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Study Guide - State Statutes

  1. What is the penalty for violating the disclosure provisions of the Virginia Dealer Licensing Act's "As Is" law?
    1. A $1,000 fine.
    2. The customer may return the vehicle.
    3. A 10 day suspension of the dealer's license.
    4. Both A and B above.
    5. A dealer or salesperson violating the Virginia Dealer Licensing Act may receive a $1,000 fine and the customer may return the vehicle.
  2. Vehicles can be sold in Virginia "As Is" if
    1. A Buyers Guide is completely filled out, signed, and dated by the buyer.
    2. The dealer provides the buyer, prior to the sale, a separate written disclosure as to the effect of an "As Is" sale.
    3. A disclosure is printed on the front of the buyers order.
    4. All of the above.
    5. When a vehicle is sold in Virginia by a licensed dealer or salesperson, a buyers guide must be completed, the buyer must receive a written disclosure statement prior to the sale and the buyer's order must have a disclosure printed on the front.
  3. A vehicle must be inspected
    1. Between the time it comes into a dealer's inventory and the time it is sold at retail.
    2. Unless it has a current inspection sticker.
    3. Unless it has more than six months remaining on the current inspection.
    4. None of the above.
    5. Dealers are required to inspect every vehicle that is in their inventory for retail.
  4. If a vehicle does not pass inspection
    1. The dealer cannot deliver the vehicle to a retail customer.
    2. The dealer may bring it into compliance.
    3. 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.
    4. Either B or C above.
    5. In this situation the dealer has two choices, the vehicle may be repaired so that it will pass inspection or a rejection sticker may be placed on the vehicle and the purchaser must receive a written disclosure, prior to the sale, which shows the reasons why the vehicle did not pass the inspection.
  5. A dealer licensed as a franchise or independent dealer may buy and sell motorcycles, trailers and motor homes if they have the proper
    1. Endorsement issued by the Board.
    2. License issued by DMV.
    3. $25,000 bond.
    4. None of the above.
    5. A motor vehicle dealer may also sell motorcycles, trailers and motor homes if they are also licensed by DMV.
  6. A second set of temporary tags may be issued to a customer if
    1. The title is not available at the end of the first 30-day period.
    2. All paper work is submitted to DMV along with an explanation as to why a second set needs to be issued.
    3. All required fees are submitted to the Department of Motor Vehicles.
    4. All of the above.
    5. A dealer may issue a second set of temporary tags, if he/she does not have the title within the first 30 days. The dealer must explain in writing why the second set should be issued and provide DMV with the title fee, sales and use tax and the licensing fee.
  7. When issuing temporary license plates, the dealer
    1. May only charge the customer double the cost of the plates to the dealer.
    2. May not charge the customer a fee for the plates.
    3. May not charge the customer more than the fee charged the dealer for the plates.
    4. Customers do not pay more for the temporary license plate than what the dealer paid.
  8. Temporary transport plates may be issued for no more than
    1. 5 days.
    2. 30 days.
    3. 10 days.
    4. Temporary transport plates are valid for 5 days.
  9. Temporary transport plates may be used to
    1. Transport parts to customers.
    2. Transport vehicles from auctions or other points of purchase or sale.
    3. Transport customers from the dealership to their desired destination.
    4. All of the above.
    5. Dealers may use temporary transport plates on vehicles that are being transported from auctions and they may also be used on vehicles a dealer buys or sells.
  10. Penalties for violating provisions of the statutes pertaining to motor vehicle salespersons include
    1. A fine of not more than $1,000 per violation.
    2. Suspension of the license.
    3. Revocation of the license.
    4. All of the above.
    5. A salesperson who violates any of the statutes under which he/she is licensed could have the license revoked, suspended or face a $1,000 fine for each violation.
  11. A new motor vehicle is defined in part as one which
    1. Has not been previously sold and titled to a retail customer.
    2. Is transferred by a certificate of origin.
    3. Has a manufacturer's certification that is conforms to federal safety and emission standards.
    4. All of the above.
    5. New motor vehicles can be identified as having the necessary certification that it passes safety and emission standards, can be transferred by certificate of origin and has not been sold and titled.
  12. Any person who is licensed in another state of the United States as a motor vehicle dealer may sell vehicles at wholesale auctions in Virginia only after obtaining a
    1. Temporary dealership license.
    2. Certificate of registration.
    3. Certificate of qualification.
    4. None of the above.
    5. Dealers from other states may participate at wholesale auctions in Virginia if they have a certificate of registration.
  13. Which of the following must be licensed to engage in business in Virginia
    1. Motor Vehicle Dealer.
    2. Motor Vehicle Distributor or Manufacturer.
    3. Motor Vehicle Salesperson.
    4. All of the above.
    5. A dealer, distributor, manufacturer or salesperson must be licensed.
  14. Which of the statements below pertaining to a salesperson's license is correct
    1. No salesperson shall be employed by more than one dealer, unless the dealerships are owned by the same person, partnership or corporation.
    2. Each dealership must post a list of the salespersons that work there.
    3. Salespersons must carry their license at all times and show it when asked.
    4. All of the above.
    5. All dealerships are required to have a list of salespersons posted. If questioned, a salesperson must be able to produce their license at any time. They may also have multi-licenses if they are employed by dealerships owned by the same person, partnership or corporation.
  15. Temporary certificates of ownership issued by dealers must contain
    1. Date of issuance.
    2. Name and address of purchaser.
    3. The temporary plate number and vehicle identification number.
    4. All of the above.
    5. Dealers must complete a temporary certificate of ownership to include, the date the certificate was issued, the customer's name and address, and the vehicle identification and plate number.
  16. If you do not renew your salesperson's license by the expiration date
    1. You must retake the test.
    2. You can continue to operate for 30 days.
    3. You can not operate until a new license is obtained.
    4. You can operate under a managers direct supervision while awaiting the renewal license.
    5. If a salesperson's license expires, he/she cannot continue buying or selling vehicles until they receive a new license.
  17. 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
    1. Assess a civil penalty on the salesperson of up to $1,000 per violation.
    2. Refuse to renew the salesperson's license.
    3. Revoke/Suspend the salesperson's license.
    4. Any of the above.
    5. A salesperson who violates any of the provisions under which he/she is licensed may have the license revoked or suspended, the Motor Vehicle Dealer Board could refuse to issue a renewal license, and could be assessed a civil penalty of up to $1,000.
  18. If a customer wishes to demonstrate a vehicle in the inventory of the dealer
    1. The salesperson must accompany the customer.
    2. If not accompanied by the salesperson; a form must be completed and carried by the respective purchaser during the test drive.
    3. The demonstration is limited to one hour.
    4. A or B of the above.
    5. Customers may test drive a vehicle with the salesperson present or they may obtain a form to place in the vehicle while demonstrating the vehicle alone.
  19. The Motor Vehicle Transaction Recovery Fund
    1. Is funded only by dealers.
    2. Is funded by dealers and salespersons.
    3. Is funded by the dealer's processing fee.
    4. Is funded by an additional fee paid by the customer.
    5. All licensed dealers and salespersons pay into the Motor Vehicle Transaction Recovery Fund.
  20. The purpose of the Motor Vehicle Transaction Recovery Fund
    1. Is to cover revenue shortfalls within the Department of Motor Vehicles for title transactions.
    2. Is to provide a retirement fund for salespersons.
    3. Is to satisfy unpaid judgments against a dealer or salesperson that has defrauded a purchaser.
    4. None of the above.
    5. The Motor Vehicle Transaction Recovery Fund was created to assist consumers who have been defrauded by dealers or salespersons and has obtained a court judgment.
  21. If a salesperson's license has been revoked as a result of failure to reimburse the Motor Vehicle Transaction Recovery Fund
    1. The salesperson may apply for reinstatement after one year from the date of revocation.
    2. The salesperson must wait five years before applying for reinstatement.
    3. The salesperson must reimburse the fund plus eight percent interest before reapplying for a license.
    4. The salesperson is barred from the retail automobile business for life.
    5. If a salesperson fails to pay back the Motor Vehicle Transaction Recovery Fund, their license will be revoked until he/she pays the Fund in full along with the interest.
  22. A temporary certificate of ownership
    1. Is issued when the vehicle title is not available at the time of sale.
    2. Can only be issued for one thirty day period.
    3. Can be issued for a thirty-day period and reissued for an additional thirty-day period after paying all fees to the Department of Motor Vehicles.
    4. A & C of the above.
    5. Dealers may issue up to two sets of temporary license plates if they do not have the title at the time of the sale and if they pay the sales and use tax, title and licensing fees to DMV.
  23. Temporary license plates
    1. May be loaned to a customer.
    2. Should be destroyed after expiration or when permanent plates are issued.
    3. Can be used by employees of the dealer on their personal vehicle.
    4. Can be used to dealer exchange a vehicle.
    5. Dealers should dispose of expired temporary license plates or when permanent plates become available.
  24. Payments to individuals by a salesperson for procuring a customer for the salesperson
    1. Are limited to one payment per individual per year.
    2. Are allowed under special arrangement with the Motor Vehicle Dealer Board.
    3. Can only be in the form of a gift.
    4. Can result in a fine or suspension of the salesperson's license.
    5. A salesperson's license could be suspended or receive a fine for paying a person to send him/her more customers.
  25. Used vehicles in the inventory of a dealer that do not have a Virginia inspection sticker:
    1. Can be driven to an auction or place of sale.
    2. Cannot be operated on the highway except to an inspection station.
    3. Can be operated on the highway provided the driver is a licensed salesperson.
    4. A and B above.
    5. 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.
  26. Applications, taxes and fees collected for the Department of Motor Vehicles on behalf of the buyer must be submitted to that Agency within:
    1. 15 days.
    2. 30 days.
    3. 90 days.
    4. None of the above.
    5. Applications, taxes and fees collected for the Department of Motor Vehicles on behalf of the buyer must be submitted to that Agency within 30 days.
  27. If a vehicle is registered in Virginia and the owner does not have liability insurance, the penalty is an uninsured motorist fee of
    1. $300
    2. $400
    3. $500
    4. $1,000
    5. The Virginia uninsured motorist fee is $500.
  28. 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
    1. Must give the title to the customer.
    2. Must handle the titling, registering and payment of fees directly with DMV.
    3. Must collect the uninsured motor vehicle fee.
    4. B and C above.
    5. When a thirty-day tag is given to a customer who does not have insurance and the customer is going to register the vehicle in Virginia, the dealer is required to collect the uninsured motor vehicle fee and handle the transfer and payment of all fees directly with DMV.
  29. Temporary Tags and Temporary Transport Tags can be loaned to another dealer
    1. If DMV is notified.
    2. If the lending dealer records the transfer on their tag log.
    3. Only Temporary Transport Tags can be loaned.
    4. Neither Temporary Tags nor Transport Tags can be loaned.
    5. Neither type of temporary tags can be loaned to another dealer.

Section 3 of Study Guide