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WISCONSIN AUTO SALESPERSON LICENSE EXAM |
WISCONSIN CAR SALES TEST | ALL QUESTIONS
AND CORRECT ANSWERS | LATEST VERSION |
GRADED A+ | VERIFIED ANSWERS
What does the anti-structuring provision of the IRS cash reporting rule prohibit? ------CORRECT ANSWER---------------Advising customers on how to get around the rule In financing a vehicle on an installment sales contract, the APR stands for: ------CORRECT ANSWER---------------Annual percentage rate Finance charges must be stated in: ------CORRECT ANSWER--------------- Annual percentage rate Full disclosure of credit terms must be made: ------CORRECT ANSWER---- -----------Before a sale is consummated. The following is required to be disclosed under regulation Z (truth in lending) of the consumer credit protection act: ------CORRECT ANSWER--- -------------amount financed
- late fees and APR
- schedule of payments If a financing company denies a loan application, it must: ------CORRECT ANSWER---------------Provide the applicant with a written statement explaining the reason of denial within 30 days
When can an inquiry be made of a credit reporting bureau? ------CORRECT ANSWER---------------When the customer signs a credit application Under the truth in lending act, the following must be disclosed to the customer: ------CORRECT ANSWER----------------total number of payments
- late payment penalty
- annual percentage rate When discussing a customers loan application, the following cannot be asked: ------CORRECT ANSWER---------------"Are you married?" The federal trade commission used car rule which sets out the warranty provisions of a sale is known as: ------CORRECT ANSWER---------------The buyers guide window sticker rule When should the buyers guide be placed on a vehicle: ------CORRECT ANSWER---------------Before it is offered for sale A buyers guide must be placed on: ------CORRECT ANSWER---------------- demonstrators available for sale
- used trucks under 16,000 lbs GVW
- consignment vehicles
According to the federal trade commission used car rule, the buyers guide should be displayed on: ------CORRECT ANSWER---------------- demonstrator or inventory vehicles
- consignment vehicles True/false- a dealer must make a copy of the written warranty available for the customer to read prior to the sale ------CORRECT ANSWER--------------- True True/false- a dealer can sell a vehicle "as is" or without a warranty in VA --- ---CORRECT ANSWER---------------True Under the federal trade concision used car rule, the terms of the warranty as stated on the buyers guide: ------CORRECT ANSWER---------------Can be changes and noted in the original guide or on a new guide When giving a warranty on a used vehicle the dealer must: ------CORRECT ANSWER----------------give the customer a copy of the buyers guide window sticker
- give the customer a warranty document containing certain specific phrases Which of the following must be included on the buyers guide? ------ CORRECT ANSWER---------------Vehicle body style For dealer arranged financing, if the retail installment contract is not approved and the deal is cancelled you must ------CORRECT ANSWER----- ----------Return the customer trade in
The reverse of the buyers guide must be signed by the customer and the dealership ------CORRECT ANSWER---------------In every retail sale of a used vehicle The reverse of the buyers guide must be signed ------CORRECT ANSWER- --------------In every retail sale of a used vehicle An "A" after the odometer reading on a title indicates ------CORRECT ANSWER---------------Actual miles driven The term "mileage" as used in the truth in mileage act means: ------ CORRECT ANSWER---------------The actual distance the vehicle has been driven An "E" after the odometer reading on a title means: ------CORRECT ANSWER---------------Mileage in excess of the odometers mechanical limits. True/false- The truth in mileage act requires that both the buyer and seller must sign and print their name to the odometer statement ------CORRECT ANSWER---------------True True/false- the customer must receive a copy of the odometer statement --- ---CORRECT ANSWER---------------True
- is an affirmation, by the dealer, that the information contained on the form is correct to the best of their knowledge The "Processing Fee" is: ------CORRECT ANSWER---------------A charge by a dealer for processing a transaction. If the dealer charges a processing fee it: ------CORRECT ANSWER----------- ----Must be posted in the public sales area and clearly visible The dealer processing fee is: ------CORRECT ANSWER---------------Subject to the motor vehicle sales and use tax. A salesperson may use a dealer plate if he or she ------CORRECT ANSWER---------------Works at least 25 hours each week on a regular basis and is compensated for this work Dealer license plates may be: ------CORRECT ANSWER---------------Used on vehicles in the inventory of the dealer. A dealer may allow the prospective purchasers to use the license plates assigned to the dealer for: ------CORRECT ANSWER---------------Up to 5 days and may be renewed once After the proper forms are completed, dealer plates may be used on a vehicle in a dealers inventory ------CORRECT ANSWER----------------by a prospective purchaser
- by a customer whose vehicle is in the dealers shop for repairs The form granting permission to use dealer plates ------CORRECT ANSWER---------------May be issued for a five day period and reissued for one additional five day period When may you use your dealer plates in consignment vehicles? ------ CORRECT ANSWER---------------If the vehicle is on consignment from another dealer The dealer may authorize a person, other than a full time employee, to transport a vehicle on a dealer plate to and from a point of sale, an auction, and a repair facility or dealer exchange for a period not to exceed ------ CORRECT ANSWER--------------- 24 hours A vehicle identification number (vin) is comprised of 17 alpha numeric character. Which character identifies the model year? ------CORRECT ANSWER---------------10th If a vehicle is to be titled out of state, temporary tags are issued and the purchaser does not have the required liability insurance, the dealer ------ CORRECT ANSWER---------------Must collect 1/12 of the uninsured motorist fee and submit to DMV On the buyers order, the line item "balance due at settlement" is used ------ CORRECT ANSWER---------------With both cash and finance transactions
What type of valid proof may a dealer use to prove a Virginia safety inspection is performed in a vehicle prior to retail sale? ------CORRECT ANSWER---------------- a receipt from an authorized Virginia inspection station identifying vehicle by year, make, model, and vin
- the official state inspection document who needs a motor vehicle salesperson license? ------CORRECT ANSWER---------------anyone who wants to sell/lease vehicles in Wisconsin what are the requirements for a salesperson license? ------CORRECT ANSWER---------------- 18 + years old
- agree to follow the "good faith" salesperson standards
- familiar to sales contract laws how do you renew your license? ------CORRECT ANSWER---------------Your employer renews the license and pays the fee. There is no written text for renewals how do you get a duplicate salesperson license? ------CORRECT ANSWER---------------Employer completes the application for your lost/destroyed licenses what happens when you change dealerships? ------CORRECT ANSWER--- ------------during your licensed period you give your license o the former employer and complete a new application at the new place of employment
What do you do when you terminate emplyment? ------CORRECT ANSWER---------------when you terminate employment you give your license to your employer before leaving what is a lapsed license? ------CORRECT ANSWER---------------when your WI license expired more than 5 years ago. you will need to retake the written test. fee and application is the same as first time applicants what happens if there's a criminal conviction? ------CORRECT ANSWER---- -----------under most circumstances you may be licensed even if you are convicted of a crime. the dealer/agent will investigate before approving or denying your license. What do you do if you were Denied? ------CORRECT ANSWER--------------- if your application on a motor vehicle salesperson license is declined you may appeal to the division of hearing and appeals. if your application is denied you'll receive a denial letter which contains reasons why and instructions on how to get an appeal What is a Dealership group? ------CORRECT ANSWER---------------A dealership group is 2 or more dealerships with the same majority owner. What arent you allowed to do when Advertising? ------CORRECT ANSWER---------------Using False, deceptive or misleading advertising or representations to induce the purchaser of a motor vehicle is an unfair proactive and is prohibited
Damaged Vehicles ------CORRECT ANSWER---------------if 2 or more vehicles are damaged by the same cause include damage in all ads. tell customers about the damage (such as flood or hail damage) Model Years ------CORRECT ANSWER---------------when advertising include model years, also display "used" "low mileage" and "one- owner" as it applies "Clearance" Merchandise ------CORRECT ANSWER---------------When advertising don't use "last of the remaining" "close out" or "clearance" unless the dealership is going out of buisness Lease vehicles ------CORRECT ANSWER---------------Clearly identify if a vehicle is for sale or for lease on all advertisements. Manufacturers suggested retail price (MSRP) ------CORRECT ANSWER---- -----------this federally required label must remain in the window as a new vehicle until it is delivered to its retail purchaser. this label contains information about standard equipment, options, base price, transport, final assembly point and receiving dealer. Label NOT required for trucks Dealer supplemental price label ------CORRECT ANSWER---------------this label lists optional equipment or accessories installed by the dealer,final price and any price changes.label must remain in window until delivered to customer
Pre-Delivery inspection test ------CORRECT ANSWER---------------This is a report on a new vehicle required by the manufacturer. Give the customer it upon delivery of the vehicle Emission standards certificate ------CORRECT ANSWER--------------- Certificate that confirms the vehicle has been installed and inspected. it also gives information on what to do if system fails. give to the customer at delivery damage disclosure statement ------CORRECT ANSWER---------------this is a written disclosure that must be given to a customer if any damage of more than 6 percent of the MSRP (manufacturers suggested retail price). glass/tires/bumpers are not counted when its identical to the original equipment. Any uncorrected damage must be disclosed to the customer before delivery model year disclosure ------CORRECT ANSWER---------------Original model year needs to be represented. only exception is vehicles manufactured by a second stage manufacturer Wisconsin Buyers Guide ------CORRECT ANSWER---------------the vehicle must be inspected for safety and defects. the results get shown on buyers guide that is located on the window of the vehicle Display the Wisconsin Buyers Guide on everything except ------CORRECT ANSWER----------------trucks over 16000 pounds
- Demonstrator/executive driven vehicles still in use
- vehicles not inspected for sale
- unrepaired salvage
- vehicles sold to the lessee at the end of their lease
Pending Recalls ------CORRECT ANSWER---------------when selling a used vehicle disclose any unpreformed manufacturers recalls in writing odometer repair ------CORRECT ANSWER---------------odometers may be repaired or replaced if they become defective or malfunction. sellers can say it is the "actual mileage" if it meets these 3 guidelines
- repaired within 30 days of malfunction
- reasonable/accurate determination can be made for miles not included after malfunction
- repaired/replaced odometer is calibrated to show mileage before issue and mileage after issue when it impossible to reset reading on repaired or replaced odometers, what do you do? ------CORRECT ANSWER---------------set the "Zero" place sticker on the left door frame to specify mileage before malfunction with a "not actual mileage" sticker Test Drives ------CORRECT ANSWER---------------before any test drive,ask to see the drivers license when is a contract required ------CORRECT ANSWER---------------when closing a sale, when accepting down payment deposits or title for trade in. if the contract is not approved in 2 days it gets voided out and all payments/titles are returned
contract requirements ------CORRECT ANSWER---------------1. name and address of dealer and customer
- salespersons full name and 8 digits of the sales license 3.year make model and vin of all vehicles in the conract
- chassis and finished yearof the model if they arent identical
- warranties
- price at delivery and components of that price
- list of parts added or removed
- penalty for customer for not accepting vehicle on delivery "as is" vehicles ------CORRECT ANSWER---------------"as-is" sales are legal. "as-is" must be clearly identified on the purchase contract since dealership is not providing any warranty protection for customer price protection ------CORRECT ANSWER---------------certain conditions allow for price adjustments. manufacturers dont have consistent practices on price protection. it is important to know each manufacturer price policies. price protection contract must be complete in order to adjust the price contract price increases ------CORRECT ANSWER---------------prices can be adjusted for 1.foreign vehicles (revaluation of us dollar by us government)
- Tax increase on vehicles --- Raising price after contract is signed for anything else is called "bushing" and is illegal trade in reappraisal ------CORRECT ANSWER---------------the value of a trade in may be reappraised only if the trade in vehicle has been damaged. if the parts have been removed or if the mileage exceeds limits specified on purchase contract
five percent of capitalized cost of the vehicle if the customer fails to take delivery of the vehicle consignment sales ------CORRECT ANSWER---------------licensed dealers may sell a vehicle for a private party on consignment. although the dealer does not own the vehicle dealer is authorized to sell it for the titled owner. only the licensed dealers may offer vehicles for sale on consignment warranty disclosure ------CORRECT ANSWER---------------you must clearly identify any warranty or service contract included with the vehicle on purchase contract. any warranty must be available and delivered to customer warranty transfer ------CORRECT ANSWER---------------when manufacturers fail to accept responsibility of the warranty the dealership is required to honor it. the warranty continues until it is fixed at the warrantors expense title and registration ------CORRECT ANSWER---------------the DMV issues title, dealerships must show proof of ownership in order to sell. the vehicle must be registered/license plates show proof of this. dealerships must furnish customers with a temp/permanent plate before they can legally operate. Motorcycles are exempt transfer of ownership ------CORRECT ANSWER---------------signing over manfacturer certificate of origin (MCO) transfers ownership. MCO is the cars "birth certificate" it lists the manufacturer, delivery point, assembly place, vin number, and vehicle make title jumping is illegal in Wisconsin
the "and/or" ------CORRECT ANSWER---------------if more than one person owns a vehicle. owner names are separated by "and" or "or" and- requires both owners signatures or- requires just one of the two replacement titles ------CORRECT ANSWER---------------when a customer attempts to sell or trade without a title they are required to go to the DMV for a new one title brands ------CORRECT ANSWER---------------dealers must disclose to a purchaser any title brands that appear on the vehicle title. brands become permanent on WI titles Title brand types ------CORRECT ANSWER---------------1. vehicle is salvage (less than seven years old and damaged by collision or other occurrence to extent that the cost is greater than 70 percent of fair market value)
- vehicle transferred to insurer upon payment claim (vehicle is less than seven years old. model damaged more than 30 percent but not more than 70 percent of fair market value. after payment claim it is transferred to insurance company
- vehicle is manufacturers buyback (vehicle reproduced by manufacturer under wisconsin or other states according to lemon law)
- modified to meet federal safety and emission standards (all federal and safety requirements not applicable)
- vehicle was previously used by law enforcement
