Study Guide - State Statute

1. The Virginia code defines a dealer, in part, as
   1. One who sells 5 or more vehicles within a 12 month period.
   2. One who is licensed by the Federal Trade Commission.
   3. One who buys, sells, and exchanges vehicles.
   4. A & C of the above.
   A dealer can be identified as one who sells five or more vehicles within a 12 month period and also, one who buys, sells, and exchanges vehicles.
   
   
2. In order to qualify for licensing, the dealer's established place of business must
   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 dealer adequate to permit the display of at least 10 vehicles.
   4. All of the above.
   The Motor Vehicle Dealer Licensing Laws require a dealer's established place of business to have contiguous space designated for the exclusive use of the dealer adequate to permit the display of at least 10 vehicles; have at least 250 square feet of sales and office space devoted exclusively to the dealership and meet all local zoning regulations.
   
   
3. If you intend to change the location of your dealership (move), you must notify the Board:
   1. In writing 30 days in advance.
   2. In writing 60 days in advance.
   3. In writing 15 days in advance.
   4. No notification is required.
   If you intend to change the location of your dealership (move), you must notify the Board, in writing, 30 days in advance of moving.
   
   
4. Which of the following are required before a change of location (move) can be completed:
   1. Zoning approval.
   2. Successful inspection by the Board of the new location.
   3. Payment to the Board of a $25 transfer fee.
   4. Both A and B.
   Zoning approval and a successful inspection by the Board of the new location are required before a change of location (move) can be completed.
   
   
5. When an insurance company takes possession of a vehicle as the result of a claim, the insurance company applies for and receives a:
   1. Title in the name of the insurance company.
   2. Salvage certificate or a non-repairable certificate.
   3. Title branded “junk”.
   4. “Parts only” title.
   When an insurance company takes possession of a vehicle as the result of a claim, the insurance company applies for and receives a salvage or a non-repairable certificate.
   
   
6. If a salvage vehicle is rebuilt and the damage is in excess of 75%, but less than 90%, of its pre-damaged retail value, then a:
   1. Title branded “rebuilt” is issued.
   2. “Non-repairable” certificate is issued.
   3. Clear title is issued if the damage is less than 90% of its pre-damaged retail value.
   4. Title branded “salvage” is issued.
   If a salvage vehicle is rebuilt and the damage is in excess of 75%, but less than 90%, of its pre-damaged retail value, then a title branded “rebuilt” is issued.
   
   
7. Section “A” of a Virginia title is used:
   1. By the titled owner to assign the vehicle to another owner.
   2. By licensed dealers to apply for a title.
   3. To record a lien.
   4. To show joint ownership.
   Section “A” of a Virginia title is used by the titled owner to assign the vehicle to another owner.
   
   
8. Section “B” on the back of a Virginia title is used:
   1. By a licensed dealer to transfer ownership.
   2. By the buyer to apply for a new title.
   3. To record a lien.
   4. Only by “Dealer Only Auctions”.
   Section “B” on the back of a Virginia title is used by a licensed dealer to transfer ownership.
   
   
9. A dealer is exempt from paying Virginia sales tax on:
   1. Parts and accessories purchased for and installed on a vehicle in inventory.
   2. Reconditioning supplies, such as soap and tire dressing.
   3. All forms necessary to close a sale.
   4. All of the above.
   A dealer is exempt from paying Virginia sales tax on parts and accessories purchased for and installed on a vehicle in inventory.
   
   
10. The Consumer Protection Act is administered by the:
    1. Motor Vehicle Dealer Board.
    2. The Department of Motor Vehicles.
    3. The Department of Agriculture and Consumer Services.
    4. All of the above.
    The Consumer Protection Act is administered by The Department of Agriculture and Consumer Services.
    
    
11. Under the Consumer Protection Act, civil penalties may be assessed:
    1. Up to $5,000, plus attorney fees, for violating an injunction.
    2. Causing a loss of the dealer’s license.
    3. Causing the dealer’s license to be revoked for one year.
    4. All of the above.
    Under the Consumer Protection Act, civil penalties may be assessed up to $5,000, plus attorney fees, for violating an injunction.
    
    
12. The Manufacturers Warranty Adjustment Act deals with:
    1. The conditions set forth in a manufacturer’s warranty.
    2. Policy adjustments outside of the manufacturer’s warranty.
    3. Sets labor rates for warranty work.
    4. A and B above.
    The Manufacturers Warranty Adjustment Act deals with policy adjustments outside of the manufacturer’s warranty.
    
    
13. On extended service contracts, for both parts and labor, the dealer must collect:
    1. 4.5% sales tax on the retail cost of the contract.
    2. 4.5% sales tax of the dealer’s cost of the contract.
    3. 4.5% on one half of the retail cost of the contract.
    4. No sales tax is required.
    On extended service contracts, for both parts and labor, the dealer must collect 4.5% on one half of the retail cost of the contract.
    
    
14. The entity which usually has the primary responsibility for payment of damages in the event of a “Lemon Law” violation is the:
    1. Transaction Recovery Fund.
    2. Dealership.
    3. Manufacturer.
    4. Dealer’s Insurance Company.
    The entity, which usually has the primary responsibility for payment of damages in the event of a “Lemon Law” violation, is the manufacturer.
    
    
15. 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?
    1. 5 days.
    2. 10 days.
    3. 30 days.
    4. 60 days.
    A lien holder has 10 days to surrender a title to the person legally entitled to it after the lien has been satisfied.
    
    
16. Application for renewal of licenses received by the Board within 30 days after the license expiration date
    1. Will be considered as a new or “original” application.
    2. Will be processed, however a “warning letter” will be issued.
    3. Will be renewed at a fee equal to 150% of the “on-time” fee.
    4. Will be renewed at double the “on-time” fee.
    Renewal applications received within 30 days after expiration will be assessed a fee equal to 150% of the “on-time” fee.
    
    
17. Application for renewal of licenses received by the Board or postmarked more than 30 days after the license expiration date
    1. Will be considered as a new or “original” application.
    2. Will be processed, however a “warning letter” will be issued.
    3. Will be renewed at a fee equal to 150% of the “on-time” fee.
    4. Will be renewed at double the “on-time” fee.
    Renewal applications received or postmarked more than 30 days after expiration will be considered as a new or “original” application.
    
    
18. The maximum an individual motor vehicle purchaser or lessee may recover from the Motor Vehicle Transaction Recovery fund
    1. $15,000.
    2. $25,000.
    3. $35,000.
    4. $45,000.
    As of July 1, 2012, the maximum payment which can be made from the Fund is $25,000 for a single transaction. (Prior to July 1, 2012, the maximum was/is $20,000)
    
    
19. The total of all claims paid by the Motor Vehicle Transaction Recovery Fund resulting from fraudulent actions by an individual dealer is:
    1. Four times the amount of a single claim.
    2. Five times the amount of a single claim.
    3. Determined by the Dealer Board.
    4. Unlimited.
    As of July 1, 2012, the Fund may pay a total of four times the amount of a single claim as a result of judgment of fraud against an individual dealer. (Prior to July 1, 2012, the maximum was/is $100,000)
    
    
20. Virginia Statute calls for the maximum late charge under an installment sales contract to be assessed at:
    1. 10% of the payment after the tenth day from the date the payment was due.
    2. 5% of the payment after the seventh day from the date the payment was due.
    3. The amount and time stated in the contract.
    4. Virginia law does not address the question.
    A late charge of 5% may be assessed, under an installment sale, after the seventh day from the date the payment was due.
    
    
21. Before a purchaser anticipating a claim against the Recovery Fund, seeks a judgment for fraud against a Virginia dealer, the customer:
    1. Notifies the MVDB.
    2. Requests the Court clerk notify the MVDB.
    3. Lists the Board as a co-respondent on the filing.
    4. Notifies the dealer by certified mail.
    If a purchaser anticipates making a claim against the Recovery Fund, he or she must notify the Board before filing against a Virginia Dealer.
    
    

Section 11 Of Study Guide
Section 9 of Study Guide