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Questions and Answers
If a vehicle is to be titled out of state and the purchaser does not have the required liability insurance, what must the dealer do?
If a vehicle is to be titled out of state and the purchaser does not have the required liability insurance, what must the dealer do?
- Return the vehicle to the manufacturer
- Provide full insurance coverage
- Issue a permanent title
- Collect 1/12 of the uninsured motorist fee and submit to DMV (correct)
The line item 'Balance Due at Settlement' on the buyer's order is used in:
The line item 'Balance Due at Settlement' on the buyer's order is used in:
- Cash transactions only
- Finance transactions only
- Both cash and finance transactions (correct)
- None of the above
When is a completed buyer's order considered legally binding?
When is a completed buyer's order considered legally binding?
Both parties agree on a price and sign the buyer's order.
A dealer can occasionally rent a vehicle without a rental license.
A dealer can occasionally rent a vehicle without a rental license.
The sales and use tax for a good will substitution is refundable.
The sales and use tax for a good will substitution is refundable.
To whom is the sales tax on a warranty or service agreement sold to a customer paid?
To whom is the sales tax on a warranty or service agreement sold to a customer paid?
Temporary Supplemental Sales (Off-Site Sales) applications (MVDB 22) must be received at MVDB __________ days prior to the off-site sale.
Temporary Supplemental Sales (Off-Site Sales) applications (MVDB 22) must be received at MVDB __________ days prior to the off-site sale.
How many years is a dealership required to maintain proof that a Virginia Safety Inspection was performed prior to sale at retail?
How many years is a dealership required to maintain proof that a Virginia Safety Inspection was performed prior to sale at retail?
What is the penalty for violating the disclosure provisions of the Virginia Dealer Licensing Act's 'As Is' law?
What is the penalty for violating the disclosure provisions of the Virginia Dealer Licensing Act's 'As Is' law?
Vehicles can be sold in Virginia 'As Is' if:
Vehicles can be sold in Virginia 'As Is' if:
When must a vehicle be inspected?
When must a vehicle be inspected?
What happens if a vehicle does not pass inspection?
What happens if a vehicle does not pass inspection?
What license must a dealer have to buy and sell motorcycles, trailers, and motor homes?
What license must a dealer have to buy and sell motorcycles, trailers, and motor homes?
Under what conditions may a second set of temporary tags be issued?
Under what conditions may a second set of temporary tags be issued?
When issuing temporary license plates, the dealer may charge the customer more than the fee charged to the dealer for the plates.
When issuing temporary license plates, the dealer may charge the customer more than the fee charged to the dealer for the plates.
How long may temporary transport plates be issued for?
How long may temporary transport plates be issued for?
A salesperson's 'certificate of qualification' must be obtained before applying for a salesperson's license.
A salesperson's 'certificate of qualification' must be obtained before applying for a salesperson's license.
What are the penalties for violating the statutes pertaining to motor vehicle salespersons?
What are the penalties for violating the statutes pertaining to motor vehicle salespersons?
Define a new motor vehicle.
Define a new motor vehicle.
What must any person licensed in another state obtain to sell vehicles at Dealer Only wholesale auctions in Virginia?
What must any person licensed in another state obtain to sell vehicles at Dealer Only wholesale auctions in Virginia?
Who must be licensed to engage in business in Virginia?
Who must be licensed to engage in business in Virginia?
No salesperson shall be employed by more than one dealer unless the dealerships are owned by the same person.
No salesperson shall be employed by more than one dealer unless the dealerships are owned by the same person.
Each dealership must post a list of the salespersons that work there.
Each dealership must post a list of the salespersons that work there.
Salespersons must carry their license at all times and show it when asked.
Salespersons must carry their license at all times and show it when asked.
What must temporary certificates of registration issued by dealers contain?
What must temporary certificates of registration issued by dealers contain?
If you do not renew your salesperson's license by the expiration date, you cannot sell motor vehicles until a current license has been obtained.
If you do not renew your salesperson's license by the expiration date, you cannot sell motor vehicles until a current license has been obtained.
What can happen if a salesperson is found guilty of violating Virginia Dealer Laws?
What can happen if a salesperson is found guilty of violating Virginia Dealer Laws?
What must happen if a customer wishes to demonstrate a vehicle in the inventory of the dealer?
What must happen if a customer wishes to demonstrate a vehicle in the inventory of the dealer?
The Motor Vehicle Transportation Recovery Fund is funded by whom?
The Motor Vehicle Transportation Recovery Fund is funded by whom?
What is the purpose of the Motor Vehicle Transaction Recovery Fund?
What is the purpose of the Motor Vehicle Transaction Recovery Fund?
When must the dealer or salesperson reimburse the Motor Vehicle Transaction Recovery Fund?
When must the dealer or salesperson reimburse the Motor Vehicle Transaction Recovery Fund?
What is a temporary certificate of registration?
What is a temporary certificate of registration?
Temporary license plates should be destroyed after expiration or when permanent plates are issued.
Temporary license plates should be destroyed after expiration or when permanent plates are issued.
Payments to individuals by a salesperson for procuring a customer are lawful.
Payments to individuals by a salesperson for procuring a customer are lawful.
Used vehicles in the inventory of a dealer without a Virginia inspection sticker can be operated on the highway.
Used vehicles in the inventory of a dealer without a Virginia inspection sticker can be operated on the highway.
Within how many days must applications, taxes, and fees collected be submitted to the DMV?
Within how many days must applications, taxes, and fees collected be submitted to the DMV?
What is the penalty for registering a vehicle in Virginia without liability insurance?
What is the penalty for registering a vehicle in Virginia without liability insurance?
When a thirty-day tag is issued to a customer without insurance, the dealer must:
When a thirty-day tag is issued to a customer without insurance, the dealer must:
Temporary Tags and Temporary Transport Tags can be loaned to another dealer.
Temporary Tags and Temporary Transport Tags can be loaned to another dealer.
What defines a 'Demonstrator' vehicle?
What defines a 'Demonstrator' vehicle?
Regarding 'Internet employees,' what are the regulations?
Regarding 'Internet employees,' what are the regulations?
What is an 'Open Title'?
What is an 'Open Title'?
On extended service contracts, what must the dealer collect?
On extended service contracts, what must the dealer collect?
The IRS definition of 'cash' includes personal checks.
The IRS definition of 'cash' includes personal checks.
What personal penalties can result from the IRS Cash Reporting Rule?
What personal penalties can result from the IRS Cash Reporting Rule?
What does the anti-structuring provision of the IRS Cash Reporting Rule prohibit?
What does the anti-structuring provision of the IRS Cash Reporting Rule prohibit?
In financing a vehicle on an installment sales contract, what does APR stand for?
In financing a vehicle on an installment sales contract, what does APR stand for?
Finance charges must be stated in:
Finance charges must be stated in:
Full disclosure of credit terms must be made before a sale is consummated.
Full disclosure of credit terms must be made before a sale is consummated.
What is required to be disclosed under Regulation Z of the Consumer Credit Protection Act?
What is required to be disclosed under Regulation Z of the Consumer Credit Protection Act?
If a financing company denies a loan application, what must it provide the applicant?
If a financing company denies a loan application, what must it provide the applicant?
When can an inquiry be made of a credit-reporting bureau?
When can an inquiry be made of a credit-reporting bureau?
Which charges must be disclosed to the customer when financing an automobile under the Truth in Lending Act?
Which charges must be disclosed to the customer when financing an automobile under the Truth in Lending Act?
When must the end date of a sale be included in advertisements?
When must the end date of a sale be included in advertisements?
In any advertisement placed by a dealer, the advertisement must give the dealer's name or 'VADLR' must be used.
In any 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 prices include the processing fee.
A dealer's processing fee must be disclosed in an advertisement when the advertised prices include the processing fee.
Advertisements placed on television, radio, or the internet are subject to the Advertising Laws.
Advertisements placed on television, radio, or the internet are subject to the Advertising Laws.
What must advertisements for internet sales comply with?
What must advertisements for internet sales comply with?
Advertisements placed on social media platforms are not subject to the Advertising Laws.
Advertisements placed on social media platforms are not subject to the Advertising Laws.
What is the Federal Trade Commission Used Car Rule known for?
What is the Federal Trade Commission Used Car Rule known for?
The Buyers Guide must be placed on a vehicle before it is offered for sale.
The Buyers Guide must be placed on a vehicle before it is offered for sale.
A Buyers Guide must be placed on which types of vehicles?
A Buyers Guide must be placed on which types of vehicles?
Where is the Buyers Guide attached?
Where is the Buyers Guide attached?
What does the Federal Trade Commission Used Car Rule state about vehicles offered at public auctions?
What does the Federal Trade Commission Used Car Rule state about vehicles offered at public auctions?
Under the Federal Trade Commission Used Car Rule, a vehicle can be sold 'As Is' if:
Under the Federal Trade Commission Used Car Rule, a vehicle can be sold 'As Is' if:
What is the penalty for violating the Federal Trade Commission Used Car Rule?
What is the penalty for violating the Federal Trade Commission Used Car Rule?
Full and Limited are terms given to what?
Full and Limited are terms given to what?
What is considered an unfair and deceptive practice under the Federal Trade Commission Used Car Rule?
What is considered an unfair and deceptive practice under the Federal Trade Commission Used Car Rule?
According to the Federal Trade Commission Used Car Rule, dealers must display conspicuously on each used car a:
According to the Federal Trade Commission Used Car Rule, dealers must display conspicuously on each used car a:
Where should the Buyers Guide be displayed?
Where should the Buyers Guide be displayed?
A dealer must make a copy of the written warranty available for the customer to read prior to the sale.
A dealer must make a copy of the written warranty available for the customer to read prior to the sale.
A dealer can sell a vehicle 'As Is' or without a warranty in Virginia.
A dealer can sell a vehicle 'As Is' or without a warranty in Virginia.
Under the Federal Trade Commission Used Car Rule, the terms of the warranty as stated on the Buyers Guide:
Under the Federal Trade Commission Used Car Rule, the terms of the warranty as stated on the Buyers Guide:
When giving a warranty on a used vehicle, the dealer must:
When giving a warranty on a used vehicle, the dealer must:
What must be included on the Buyers Guide?
What must be included on the Buyers Guide?
If a retail installment contract is not approved and the deal is canceled, what must you return?
If a retail installment contract is not approved and the deal is canceled, what must you return?
The reverse of the Buyers Guide must be signed in every retail sale of a used vehicle.
The reverse of the Buyers Guide must be signed in every retail sale of a used vehicle.
What does an 'A' after the odometer reading indicate?
What does an 'A' after the odometer reading indicate?
What does the term 'mileage' mean as used in the Truth In Mileage Act?
What does the term 'mileage' mean as used in the Truth In Mileage Act?
What does an 'E' after the odometer reading signify?
What does an 'E' after the odometer reading signify?
Which statements are true regarding the Truth In Mileage Act?
Which statements are true regarding the Truth In Mileage Act?
The customer must receive a copy of the odometer statement.
The customer must receive a copy of the odometer statement.
An 'N' after the odometer reading means the reading is not actual.
An 'N' after the odometer reading means the reading is not actual.
What must be included in the written statement regarding the mileage of a leased vehicle?
What must be included in the written statement regarding the mileage of a leased vehicle?
Under Federal law, how can a customer receive a copy of the odometer disclosure statement?
Under Federal law, how can a customer receive a copy of the odometer disclosure statement?
When is a Power of Attorney (Form VAD-70) used?
When is a Power of Attorney (Form VAD-70) used?
What does Section 'B' on a Power of Attorney (Form VAD-70) cover?
What does Section 'B' on a Power of Attorney (Form VAD-70) cover?
What is required in Section 'C' on the Power of Attorney (Form VAD-70)?
What is required in Section 'C' on the Power of Attorney (Form VAD-70)?
What is the 'Processing Fee'?
What is the 'Processing Fee'?
If a dealer charges a processing fee, what must they do?
If a dealer charges a processing fee, what must they do?
What is the dealer processing fee subject to?
What is the dealer processing fee subject to?
A salesperson may use a dealer plate if they work at least 25 hours a week and are compensated.
A salesperson may use a dealer plate if they work at least 25 hours a week and are compensated.
Dealer license plates may be used on vehicles that:
Dealer license plates may be used on vehicles that:
How long may a dealer allow prospective purchasers to use dealer license plates?
How long may a dealer allow prospective purchasers to use dealer license plates?
After the DSD 27 form is complete, dealer plates can be used on a vehicle in a dealer's inventory:
After the DSD 27 form is complete, dealer plates can be used on a vehicle in a dealer's inventory:
How long can the form granting permission to use dealer's plates be issued for?
How long can the form granting permission to use dealer's plates be issued for?
When may dealer plates be used on consignment vehicles?
When may dealer plates be used on consignment vehicles?
What is the maximum period a person authorized by the dealer can transport a vehicle on a dealer plate?
What is the maximum period a person authorized by the dealer can transport a vehicle on a dealer plate?
What does a vehicle identification number (VIN) consist of?
What does a vehicle identification number (VIN) consist of?
Which character in VIN identifies the model year?
Which character in VIN identifies the model year?
Study Notes
Virginia Dealer Licensing Act - Key Points
- Penalty for Disclosure Violation: A civil penalty of $1,000; customer may return the vehicle.
- "As Is" Sale Conditions: Requires a completed buyer's guide, prior written disclosure to the buyer, and proper disclosure on the buyer's order.
- Vehicle Inspection Requirement: Must be inspected before retail sale.
- Inspection Failure Options: Dealers can bring vehicles into compliance or sell with a rejection sticker and written disclosure.
- Dealer Licensing for Motorcycles and Trailers: Franchise or independent dealers must have the appropriate MVDB license.
Temporary and Sales Practices
- Issuance of Temporary Tags: A second set can be issued under specific conditions, such as title unavailability or out-of-state registration.
- Fees for Temporary Plates: Dealers cannot charge more than their cost for temporary plates.
- Temporary Transport Plates: Limited to 5 days of use.
Salesperson Licenses and Penalties
- Salesperson's Certificate: Must be obtained prior to applying for a salesperson's license.
- Violation Penalties: Up to $1,000 per violation; potential suspension or revocation of the license.
Vehicle Classification and Registration
- Definition of a New Vehicle: Must not have been previously titled and have less than 7,500 miles.
- Out-of-State Dealers: Must obtain a certificate of registration to sell in Virginia.
Dealer and Salesperson Regulations
- Required Licensing: Includes motor vehicle dealer, distributor, manufacturer, and salesperson.
- Employment Restrictions: Salespersons may only work for one dealer at a time, unless ownership is the same.
- Salesperson License Display: Must be carried and shown upon request.
Buyers Guide and Advertising Regulations
- Buyer’s Guide Requirements: Must be displayed before a vehicle is sold; includes the option for "As Is" sales.
- Advertising Laws Compliance: All advertisements must include dealer identification and truthfully represent sales conditions.
- Disclosure Obligations: Financial terms must be disclosed prior to the sale, including the annual percentage rate (APR).
Odometer Disclosure and Vehicles
- Odometer Terms: Must include "actual miles," "exceeds mechanical limits," and "not actual mileage" indicators.
- Truth in Mileage Act: Requires both buyer and seller signatures on odometer statements.
Processing Fees and Taxes
- Dealer Processing Fees: Must be registered with MVDB and visible to the public; subject to sales and use tax.
- Tax Refund Policy: Sales and use tax on goodwill substitutions is not refundable.
Temporary Off-Site Sales
- Temporary Off-Site Sales Licensing: Requires application submission 15 days in advance; only 8 such sales allowed per year.
Importance of Record Keeping
- Inspection Records: Must be maintained for 5 years post-sale as proof of safety inspections.
Fund and Recovery Provisions
- Motor Vehicle Transaction Recovery Fund: Aimed at satisfying judgments against fraudulently acting dealers or salespersons; dealers must reimburse within 30 days.
These notes provide a concise overview of key facts and rules essential for the VA dealer licensing exam preparation.
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Description
Prepare for the Virginia Sales License exam with these flashcards focused on key regulations of the Virginia Dealer Licensing Act, specifically the 'As Is' law. Test your knowledge on the penalties for violations and the conditions for selling vehicles 'As Is'.
