VA Sales License Test 2026 | 161 Questions & Answers |
Latest Update | Exam Prep | 100% Pass Guarantee
1. Describe the significance of full disclosure of credit terms in the context of
Virginia vehicle sales regulations.
Full disclosure is primarily for the dealer's protection against fraud.
Full disclosure of credit terms ensures that buyers are fully informed
about the financial obligations they are entering into.
Full disclosure is optional and depends on the dealer's preference.
Full disclosure is only necessary for high-value transactions.
2. What is the primary requirement of the Federal Trade Commission Used Car
Rule for dealers selling vehicles at public auctions?
Dealers must guarantee the vehicle's condition for 90 days.
Dealers are not required to provide any documentation.
Dealers must provide a written warranty or a disclosure that the
vehicle is sold 'As Is'.
Dealers must offer a full refund within 30 days.
3. If a motor vehicle salesperson is found guilty of multiple violations, what
actions might the regulatory body take?
The regulatory body may impose increased fines, suspend the
salesperson's license, or revoke it entirely.
The regulatory body will not take any action for multiple violations.
The salesperson will be required to attend a seminar but can keep
their license.
, The salesperson will receive a warning and be allowed to continue
selling.
4. What is the requirement for disclosing credit terms in Virginia vehicle sales?
Full disclosure is not required in Virginia.
Full disclosure must be made before the buyer signs the sales
contract.
Full disclosure must be made only if the buyer requests it.
Full disclosure must be made after the sale is completed.
5. What is required from a financing company when it denies a loan application
for a vehicle purchase?
A notice of denial
An explanation of loan terms
A list of approved dealerships
A refund of the application fee
6. Regarding advertising, the Federal Trade Commission:
All of the above.
can regulate deceptive advertising.
can require firms to run corrective ads.
can require firms to provide affirmative disclosures.
can require firms to support ad claims.
7. What is the definition of an 'Open Title' in vehicle sales?
, An 'Open Title' is a title that is issued for vehicles that are not
roadworthy.
An 'Open Title' is a title that indicates a vehicle is sold with warranties.
An 'Open Title' is a title that has not been signed over to a new
owner, allowing for easier transfer of ownership.
An 'Open Title' is a title that requires a dealer's signature for transfer.
8. If a vehicle does not pass inspection
The dealer cannot deliver the vehicle to a retail customer.
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.
Either B or C above.
The dealer may bring it into compliance.
9. Who is responsible for paying the sales tax on a warranty or service
agreement sold to a customer?
The manufacturer
The dealer
The customer
The state government
10. Describe what constitutes an unfair and deceptive practice under the
Federal Trade Commission Used Car Rule.
An unfair and deceptive practice involves overpricing vehicles
compared to market value.
, An unfair and deceptive practice is advertising vehicles without a
warranty.
An unfair and deceptive practice is offering financing without proper
documentation.
An unfair and deceptive practice includes failing to disclose
important information about the vehicle's condition or history.
11. Describe the responsibility of the dealer regarding sales tax on warranties or
service agreements in Virginia.
The manufacturer covers the sales tax costs.
The customer pays the sales tax directly to the state.
Sales tax is not applicable to warranties or service agreements.
The dealer is responsible for collecting and remitting the sales tax
on warranties or service agreements sold to customers.
12. Which of the following is required to be disclosed under Regulation Z (Truth
in Lending) of the Consumer Credit Protection Act
Amount financed.
Late fees and APR.
Schedule of payments.
All of the above.
13. If a motor vehicle dealer is considering selling a vehicle to a buyer with a
questionable credit history, what steps should they take regarding credit
inquiries?
The dealer should proceed with the sale without any credit inquiry.
The dealer should only inquire after the sale is finalized.
Latest Update | Exam Prep | 100% Pass Guarantee
1. Describe the significance of full disclosure of credit terms in the context of
Virginia vehicle sales regulations.
Full disclosure is primarily for the dealer's protection against fraud.
Full disclosure of credit terms ensures that buyers are fully informed
about the financial obligations they are entering into.
Full disclosure is optional and depends on the dealer's preference.
Full disclosure is only necessary for high-value transactions.
2. What is the primary requirement of the Federal Trade Commission Used Car
Rule for dealers selling vehicles at public auctions?
Dealers must guarantee the vehicle's condition for 90 days.
Dealers are not required to provide any documentation.
Dealers must provide a written warranty or a disclosure that the
vehicle is sold 'As Is'.
Dealers must offer a full refund within 30 days.
3. If a motor vehicle salesperson is found guilty of multiple violations, what
actions might the regulatory body take?
The regulatory body may impose increased fines, suspend the
salesperson's license, or revoke it entirely.
The regulatory body will not take any action for multiple violations.
The salesperson will be required to attend a seminar but can keep
their license.
, The salesperson will receive a warning and be allowed to continue
selling.
4. What is the requirement for disclosing credit terms in Virginia vehicle sales?
Full disclosure is not required in Virginia.
Full disclosure must be made before the buyer signs the sales
contract.
Full disclosure must be made only if the buyer requests it.
Full disclosure must be made after the sale is completed.
5. What is required from a financing company when it denies a loan application
for a vehicle purchase?
A notice of denial
An explanation of loan terms
A list of approved dealerships
A refund of the application fee
6. Regarding advertising, the Federal Trade Commission:
All of the above.
can regulate deceptive advertising.
can require firms to run corrective ads.
can require firms to provide affirmative disclosures.
can require firms to support ad claims.
7. What is the definition of an 'Open Title' in vehicle sales?
, An 'Open Title' is a title that is issued for vehicles that are not
roadworthy.
An 'Open Title' is a title that indicates a vehicle is sold with warranties.
An 'Open Title' is a title that has not been signed over to a new
owner, allowing for easier transfer of ownership.
An 'Open Title' is a title that requires a dealer's signature for transfer.
8. If a vehicle does not pass inspection
The dealer cannot deliver the vehicle to a retail customer.
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.
Either B or C above.
The dealer may bring it into compliance.
9. Who is responsible for paying the sales tax on a warranty or service
agreement sold to a customer?
The manufacturer
The dealer
The customer
The state government
10. Describe what constitutes an unfair and deceptive practice under the
Federal Trade Commission Used Car Rule.
An unfair and deceptive practice involves overpricing vehicles
compared to market value.
, An unfair and deceptive practice is advertising vehicles without a
warranty.
An unfair and deceptive practice is offering financing without proper
documentation.
An unfair and deceptive practice includes failing to disclose
important information about the vehicle's condition or history.
11. Describe the responsibility of the dealer regarding sales tax on warranties or
service agreements in Virginia.
The manufacturer covers the sales tax costs.
The customer pays the sales tax directly to the state.
Sales tax is not applicable to warranties or service agreements.
The dealer is responsible for collecting and remitting the sales tax
on warranties or service agreements sold to customers.
12. Which of the following is required to be disclosed under Regulation Z (Truth
in Lending) of the Consumer Credit Protection Act
Amount financed.
Late fees and APR.
Schedule of payments.
All of the above.
13. If a motor vehicle dealer is considering selling a vehicle to a buyer with a
questionable credit history, what steps should they take regarding credit
inquiries?
The dealer should proceed with the sale without any credit inquiry.
The dealer should only inquire after the sale is finalized.
