DMV Test Flashcards by Kirby Martin

What is the penalty for violating the disclosure provisions of the Virginia Dealer Licensing Act’s “As is” law?

$1,000 civil penalty - The customer may return the vehicle

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Vehicles can be sold in Virginia “As is” if:

A B G i c f o, s, a d b t b
T d p t b p t t s a s w d a t t e o a A i s

A Buyer’s Guide is completely filled out, signed, and dated by the buyer - The dealership 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

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A vehicle must be inspected:

B t t i c i a d i a t t i i s a r

Between the time it comes into a dealer’s inventory and the time it is sold at retail

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If a vehicle does not pass inspection:

T d m b i i c
T d m d t v w a v r s a a w d, w m b i t f o a o i r

The dealer may bring it into compliance -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

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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 the MVDB

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A second set of temporary tags may be issued to a customer if:

T t i n a a t e o t f 30 d p
T v i t b t a r o o s
A p w i s t DMV

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 DMV before authorization of temporary tags may be issued

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When issuing temporary license plates, the dealer:

M n c t c m t t f c t d f t p

May not charge the customer more than the fee charged the dealer for the plates

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Temporary transport plates may be issued no more than:

5 days

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Temporary transport plates may be used to:

T v f a o o p o p o s

Transport vehicles from auctions or other points of purchase or sale

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A salesperson’s “certificate of qualification”:

Must be obtained before applying for a salesperson’s license

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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

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A new motor vehicle is defined as one which:

H b p t
H l t 7500 m o t o w a d

Has been previously titled - Has less than 7.500 miles on the odometer with a disclosure

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Any person who is licensed in another state of the United States as a motor vehicles dealer may sell vehicles at Dealer Only wholesale auction in Virginia only after obtaining a:

Certificate of registration

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

MVD, MVDOM, MVS

Motor Vehicle Dealer - Motor Vehicle Distributor or Manufacturer - Motor Vehicle Salesperson

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

TRUE

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

TRUE

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

TRUE

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Temporary certificates of registration issued by dealers must contain:

N a a o p
T t p n a VIN

D o I

Date of issuance - Name and address of purchaser -The temporary plate number and vehicle identification number

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

Y c sell m v u a c a valid s l i o

Y c s m v u a c a v s l i o

You cannot sell motor vehicles until a current and valid salesperson license is obtained

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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:

A a c p o t s o u t $1,000 p v
R t r t s l
R t s l

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

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

The salesperson must accompany the customer - The salesperson completes a DSD 27 for the prospective customer to have in their possession during the “test drive”

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The Motor Vehicle Transaction Recovery Fund:

I t s u j a a d o s t h d a p

Is to satisfy unpaid judgments against a dealer or salesperson that has defrauded a purchaser

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The dealer or salesperson must reimburse the Motor Vehicle Transaction Recovery Fund:

W 30 d o t d o s l i a r

Within 30 days or the dealer’s or salesperson’s license is automatically revoked

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A temporary certificate of registration:

I i w t CoVT i N a a t t o s
I e f 30 d

Is issued when the certificate of vehicle title is NOT available at the time of sale - Is effective for 30 days

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Temporary license plates: | S b s a e o w p p a i

Should be destroyed after expiration or when permanent plates are issued

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

Is unlawful for any motor vehicle dealer or salesperson licensed in Vrginia

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

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

30 days

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

$500

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 the DMV - Must collect the uninsured motor vehicle fee

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

FALSE

A "Demonstrator" is defined in part as a new motor vehicle which: | H m t 750 m a o i o R a w d t t c

- Has more than 750 miles accumulated on its odometer -Requires a written disclosure to the customer

Regarding "Internet Employees" or persons who receive phone calls from Internet inquiries:

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

What is an "Open Title"? | O t h b s b t t o l b t i o t b

One that has been signed by the titled owner leaving blank the information on the buyer

On extended service contracts, for both parts and labor, the dealer must collect: | R s t o o h o t r c o t s c

Retail sales tax on one half of the retail cost of the service contract

The IRS definition of "cash" does not include:

Personal checks

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

Violation of the IRS Cash Reporting Rule can result in which of the following personal penalties to the salespersons: | A s f A c f c J t i c

- A severe fine - A criminal felony charge - Jail time if convicted

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

Advising customers on how to get around the rule

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

Annual percentage rate

Finance charges must be stated in:

Annual percentage rate

Full disclosure of credit terms must be made:

Before a sale is consummated

The following is required to be disclosed under regulation Z (Truth in Lending) of the Consumer Credit Protection Act: | A f L f a APR S o p

- Amount financed - Late fees and APR - Schedule of payments

If a financing company denies a loan application, it must: | P t a w a w s e t r o d w 30 d

Provide the applicant with a written statement explaining the reason of denial within 30 days

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

When the customer signs a credit application

Under the Truth in Lending Act, when financing an automobile, which of the following charges have to be disclosed to the customer:

Annual percentage rate

When discussing a customer's loan application, the following cannot be asked: | A y m

Are you married?

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

The buyers guide window sticker rule

The Buyers Guide is placed on a vehicle: | B i i o f s

Before it is offered for sale

A Buyers Guide must be placed on: | D a f s U t u 16.000 lbs GVW C V

* Demonstrators available for sale * Used trucks under 16,000 lbs GVW * Consignment vehicles

The Buyers Guide is: | A t t v i a c p s b s c b s

Attached to the vehicle in a conspicuous place so both sides can be seen

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

Under the Federal Trade Commission Used Car Rule, a vehicle can be sold "As Is" | i t "A I-N D W" b o t B G i c

if the "As Is-No Dealer Warranty" box on the Buyers Guide is checked

What is the penalty for violating the Federal Trade Commission Used Car Rule

Over $40,000 plus CPI

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

Warranties

According ot the Federal Trade Commission Used Car Rule, the following is considered an unfair and deceptive practice: | R t a u a i s w a w w i i n

Representing that a used automobile is sold with a warranty when it is not

As described in the Federal Trade Commission Used Car Rule, the Buyer's Guide should be displayed on: | D o i V C V

- Demonstrator or inventory Vehicles - Consignment Vehicles

A dealer must make a copy of the written warranty available for the customer to read prior to the sale.

TRUE

A dealer can sell a vehicle "As Is" or without a warranty in Virginia

TRUE

Under the Federal Trade Commission Used Car Rule, the terms of the warranty as stated on the Buyers Guide: | C b c a n o t o G o o a n G

Can be changed and noted on the original Guide or on a new Guide

When giving a warranty on a used vehicle the dealer must: | G t c a c o t B G w s G t c a w d c c s p

- Give the customer a copy of the Buyers Guide window sticker - Give the customer a warranty document containing certain specific phrases

Which of the following must be included on the Buyer's Guide? | P S

Purchaser's signature

For dealer arranged financing, if the retail installment contract is not approved and the deal is cancelled you must | R t c t-i

Return the customer's trade-in

The reverse of the Buyers Guide must be signed by the customer and the dealership | I e r s o a u v

In every retail sale of a used vehicle

An "A" after the odometer reading on a title indicates:

Actual miles driven

The term "mileage" as used in the Truth in Mileage Act means:

The actual distance the vehicle has been driven

An "E" after the odometer reading on a title means:

Mileage in excess of the odometers mechanical limits

Which of the following statements are true regarding the Truth in Mileage Act? | T b a s m s a p t n T c m r a c o t o s A N a t o r o t t m t o r i n a

- The buyer and seller must sign and print their names - The customer must receive a copy of the odometer statements - An "N" after the odometer reading on the title means the odometer reading is not actual

The customer must receive a copy of the odometer statement

TRUE

An "N" after the odometer reading on the title means the odometer reading is not actual

TRUE

In connection with the transfer of ownership of a leased motor vehicle, the Truth In Mileage Act requires the lessor to provide the lessee with a written statement regarding the mileage of the vehicle. Some of the information required in the statement is: | T n o t p m t d a t c o r T d o t s a t l a l n a c a T i o t v...

- The name of the person making the disclosure and the current odometer reading - The date of the statement and the lessees and lessor's name and current address - The identity of the vehicle including the make, model, wear, body type and vehicle identification number

Under Federal law the customer must receive a copy of the odometer disclosure statement. This can be furnished: | B g a c o t s r a/o p o a i t t i n a B g a c o t c t

- 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

A Power of Attorney (Form VAD-70) is used only when: T t i h b a l h | A t i l

- A title is lost - The title is held by a lien holder

Section "B" on a Power of Attorney (Form of VAD-70) is used: | W a v i s p t t d r t t

- When a vehicle is sold prior to the dealer receiving the title

Section "C" on the Power of Attorney (Form VAD-70): Must always be completed... | M a b c b t d

- 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

The "Processing Fee" is:

A charge by a dealer for processing a transaction

If a dealer charges a processing fee it must be current and registered with MVDB and: | P i t p s a a c v

Posted in the public sales area and clearly visible

The dealer processing fee is

Subject to the motor vehicle sales and use tax

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

Dealer license plates may be:

Used on vehicles in the inventory of the dealer

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

After the DSD 27 is 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 dealer's shop for repairs

The form granting permission to use dealer plates:

May be issued for a five day period and reissued for one additional five day period

When may you use Dealer Plates on consignment vehicles?

If the vehicle is on consignment from another dealer

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 VIN is comprised of 17 alpha numeric characters. Which character identifies the model year?

10th

If a vehicle is to be titled out of state, temporary tags are issued and the puchaser does not have the required liability insurance, the dealer:

Must collect 1/12 of the uninsured motorist fee and submit to DMV

On the buyers order, the line item, "Balance Due at Settlement" is used:

With both cash and finance transactions

In general, a completed buyers order is legally binding when:

Both parties agree on a price and sign the buyers order

In order for a dealer to occassionally rent a vehicle without a rental license:

The dealer cannot rent a vehicle without a rental icense issued by the Virginia Department of Taxation

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

The sales tax on a warranty or service agreement sold to a customer is paid to:

The Virginia Department of Taxation

Temporary Supplemental Sales (Off-Site Sales) applications (MVDB 22) must be received at MVDB:

- 15 days prior to the off-site sale - May only be issued for 8 off-site sales per year - A temporary sales license may be issued for a period not to exceed seven (7) days for cars/trucks or fourteen (14) days for motorcycles, trailers, and recreational vehicles

How may years is a dealership required to maintain proof that a Virginia Safety Inspection was performed prior to sale at retail?How may years is a dealership required to maintain proof that a Virginia Safety Inspection was performed prior to sale at retail?

5 years

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

DMV Test Flashcards

To Ace the Exam (96 cards)