What action is prohibited for wholesalers in relation to salesperson licenses?

Wholesalers in the motor vehicle industry are distinct from retail dealers, as their primary function is to facilitate the sale of vehicles in bulk to other dealers rather than directly to consumers. Holding both a wholesaler and a salesperson license simultaneously raises potential conflicts of interest and could blur the lines of regulation set forth by the Colorado Motor Vehicle Dealer Board.

The prohibition against wholesalers holding both types of licenses ensures that wholesalers maintain their focus on wholesale transactions and do not engage in retail sales activities that a salesperson would typically manage. It helps preserve the integrity of the licensing structure and prevents any misuse of the licenses for unauthorized sales activities. This measure also promotes transparency and compliance within the industry.

In contrast, the other options present permissible actions for wholesalers. They are allowed to employ salespersons if they choose, can register their salespersons with the Board, and can conduct sales under their own name, provided these activities align with the regulations governing wholesalers.