What authority does the Motor Vehicle Dealer Board have regarding investigating violations?

The authority of the Motor Vehicle Dealer Board to investigate suspected violations and hold hearings is an essential part of its role in maintaining the integrity of the motor vehicle sales industry. The board is empowered to take proactive measures in addressing issues that could harm consumers or misrepresent the dealer's practices.

By investigating suspected violations, the board ensures that dealers comply with state regulations and standards. This function is vital for protecting consumers by identifying fraudulent activities or unethical practices within the industry. Additionally, holding hearings allows the board to provide a formal process for addressing these violations, ensuring that all relevant parties have a chance to present their case. This procedural aspect is crucial for upholding fairness and due process while enforcing regulations.

The other options do not accurately reflect the scope of the board's authority. Responding solely to customer complaints would limit the board's capacity to proactively identify and address issues before they escalate. Investigating only license applications would neglect the ongoing responsibility of oversight once licenses are granted. Lastly, while conducting annual audits might seem beneficial, it is not the primary authority outlined for the board, which focuses more on enforcement actions and compliance investigations.