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VA Licensed Salesperson Test with
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What is the penalty for violating the disclosure provisions of the Virginia Dealer Licensing Act's "As Is" law? - correct answer ✔ A $1,000 civil penalty, & the customer may return the vehicle Vehicles can be sold in Virginia "As Is" if: - correct answer ✔ A Buyers Guide is completely filled out, signed, and dated by the buyer. The dealer provides the buyer, prior to sale, a separate written disclosure as to the effect of an "As Is" sale. A disclosure is printed on the front of the buyers order. A vehicle must be inspected: - correct answer ✔ Between the time it comes into a dealer's inventory and the time it is sold at retail If a vehicle does not pass inspection: - correct answer ✔ The dealer may bring it into compliance. The dealer may deliver the vehicle with a valid rejection sticker and a written disclosure, which may be in the form of an official inspection receipt.
A dealer licensed as a franchise or independent dealer may buy and sell motorcycles, trailers and motor homes if they have the proper: - correct answer ✔ License issued by MVDB A second set of temporary tags may be issued to a customer if: - correct answer ✔ 1. The title is not available at the end of the first 30-day period. The vehicle is to be titled and registered out of state. The paper work is submitted to DMV along with an explanation as issued. All required fees are submitted to the Department of Motor Vehicles before authorization of temporary tags may be issued When issuing temporary license plates, the dealer: - correct answer ✔ May not charge the customer more than the fee charged the dealer for the plates. Temporary transport plates may be issued for no more than: - correct answer ✔ 5 days Temporary transport plates may be used to: - correct answer ✔ Transport vehicles from auctions or other points of purchase or sale. A salesperson's "certificate of qualification": - correct answer ✔ Must be obtained before applying for a salesperson's license.
Each dealership must post a list of the salespersons that work there. - correct answer ✔ TRUE Salespersons must carry their license at all times and show it when asked. - correct answer ✔ TRUE Temporary certificates of ownership issued by dealers must contain: - correct answer ✔ Date of issuance Name and address of purchaser The temporary plate number and vehicle identification number If you do not renew your salesperson's license by the expiration date: - correct answer ✔ You can not operate until a new license is obtained If a salesperson is found guilty of violating one or more of the provisions of the Virginia Dealer Laws, the Motor Vehicle Dealer Board may, after following the prescribed procedures: - correct answer ✔ Assess a civil penalty on the salesperson of up to $1000 per violation Refuse to renew the salesperson's license Revoke/Suspend the salesperson's license
If a customer wishes to demonstrate a vehicle in the inventory of the dealer: - correct answer ✔ The salesperson must accompany the customer. If not accompanied by the salesperson; a form must be completed and carried by the respective purchaser during the test drive The Motor Vehicle Transaction Recovery Fund: - correct answer ✔ Is funded by dealers and salespersons. The purpose of the Motor Vehicle Transaction Recovery Fund: - correct answer ✔ Is to satisfy unpaid judgments against a dealer or salesperson that has defrauded a purchaser If a salesperson's license has been revoked as a result of failure to reimburse the Motor Vehicle Transaction Recovery Fund: - correct answer ✔ The salesperson must reimburse the fund plus eight percent interest before reapplying for a license A temporary certificate of ownership titled and registered in Virginia: - correct answer ✔ Is issued when the vehicle is not available at the time of slate Can only be issued for one thirty day period. Temporary license plates: - correct answer ✔ Should be destroyed after expiration or when permanent plates are issued
Requires a written disclosure to the costumer Regarding "Internet employees" a persons who receive phone calls from Internet inquires: - correct answer ✔ May not quote pricing over the phone without a salesperson license. May greet potential customers and set up appointments without a salesperson license. What is an "Open Title"? - correct answer ✔ One that has been signed by the titled owner leaving blank the information on the buyer. On extended service contracts, for both parts and labor, the dealer must collect:
- correct answer ✔ Retail sales tax on the half of the retail cost of the service contract The IRS definition of "cash" does not include: - correct answer ✔ personal checks The IRS Cash Reporting Rule, enacted to prevent citizens from hiding unreported income, requires dealerships to complete and file IRS form 8300 when cash receipts exceed the following dollar amount: - correct answer ✔ $10, Violation of the IRS Cash Reporting Rule can result in which of the following personal penalties to the salespersons: - correct answer ✔ A severe fine A criminal felony charge Jail time if convicted
What does the anti-structuring provision of the IRS Cash Reporting Rule prohibit? - correct answer ✔ Advising customers on how to get around the rule. In financing a vehicle on an installment sales contract, the APR stands for: - correct answer ✔ Annual percentage rate. Finance charges must be stated in: - correct answer ✔ Annual Percentage Rate Full disclosure of credit terms must be made - correct answer ✔ Before a sale is consummated The following is required to be disclosed under Regulation Z (Truth in Lending) of the Consumer Credit Protection Act: - correct answer ✔ Amount financed Late fees and APR Schedule of Payments If a financing company denies a loan application, it must: - correct answer ✔ Provide the applicant with a written explaining the reason of denial within 30 days When can an inquiry be made of a credit-reporting bureau? - correct answer ✔ When the customer signs a credit application. Under the Truth in Lending Act, when financing an automobile, which of the following charges have to be disclosed to the customer: - correct answer ✔ Annual percentage rate
What is the penalty for violating the Federal Trade Commission Used Car Rule? - correct answer ✔ Up to $16,000 per violation "Full" and "Limited" are terms given to: - correct answer ✔ Warranties According to the Federal Trade Commission Used Car Rule, the following is considered an unfair and deceptive practice? - correct answer ✔ Representing that a used automobile is sold with a warranty when its not. As described in the Federal Trade Commission Used Car Rule, dealers must display conspicuously on each used car a: - correct answer ✔ Buyer's guide According to the Federal Trade Commission Used Car Rule, the Buyer's Guide should be displayed on: - correct answer ✔ Demonstrator or inventor vehicles Consignment vehicles A dealer must make a copy of the written warranty available for the customer to read prior to the sale. - correct answer ✔ TRUE A dealer can sell as vehicle "As Is" or without a warranty in Virginia - correct answer ✔ TRUE Under the Federal Trade Commission Used Car Rule, the terms of the warranty as stated on the Buyer's Guide: - correct answer ✔ Can be changed and noted on the original Guide or on a new Guide.
When giving a warranty on a used vehicle the dealer must: - correct answer ✔ Give the customer a copy of the Buyers Guide window sticker Give the customer a warranty document containing certain specific phrases Which of the following must be included on the Buyer's Guide? - correct answer ✔ Purchaser's signature For Dealer arranged financing, if the retail installment contract is not approved and the deal is cancelled you must. - correct answer ✔ Return the customer's trade-in. The reverse of the Buyers Guide must be signed by the customer and the dealership: - correct answer ✔ In every retail sale of a used vehicle. The reverse of the Buyers Guide must be signed - correct answer ✔ In every retail sale of a used vehicle. An "A" after the odometer reading on a title indicates: - correct answer ✔ Actual miles driven. The term "mileage" as used in the Truth in Mileage Act means: - correct answer ✔ The actual distance the vehicle has been driven. An "E" after the odometer reading on a title means: - correct answer ✔ Mileage in excess of the odometers mechanical limits
Under Federal law must receive a copy of the odometer disclosure statement. This can be furnished: - correct answer ✔ By giving a copy of the secure reassignment and/or power of attorney if the title is not available. By giving a copy of the conforming title. A Power of Attorney (Form VAD-70) is used only when: - correct answer ✔ A title is lost or The title is held by a lien holder Section "B" on a Power of Attorney (Form VAD-70) is used: - correct answer ✔ When a vehicle is sold prior to the dealer receiving the title. Section "C" on the Power of Attorney (Form VAD-70): - correct answer ✔ Must always be completed by the dealer. Is an affirmation, by the dealer, that the information contained on the form is correct to the best of their knowledge? The "Processing Fee" is: - correct answer ✔ A charge by a dealer for processing a transaction. If a dealer charges a processing fee it must be current and registered with MVDB and: - correct answer ✔ Posted in the public area and clearly visible
The dealer processing fee is: - correct answer ✔ Subject to the motor vehicle sales and use tax. A salesperson may use a dealer plate if he or she: - correct answer ✔ Works at least 25 hours each week on a regular basis and is compensated for this work. Dealer license plates may be: - correct answer ✔ Used on vehicles in the inventory of the dealer A dealer may allow the prospective purchaser to use the license plates assigned to the dealer for: - correct answer ✔ Up to 5 days, and may be renewed once. After proper forms are completed, dealer plates may be used on a vehicle in a dealer's inventory: - correct answer ✔ By a prospective purchaser By a customer whose vehicle is in the dealers shop for repairs The form granting permission to use dealer plates: - correct answer ✔ May be issued for a five day period and issued for one additional five day period. When may use Dealer Plates on consignment vehicles? - correct answer ✔ If the vehicle is on consignment from another dealer The dealer may authorize a person, other than a full-time employee, to transport a vehicle on a dealer plate to and from a point of sale, an auction, and a repair facility or dealer exchange for a period not to exceed: - correct answer ✔ 24 hours
Cannot have consecutive sales in the same jurisdiction If notifications are required, notifications must be sent by Certified Mail. How many years is a dealership required to maintain proof that a Virginia Safety Inspection was performed prior to sale at retail? - correct answer ✔ 5 years. What type of valid proof may a Dealer use to prove a Virginia Safety Inspection is performed on a vehicle prior to retail sale? - correct answer ✔ A receipt from an authorized Virginia inspection station identifying vehicle by year, make, model and VIN. The official state inspection document.
