Study Guide - Dealer Operator: Advertising

1. When used in advertising, what terms, under the Truth in Lending Act, "trigger" full disclosure
   1. The amount or percentage of any down payment.
   2. The number or period of payments.
   3. The amount of any payment and finance charge.
   4. All of the above.
   The Truth In Lending Act contains terms, which trigger full disclosure. They are the amount or percentage of any down payment, the number or period of payments and the amount of any payment and finance charge.
   
   
2. An advertisement of a “Sale” must include the sale end date only when:
   1. It must always be stated.
   2. The “sale” will last less than 30 days.
   3. The “sale” will last more than 30 days.
   4. It is a sale of “new” vehicles.
   When advertising a “Sale”, the sale end date must always be stated in advertisement.
   
   
3. A security interest shown on a certificate of title has priority over all other liens except for:
   1. Garage Keepers and mechanics liens.
   2. Liens for taxes due.
   3. Judgments obtained by unsecured creditors.
   4. A and B above.
   A security interest shown on a certificate of title has priority over all other liens except for garage keepers, mechanics liens and liens for taxes due.
   
   
4. When advertising a used vehicle, the fact that it is “used” must be clearly stated. Which of the following terms cannot be used without also declaring they are used?
   1. Special purchase.
   2. Program car.
   3. Demonstrator or former lease or rental.
   4. A and B above.
   The terms “Special Purchase” and “Program Car” cannot be used alone when advertising a used vehicle, the fact that it is “used” must be clearly stated in the advertisement.
   
   
5. Which of the following statements can be used when advertising a vehicle?
   1. “At Cost”.
   2. “Below Cost” or “$ off Cost”.
   3. “Below Cost” or “$ off Cost”.
   4. None of the above.
   If the invoice is the document supplied by the manufacturer or distributor, “Invoice” or $ Over Invoice” can be used when advertising a vehicle.
   
   
6. If a finance payment is stated in an advertisement, then the required disclosures are:
   1. Amount of down payment.
   2. Number and frequency of the payments.
   3. Annual Percentage Rate (APR).
   4. All of the above.
   When advertising a finance payment, the required disclosures are the amount of down payment, number and frequency of the payments and the Annual Percentage Rate (APR).
   
   
7. In a classified advertisement, placed by a dealer, the advertisement:
   1. Must give the dealer’s name or “VADLR” must be used.
   2. The vehicle price must be stated.
   3. The dealer’s hours of operation must be stated.
   4. A and B above.
   In a classified advertisement, placed by a dealer, the advertisement must give the dealer’s name or “VADLR” must be used.
   
   

Section 14 of Study Guide
Section 12 of Study Guide