Podcast
Questions and Answers
What information must be included in the temporary closing notice (MVDB-40)?
What information must be included in the temporary closing notice (MVDB-40)?
Dealership name, reason for closing, date closing, time, date reopen, time reopen, emergency contact phone number(s).
What terms under the Truth in Lending Act 'trigger' full disclosure in advertising?
What terms under the Truth in Lending Act 'trigger' full disclosure in advertising?
- The amount or percentage of any down payment. (correct)
- The number or period of payments. (correct)
- The amount of any payment and finance charge. (correct)
- None of the above.
An advertisement of a 'Sale' must include the sale end date only when it must always be stated.
An advertisement of a 'Sale' must include the sale end date only when it must always be stated.
True (A)
Which terms cannot be used without also declaring they are used when advertising a vehicle?
Which terms cannot be used without also declaring they are used when advertising a vehicle?
Which statements can be used when advertising a vehicle?
Which statements can be used when advertising a vehicle?
What are the required disclosures if a finance payment is stated in an advertisement?
What are the required disclosures if a finance payment is stated in an advertisement?
In a classified advertisement placed by a dealer, the advertisement must give the dealer's name or 'VADLR' must be used.
In a classified advertisement placed by a dealer, the advertisement must give the dealer's name or 'VADLR' must be used.
A dealer's processing fee must be disclosed in an advertisement when the advertised price includes the processing fee.
A dealer's processing fee must be disclosed in an advertisement when the advertised price includes the processing fee.
How must dealers disclose their processing fee in advertisements?
How must dealers disclose their processing fee in advertisements?
Virginia dealers are permitted to advertise dealer rebates.
Virginia dealers are permitted to advertise dealer rebates.
Which offers are not allowed in a dealer's advertisement?
Which offers are not allowed in a dealer's advertisement?
'Free', 'at no cost' or words to that effect shall not be used unless the 'free' item is available without a purchase.
'Free', 'at no cost' or words to that effect shall not be used unless the 'free' item is available without a purchase.
What is defined as a dealer in Virginia?
What is defined as a dealer in Virginia?
How must a dealer notify the Board if they intend to change the location of their dealership?
How must a dealer notify the Board if they intend to change the location of their dealership?
What approvals are required before completing a change of dealership location?
What approvals are required before completing a change of dealership location?
What certificate does an insurance company apply for when taking possession of a vehicle due to a claim?
What certificate does an insurance company apply for when taking possession of a vehicle due to a claim?
How many days does a new dealer-operator need to be in place if the current dealer-operator ceases to act?
How many days does a new dealer-operator need to be in place if the current dealer-operator ceases to act?
What is issued when a salvage vehicle is rebuilt and the damage is between 75% and 90% of its pre-damaged retail value?
What is issued when a salvage vehicle is rebuilt and the damage is between 75% and 90% of its pre-damaged retail value?
What are dealers exempt from paying Virginia sales tax on?
What are dealers exempt from paying Virginia sales tax on?
When must dealers notify the Dealer Board that a salesperson is no longer working for the dealership?
When must dealers notify the Dealer Board that a salesperson is no longer working for the dealership?
Under the Consumer Protection Act, what is the maximum civil penalty for violating an injunction?
Under the Consumer Protection Act, what is the maximum civil penalty for violating an injunction?
What does the Manufacturers Warranty Adjustment Act deal with?
What does the Manufacturers Warranty Adjustment Act deal with?
How much retail sales tax must a dealer collect on extended service contracts?
How much retail sales tax must a dealer collect on extended service contracts?
Who has the primary responsibility for payment of damages in the event of a 'Lemon Law' violation?
Who has the primary responsibility for payment of damages in the event of a 'Lemon Law' violation?
How many days does a lien-holder have to surrender a title after the lien has been satisfied?
How many days does a lien-holder have to surrender a title after the lien has been satisfied?
For licensing, what space requirements must a dealer’s established place of business meet?
For licensing, what space requirements must a dealer’s established place of business meet?
A MVDB Transaction Recovery Fund claim is limited to $25,000.
A MVDB Transaction Recovery Fund claim is limited to $25,000.
What is the maximum late charge under an installment sales contract in Virginia?
What is the maximum late charge under an installment sales contract in Virginia?
What must a dealer who is 'on-line' with DMV do?
What must a dealer who is 'on-line' with DMV do?
Dealers who are not 'on-line' with DMV pay a transaction fee that can be passed on to the customer.
Dealers who are not 'on-line' with DMV pay a transaction fee that can be passed on to the customer.
When can a second or third set of Print on Demand temporary tags be issued?
When can a second or third set of Print on Demand temporary tags be issued?
What is the maximum amount of a mechanic's lien on a vehicle for a lien holder?
What is the maximum amount of a mechanic's lien on a vehicle for a lien holder?
No title or registration shall be issued for any vehicle for which a non-repairable certificate has ever been issued.
No title or registration shall be issued for any vehicle for which a non-repairable certificate has ever been issued.
It is unlawful to sell a rebuilt vehicle without disclosing the rebuilt status in writing.
It is unlawful to sell a rebuilt vehicle without disclosing the rebuilt status in writing.
A Virginia Safety Inspection is required before a vehicle is sold at retail.
A Virginia Safety Inspection is required before a vehicle is sold at retail.
How long must dealers maintain copies of Form 8300 sent to the IRS?
How long must dealers maintain copies of Form 8300 sent to the IRS?
When must a dealership be open for business?
When must a dealership be open for business?
A dealer must return the customer's trade-in if the retail installment contract is not approved.
A dealer must return the customer's trade-in if the retail installment contract is not approved.
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Study Notes
Dealer Definitions and Responsibilities
- A dealer sells five or more vehicles within a year, engaging in buying, selling, and exchanging vehicles.
- Dealers must notify the Board in writing 30 days prior to changing dealership locations.
- Zoning approval and a successful inspection by the Board are required before relocating.
- If a dealer-operator is incapacitated, a replacement must be established within 120 days.
Vehicle Certification and Dealer Exemptions
- An insurance company receives a salvage certificate when taking possession of a vehicle due to a claim.
- Dealers are exempt from Virginia sales tax on parts and accessories for vehicles in inventory.
- A rebuilt vehicle with damage between 75% and 90% results in a title branded as "rebuilt."
Sales and Consumer Protection Regulations
- Dealers must report when a salesperson leaves, within ten days of the month-end after departure.
- Civil penalties under the Consumer Protection Act can reach $5,000 plus attorney fees.
- The Manufacturers Warranty Adjustment Act refers to policy adjustments outside the manufacturer's warranty.
Fees and Financial Transactions
- Dealers collect retail sales tax on half the retail cost of extended service contracts.
- A "Pick Up Payment" in credit transactions reduces future schedule payments.
- Financing that creates debt under $50,000 is subject to the Truth in Lending Act if it exceeds four installments.
Title and Odometer Disclosure
- A separate odometer statement is necessary for non-conforming titles.
- Vehicles that have a non-repairable certificate cannot be issued a title or registration.
- Mileage disclosure must be accurate and is confirmed by signing the title or reassignment document.
Advertising and Disclosures
- Advertisements must clearly state if a vehicle is "used" and include necessary disclosures for payment terms.
- A dealer's processing fee needs to be disclosed in advertisements if included in the price.
- Advertisements that mislead buyers regarding the vehicle's condition or financing terms are prohibited.
Record Keeping and Compliance
- Dealers must maintain records, including sales documents for five years, and retain copies of Form 8300 sent to the IRS.
- Safety inspections must be completed before a vehicle is sold at retail, with proof retained for five years.
- Actions regarding bankruptcy must be addressed promptly; a lien not recorded within 30 days may turn the lender into an unsecured creditor.
Licensing and Recertification
- Dealers need suitable office space to qualify for licensing, including zoning compliance and adequate display area for vehicles.
- Independent Dealer-Operators must recertify every three years and complete six hours of continuing education if required.
- A temporary supplemental license limits off-site sales to eight per year and prohibits consecutive sales in the same area.
Additional Rules and Regulations
- A transport tag allows vehicle movement for 24 hours and may be used for delivering a vehicle.
- Transfers of ownership require all individuals named in transactions to be notified of credit denials.
- Prohibition exists against selling rebuilt or non-repairable vehicles to unlicensed persons without appropriate disclosures.
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