NerdTests.com Test: Virginia Vehicle Salesperson Practice 1

Virginia Vehicle Salesperson Practice 1

This is the first of two test that help you study for the Virginia vehicle salesperson license test.

What is the penalty for violating the disclosure provisions of the Virginia Dealer Licensing Act's "As Is" law?

A $500 civil penalty, The customer may return the vehicle.
A $1,000 civil penalty. The customer may return the vehicle.
A $700 Civil penalty. The customer may return the vehicle.
None of the above.

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.
All of the above.

A vehicle must be inspected:

The vehicle can be sold without a valid inspection.
Between the time it comes into a dealer's inventory and the time it is sold at retail.
Before the time it comes into the dealer's inventory.

If a vehicle does not pass inspection:

The dealer may bring it into compliance.
The dealer cannot maintain possession of the vehicle.
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.
A & C

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.

True
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 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 have been payed.
All of the above.

When issuing temporary license plates, the dealer:

May not charge the customer more than the fee charged the dealer for the plates.
Can charge any Fee they desire.
Must charge a $100 Fee paid to DMV.

Temporary transport plates may be issued for no more than:

10 Days
7 Days
5 Days
15 Days

Temporary transport plates may be used to:

Drive the vehicle wherever the dealer needs.
Let the customer test the vehicle.
Transport vehicles from auctions or other points of purchase or sale.

10)

A salesperson's "certificate of qualification":

Is required before applying to work as dealer / salesperson.
Must be obtained before applying for a salesperson's license.
Is necessary for everyone who works at a dealership.

11)

Penalties for violating provisions of the statutes pertaining to motor vehicle salespersons include:

A civil penalty of not more than $1,000 per violation.
Suspension of the license.
Revocation of the license.
All of the above.

12)

A new motor vehicle is defined as one which:

Has not been previously titled.
Has less than 7,500 miles on the odometer.
That has less than 100 miles on the odometer.
A & B

13)

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.
License from the DMV.
Auction license.

14)

The following must be licensed to engage in business in Virginia:

Motor Vehicle Dealer.
Motor Vehicle Distributor or Manufacturer.
Motor Vehicle Salesperson.
All of the above.

15)

No salesperson shall be employed by more than one dealer, unless the dealerships are owned by the same person, partnership or corporation.

True
False

16)

Each dealership must post a list of the salespersons that work there.

True
False

17)

Salespersons must carry their license at all times and show it when asked.

True
False

18)

Temporary certificates of ownership issued by dealers must contain:

Date of issuance.
Name and address of purchaser.
The temporary plate number and vehicle identification number.
All of the above.

19)

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

You do not need to renew your license.
You may never register for a new license again.
You must pay a $100 fee and reapply.
You can not operate until a new license is obtained.

20)

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.
Have license revoked and up to 6 months jail time and a $1,000 fine.
Refuse to renew the salesperson's license.
A & C

21)

If a customer wishes to demonstrate a vehicle in the inventory of the dealer:

They may do so at will.
The salesperson must accompany the customer.
If not accompanied by the salesperson; a form must be completed and carried by the respective purchaser during the test drive.
B & C

22)

The Motor Vehicle Transaction Recovery Fund is funded by dealers and salespersons.

True
False

23)

The purpose of the Motor Vehicle Transaction Recovery Fund:

Is to recover stolen vehicles from the dealership.
Is to satisfy unpaid judgments against a dealer or salesperson that has defrauded a purchaser.
Is to pay for vehicles that need to be recovered for the customer.
None of the above.

24)

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.
The salesperson must reimburse the fund plus ten percent interest before reapplying for a license.
The salesperson must reimburse the fund plus five percent interest before reapplying for a license.
None of the above.

25)

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 be issued for two 30 day periods as long as the proper paperwork is submitted.
Can only be issued for one thirty day period.
A & C

26)

Temporary license plates should be destroyed after expiration or when permanent plates are issued.

True
False

27)

Payments to individuals by a salesperson for procuring a customer for the salesperson:

Are okay as long as they are not in the form of cash or check.
Are okay if it is a gift card.
Can result in a civil penalty or suspension of the salesperson's license.
None of the above.

28)

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.
May be operated up to the point of sale.
May not be operated whatsoever.
None of the above.

29)

Applications, taxes and fees collected for the Department of Motor Vehicles on behalf of the buyer must be submitted to that Agency within:

30 days.
60 days.
90 days.
120 days.

30)

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

$700
$500
$1000
There is no fee.

31)

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.
May let the customer handle titling, registering and payment of fees with DMV.
A & B

32)

Temporary Tags and Temporary Transport Tags can be loaned to another dealer.

True
False

33)

A "Demonstrator" is defined in part as a new motor vehicle which has more than 750 miles accumulated on its odometer and Requires a written disclosure to the customer.

True
False

34)

Every Independent Dealer-Operator must pass an exam to recertify.

True
False

35)

There are NO grandfather exceptions to recertify as an Independent Dealer-Operator.

True
False

36)

Regarding Internet employees or persons who receive phone calls from Internet inquires:

May quote pricing and details of the vehicle over the phone with customers.
May not quote pricing over the phone without a salesperson license.
May greet potential customers and set up appointments without a salesperson license.
B & C

37)

What is an Open Title?

One that has not been signed by either buying or selling party.
One that has been signed buy the buying party but not by the title owner.
One that has been signed by the titled owner leaving blank the information on the buyer.
None of the above.

38)

The IRS definition of cash does not include personal checks.

True
False

39)

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:

$20,000
$10,000
$5,000
None of the above.

40)

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.
All of the above.

41)

What does the anti-structuring provision of the IRS Cash Reporting Rule prohibit?

Not reporting the cash transactions.
Reporting different forms of payment.
Advising customers on how to get around the rule.
A & B

42)

In financing a vehicle on an installment sales contract, the APR stands for:

Annual Principle Ratio
Annual Percentage Rate
Actual Percentage Rate
Actual Principle Rate

43)

Finance charges must be stated in:

Annual Percentage Rate.
Annual Principle Rate.
Actual Percentage Rate
Actual Principle Rate

44)

Full disclosure of credit terms must be made:

After a sale is consummated.
Before a sale is consummated.
Never.
None of the above.

45)

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.
All of the above.

46)

If a financing company denies a loan application, it must provide the applicant with a written statement explaining the reason of denial within 30 days.

True
False

47)

When can an inquiry be made of a credit-reporting bureau?

When the customer signs a credit application.
Anytime during the buying process.
Once the customer comes on the dealership property.
None of the above.

48)

Under the Truth In Lending Act, the following must be disclosed to the customer:

Total number of payments.
Late payment penalty.
Annual percentage rate.
All of the above.
None of the above.

49)

When discussing a customer's loan application, the following cannot be asked:

Do you have kids?
What size shirt do you wear?
How much money do you have saved?
Are you married?
All of the above.

50)

The Federal Trade Commission Used Car Rule which sets out the warranty provisions of a sale is known as:

The buyers guide paper rule.
The buyers guide window sticker rule.
The warranty provisions sticker guide rule.
None of the above.

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Test by: Austin Berry [ edit test ]