therapists, a duty to report the filing of criminal charges within 30 days. A failure to report is itself a ground for discipline, and it is frequently charged alongside the underlying conduct.
Meet Your Attorney
Steven A. Mimm, Esq.
Founder, Mimm Law, LLC. Admitted in Pennsylvania (2008) and New Jersey (2022).
From 2014 to 2022, Attorney Steven A. Mimm served as a prosecuting attorney bringing disciplinary actions on behalf of the Bureau of Professional and Occupational Affairs before Pennsylvania's licensing boards. That experience informs how the firm evaluates evidence, negotiates with the Commonwealth and prepares cases for hearing. Where a licensee also faces criminal charges, the firm handles the licensing matter and coordinates with the licensee's criminal defense counsel.
Related: All Licensing Boards · Licensing and FAQs
Last reviewed September 2026. The information on this page is general in nature and is not legal advice. Contacting the firm does not create an attorney-client relationship.