Motor Vehicle Division Dealer Operations and Compliance 3

Question 1

Which federal agency oversees the National Motor Vehicle Title Information System (NMVTIS)?

Accepted Answer

U.S. Department of Justice

Answer

NMVTIS is administered by the U.S. Department of Justice and provides title history data to reduce title fraud.

Question 2

A dealer operating a 'buy-here, pay-here' lot must comply with additional regulations primarily related to:

Accepted Answer

In-house financing and Truth in Lending disclosures

Answer

Buy-here, pay-here dealers act as in-house lenders and must comply with TILA/Regulation Z consumer credit disclosure requirements.

Question 3

What is the primary purpose of a Dealer Reassignment of Title (also called a dealer reassignment)?

Accepted Answer

To transfer ownership between dealers without reissuing the title each time

Answer

A dealer reassignment allows title to pass through multiple dealers without the state issuing a new title for each transaction.

Question 4

Under most state laws, a licensed dealer must obtain a new dealer license when:

Accepted Answer

The dealer moves to a new physical location

Answer

Most states tie a dealer license to a specific approved physical location, so relocation requires a new or amended license.

Question 5

An 'as-is' designation on a Buyers Guide means:

Accepted Answer

The dealer provides no warranty and the buyer assumes all repair costs after purchase

Answer

Selling 'as-is' means the dealer makes no warranty, and the buyer bears the full cost of any post-sale repairs.

Motor Vehicle Division Practice Test