Car salesman test Flashcards

Car salesman test Flashcards A dealer makes a good will substitution for a vehicle previously delivered and titled customer, the sales and tax refund process is...the tax is not refundable Dealer license plates may be used on what? vehicles in the dealers inventory As described by the federal trade commission used car rule dealers must conspicuously place what on cars??The buyers guide

True or False: A dealer can sell a vehicle "As Is" or without

a warranty in Virginia?True A salesperson may use a dealer plate if they works at least 25 hrs. a week on a regular basis and is compensated for the work done.If a vehicle is registered in Virginia and the owner does not have liability insurance, the penalty is an uninsured

motorist fee of:

$500 The form granting permission to use dealers plates can be issued for how long?

• in a 5 day period and then reissued for an additional 5

days A vehicle identification number has how many numeric characters?17 total After the DSD 27 is completed, dealer plates may be used on a vehicle in a dealer's inventory by who?-a prospective purchaser-a customer whose vehicles in the dealers shop for repairs A dealer may allow the prospective purchaser to use the license plates assigned to the dealer for how long?up to 5 days and it can be renewed once what is the processing fee?a charge by a dealer for processing a transaction In order for a dealer to occasionally rent a vehicle without a

rental license:

the dealer can't rent a vehicle without a rental license issued by the Virginia Department of Taxation.temp plates can be used for what?transport vehicles from auctionstransport to other purchase or sale points The motor vehicle transaction recovery fund is funded how?it is funded by dealers and the salespeople APR stands for?Annual Percentage Rate a temporary certificate of registration is... -Is issued when the certificate of vehicle title is NOT available at the time of sale-Is effective for 30 days in general a completed buyers order is legally binding when...Both parties agree on a price and sign the buyers order The following must be licensed to engage in business in

Virginia:

motor vehicle dealermotor vehicle distributor/ manufacturermotor vehicle salesperson penalties for violating provisions pertaining to motor vehicle salesperson include what?

• a civil penalty of $1,000 per violation- suspension of

license- Revocation of license What is an open title?One that has been signed by the titled owner leaving blank the information on the buyer.The IRS definition of cash does not include what? Personal checks

Applications, taxes and fees collected b y the DMV on behalf of the buyer must be submitted when?within 30 days The following is required to be disclosed under Regulation

Z (Truth in Lending) of the Consumer Credit Protection Act:

• The amount financed-Late fees and APR-Schedule of

Payments Where is the buyers guide placed?In conspicuous place so that both sides of it can be seen if the vehicle doesn't pass inspections... -the dealer can bring it into compliance-the dealer may deliver the vehicle with a valid rejection sticker and written disclosure( this can be an inspection receipt) A vehicle must be inspected...Between the time it comes into a dealer's inventory and the time it is sold at retail.When can an inquiry be made of a credit-reporting bureau?When the customer signs a credit application If you're licensed in another state as a dealer you can sell in the state of Virginia after obtaining what?a Certificate of Registration The buyers guide is placed where on a vehicle when?Before it is offered for a sale which character in the VIN number identifies the model year?the 10th when is a power of attorney (Form VAD-70) used?? a title is lost or if the title is being held by a lien holder

True or False: temp tags and temp transport tags can be

loaned to other dealers False they can not be loaned Where should the buyers guide be specifically placed in accordance with the Federal Trade Commission used Car Rule??it should be on Demonstrator or Inventory cars and consignment vehicles.if a salesperson is found guilty of violating one or more of the provisions under thew Virginia Dealer laws (VDL ) the MVDB can do what?fine you up to 1,000 per violationrefuse to renew your licenserevoke/suspend your license Can a sales person pay somebody to become one of their customers?No it is unlawful for any salesperson or dealer in Virginia somebody wants to test drive a car... What do you do?- you must accompany them- a DSD 27 must be completed Under the Federal Trade Commission Used Car Rule, a

vehicle can be sold "As Is":

"As is no dealer Warranty" box is checked on the buyers guide Under Federal law the the customer must receive a copy of the odometer discloser statement. this can be furnished how...-By giving a copy of the secure reassignment and/or power of attorney if if the title is not available-by giving a copy of the conforming title Section "C" on the Power of Attorney (Form VAD-70):-must ALWAYS be completed by the dealer-is an affirmation by the dealer that the information contained on the form is correct An "E" after the odometer reading on a title means...the milage in excess of the odometers mechanical limits When giving a warranty on a used vehicle the dealer must:give the customer a copy of the buyers guide window stickergive the customer a warranty document containing certain specific phrases the reverse of the buyers guide must be signed... for every sale of a used vehicle when should temporary plates be destroyed?? after expiration or when permanent plates are issued What is the purpose of having the MVTR fund? this is set in place to satisfy unpaid judgments against the dealer or salesperson that's defrauded a purchaser

True or False: A dealer must make a written warranty

available for the customer to read prior to the sale?True A dealer listed as a franchise or independent dealer can buy/sell vehicles if they have what?License issued by MVDB(Moto Vehicle Dealer Board ) For dealer arranged financing, if the retail installment contract is not approved and the deal is cancelled you must.return the customers trade in

True or False: dealerships must post a list of all

salespersons True How many years is a dealership required to maintain proof that a Virginia Safety is performed on a vehicle prior to retail sale?-A receipt from an authorized Virginia Inspection station vehicle by year, make, model and VIN- The official state inspection document What does the Federal Trade Commission say about dealers offering vehicles for sale at public auctions??A guide must be on the vehicle if the auction is open to the public.According to the federal Trade commission used car rule what is considered unfair and deceptive in the practice Saying that a used car is under warranty when in reality its not

True or False: A salesperson must carry their license at all

times??True Which of the following statements are true regarding the Truth in Milage act -the buyer and seller must sign and print their names- The customer must receive a copy of the odometer statements-an "N" after the odometer reading on the title means the odometer reading is not actual If a dealer charges a processing fee it must be current and

registered with MVDB and:

posted in the public sales area and clearly visible In connection with the transfer of ownership of a leased vehicle, the Truth in Milage act requires the lessor to provide the lessee with a written statement regarding the milage of the vehicle.What pieces of information are required within this statement??-The name of the person making the disclosure/ odometer reading- the date of the statement and lessees and lessor's name and address-the identity of the vehicle(make, model year. etc.) and VIN The federal Trade Commission Used Car Rule which sets out the warranty provisions of a sale is known as??The buyers guide window sticker rule

"Full" and "Limited" are terms given to: Warranties

What is the penalty for violating the "As Is" law?$1,000 civil penalty and the customer can return the vehicle If a vehicle is to be titled out of state, temp tags are issued and the purchaser does not have the required liability insurance the dealer must...Collect 1/12 of the uninsured motorist fee and submit it to the DMV On extended service contracts, for parts and labor the dealer must collect what?Retail sales tax on one half of the retail cost of the service contract When can you use dealers plates on a consignment vehicle?if its on consignment from another dealer the "N" after the odometer reading means what? that the reading shown is not the actual Full disclosure of credit terms must be made when?Before a sale is consumated when must you reimburse the MVTR fund and what happens if you cant??Within 30 days and your license is automatically revoked

What defines a new vehicle?- it has no previous title- it has less than 7,500 miles When a thirty-day tag is issued to a customer who does not have insurance and is going to register the vehicle in

Virginia, the dealer:

• must handle the titling, registering, and payment fees

directly with the DMVand- they must collect the uninsured motor vehicle fee

True or False: No sales person shall be employed by one

or more dealer unless they are owed by the same person or corporation??True when issuing a temp licensethe dealer can't charge the customer more than the fee the dealer was charged Vehicles can be sold "As Is" if?- a buyers guide is filled out and completed by the dealer- dealer provides the buyer(before the sale) with a separate written disclosure of the "As Is" sale-the disclosure is printed on the front of the buyers order 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:

10,000 dollars Section "B" on a power of attorney ( Form VAD-70) is used when??when a vehicle is is sold prior to the dealer receiving the title Under the Federal Trade Commission Used Car Rule, the terms of the warranty as stated on the Buyers Guide....Can be changed and noted on the original guide or on the new one On the buyers order, the line item, "Balance Due at

Settlement" is used:

With both cash and finance transactions What does the anti-structuring provision of the IRS Cash reporting rule prohibit?advising customers on how to get around the rule the term milage as used in the Truth in Milage Act means what??the actual amount of distance the vehicle has been driven The sales tax on a warranty or service agreement sold to a

customer is paid to:

The Virginia Department of Taxation What must be included on the buyers guide??? The purchaser's signature The reverse of the Buyers Guide must be signed by the customer and the dealership when???after every sale of a used vehicle A second set of temp tags can be issued to a customer if....- a title is not available at the end of the 30 day period- vehicle is titled and registered out of state-paper work is given to the DMV with explanationrequired fees are sent to the DMV before authorization tags can be issued Violation of the IRS Cash Reporting Rule can result in which of the following personal penalties to the

salespersons:

• a severe fine- a criminal felony charge-jail time if

convicted Temp transport plates must be issued for how long?no more than 5 days Under the Truth in Lending Act, when financing an automobile, which of the following charges have to be

disclosed to the customer:

Annual Percentage Rate Temporary Supplemental Sales (Off-Site Sales)

applications (MVDB 22) must be received at MVDB:

-15 days prior to the off site sale-May only be issued fort 8 off-site sales per year-a temporary sales license may be