DMV DMV - Representative Consumer Protection and Dispute Resolution 3

Question 1

A mandatory arbitration clause in a California vehicle purchase contract must, at minimum:

Accepted Answer

Be conspicuous and explain that it waives the buyer's right to a jury trial

Answer

California courts require that arbitration clauses be conspicuous and that buyers be informed the clause waives their right to a jury trial.

Question 2

Which federal agency has primary authority to enforce the FTC Used Car Rule (Buyers Guide requirement) against dealers?

Accepted Answer

Federal Trade Commission (FTC)

Answer

The FTC promulgated and enforces the Used Car Rule, which mandates the Buyers Guide disclosure for used vehicle dealers.

Question 3

Under the Magnuson-Moss Warranty Act, a written warranty on a consumer product costing more than $15 must be designated as either:

Accepted Answer

Full or limited

Answer

Magnuson-Moss requires written warranties on consumer products over $15 to be clearly labeled as either 'full' or 'limited' to help consumers understand the scope of coverage.

Question 4

A dealer's failure to provide a federally required Buyers Guide before the sale of a used vehicle can result in a civil penalty of up to how much per violation?

Accepted Answer

$51,744

Answer

FTC civil penalties for violations of the Used Car Rule can reach up to $51,744 per violation (adjusted periodically for inflation).

Question 5

A California vehicle buyer who believes a dealer committed fraud may file a complaint with the DMV's Occupational Licensing Branch, and the DMV may respond by:

Accepted Answer

Suspending or revoking the dealer's license

Answer

The DMV's Occupational Licensing Branch can investigate dealer fraud complaints and impose disciplinary actions including suspension or revocation of the dealer license.

DMV - Representative Exam Practice Test

DMV - Representative Exam Practice Test

DMV DMV - Representative Consumer Protection and Dispute Resolution 3