Housing and Community Development (HCD) Practice Exam

What could result from a willful violation of regulations governing manufactured home sales?

1. Only a warning will be issued

2. It may lead to an automatic refund of commission

3. It could result in suspension or revocation of the dealer's license

4. It will lead to mandatory training sessions for the dealer

The correct answer is: It could result in suspension or revocation of the dealer's license

A willful violation of regulations governing manufactured home sales can lead to severe consequences intended to maintain the integrity and safety of the industry. Specific regulations are put in place to protect consumers and ensure fair practices. When a dealer deliberately disregards these regulations, it undermines the trust necessary for the industry to function effectively. The outcome of suspension or revocation of the dealer's license is a strong measure to deter future violations, signaling that such behavior is unacceptable and will have serious repercussions. This action not only impacts the offending dealer but also serves as a warning to others in the industry about the importance of adhering to regulations. In contrast, merely issuing a warning would not provide enough accountability for serious violations, as it could allow for repeated infractions without any real consequence. An automatic refund of commission does not address the broader issues of trust and regulation adherence, and mandatory training sessions, while beneficial, may not be seen as a sufficient response to willful and deliberate misconduct. Hence, the most appropriate and effective consequence is the potential loss of a dealer's license, which emphasizes the seriousness of such violations.