MOTOR VEHICLE SALESPERSON EXAM WITH CORRECT
ANSWERS #7
What are the requirements for a salesperson license? - correct answer - 18 years old
- agree to act in good faith as a salesperson
- are familiar with motor vehicle sales laws, lease laws and contract laws
Advertising - correct answer Using false, deceptive or misleading advertising or
representations to induce the purchase of a motor vehicle is an unfair practice and is
prohibited.
Vehicle Prices - correct answer The advertised price must include all charges that the
customer will pay, except sales tax, title and registration fees. Post advertised prices on
the vehicle. Don't use phrases such as "write your own deal" or "name your own price"
because they mislead customers.
New Vehicle Discount - correct answer You may only advertise new vehicles using
terms such as "invoice" or "cost" when you disclose that the "actual dealer cost is, or
may be less, due to factory holdback, rebates, incentives, or other discounts."
"Free" merchandise - correct answer Don't use the word "free" in any advertising if the
customer must purchase something to receive the "free" merchandise, equipment,
accessories or service. You may state that an item "is included with" the purchase.
Trade-in allowance - correct answer You are not allowed to use phrases such as, "we
will pay up to", "appraise your own vehicle" or "as much as" when advertising allowance
for a trade-in.
Dealer name on advertising - correct answer When advertising vehicles for sale, include
the dealer's name in the ad.
Availability of vehicles - correct answer If you say a certain type of vehicle is available,
be sure you have enough of them to meet anticipated demands. If they are not on hand,
you must know that they will be delivered within a reasonable time.
Damaged vehicles - correct answer If two or more vehicles are damaged by the same
cause, include the cause of the damage in all ads.
Model year - correct answer When advertising any motor vehicle, always state the
model year. In addition, if the vehicle is of the current or previous model year, you must
also designate it as "used" if that is the fact. Words like "demonstrator", "executive",
"low mileage" and "one-owner" also designate a vehicle is used.
"Clearance" merchandise - correct answer Do not use statements such as "last of the
remaining", "close out", or "clearance" to advertise used vehicles unless the dealership
is actually going out of business.
ANSWERS #7
What are the requirements for a salesperson license? - correct answer - 18 years old
- agree to act in good faith as a salesperson
- are familiar with motor vehicle sales laws, lease laws and contract laws
Advertising - correct answer Using false, deceptive or misleading advertising or
representations to induce the purchase of a motor vehicle is an unfair practice and is
prohibited.
Vehicle Prices - correct answer The advertised price must include all charges that the
customer will pay, except sales tax, title and registration fees. Post advertised prices on
the vehicle. Don't use phrases such as "write your own deal" or "name your own price"
because they mislead customers.
New Vehicle Discount - correct answer You may only advertise new vehicles using
terms such as "invoice" or "cost" when you disclose that the "actual dealer cost is, or
may be less, due to factory holdback, rebates, incentives, or other discounts."
"Free" merchandise - correct answer Don't use the word "free" in any advertising if the
customer must purchase something to receive the "free" merchandise, equipment,
accessories or service. You may state that an item "is included with" the purchase.
Trade-in allowance - correct answer You are not allowed to use phrases such as, "we
will pay up to", "appraise your own vehicle" or "as much as" when advertising allowance
for a trade-in.
Dealer name on advertising - correct answer When advertising vehicles for sale, include
the dealer's name in the ad.
Availability of vehicles - correct answer If you say a certain type of vehicle is available,
be sure you have enough of them to meet anticipated demands. If they are not on hand,
you must know that they will be delivered within a reasonable time.
Damaged vehicles - correct answer If two or more vehicles are damaged by the same
cause, include the cause of the damage in all ads.
Model year - correct answer When advertising any motor vehicle, always state the
model year. In addition, if the vehicle is of the current or previous model year, you must
also designate it as "used" if that is the fact. Words like "demonstrator", "executive",
"low mileage" and "one-owner" also designate a vehicle is used.
"Clearance" merchandise - correct answer Do not use statements such as "last of the
remaining", "close out", or "clearance" to advertise used vehicles unless the dealership
is actually going out of business.
