Dealer Operations and Compliance Flashcards
7 cards from real Motor Vehicle Division practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Dealer Operations and Compliance flashcards as text
Which federal agency oversees the National Motor Vehicle Title Information System (NMVTIS)?
Answer: U.S. Department of Justice
NMVTIS is administered by the U.S. Department of Justice and provides title history data to reduce title fraud.
A dealer operating a 'buy-here, pay-here' lot must comply with additional regulations primarily related to:
Answer: In-house financing and Truth in Lending disclosures
Buy-here, pay-here dealers act as in-house lenders and must comply with TILA/Regulation Z consumer credit disclosure requirements.
What is the primary purpose of a Dealer Reassignment of Title (also called a dealer reassignment)?
Answer: To transfer ownership between dealers without reissuing the title each time
A dealer reassignment allows title to pass through multiple dealers without the state issuing a new title for each transaction.
Under most state laws, a licensed dealer must obtain a new dealer license when:
Answer: The dealer moves to a new physical location
Most states tie a dealer license to a specific approved physical location, so relocation requires a new or amended license.
An 'as-is' designation on a Buyers Guide means:
Answer: The dealer provides no warranty and the buyer assumes all repair costs after purchase
Selling 'as-is' means the dealer makes no warranty, and the buyer bears the full cost of any post-sale repairs.
A dealer is required to report a vehicle as 'junk' or 'salvage' to the state when:
Answer: An insurance company declares the vehicle a total loss
Insurance companies and dealers must notify the state when a vehicle is declared a total loss so the title can be branded as salvage.
Which document must a dealer provide to a customer at the time of a vehicle sale that itemizes all fees and charges?
Answer: Itemized Buyer's Order or Purchase Agreement
The Buyer's Order or Purchase Agreement must itemize vehicle price, taxes, fees, and any add-on charges so the buyer can review them.