CAR General Business Operations 2

Question 1

Which document is most critical when purchasing a vehicle for dismantling to ensure the recycler legally acquires ownership?

Accepted Answer

Certificate of title

Answer

Bill of sale only

Answer

Insurance declaration page

Answer

Vehicle registration card

Question 2

Under federal law, which agency oversees the National Motor Vehicle Title Information System (NMVTIS) that auto recyclers must report to?

Accepted Answer

DOJ

Answer

EPA

Answer

NHTSA

Answer

FMCSA

Question 3

An automotive recycler receives a vehicle with a salvage title. What must the recycler report to NMVTIS?

Accepted Answer

VIN, acquisition date, and disposition status

Answer

Only the vehicle's color and mileage

Answer

The name of the previous insurance carrier

Answer

The estimated parts value only

Question 4

What is the typical purpose of a 'core charge' in the automotive recycling parts business?

Accepted Answer

A refundable deposit to encourage return of rebuildable parts

Answer

A fee charged for storing vehicles outdoors

Answer

A penalty for selling non-OEM parts

Answer

A surcharge for hazardous material handling

Question 5

Which of the following best describes a 'green' or 'OEM-equivalent' grade for a recycled part?

Accepted Answer

An original manufacturer part removed from a low-mileage vehicle in good condition

Answer

A part that has been painted green for identification

Answer

A remanufactured aftermarket part with a green label

Answer

A part certified emission-free by the EPA

Question 6

Which business practice best reduces shrinkage and inventory discrepancies at an auto recycling yard?

Accepted Answer

Implementing a perpetual inventory management system with barcodes or RFID

Answer

Accepting verbal purchase orders from regular customers

Answer

Storing all parts inside the office building

Answer

Limiting sales to walk-in customers only

Question 7

When an auto recycler sells a part online through a national locator network, which step is essential before confirming the sale?

Accepted Answer

Verify the part is physically in inventory and graded accurately

Answer

Immediately ship without checking stock

Answer

Relist the part at a higher price

Answer

Wait for the customer to send payment first