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

A certificate of title is the legal proof of ownership required to lawfully acquire and dismantle a vehicle.

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

NMVTIS is administered by the U.S. Department of Justice (DOJ) to prevent title fraud and track vehicle histories.

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

NMVTIS requires recyclers to report the VIN, date of acquisition, and the vehicle's disposition within the required timeframe.

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 core charge is a refundable deposit that incentivizes customers to return worn or rebuildable parts for remanufacturing.

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

OEM-equivalent or 'green' grade parts are original factory parts pulled from vehicles in good, usable condition.

(CAR) Certified Automotive Recycler Practice Test