MOTOR VEHICLE SALESPERSON
EXAM QUESTIONS &
ANSWERS(RATED A+)
What are the requirements for a salesperson license? - ANSWER- 18 years old
- agree to act in good faith as a salesperson
- are familiar with motor vehicle sales laws, lease laws and contract laws
Advertising - ANSWERUsing false, deceptive or misleading advertising or
representations to induce the purchase of a motor vehicle is an unfair practice and is
prohibited.
Damaged vehicles - ANSWERIf two or more vehicles are damaged by the same
cause, include the cause of the damage in all ads.
Model year - ANSWERWhen advertising any motor vehicle, always state the model
year. In addition, if the vehicle is of the current or previous model year, you must also
designate it as "used" if that is the fact. Words like "demonstrator", "executive", "low
mileage" and "one-owner" also designate a vehicle is used.
"Clearance" merchandise - ANSWERDo not use statements such as "last of the
remaining", "close out", or "clearance" to advertise used vehicles unless the
dealership is actually going out of business.
Vehicle Prices - ANSWERThe advertised price must include all charges that the
customer will pay, except sales tax, title and registration fees. Post advertised prices
on the vehicle. Don't use phrases such as "write your own deal" or "name your own
price" because they mislead customers.
New Vehicle Discount - ANSWERYou may only advertise new vehicles using terms
such as "invoice" or "cost" when you disclose that the "actual dealer cost is, or may
be less, due to factory holdback, rebates, incentives, or other discounts."
"Free" merchandise - ANSWERDon't use the word "free" in any advertising if the
customer must purchase something to receive the "free" merchandise, equipment,
accessories or service. You may state that an item "is included with" the purchase.
EXAM QUESTIONS &
ANSWERS(RATED A+)
What are the requirements for a salesperson license? - ANSWER- 18 years old
- agree to act in good faith as a salesperson
- are familiar with motor vehicle sales laws, lease laws and contract laws
Advertising - ANSWERUsing false, deceptive or misleading advertising or
representations to induce the purchase of a motor vehicle is an unfair practice and is
prohibited.
Damaged vehicles - ANSWERIf two or more vehicles are damaged by the same
cause, include the cause of the damage in all ads.
Model year - ANSWERWhen advertising any motor vehicle, always state the model
year. In addition, if the vehicle is of the current or previous model year, you must also
designate it as "used" if that is the fact. Words like "demonstrator", "executive", "low
mileage" and "one-owner" also designate a vehicle is used.
"Clearance" merchandise - ANSWERDo not use statements such as "last of the
remaining", "close out", or "clearance" to advertise used vehicles unless the
dealership is actually going out of business.
Vehicle Prices - ANSWERThe advertised price must include all charges that the
customer will pay, except sales tax, title and registration fees. Post advertised prices
on the vehicle. Don't use phrases such as "write your own deal" or "name your own
price" because they mislead customers.
New Vehicle Discount - ANSWERYou may only advertise new vehicles using terms
such as "invoice" or "cost" when you disclose that the "actual dealer cost is, or may
be less, due to factory holdback, rebates, incentives, or other discounts."
"Free" merchandise - ANSWERDon't use the word "free" in any advertising if the
customer must purchase something to receive the "free" merchandise, equipment,
accessories or service. You may state that an item "is included with" the purchase.
