CAR DEALER TEST PRACTICE QUESTIONS WITH
VERIFIED ACCURATE ANSWERS
The Virginia Code defines a dealer, in part, as: - Answers - 1) One who sells 5 or more
vehicles within a 12-month period.
2) One who buys, sells, and exchanges vehicles.
In order to qualify for licensing, the dealer's established place of business must: -
Answers - 1) Meet all local zoning regulations
2) Have at least 250 square feet of sales and office space devoted exclusively to the
dealership
3) Have contiguous space designated for the exclusive use of the dealership adequate
to permit the display of at least 10 vehicles
4) 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: - Answers - In writing, 30 days in advance
Among other items, the following are required before a change of location (move) can
be completed: - Answers - 1) Zoning approval
2) 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: - Answers - Salvage Certificate or 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: - Answers - 120 days
if a salvage vehicle is rebuilt, then a: - Answers - Title branded "rebuilt" is issued.
A dealer is exempt from paying Virginia sales tax on: - Answers - Parts and accessories
purchased for and installed on a vehicle in inventory
Dealers are required to notify the Dealer Board that a salesperson in no longer working
for the dealership: - Answers - No later than the tenth day following the month the
salesperson left the dealership
Under the Consumer Protection Act, civil penalties may be assessed: - Answers - Up to
$5,000 plus attorney fees, for violating an injunction
, The Manufacturers Warranty Adjustment Act deals with: - Answers - Policy adjustments
outside of the manufacturers warranty
On extended service contracts, for parts and labor, the dealer must collect: - Answers -
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: - Answers - 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: - Answers - 10 days
Application for renewal of licenses received by the Board within 30 days after the
license expiration date: - Answers - 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: - Answers - Will be considered a new or "original"
application
True OR False?
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 - Answers - TRUE
The total of all claims paid by the Motor Vehicle Transaction Recovery Fund resulting
from fraudulent actions by an individual dealer is: - Answers - 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: - Answers - 5% of the payment after the seventh day from the date the
payment was due
A dealer who is "on-line" with DMV: - Answers - Must pass the vendor fee on to the
customer
Dealers who are not "on-line" with DMV pay a transaction fee and: - Answers - Cannot
pass it on the 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: - Answers - You are only allowed to print one se of
Print On Demand (PoD) temporary tags
VERIFIED ACCURATE ANSWERS
The Virginia Code defines a dealer, in part, as: - Answers - 1) One who sells 5 or more
vehicles within a 12-month period.
2) One who buys, sells, and exchanges vehicles.
In order to qualify for licensing, the dealer's established place of business must: -
Answers - 1) Meet all local zoning regulations
2) Have at least 250 square feet of sales and office space devoted exclusively to the
dealership
3) Have contiguous space designated for the exclusive use of the dealership adequate
to permit the display of at least 10 vehicles
4) 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: - Answers - In writing, 30 days in advance
Among other items, the following are required before a change of location (move) can
be completed: - Answers - 1) Zoning approval
2) 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: - Answers - Salvage Certificate or 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: - Answers - 120 days
if a salvage vehicle is rebuilt, then a: - Answers - Title branded "rebuilt" is issued.
A dealer is exempt from paying Virginia sales tax on: - Answers - Parts and accessories
purchased for and installed on a vehicle in inventory
Dealers are required to notify the Dealer Board that a salesperson in no longer working
for the dealership: - Answers - No later than the tenth day following the month the
salesperson left the dealership
Under the Consumer Protection Act, civil penalties may be assessed: - Answers - Up to
$5,000 plus attorney fees, for violating an injunction
, The Manufacturers Warranty Adjustment Act deals with: - Answers - Policy adjustments
outside of the manufacturers warranty
On extended service contracts, for parts and labor, the dealer must collect: - Answers -
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: - Answers - 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: - Answers - 10 days
Application for renewal of licenses received by the Board within 30 days after the
license expiration date: - Answers - 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: - Answers - Will be considered a new or "original"
application
True OR False?
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 - Answers - TRUE
The total of all claims paid by the Motor Vehicle Transaction Recovery Fund resulting
from fraudulent actions by an individual dealer is: - Answers - 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: - Answers - 5% of the payment after the seventh day from the date the
payment was due
A dealer who is "on-line" with DMV: - Answers - Must pass the vendor fee on to the
customer
Dealers who are not "on-line" with DMV pay a transaction fee and: - Answers - Cannot
pass it on the 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: - Answers - You are only allowed to print one se of
Print On Demand (PoD) temporary tags
