State Statutes Flashcards
The Virginia Code defines a dealer, in part, as:
One who sells 5 or more vehicles within a 12-month period.
One who buys, sells, and exchanges vehicles.
In order to qualify for licensing, the dealer’s established place of business must:
Meet all local zoning regulations.
Have at least 250 square feet of sales and office space devoted exclusively to the
dealership.
Have contiguous space designated for the exclusive use of the dealer adequate to
permit the display of at least 10 vehicles.
Have a valid email and an internet connection in the name of the Dealership.
If you intend to change the location of your dealership (move), you must notify the
Board:
In writing, 30 days in advance
Among other items, the following are required before a change of location (move) can be completed:
Zoning approval
Successful inspection by the Board of the new location
When an insurance company takes possession of a vehicle as the result of a claim, the insurance company applies for and receives a:
Salvage certificate or a non-repairable certificate.
If the dealer-operator dies, becomes disabled, retires, is removed, or for any other cause ceases to act as the dealer-operator, a new dealer-operator must be in place within:
120 days.
If a salvage vehicle is rebuilt, then a:
Title branded “rebuilt” is issued
A dealer is exempt from paying Virginia sales tax on:
Parts and accessories purchased for and installed on a vehicle in inventory.
Dealers are required to notify the Dealer Board that a salesperson is no longer working for the dealership:
No later than the tenth day following the month the salesperson left the dealership.
Under the Consumer Protection Act, civil penalties may be assessed:
Up to $5,000, plus attorney fees, for violating an injunction.
The Manufacturers Warranty Adjustment Act deals with:
Policy adjustments outside of the manufacturer’s warranty.
On extended service contracts, for parts and labor, the dealer must collect:
Retail sales tax on one half of the retail cost of the service contract.
The entity which usually has the primary responsibility for payment of damages in the event of a “Lemon Law” violation is the:
Manufacturer
How many days does a lien-holder have to surrender a title to the person legally entitled to it after the lien has been satisfied?
10 days.
Application for renewal of licenses received by the Board within 30 days after the license expiration date:
Will be renewed at a fee equal to 150% of the “on-time” fee
Application for renewal of licenses received by the Board or postmarked more than 30 days after the license expiration date:
Will be considered a new or “original” application.
A MVDB Transaction Recovery Fund claim is limited to $25,000 and shall be increased by the percentage increase over the most recently available unadjusted 12-month period in the Consumer Price Index for used cars and trucks as published by the U.S. Bureau of labor Statistics or any successor index. (T/F)
True
The total of all claims paid by the Motor Vehicle Transaction Recovery Fund resulting from fraudulent actions by an individual dealer is:
4 times the amount of a single claim.
Virginia Statute calls for the maximum late charge under an installment sales contract to be assessed at:
5% of the payment after the seventh day from the date the payment was due.
A dealer who is “on-line” with DMV:
Must pass the vendor fee on to the customer.
Dealers who are not “on-line” with DMV pay a transaction fee and:
Cannot pass it on to the customer.
To issue a second or third set of Print on Demand (PoD) temporary tags for vehicles to be titled in Virginia, the dealer must:
You are only allowed to print one set of Print on Demand (PoD) temporary tags.
As a result of an action by the 2004 session of the General Assembly, dealers no
longer have to disclose mileage on:
Trucks over 16,000 lbs. GVW.
The maximum amount of a mechanic’s lien on a vehicle as it applies to a lien holder is:
$1000.
Before repossessing a vehicle in Virginia, the debtor must be sent a “Final Notice”.
False.
Under the Article 9 revision of the Uniform Commercial Code (UCC), when a vehicle has been repossessed the debtor must be sent a:
“Notice of Our Plan to Sell Property”.
OR
“Notice of Intent to Retain the Vehicle in Full Satisfaction of the Debt”.
Plates may be transferred from a customer’s vehicle to an inventory vehicle,
using DMV form VSA 39, Title or No-Repairable Certificate Application:
When the customer’s vehicle is in the dealer’s shop for service.
When an inventory vehicle is being transported by a part time employee, a
Transport tag may be used for a period not to exceed:
24 hours.
A separate odometer statement must be used:
When a non-conforming title (one issued before 3/91) is transferred.
A second set of temporary tags may be issued when the title is not available to
The vehicle being sold if:
All fees are rendered to DMV.
The vehicle is to be titled and registered out of state.
The Dealers Business License Tax may be passed on to the consumer:
If it is listed as a line item on the Buyer’s order.
If the charge represents the exact amount relative to the sale.
If the local city, county, or town charges such a tax.
A transport tag may be used on a vehicle delivered to a consumer to insure
the customer will return for additional paperwork. (T/F)
False.
As a result of the “Automatic Stay” in a bankruptcy:
The creditor cannot contact the debtor regarding the indebtedness.
No title or registration shall be issued for any vehicle for which a nonrepairable
certificate has ever been issued. (T/F)
True.
It shall be unlawful for any person to sell a rebuilt vehicle without first disclosing the fact that the vehicle is a rebuilt vehicle in writing on a form prescribed by the Commissioner. (T/F)
True.
It shall be unlawful for any person to sell a nonrepairable vehicle to any person who is not a scrap metal processor or licensed as a salvage dealer, demolisher or vehicle removal operator. (T/F)
True.
A Virginia Safety Inspection is required before a vehicle is sold at retail. (T/F)
True
Once an applicant for a salesperson’s license passes the test and is issued a “Certificate of Qualification” he/she:
May not sell motor vehicles until he/she has obtained their salesperson’s license.
When may a licensed salesperson purchase vehicles with their own funds and pay the dealer a fee once the vehicle is sold?
Never.
Prior to delivering a vehicle on consignment from a consumer that a dealer has sold to a retail customer, the vehicle must pass a Virginia Safety Inspection. (T/F)
True.
Who is responsible for notifying the Dealer Board when a salesperson leaves the
employment of a dealership?
The dealer.
Original sales records CANNOT be stored “off-site”:
Unless you receive written permission from the Dealer Board
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 salespersons
license.
True or False, to sell a salvage vehicle you must have a salvage dealer license. (T/F)
True
When selling a rebuilt salvage vehicle:
Disclose to the buyer the vehicle is rebuilt vehicle.
Complete a VSA 59 forms.
Both of the above.
