DMV Salesperson Practice Exam Flashcards

DMV Salesperson Practice Exam Flashcards A temporary certificate of ownership titled and registered in

Virginia:

Is issued when the vehicle title is not available at the time of sale.Can only be issued for one thirty day period.A dealer licensed as a franchise or independent dealer may buy and sell motorcycles, trailers and motor homes if they

have the proper:

License issued by DMV.Which of the following must be included on the Buyer's Guide?Vehicle body style.

TRUE / FALSE:An "N" after the odometer reading on the

title means the odometer reading is not actual.

TRUE What is the penalty for violating the disclosure provisions of the Virginia Dealer Licensing Act's "As Is" law?A $1,000 civil penaltyThe customer may return the vehicle In general, a completed buyers order is legally binding

when:

Both parties agree on a price and sign the buyers order.A salesperson's "certificate of qualification": Must be obtained before applying for a salesperson's license.What type of valid proof may a Dealer use to prove a Virginia Safety Inspection is performed on a vehicle prior to retail sale?A receipt from an authorized Virginia Inspection station identifying vehicle by year, make, model and VIN.The official state inspection document.On extended service contracts, for both parts and labor, the

dealer must collect:

Retail sales tax on one half of the retail cost of the service contract.Section "B" on a Power of Attorney (Form VAD-70) is used:When a vehicle is sold prior to the dealer receiving the title.

TRUE / FALSE:The customer must receive a copy of the

odometer statement.

TRUE A second set of temporary tags may be issued to a

customer if:

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.All paper work is submitted to DMV along with an explanation as to why a second set needs to be issued.All required fees are submitted to the Department of Motor Vehicles.Under the Truth In Lending Act, the following must be

disclosed to the customer:

Total number of payments.Late payment penalty.Annual percentage rate.

TRUE / FALSE:A dealer must make a copy of the written

warranty available for the customer to read prior to the sale.

TRUE

The IRS definition of "cash" does not include: Personal checks.

The "Processing Fee" is:A charge by a dealer for processing a transaction.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 of fees directly with DMV.Must collect the uninsured motor vehicle fee.If a vehicle is to be titled out of state, temporary 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 to DMV.

What does the anti-structuring provision of the IRS Cash Reporting Rule prohibit?Advising customers on how to get around the rule.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.

Dealer license plates may be:Used on vehicles in the inventory of the dealer.

Where should the Buyers Guide be placed: Attached to the vehicle in a conspicuous place so both sides can be seen.

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

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:

24 hours.Under Federal law the customer must receive a copy of the

odometer disclosure statement. This can be furnished:

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.

TRUE / FALSE:Temporary Tags and Temporary Transport

Tags can be loaned to another dealer.

FALSE If a salesperson's license has been revoked as a result of failure to reimburse the Motor Vehicle Transaction

Recovery Fund:

The salesperson must reimburse the fund plus eight percent interest before reapplying for a license.

TRUE / FALSE:No salesperson shall be employed by more

than one dealer, unless the dealerships are owned by the same person, partnership or corporation.

TRUE When issuing temporary license plates, the dealer:May not charge the customer more than the fee charged the dealer for the plates.The term "mileage" as used in the Truth In Mileage Act

means:

The actual distance the vehicle has been driven.After proper forms are completed, dealer plates may be

used on a vehicle in a dealer's inventory:

By a prospective purchaser.By a customer whose vehicle is in the dealers shop for repairs.The Motor Vehicle Transaction Recovery Fund: Is funded by dealers and salespersons.When may you use Dealer Plates on consignment vehicles?If the vehicle is on consignment from another dealer.What does the Federal Trade Commission Used Car Rule 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.If you do not renew your salesperson's license by the

expiration date:

You can not operate until a new license is obtained.When discussing a customer's loan application, the

following cannot be asked:

"Are you married?" For dealer arranged financing, if the retail installment contract is not approved and the deal is cancelled you must.Return the customer's trade-in.

The dealer processing fee is:Subject to the motor vehicle sales and use tax.

Vehicles can be sold in Virginia "As Is" if: A Buyers Guide is completely filled out, signed, and dated by the buyer.The dealer provides the buyer, prior to the 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.Effective July 2012, a Temporary Supplemental License

issued from the MVDB:

May only be issued for 8 off site sales in a year.Cannot have consecutive sales in the same jurisdiction.If notifications are required, notifications must be sent by Certified Mail.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 reverse of the Buyers Guide must be signed. In every retail sale of a used vehicle.A vehicle must be inspected:Between the time it comes into a dealer's inventory and the time it is sold at retail.A salesperson may use a dealer plate if he or she:Works at least 25 hours each week on a regular basis and is compensated for this work.When can an inquiry be made of a credit-reporting bureau?When the customer signs a credit application.Regarding "Internet employees" or persons who receive

phone calls from Internet inquires:

May not quote pricing over the phone without a salesperson license.May greet potential customers and set up appointments without a salesperson license.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:

Assess a civil penalty on the salesperson of up to $1,000 per violation.Refuse to renew the salesperson's license.Revoke/Suspend the salesperson's license.According to the Federal Trade Commission Used Car

Rule, the Buyer's Guide should be displayed on:

Demonstrator or inventory vehicles.Consignment vehicles.When giving a warranty on a used vehicle the dealer must:Give the customer a copy of the Buyers Guide window sticker.Give the customer a warranty document containing certain specific phrases.A "Demonstrator" is defined in part as a new motor vehicle

which:

Has more than 750 miles accumulated on its odometerRequires a written disclosure to the customer The following is required to be disclosed under Regulation

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

Amount financed.Late fees and APR.Schedule of payments.A dealer makes a good will substitution for a vehicle previously delivered and titled to a customer. The sales and

use tax refund process is:

The tax is not refundable.

Full disclosure of credit terms must be made: Before a sale is consummated.

Any person who is licensed in another state of the United States as a motor vehicle dealer may sell vehicles at

wholesale auctions in Virginia only after obtaining a:

Certificate of registration.Temporary transport plates may be issued for no more

than:

• days.