MOTOR VEHICLE SALES LICENSE FINAL PAPER 2025
QUESTIONS ANSD SOLUTIONS RATED A+
✔✔Reposession - ✔✔A creditor does not have a right to repossess a vehicle upon
default, they must give a written right to cure notice
✔✔Sunday Closing Laws - ✔✔No dealer shall be open on sundays
✔✔Unlicensed dealer or salesperson - ✔✔It is unlawful to act as a dealer or
salesperson unless they are licensed as such and will resolve a class 3 misdemeanor
and 1000$ per car sold
✔✔ motor vehicle dealer board - ✔✔Regulated in 1945,
9 board members who are residents of state for at least 5 years
3 new car
3 used car
3 members of the public
Serve three year terms. Appointed by governor
✔✔The board is empowered to - ✔✔Promulgate amend and repeal rules regulations
and provisions for the industry.
✔✔TRUE OR FALSE:
the board can issue or deny license for any motor vehicle dealer. - ✔✔True
✔✔When can the board order an administrative hearing? - ✔✔When they believe there
is probable cause that a violation occurred
✔✔The board may impose a fine up to - ✔✔10,000$ for each offense
✔✔The auto industry division - ✔✔Acts as enforcement to the board
✔✔Different types of license - ✔✔New and used, wholesaler, wholesale auction dealer,
buyer agent and salesperson
✔✔True or false: it is not a violation for any salesperson to sell without the proper
license - ✔✔False it is a violation
✔✔Surety bonds - ✔✔Protect citizens against illegal acts by licensees for example: not
honoring a written agreement
✔✔When should surety bonds remain in force? - ✔✔During the licensing period
, ✔✔It is required to have bonds in the amount of - ✔✔$50,000 or 15,000 for wholesaler
✔✔True or false: the dealer or salesperson can be personally liable for any proven
claim or judgement in excess of the bond - ✔✔True
✔✔New motor vehicle dealer - ✔✔Is a person who makes commissions to make a profit
selling new or used vehicles
✔✔Which is not included with a new motor vehicle dealer
A.Receivers, trustees, admins
B. Public officers performing duties
C.employees of dealers
D.wholesalers
E.Persons engaged in the selling of a new fire truck
F.motor vehicle auction dealers
G. All of the above - ✔✔G. All of the above
✔✔Used motor vehicle dealer - ✔✔Someone who sells used vehicles for profit
✔✔wholesaler - ✔✔A person who sells or trades with dealers, auctions and other whole
salers
✔✔True or false a wholesaler can hold both a wholesale license and a motor vehicle
sales license - ✔✔False
✔✔A wholesaler cannot hire a - ✔✔Salesperson
✔✔Liability insurance requirement - ✔✔Vehicles cannot operate on roads unless they
have insurance
✔✔Off-Premise selling - ✔✔A dealer shall obtain an off premise permit to sell vehicles
away from place of business
✔✔Principal place of business - ✔✔Means a site or location devoted to the business in
which the dealer is licensed
✔✔The principal place of business shall display - ✔✔A permanent sign with letters at
least 6 inches high on a major avenue of traffic
✔✔The building is required to have - ✔✔Electrical service
sanitary facilities and must meet all zoning ordinances
QUESTIONS ANSD SOLUTIONS RATED A+
✔✔Reposession - ✔✔A creditor does not have a right to repossess a vehicle upon
default, they must give a written right to cure notice
✔✔Sunday Closing Laws - ✔✔No dealer shall be open on sundays
✔✔Unlicensed dealer or salesperson - ✔✔It is unlawful to act as a dealer or
salesperson unless they are licensed as such and will resolve a class 3 misdemeanor
and 1000$ per car sold
✔✔ motor vehicle dealer board - ✔✔Regulated in 1945,
9 board members who are residents of state for at least 5 years
3 new car
3 used car
3 members of the public
Serve three year terms. Appointed by governor
✔✔The board is empowered to - ✔✔Promulgate amend and repeal rules regulations
and provisions for the industry.
✔✔TRUE OR FALSE:
the board can issue or deny license for any motor vehicle dealer. - ✔✔True
✔✔When can the board order an administrative hearing? - ✔✔When they believe there
is probable cause that a violation occurred
✔✔The board may impose a fine up to - ✔✔10,000$ for each offense
✔✔The auto industry division - ✔✔Acts as enforcement to the board
✔✔Different types of license - ✔✔New and used, wholesaler, wholesale auction dealer,
buyer agent and salesperson
✔✔True or false: it is not a violation for any salesperson to sell without the proper
license - ✔✔False it is a violation
✔✔Surety bonds - ✔✔Protect citizens against illegal acts by licensees for example: not
honoring a written agreement
✔✔When should surety bonds remain in force? - ✔✔During the licensing period
, ✔✔It is required to have bonds in the amount of - ✔✔$50,000 or 15,000 for wholesaler
✔✔True or false: the dealer or salesperson can be personally liable for any proven
claim or judgement in excess of the bond - ✔✔True
✔✔New motor vehicle dealer - ✔✔Is a person who makes commissions to make a profit
selling new or used vehicles
✔✔Which is not included with a new motor vehicle dealer
A.Receivers, trustees, admins
B. Public officers performing duties
C.employees of dealers
D.wholesalers
E.Persons engaged in the selling of a new fire truck
F.motor vehicle auction dealers
G. All of the above - ✔✔G. All of the above
✔✔Used motor vehicle dealer - ✔✔Someone who sells used vehicles for profit
✔✔wholesaler - ✔✔A person who sells or trades with dealers, auctions and other whole
salers
✔✔True or false a wholesaler can hold both a wholesale license and a motor vehicle
sales license - ✔✔False
✔✔A wholesaler cannot hire a - ✔✔Salesperson
✔✔Liability insurance requirement - ✔✔Vehicles cannot operate on roads unless they
have insurance
✔✔Off-Premise selling - ✔✔A dealer shall obtain an off premise permit to sell vehicles
away from place of business
✔✔Principal place of business - ✔✔Means a site or location devoted to the business in
which the dealer is licensed
✔✔The principal place of business shall display - ✔✔A permanent sign with letters at
least 6 inches high on a major avenue of traffic
✔✔The building is required to have - ✔✔Electrical service
sanitary facilities and must meet all zoning ordinances
