Virginia Salespersons License Study Guide Flashcards

Virginia Salesperson's License Study Guide Flashcards In general, a completed buyers order is legally binding

when:A. The customer makes his or her final offer.B. A

three day cooling off period has expired.C. The sales manager has initialed the buyers order.D. Both parties agree on a price and sign the buyers order.

• Both parties agree on a price and sign the buyers order.

A temporary certificate of ownership titled and registered in

VA:A. Is issued when the vehicle title is not available at the

time of the sale.B. Can only be issued for one thirty day periodC. All the aboveD. None of the Above

• All the above.

If a financing company denies a loan application, it mustA.Provide the applicant with a written statement explaining the reason of denial within 30 days.B. Notify the dealership and no one else.C. Notify the local credit bureau within 45 days.D. Call the applicant and explain why his/her loan was denied.Customers who are denied financing will be notified by the company, in writing, within 30 days.

• Provide the applicant with a written statement explaining

the reason of denial within 30 days.Full disclosure of credit terms must be madeA. On the buyers order.B. Whenever information is discussed.C.Before a sale is consummated.

• Before a sale is consummated.

The dealer processing fee is:A. Not subject to a tax.B.

Subject to the motor vehicle sales and use tax.C. Subject to the motor vehicle sales and use tax.

• Subject to the 4% motor vehicle sales and use tax.

On the buyers order, the line item, "Balance Due At

Settlement" is used:A. Only in a cash transaction.B. With

both cash and finance transactions.C. To show total down payment.D. Only when a vehicle is returned by the purchaser and the transaction is "settled".

• With both cash and finance transactions.

The Federal Trade Commission Used Car Rule which sets out the warranty provisions of a sale is known asA. The buyers guide window sticker rule.B. The truth in mileage act.C. The truth in lending act.

• The buyers guide window sticker rule.

The term "mileage" as used in the Truth In Mileage Act meansA. The actual distance the vehicle has been driven.B. The mechanical odometer reading.C. The same as "odometer reading".

• The actual distance the vehicle has been driven.

An "E" after the odometer reading on a title meansA.Mileage in excess of the odometers mechanical limits.B.Exempt from reporting.C. Odometer has be exchanged.

• Mileage in excess of the odometers mechanical limits.

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 exceedA. Five days.B.24 hours.C. 12 hours.D. 48 hours.

• 24 hours.

A Power of Attorney (Form VAD-70) is used only when:A. A

title is lost.B. The title is held by a lien holder.C. A deposit

is required on a vehicle to be ordered.D. A and B above.A Power of Attorney (Form VAD-70) is used only when a title is lost or the title is being held by a lien holder.

• A and B above.

What is the penalty for violating the disclosure provisions of the Virginia Dealer Licensing Act's "As Is" law?A. A $1,000 fine.B. The customer may return the vehicle.C. A 10 day suspension of the dealer's license.D. Both A and B above.

• Both A and B above

True or False? Every independent dealer-operator must pass an exam to recertify.False A salesperson may use a dealer plate if he or sheA. Works at least 25 hours each week on a regular basis and is compensated for this work.B. Has a written agreement with the dealer to rent the dealer plate.C. Is an independent contractor.D. All of the above.

• Works at least 25 hours each week on a regular basis

and is compensated for this work.Payments to individuals by a salesperson for procuring a customer for the salespersonA. Are limited to one payment per individual per year.B. Are allowed under special arrangement with the Motor Vehicle Dealer Board.C. Can only be in the form of a gift.D. Can result in a fine or suspension of the salesperson's license.

• Can result in a fine or suspension of the salesperson's

license/

The "Processing Fee" is:A. Required by law.B. Authorized

by the Department of Motor Vehicles.C. Approved by the Attorney General.D. A charge by a dealer for processing a transaction.

• A charge by a dealer for processing a transaction.

What type of valid proof may a Dealer use to prove a Virginia Safety Inspection is performed on avehicle prior to retail sale?A. A receipt from an authorized Virginia Inspection station identifying vehicle by year, make, modeland VIN.B. The official state inspection document.C.The buyers guideD. A&BE. All the above D 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 dealerA. Must give the title to the customer.B.Must handle the titling, registering and payment of fees directly with DMV.C. Must collect the uninsured motor vehicle fee.D. B and C above.

• B and C above.

When should the Buyers Guide be placed on a vehicleA.As soon as it comes into inventory.B. Before it is offered for sale.C. At time of delivery.

• Before it is offered for sale.

If a vehicle does not pass inspectionA. The dealer cannot deliver the vehicle to a retail customer.B. The dealer may bring it into compliance.C. 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.D. Either B or C above.

• Either B or C above.

Regarding "Internet employees" or persons who receive

phone calls from Internet inquires can do the following:A.

Greet Customers w/o a licenseB. Setup Appointments w/o