Nevada Timeshare License Practice Exam

Under what circumstance can the Administrator suspend or revoke a sales agent's license?

1. If the agent has a previous job termination

2. If the agent is convicted of a felony

3. If the agent receives a complaint from a client

4. If the agent fails to meet sales targets

The correct answer is: If the agent is convicted of a felony

A sales agent's license can be suspended or revoked by the Administrator if the agent has been convicted of a felony. This is because felony convictions reflect seriously on an individual's character and integrity, which are critical for maintaining ethical standards in the real estate and timeshare industries. The underlying philosophy is that individuals who have committed serious offenses may not uphold the responsibilities and trust placed in them as licensed professionals. This measure is in place to protect consumers and ensure that only those who have demonstrated trustworthy actions are permitted to engage in sales practices. The other options do not carry the same weight of severity or regulatory implications as a felony conviction. Job terminations can occur for a variety of reasons and may not necessarily relate to the individual's professional conduct or ethical behavior. Complaints from clients might be part of normal business operations and can often be resolved without immediate punitive action. Failing to meet sales targets may reflect performance issues but does not inherently indicate untrustworthy behavior or illegality, and therefore, does not usually warrant license suspension or revocation.