What must a dealer return to the Dealer Board immediately if a salesperson leaves or is discharged?

When a salesperson leaves or is discharged from their position at a dealership, the dealer is required to return the salesperson's license to the Dealer Board immediately. This practice ensures that the licensing records are kept current and accurate, reflecting only those individuals who are currently authorized to sell vehicles on behalf of the dealership.

The salesperson's license is a critical document; it signifies that the individual has met all necessary qualifications to operate as a salesperson under state regulations. By returning the license, the dealer prevents any potential misuse of the license and safeguards the integrity of the licensing system. It is essential for maintaining accountability and compliance with state laws governing motor vehicle sales.

Returning other items, such as a vehicle, commission, or contract, does not have the same regulatory requirement and may not have the immediate need for action as mandated by the Dealer Board. Therefore, the obligation to return the salesperson's license is a key responsibility of the dealer when a salesperson's employment status changes.