Advertising

Question 1

When used in advertising, what terms, under the Truth in Lending Act, “trigger” full
disclosure?

Answer 1

 The amount or percentage of any down payment.
 The number or period of payments.
 The amount of any payment and finance charge.

Question 2

An advertisement of a “Sale” must include the sale end date only when:

Answer 2

 It must always be stated

Question 3

When advertising a used vehicle, the fact that it is “used” must be clearly stated. Which
of the following terms cannot be used without also declaring they are used?

Answer 3

 Special purchase.

 Program car.

Question 4

If a finance payment is stated in an advertisement, then the required disclosures are:

Answer 4

 Amount of down payment.
 Number and frequency of the payments.
 Annual Percentage Rate (APR).

Question 5

In any advertisement, placed by a dealer, the advertisement:

Answer 5

 Must give the dealer’s name or “VADLR” must be used.

Question 6

A dealer’s processing fee must be disclosed in an advertisement when the advertised price does not include the processing fee amount. (T/F)

Answer 6

 True

Question 7

Dealers are required to disclose their processing fee in typeface that is:

Answer 7

 8 point type.
OR
 Not smaller than the largest typeface within the advertisement.

Question 8

Virginia dealers are permitted to advertise dealer rebates. (T/F)

Answer 8

 False.

Question 9

The following are not allowed in a dealers’ advertisement:

Answer 9

 Offers to match down payments.
 Offers to guarantee minimum trade-in allowances.
 Offers of dealer cash or money back.

Question 10

“Free”, “at no cost” or words to that effect shall not be used unless:

Answer 10

 The “free” item is available without a purchase.

Question 11

If a dealer advertises a specific vehicle and only has a limited number at the advertised price:

Answer 11

 The advertisement can list the stock number or VIN # to indicate a limited supply.

Question 12

Dealers are required to keep the original or a clear copy of all advertisements for:

Answer 12

 60 days subsequent to the expiration of the advertisement.

Question 13

Advertisements placed on television, radio or the internet is subject to the Advertising Laws. (T/F)

Answer 13

 True.

Question 14

Dealers located in other states must comply with Virginia’s Advertising Laws when
advertising in Virginia newspapers. (T/F)

Answer 14

 False.

Question 15

Under the Federal Truth In Lending Act, violators may be assessed a civil penalty of over $40,000 (and adjusted for CPI), and one year in prison per day per violation. (T/F)

Answer 15

 True.

Question 16

Dealers who pay a third party for their Internet Advertising:

Answer 16

 May not be billed on a per sale basis.

 May not be billed on a per lead basis.

Question 17

When advertising on Craigslist, to avoid a possible civil penalty you must:

Answer 17

 Advertise under the “Dealer Section”.
 List Dealer Name or VADLR.
 Use telephone number on file with MVDB.