Which of the following is true regarding license suspension?

The accurate understanding regarding license suspension highlights that it occurs automatically upon employment termination. This means that when an individual’s employment with a licensed dealer ends, the license is no longer valid without any further action required. The rationale behind this is centered on maintaining accountability and ensuring that only those actively engaged in compliant practices are permitted to operate under that license.

This automatic suspension is essential for safeguarding the integrity of the manufactured housing industry. It prevents individuals who are no longer affiliated with a dealer from continuing to operate under the dealer's license, which could lead to potential violations or unethical practices.

In contrast, other options suggest scenarios that either misunderstand the nature of license suspension or inaccurately depict the process involved. For instance, minor violations leading to license suspension do not align with typical regulatory practices, and neither does the idea that a dealer needs to formally request suspension. Furthermore, the notion that a license remains active for a set period after employment ends does not accurately reflect licensing protocols, as licenses need to be current and valid to be utilized effectively.