Motor Vehicle Sales License Questions
with Solutions
motor vehicle dealer board - answer 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 - answer 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. - answer True
When can the board order an administrative hearing? - answer When they believe there
is probable cause that a violation occurred
The board may impose a fine up to - answer10,000$ for each offense
The auto industry division - answerActs as enforcement to the board
Different types of license - answerNew 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 -
answerFalse it is a violation
Surety bonds - answerProtect citizens against illegal acts by licensees for example: not
honoring a written agreement
When should surety bonds remain in force? - answerDuring the licensing period
It is required to have bonds in the amount of - answer$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 - answerTrue
, New motor vehicle dealer - answerIs 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 - answerG. All of the above
Used motor vehicle dealer - answerSomeone who sells used vehicles for profit
wholesaler - answerA 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 - answerFalse
A wholesaler cannot hire a - answerSalesperson
Liability insurance requirement - answerVehicles cannot operate on roads unless they
have insurance
Off-Premise selling - answerA dealer shall obtain an off premise permit to sell vehicles
away from place of business
Principal place of business - answerMeans a site or location devoted to the business in
which the dealer is licensed
The principal place of business shall display - answerA permanent sign with letters at
least 6 inches high on a major avenue of traffic
The building is required to have - answerElectrical service
sanitary facilities and must meet all zoning ordinances
Motor vehicle sales person - answerMeans any natural person is employed directly or
indirectly by any dealer to sell lease purchase or exchange motor vehicles
Changing dealerships - answerMay change dealerships during licensing year
Multiple dealerships - answerMay work for more than one dealership but a desperate
bond application and fee must be submitted
with Solutions
motor vehicle dealer board - answer 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 - answer 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. - answer True
When can the board order an administrative hearing? - answer When they believe there
is probable cause that a violation occurred
The board may impose a fine up to - answer10,000$ for each offense
The auto industry division - answerActs as enforcement to the board
Different types of license - answerNew 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 -
answerFalse it is a violation
Surety bonds - answerProtect citizens against illegal acts by licensees for example: not
honoring a written agreement
When should surety bonds remain in force? - answerDuring the licensing period
It is required to have bonds in the amount of - answer$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 - answerTrue
, New motor vehicle dealer - answerIs 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 - answerG. All of the above
Used motor vehicle dealer - answerSomeone who sells used vehicles for profit
wholesaler - answerA 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 - answerFalse
A wholesaler cannot hire a - answerSalesperson
Liability insurance requirement - answerVehicles cannot operate on roads unless they
have insurance
Off-Premise selling - answerA dealer shall obtain an off premise permit to sell vehicles
away from place of business
Principal place of business - answerMeans a site or location devoted to the business in
which the dealer is licensed
The principal place of business shall display - answerA permanent sign with letters at
least 6 inches high on a major avenue of traffic
The building is required to have - answerElectrical service
sanitary facilities and must meet all zoning ordinances
Motor vehicle sales person - answerMeans any natural person is employed directly or
indirectly by any dealer to sell lease purchase or exchange motor vehicles
Changing dealerships - answerMay change dealerships during licensing year
Multiple dealerships - answerMay work for more than one dealership but a desperate
bond application and fee must be submitted
