Study Guide - Buyers Guide
1. The Federal Trade Commission Used Car Rule which sets out the warranty provisions of a sale is known as
A. The buyers guide window sticker rule.
B. The truth in mileage act.
C. The truth in lending act.
The Used Car Rule is also known as the buyers guide window sticker rule.
2. When should the Buyers Guide be placed on a vehicle
A. As soon as it comes into inventory.
B. Before it is offered for sale.
C. At time of delivery.
The dealer should have buyers guides in each vehicle before they are offered for sale.
3. A Buyers Guide must be placed on
A. Demonstrators available for sale.
B. Used trucks under 16,000 lbs. GVW.
C. Consignment vehicles.
D. All of the above.
Dealers who sell demonstrators, used trucks under 16,000 lbs. gross vehicle weight and consignment vehicles must have a buyers guides posted in each vehicle.
4. Where should the Buyers Guide be placed
A. In the inventory folder.
B. Must be on a side window.
C. Attached to the vehicle in a conspicuous place so both sides can be seen.
The buyers guide should be attached to the vehicle in a conspicuous place so that both sides of the document can be seen.
5. What does the Federal Trade Commission Used Car Rule say about Dealers offering vehicles for sale at public auctions
A. A guide must be on the vehicle if the auction is open to the public.
B. Auctions are responsible for compliance.
C. Sales at auctions are exempt.
If a dealer sells his vehicles at a public auction, a buyers guide must be on the vehicle.
6. Under the Federal Trade Commission Used Car Rule, a vehicle can be sold "As Is"
A. Without placing a Buyers Guide on the vehicle.
B. And the service contract box on the Buyers Guide checked.
C. Without giving the customer a copy of the buyers guide.
D. Without filling out the bank of the guide.
Vehicles may be sold as is and the service contract box on the Buyers Guide checked.
7. What is the penalty for violating the Federal Trade Commission Used Car Rule
A. Confiscation of the vehicle.
B. Up to $11,000 per violation.
C. Up to 6 months in jail.
D. B & C of the above.
A violation of the Federal Trade Commission Used Car Rule could result in a fine of up to $11,000 for each violation. (Before July 1, 2001, the correct answer is “$10,000 per violation”)
8. "Full" and "Limited" are terms given to
A. Buyers orders.
B. Installment sales contracts.
D. Extended service contracts.
The warranty on a vehicle may be full or limited.
9. According to the Federal Trade Commission Used Car Rule, which of the following is considered an unfair and deceptive practice
A. Making available the terms of any written warranty on a used care before the sale.
B. To offer discounts to all potential buyers.
C. Representing that a used automobile is sold with a warranty when it is not.
D. All of the above.
A dealer may not represent a used vehicle as being sold with a warranty when it is not.
10. As described in the Federal Trade Commission Used Car Rule, dealers must display conspicuously on each used car a
A. Local sales license.
B. Buyers guide.
C. Vehicle registration.
D. Monroney sticker.
On each used car, a dealer must display conspicuously a buyers guide.
11. According to the Federal Trade Commission Used Car Rule, the Buyer's Guide should be displayed on
A. Demonstrator or inventory vehicles.
B. Consignment vehicles.
C. Leased vehicles.
D. Both A & B above.
Dealers must display buyers guides on demonstrator, inventory vehicles and consignment vehicles.
12. Which statement is correct
A. A dealer must make a copy of the written warranty available for the customer to read prior to the sale.
B. A dealer can sell a vehicle "As Is" or without a warranty in Virginia.
C. Both A & B above are correct.
D. Neither A or B above are correct.
The Federal Trade Commission requires Virginia dealers to make a copy of the written warranty available for the customer to read before the sale, and will allow a dealer to sell a vehicle as is or without a warranty.
13. Under the Federal Trade Commission Used Car Rule, the terms of the warranty as stated on the Buyers Guide
A. Can not be changed.
B. Can be changed and noted on the original Guide or on a new Guide.
C. Can only be changed before the vehicle is shown.
D. Can only be changed from a limited to a full warranty.
The terms of the warranty as outlined on the buyers guide can be changed and noted on the original guide or on a new guide.
14. When giving a warranty on a used vehicle the dealer must:
A. Give the customer a copy of the Buyers Guide window sticker.
B. Give the customer a warranty document containing certain specific phrases.
C. Disclose the terms of the warranty on the buyers order.
D. A and B above.
When giving a warranty on a used vehicle, the dealer must give the customer a copy of the Buyers Guide window sticker and a warranty document containing certain specific phrases.