VA Licensed Salesperson Test Flashcards

VA Licensed Salesperson Test Flashcards Used vehicles in the inventory of a dealer that do not have

a Virginia inspection sticker:

Cannot be operated on the highway except to an inspection station According to the Federal Trade Commission Used Car Rule, the following is considered an unfair and deceptive practice?Representing that a used automobile is sold with a warranty when its not.According to the Federal Trade Commission Used Car

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

Demonstrator or inventor vehiclesConsignment vehicles 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 to the best of their knowledge?What is the penalty for violating the disclosure provisions of the Virginia Dealer Licensing Act's "As Is" law?A $1,000 civil penalty, & the customer may return the vehicle 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 following is required to be disclosed under Regulation

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

Amount financedLate fees and APRSchedule of Payments 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 costumer Regarding "Internet employees" a 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.A salesperson's "certificate of qualification": Must be obtained before applying for a salesperson's license.In general, a completed buyers order is legally binding

when:

Both parties agree on a price and sign the buyers order.Section "B" on a Power of Attorney (Form VAD-70) is used:When a vehicle is sold prior to the dealer receiving the title.If a dealer charges a processing fee it must be current and

registered with MVDB and:

Posted in the public area and clearly visible Under the Federal Trade Commission Used Car Rule, the

terms of the warranty as stated on the Buyer's Guide:

Can be changed and noted on the original Guide or on a new Guide.Temporary certificates of ownership issued by dealers must

contain:

Date of issuanceName and address of purchaserThe temporary plate number and vehicle identification number The "Processing Fee" is:A charge by a dealer for processing a transaction.A Buyers guide must be placed on"Demonstrators available for sale.Used trucks under 16,000 lbs. GVW.Consignment vehicles.What does the anti-structuring provision of the IRS Cash Reporting Rule prohibit?Advising customers on how to get around the rule.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.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

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 A Power of Attorney (Form VAD-70) is used only when:A title is lostorThe title is held by a lien holder A dealer must make a copy of the written warranty available for the customer to read prior to the sale.

TRUE

Finance charges must be stated in:Annual Percentage Rate

The reverse of the Buyers Guide must be signed In every retail sale of a used vehicle.The Buyers guide is placed on a vehicleBefore it is offered for sale.Effective July 2012, a Temporary Supplemental License

issued from the MVDB:

May only be issued for 8 off site sales a year.Cannot have consecutive sales in the same jurisdictionIf notifications are required, notifications must be sent by Certified Mail.When issuing temporary license plates, the dealer:May not charge the customer more than the fee charged the dealer for the plates.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 Temporary transport plates may be issued for no more

than:

• days

The Motor Vehicle Transaction Recovery Fund: Is funded by dealers and salespersons.Violation of the IRS Cash Reporting Rule can result in which of the following personal penalties to the

salespersons:

A severe fineA criminal felony chargeJail time if convicted When discussing a customer's loan application, the

following cannot be asked:

"Are you married?" 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.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

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

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 MVDB Penalties for violating provisions of the statutes pertaining

to motor vehicle salespersons include:

A civil penalty of not more that $1000 per violationSuspension of the licenseRevocation of the license On the buyers orders, the line item, "Balance Due at

Settlement" is used:

With both cash and finance transactions.When may use Dealer Plates on consignment vehicles?If the vehicle is on consignment from another dealer Temporary tags and Temporary Transport Tags can be loaned to another dealer False 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.