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 dealer advertises a manufacturer's cash rebate as a 'dealer discount.' This is:
Answer: Deceptive because it misrepresents the source of the savings
Misrepresenting a manufacturer's rebate as a dealer discount misleads consumers about who is providing the savings and can distort price negotiations.
Under the Truth in Lending Act (TILA/Regulation Z), which 'trigger term' in an ad requires full credit disclosure?
Answer: 'Down payment of $1,500'
Stating a specific down payment amount is a Regulation Z trigger term that requires disclosure of the APR, number of payments, and total of all payments.
A dealership's TV commercial features a vehicle at a specific price, but that vehicle has already been sold. How long does the dealer typically have to update or remove such an advertisement?
Answer: A reasonable time after the vehicle is sold, often 24–48 hours under state rules
Most state regulations require dealers to remove or update ads within a short, reasonable period after a vehicle is sold to avoid misleading consumers.
A dealer places an ad claiming vehicles are 'priced below invoice.' Which of the following statements is TRUE?
Answer: The dealer must be able to substantiate this claim with documentation
Price claims like 'below invoice' must be substantiated with actual cost documentation; if challenged, the dealer must prove the claim is accurate.
Which of the following vehicles is EXEMPT from the FTC Used Car Buyers Guide requirement?
Answer: Vehicles sold between private parties (not dealers)
The FTC Used Car Rule applies to dealers — private party sales between individuals are exempt from the Buyers Guide requirement.
A salesperson promises a customer a specific trade-in value verbally but the written contract reflects a lower amount. Which document governs the transaction?
Answer: The written contract, as it is the binding legal document
In most jurisdictions, the signed written contract supersedes verbal promises — consumers should verify all representations are in writing before signing.
A dealer's social media post shows a vehicle with modified equipment not standard on that model without disclosure. This post is likely:
Answer: A potential deceptive practice if consumers believe the modifications are standard
Depicting non-standard equipment without disclosure can mislead consumers about what they will receive, making it potentially deceptive regardless of the medium.