STATE STATUTES

Question 1

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

Answer 1

• A $1,000 civil penalty. The customer may return the vehicle.

Question 2

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

Answer 2

• 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.

Question 3

A vehicle must be inspected:

Answer 3

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

Question 4

If a vehicle does not pass inspection:

Answer 4

• 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.

Question 5

A dealer licensed as a franchise or independent dealer may buy and sell motorcycles, trailers and motor homes if they have the proper:

Answer 5

• License issued by MVDB

Question 6

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

Answer 6

• 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 Department of Motor Vehicles before authorization of temporary tags may be issued.

Question 7

When issuing temporary license plates, the dealer:

Answer 7

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

Question 8

Temporary transport plates may be issued for no more than:

Answer 8

• 5 days

Question 9

Temporary transport plates may be used to:

Answer 9

• Transport vehicles from auctions or other points of purchase or sale

Question 10

A salesperson’s “certificate of qualification”:

Answer 10

• Must be obtained before applying for a salesperson’s license.

Question 11

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

Answer 11

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

Question 12

A new motor vehicle is defined as one which:

Answer 12

• Has not been previously titled.

* Has less than 7,500 miles on the odometer with a disclosure.

Question 13

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

Answer 13

• Certificate of registration.

Question 14

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

Answer 14

• Motor Vehicle Dealer.
• Motor Vehicle Distributor or Manufacturer.
• Motor Vehicle Salesperson.

Question 15

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

Answer 15

• TRUE

Question 16

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

Answer 16

• TRUE

Question 17

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

Answer 17

• TRUE

Question 18

Temporary certificates of ownership issued by dealers must contain:

Answer 18

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

Question 19

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

Answer 19

• You can not operate until a new license is obtained.

Question 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:

Answer 20

• 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.

Question 21

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

Answer 21

• 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.

Question 22

The Motor Vehicle Transaction Recovery Fund:

Answer 22

• Is funded by dealers and salespersons.

Question 23

The purpose of the Motor Vehicle Transaction Recovery Fund:

Answer 23

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

Question 24

If a salesperson’s license has been revoked as a result of failure to reimburse the Motor Vehicle Transaction Recovery Fund:

Answer 24

• The salesperson must reimburse the fund plus eight percent interest before reapplying for a license.

Question 25

A temporary certificate of ownership titled and registered in Virginia:

Answer 25

* Is issued when the vehicle title is not available at the time of sale. * Can only be issued for one thirty day period.

Question 26

Temporary license plates:

Answer 26

• Should be destroyed after expiration or when permanent plates are issued.

Question 27

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

Answer 27

• Can result in a civil penalty or suspension of the salesperson's license.

Question 28

Used vehicles in the inventory of a dealer that do not have a Virginia inspection sticker:

Answer 28

• Cannot be operated on the highway except to an inspection station.

Question 29

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

Answer 29

• 30 days.

Question 30

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

Answer 30

• $500.

Question 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:

Answer 31

• Must handle the titling, registering and payment of fees directly with DMV. Must collect the uninsured motor vehicle fee.

Question 32

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

Answer 32

• FALSE

Question 33

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

Answer 33

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

Question 34

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

Answer 34

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

Question 35

What is an “Open Title”?

Answer 35

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

Question 36

On extended service contracts, for both parts and labor, the dealer must collect:

Answer 36

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