Motor Vehicle Division Dealer Operations and Compliance 2

Question 1

A dealer sells a used vehicle without disclosing a prior salvage title. What is the most likely regulatory consequence?

Accepted Answer

License suspension or revocation

Answer

Failing to disclose a salvage title is material fraud, which can result in license suspension or revocation by the MVD.

Question 2

Under federal Buyers Guide rules (FTC Used Car Rule), where must the Buyers Guide be displayed?

Accepted Answer

In the vehicle's side window

Answer

The FTC requires the Buyers Guide to be displayed in a side window of each used vehicle offered for sale.

Question 3

A franchised new-car dealer wants to also sell used vehicles. Which statement is correct?

Accepted Answer

Most states require a separate used vehicle dealer endorsement or license

Answer

Many states require dealers to obtain a separate used vehicle dealer license or endorsement even when they hold a new-car franchise.

Question 4

How long must a licensed dealer typically retain odometer disclosure statements under federal law?

Accepted Answer

Five years

Answer

Federal law (49 CFR Part 580) requires dealers to retain odometer disclosure statements for five years.

Question 5

A dealer's surety bond is primarily designed to protect whom?

Accepted Answer

Consumers and the state from dealer misconduct

Answer

Surety bonds protect consumers and the state by providing a financial remedy if the dealer engages in fraudulent or unlawful acts.

Motor Vehicle Division Practice Test