VA Sales License Test Flashcards

VA Sales License Test Flashcards Any person who is licensed in another state of the United States as a motor vehicle dealer may sell vehicles at Dealer Only wholesale auditions in Virginia only after

obtaining a:

Certificate of registration A vehicle must be inspected:Between the time it comes into a dealer's inventory and the time it is sold at retails 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 In connection with the transfer of ownership of a leased motor vehicle, the Truth I. Mileage Act requires the lessor to provide the lease with a written statement regarding the mileage of the vehicle. Some of the information required in

the statement is:

• The name of the person making the disclosure and the

current odometer reading2. The date of the statement and lessees and lessor's name and current address3. The identity of the vehicle including the make, model, year, body type, and vehicle identification number The form granting permission to use dealer's plates:May be issued for a 5 day period and reissued for one additional 5 day period The following must be licensed to engage i. business in

Virginia:

• Motor Vehicle Dealer2. Motor Vehicle Distributor or

Manufacturer3. Motor Vehicle Salesperson Which of the following statements are true regarding the Truth In Mileage Act?

• The buyer and seller must sign and print their names2.

The customer must receive a copy of the odometer statements3. An "N" after the odometer reading on the titles means the odometer reading is not actual When may you use Dealer Plates on consignment vehicles?If the vehicle is on consignment from another dealer Advertisements placed on television, radio, or the internet are subject to the Advertising Laws Trye No salesperson shall be employed by more than one dealer, unless the dealerships are owned by the same person, partnership or corporation.True the sales tax on a warranty or service agreement sold to a

customer is paid to:

The Virginia Department of Taxation 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.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 Each dealership must post a list of the salespersons that work there.True If a vehicle does not pass inspection:1. the dealer may bring it up to compliance2. 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

If you do not renew your salesperson's license by the

expiration date:

You cannot sell motor vehicles until a current and valid salesperson license has been obtained What does the anti-structuring provision of the IRS Cash Reporting Rule prohibit?Advising customers on how to get around the rule.After the DSD 27 is complete , dealer plates may be used

on a vehicle in a dealer's inventory:

• by a prospective purchaser2. by a customer whose

vehicle is in the dealer's shop for repairs The customer must receive a copy of the odometer statement True If a customer wishes to demonstrate a vehicle in the

inventory of the dealer:

• The salesperson must accompany the customer2 The

salesperson completes a DSD 27 for the prospective customer to have in their possession during the "test drive" A dealer may allow the prospective purchaser to use the

license plates assigned to the dealer for:

Up to 5 days, and may be renewed once When can an inquiry be made of a credit-reporting bureau?When the customer signs a credit application Temporary Supplemental Sales (Off-Site Sales)

applications (MVDB 22) must be received at MVDB:

• 15 days prior to the off-site sale2. may only be issued for
• off-site sales per year3. a temporary sales license may

be issued for a period not to exceed 7 days for cars/trucks OR 14 days for motorcycles, trailers, and recreational vehicles In order for a dealer to occasionally rent a vehicle without a

rental license:

the dealer cannot rent a vehicle without a rental license issues by the Virginia Department of Taxation

Finance charges must be stated in:Annual Percentage Rate

A "Demonstrator" is defined in part as a new motor vehicle

which:

• Has more than 750 miles accumulated on its odometer2.

Requires a written disclosure to the customer 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 it's not A salesperson's "certificate of qualification": Must be obtained before applying for a salesperson's license Under the Federal Trade Commission Used Car Rile, the

terms of the warranty as stated on the Buyers Guide:

Can be changer and noted on the original Guide or on a new guide The reverse of the Buyers Guide must be signed I'm every retail sale of a used vehicle When issuing temporary license plates, the dealer: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:

• days

If a vehicle is registered in Virginia and the owner does not have liability insurance, the penalty is an uninsured

motorist fee of:

$600 In any advertisement, placed by a dealer, the

advertisement:

must give the dealers name or "VADLR" must be used 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

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 Payments to individuals by a salesperson for procuring a

customer for the salesperson:

Is unlawful for any motor vehicle dealer or salesperson licensed in Virginia Penalties for violating provisions of the statutes pertaining

to motor vehicle salespersons include:

• A civil penalty of not more than $1000 per violation2.

suspension of your he license3. revocation of the license A dealer makes a good will substitution for a vehicle previously delivered and titles to a customer. The sales and

use tax refund process is:

the tax is not refundable Section "C" on the Power of Attorney (Form VAD-70):1. Must always be completed by the dealer2. Is an affirmation, by the dealer, that the information contained on the form is correct to the best of their knowledge An "N" after the odometer reading on the title means the odometer reading is not actual True Salespersons must carry their license at all times and show it when asked.True Advertisements placed on social media platforms are not subject to the Advertising Laws False

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

According to the Federal Trade Commission Used Car

Rule, the Buyers Guide should be displayed on:

• Demonstrators or inventory vehicles2. Consignment

Vehicles A dealer's processing fee must be disclosed in an advertisement when the advertised prices included the processing fee.false 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

period2. the vehicle is to be titled and registered out of state3. all paperwork is submitted to DMV along with an explanation as to why a second set needs to be issued4. all required fees are submitted to the DMV before authorization of temporary tags may be issued 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

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

The following is required to be disclosed uber Regulation Z

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

• Amount financed2. Late fees and APR3. Schedule of

payments What is the penalty for violating the Federal Trade Commission Used Car Rule?over $40000 plus CPI

The Buyers Guide is:Attached to the vehicle in a conspicuous place so both

sides can be seen

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

In general, a completed buyers order is legally binding

when:

both parties agree on a price and sign the buyers order The advertisements Dealer's use for their internet

Advertising:

• Have different legal guidelines through FTC2. Must

adhere to the same advertising guidelines as print or

television3. Is only allowed if the Dealer uses their dealership's website link