Advertising and Sales Practices Flashcards
7 cards from real DMV practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Advertising and Sales Practices flashcards as text
A salesperson tells a customer a used vehicle has never been in an accident when they have no knowledge of the vehicle's history. This statement is:
Answer: A misrepresentation that could expose the dealer to liability
Making a definitive claim about accident history without verification is a misrepresentation that can expose the dealer to legal liability.
The term 'invoice price' in advertising refers to:
Answer: The price the dealer paid to the manufacturer or distributor
Invoice price refers to the amount the dealer was charged by the manufacturer or distributor, not the final consumer price.
An advertisement uses fine print to contradict or take back a bold headline claim. Under FTC guidelines, this practice is:
Answer: Deceptive because disclaimers cannot contradict the main message
The FTC holds that fine print disclaimers cannot be used to contradict a headline claim — the overall net impression must not be deceptive.
Which of the following is an example of permissible 'puffery' in automotive advertising?
Answer: 'Lowest prices in the state'
Puffery involves vague, subjective boasts like 'lowest prices' that no reasonable consumer would take as a factual claim — unlike specific mileage or certification statements.
A dealer advertises a vehicle at a 'sale price' that is actually the standard everyday price. This violates advertising rules because:
Answer: Implying a discount when none exists is deceptive
Using the word 'sale' implies a reduction from a former price — advertising a regular price as a sale price is deceptive.
A dealer includes a $500 administrative fee in the final contract that was not mentioned in the advertisement. This practice is best described as:
Answer: A hidden fee that may violate advertising and consumer protection laws
Failing to disclose mandatory fees in advertising and then adding them at closing can constitute deceptive advertising and violate consumer protection statutes.
Comparative advertising that makes specific claims about a competitor's product must be:
Answer: Truthful, substantiated, and not misleading
Comparative advertising is legal but must be truthful, based on substantiated facts, and must not create a false or misleading impression about the competitor.