What can happen if a dealer fails to comply with state regulations?

A dealer who fails to comply with state regulations can face serious consequences, including the possibility of having their dealership license revoked. State regulations are put in place to ensure fair practices, consumer protection, and the integrity of the automotive marketplace. When a dealership does not adhere to these regulations, it undermines these objectives, prompting state authorities to take action to protect the public and maintain industry standards. Revoking a dealer's license is a significant step that indicates the severity of the non-compliance and acts as a deterrent to others in the industry.

This sanction emphasizes the importance of regulatory compliance and reinforces the need for dealerships to operate within the legal framework established by state laws. The other options do not accurately reflect the serious implications of non-compliance with regulatory standards, as there are indeed significant penalties for failing to follow established guidelines.