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DMV Test > DMV Test > Flashcards

DMV Test Flashcards

To Ace the Exam

1
Q

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

A
  • $1,000 civil penalty - The customer may return the vehicle
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2
Q

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
  • 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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3
Q

A vehicle must be inspected:

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

A

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

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4
Q

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

A
  • 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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5
Q

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

A

License issued by the MVDB

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6
Q

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

A
  • 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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7
Q

When issuing temporary license plates, the dealer:

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

A

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

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8
Q

Temporary transport plates may be issued no more than:

A

5 days

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9
Q

Temporary transport plates may be used to:

T v f a o o p o p o s

A

Transport vehicles from auctions or other points of purchase or sale

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10
Q

A salesperson’s “certificate of qualification”:

A

Must be obtained before applying for a salesperson’s license

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11
Q

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

A

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

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12
Q

A new motor vehicle is defined as one which:

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

A
  • Has been previously titled - Has less than 7.500 miles on the odometer with a disclosure
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13
Q

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:

A

Certificate of registration

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14
Q

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

MVD, MVDOM, MVS

A
  • Motor Vehicle Dealer - Motor Vehicle Distributor or Manufacturer - Motor Vehicle Salesperson
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15
Q

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

A

TRUE

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16
Q

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

A

TRUE

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17
Q

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

A

TRUE

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18
Q

Temporary certificates of registration issued by dealers must contain:

N a a o p
T t p n a VIN

D o I

A
  • Date of issuance - Name and address of purchaser -The temporary plate number and vehicle identification number
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19
Q

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

A

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

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20
Q

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

A
  • 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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21
Q

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

A
  • 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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22
Q

The Motor Vehicle Transaction Recovery Fund:

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

A

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

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23
Q

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

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

A

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

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24
Q

A temporary certificate of registration:

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

A

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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25
Q

Temporary license plates:

S b s a e o w p p a i

A

Should be destroyed after expiration or when permanent plates are issued

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26
Q

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

A

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

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27
Q

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

A

Cannot be operated on the highway except to an inspection station

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28
Q

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

A

30 days

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29
Q

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

A

$500

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30
Q

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:

A
  • Must handle the titling, registering and payment of fees directly with the DMV - Must collect the uninsured motor vehicle fee
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31
Q

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

A

FALSE

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32
Q

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

A
  • Has more than 750 miles accumulated on its odometer -Requires a written disclosure to the customer
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33
Q

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

A
  • May not quote pricing over the phone without a salesperson license. - May greet potential customers and set up appointments without a salesperson license.
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34
Q

What is an “Open Title”?

O t h b s b t t o l b t i o t b

A

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

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35
Q

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

A

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

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36
Q

The IRS definition of “cash” does not include:

A

Personal checks

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37
Q

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:

A

$10,000

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38
Q

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
  • A severe fine - A criminal felony charge - Jail time if convicted
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39
Q

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

A

Advising customers on how to get around the rule

40
Q

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

A

Annual percentage rate

41
Q

Finance charges must be stated in:

A

Annual percentage rate

42
Q

Full disclosure of credit terms must be made:

A

Before a sale is consummated

43
Q

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

A
  • Amount financed - Late fees and APR - Schedule of payments
44
Q

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

A

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

45
Q

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

A

When the customer signs a credit application

46
Q

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

A

Annual percentage rate

47
Q

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

A y m

A

Are you married?

48
Q

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

A

The buyers guide window sticker rule

49
Q

The Buyers Guide is placed on a vehicle:

B i i o f s

A

Before it is offered for sale

50
Q

A Buyers Guide must be placed on:

D a f s
U t u 16.000 lbs GVW
C V

A
  • Demonstrators available for sale
  • Used trucks under 16,000 lbs GVW
  • Consignment vehicles
51
Q

The Buyers Guide is:

A t t v i a c p s b s c b s

A

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

52
Q

What does the Federal Trade Commission Used Car Rule say about Dealers offering vehicles for sale at public auctions?

A

A guide must be on the vehicle if the auction is open to the public

53
Q

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

A

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

54
Q

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

A

Over $40,000 plus CPI

55
Q

“Full” and “Limited” are terms given to:

A

Warranties

56
Q

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

A

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

57
Q

As described in the Federal Trade Commission Used Car Rule, the Buyer’s Guide should be displayed on:

D o i V
C V

A
  • Demonstrator or inventory Vehicles - Consignment Vehicles
58
Q

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

A

TRUE

59
Q

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

A

TRUE

60
Q

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

A

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

61
Q

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

A
  • Give the customer a copy of the Buyers Guide window sticker - Give the customer a warranty document containing certain specific phrases
62
Q

Which of the following must be included on the Buyer’s Guide?

P S

A

Purchaser’s signature

63
Q

For dealer arranged financing, if the retail installment contract is not approved and the deal is cancelled you must

R t c t-i

A

Return the customer’s trade-in

64
Q

The reverse of the Buyers Guide must be signed by the customer and the dealership

I e r s o a u v

A

In every retail sale of a used vehicle

65
Q

An “A” after the odometer reading on a title indicates:

A

Actual miles driven

66
Q

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

A

The actual distance the vehicle has been driven

67
Q

An “E” after the odometer reading on a title means:

A

Mileage in excess of the odometers mechanical limits

68
Q

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

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
69
Q

The customer must receive a copy of the odometer statement

A

TRUE

70
Q

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

A

TRUE

71
Q

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…

A
  • 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
72
Q

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

A
  • 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
73
Q

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

T t i h b a l h

A t i l

A
  • A title is lost - The title is held by a lien holder
74
Q

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

A
  • When a vehicle is sold prior to the dealer receiving the title
75
Q

Section “C” on the Power of Attorney (Form VAD-70):

M a b c b t d
I a a, b t d, t t i c o t f i c t t b o t k

A
  • 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
76
Q

The “Processing Fee” is:

A

A charge by a dealer for processing a transaction

77
Q

If a dealer charges a processing fee it must be current and registered with MVDB and:

A

Posted in the public sales area and clearly visible

78
Q

The dealer processing fee is

A

Subject to the motor vehicle sales and use tax

79
Q

A salesperson may use a dealer plate if he or she:

A

Works at least 25 hours each week on a regular basis and is compensated for this work

80
Q

Dealer license plates may be:

A

Used on vehicles in the inventory of the dealer

81
Q

A dealer may allow the prospective purchaser to use the license plates assigned to the dealer for:

A

Up to 5 days, and may be renewed once

82
Q

After the DSD 27 is completed, dealer plates may be used on a vehicle in a dealer’s inventory:

A
  • By a prospective purchaser - By a customer whose vehicle is in the dealer’s shop for repairs
83
Q

The form granting permission to use dealer plates:

A

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

84
Q

When may you use Dealer Plates on consignment vehicles?

A

If the vehicle is on consignment from another dealer

85
Q

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:

A

24 hours

86
Q

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

A

10th

87
Q

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:

A

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

88
Q

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

A

With both cash and finance transactions

89
Q

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

A

Both parties agree on a price and sign the buyers order

90
Q

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

A

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

91
Q

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:

A

The tax is not refundable

92
Q

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

A

The Virginia Department of Taxation

93
Q

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

A
  • 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
94
Q

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?

A

5 years

95
Q

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
  • A receipt from an authorized Virginia Inspection station identifying vehicle by year, make, model and VIN - The official state inspection document
96
Q
A

DMV Test (1 decks)

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