BC VSA Salesperson Mock Exam 1

Every question and its answer choices. The correct answers and explanations appear when you take the test above.

1. When may a person act as a motor vehicle salesperson in BC?

   1. Once the dealer has signed a letter of employment
   2. After working for a dealer for three months
   3. Only while holding a valid salesperson licence
   4. Whenever a licensed manager stays nearby

2. What is the maximum compensation the Motor Dealer Customer Compensation Fund pays for a loss?

   1. $10,000
   2. $50,000
   3. $45,000
   4. $20,000

3. Under the code of conduct, how must licensees and dealers act in the course of business?

   1. With honesty and integrity
   2. With a sale as the only goal
   3. With speed above all else
   4. With the dealer's interests first

4. Where must a dealer display the code of conduct?

   1. Only on the back page of each sale agreement form
   2. In a conspicuous place at its business premises
   3. Only in the staff lunchroom
   4. Nowhere, it only has to be read once

5. A dealer advertises a price for a new vehicle. What must that price be?

   1. The manufacturer's price before dealer accessories
   2. The base price before any freight, delivery or inspection charges
   3. The monthly lease payment without any other costs
   4. The total asking price, including freight, PDI and attached options

6. What must every written sale agreement and ad from a BC dealer include?

   1. The manufacturer's head office address and its warranty phone line
   2. The dealer's name and the word dealer with its registration number
   3. The VSA's mailing address and fax number on each page
   4. The salesperson's home phone number and email address

7. In a consignment, what role does the dealer play?

   1. It rents the vehicle to the public
   2. It sells the owner's vehicle as the owner's agent
   3. It buys the vehicle outright at a wholesale price
   4. It lends the owner money on the vehicle

8. Which body administers the Motor Dealer Act for vehicle sales to consumers in BC?

   1. Consumer Protection BC, through its travel branch
   2. The Vehicle Sales Authority of BC
   3. The BC Financial Services Authority
   4. The Insurance Corporation of British Columbia

9. When must the dealer give the buyer a copy of the sale agreement?

   1. Within 14 days after the vehicle is delivered
   2. When the dealer accepts the agreement
   3. At the buyer's first service appointment
   4. Only if the buyer asks for it in writing

10. Which organization is exempt from the Motor Dealer Act?

    1. A used car lot selling vehicles to the public
    2. A motorcycle shop selling new bikes
    3. An insurer licensed under the Insurance Act
    4. An RV dealer selling motorhomes

11. Who can apply for compensation from the Fund?

    1. A business that bought a fleet of trucks for its own staff
    2. A dealer that lost money on a wholesale purchase
    3. Anyone who bought a car from a private seller in BC
    4. An individual buying a primarily personal-use vehicle from a registered dealer who suffers an eligible loss

12. An ad shows a bi-weekly payment in large type. What does the BPCPA require about the total price?

    1. It must be shown with at least the same prominence
    2. It may be left out if the payment is accurate
    3. It must be shown only if the buyer asks for it
    4. It may appear only on the dealer's website

13. When may the registrar enter a dealer's premises to inspect about a complaint?

    1. Only with a search warrant from a judge
    2. Only when the dealer's owner is present
    3. Only after giving the dealer 30 days' written notice
    4. At any reasonable time during normal business hours

14. An unconscionable practice occurs in an ordinary vehicle consumer transaction, not a mortgage loan. What does BPCPA s. 10(1) provide?

    1. The consumer must still pay, but gets a store credit
    2. The consumer must pay a cancellation fee
    3. The transaction is valid once 30 days pass
    4. The transaction is not binding on the consumer

15. What does the code of conduct require of consumer records in a salesperson's control?

    1. They must be shredded after each sale
    2. They must be shared with other dealers
    3. They must be posted on the VSA registry
    4. They must be safeguarded

16. Why should a buyer from a private seller in BC do a lien search?

    1. Private sellers must pay the buyer's taxes if there is no lien
    2. A lien search is required before any test drive
    3. A lien holder can repossess the vehicle from the new owner
    4. Liens make the vehicle's insurance cost double

17. A dealer runs three lots in different BC cities. How many registrations does it need?

    1. One registration that covers the whole province
    2. One for each of the three locations
    3. One for the head office and none for the others
    4. Two, because the first branch is included

18. What may the registrar publish about an administrative penalty?

    1. Only the total of all penalties issued in the year
    2. The person's name, the amount and the reason
    3. Nothing, because penalties are kept confidential
    4. Only the dealer's registration number, kept anonymous

19. A dealer charges a finance placement fee. What does VSA guidance require?

    1. Keep it off the contract because it is a lender cost
    2. Tell the buyer the lender requires it, whether or not true
    3. Add it after signing as an administration charge
    4. Disclose it before signing and include it in the APR

20. The registrar receives a complaint and asks a dealer in writing for information. What must the dealer do?

    1. Reply only if a court orders it to
    2. Refer the registrar to the customer who complained instead
    3. Wait until the next annual renewal
    4. Provide the information the registrar requests

21. How long must a dealer keep its purchase and sales records under the regulation?

    1. At least 6 months from the date the vehicle was sold
    2. At least 2 years from the original transaction
    3. At least 10 years from the sale date
    4. Only until the buyer's first payment

22. Which item must a dealer disclose in writing before a consumer signs a lease?

    1. The dealer's profit on the lease and the salesperson's monthly bonus
    2. The lessor's credit rating with the major bureaus
    3. The names of the vehicle's previous lessees
    4. Who is responsible for maintenance and servicing of the vehicle

23. A dealer replaces a faulty odometer and the reading changes. What must it record?

    1. The before and sale-time readings, on the agreement and in its records
    2. Nothing, because replacing a faulty odometer is only routine maintenance
    3. Only the cost of the odometer part, on the repair invoice
    4. Only the new odometer reading, on the vehicle's window sticker

24. When a consignment is negotiated, when must the dealer give the consignor a copy of the prepared consignment agreement?

    1. Only after the vehicle sells
    2. Within 90 days after payment
    3. Only if the consignor pays a document fee
    4. At the time the consignor signs it

25. Which is a listed potentially eligible Fund loss, subject to the other claim requirements?

    1. Lost wages while the car was in for warranty repairs
    2. Repair costs because the car turned out to be unreliable
    3. A deposit the dealer cannot return because it went bankrupt
    4. The difference between the price paid and market value

26. What must be affixed to a used vehicle offered for sale?

    1. Its full service history from every previous owner and garage
    2. A copy of the dealer's registration certificate
    3. The name and phone number of the last owner
    4. Its price and, if applicable, "Not Suitable for Transportation"

27. Which activity can make someone a salesperson under the Motor Dealer Act?

    1. Answering phones and booking service appointments
    2. Taking part in arranging a sale for a dealer in hope of a reward
    3. Washing vehicles on the lot for an hourly wage
    4. Repairing customer vehicles in the dealer's service bay for wages

28. A dealer sells a wrecked car only for parts. What must the written agreement say?

    1. It has passed a Motor Vehicle Act inspection and is safe to drive home
    2. Not suitable for transportation; sold for parts or other purposes
    3. It must be towed away by ICBC within seven days
    4. It carries a 30-day warranty against mechanical failure

29. How soon must a dealer deposit a buyer's payment for a consigned vehicle into its trust account?

    1. When the consignor asks
    2. Within seven days of receiving it
    3. At the end of the month
    4. Within one day of receiving it

30. The registrar imposes an administrative penalty for a contravention. Can the person also be prosecuted for the same contravention?

    1. Yes, if the penalty is not paid on time
    2. No, the two cannot both be used
    3. Yes, both are always applied together
    4. Only if the VSA board approves it

31. A service advisor tells a buyer a costly repair is needed when it is not. How does the BPCPA treat this?

    1. As an unconscionable lease term
    2. As a matter only for ICBC
    3. As a deceptive act or practice
    4. As acceptable sales puffery

32. Which is a breach of the code of conduct?

    1. Declining to lower a price any further after a fair negotiation
    2. Asking a buyer for photo ID before a test drive
    3. Refusing to deal with a customer because of their religion
    4. Requiring a deposit to order a special vehicle

33. In a retail sale, a buyer makes a towing requirement known and relies on the dealer’s skill. The dealer supplies that kind of vehicle and no specified trade-name exception applies. Which condition is implied?

    1. The truck must be reasonably fit for that purpose
    2. The dealer must also supply the trailer free of charge
    3. The truck must come with an extended warranty
    4. The buyer accepts all risk once the deal is signed

34. After a consumer signs a vehicle lease, how long must the dealer keep the vehicle, during which the consumer may cancel?

    1. Two business days
    2. Until the first payment
    3. Seven calendar days
    4. One clear day

35. Subject to a regulatory exemption, what volume of the defined dealer activities triggers the Act’s deemed-dealer rule?

    1. Two or more vehicles within six months
    2. Five or more vehicles within 12 months
    3. Ten or more vehicles within 24 months
    4. Any number above three in a calendar year

36. How final is a decision of the Compensation Fund Board?

    1. It can be appealed to the VSA's board of directors
    2. It is advice that the registrar may ignore
    3. Final, reviewable in court only on law or jurisdiction
    4. It must be approved by a Provincial Court judge

37. What score must a student reach to pass the VSA Salesperson Licensing Course?

    1. 50 of 70 marks on the exam only
    2. 60 per cent on the final exam alone, with no coursework counted
    3. 75 of 100 marks, including coursework and the exam
    4. 80 per cent on each assignment

38. How long after the facts come to the registrar's attention may a prosecution under the Act be started?

    1. There is no time limit
    2. Up to 4 years
    3. Up to 2 years
    4. Up to 6 months

39. Under current BPCPA ss. 14.2–14.3, a consumer contract prohibits reviews of the transaction and requires arbitration of future disputes. How are those terms treated?

    1. Only the review ban is valid
    2. Both terms are valid if printed in bold type and initialled
    3. Both terms are void in a consumer contract
    4. Only the arbitration clause is valid

40. How must a licensee respond to inquiries from a consumer?

    1. Only in writing and within 30 days
    2. Promptly and courteously
    3. Only through the dealer's lawyer
    4. Only if the consumer has bought a vehicle

41. When goods are bought by description from a seller who deals in them, which condition is implied?

    1. They come with a five-year warranty
    2. They are of merchantable quality
    3. They will keep their full value
    4. They will never need any repairs

42. What should a written deposit agreement state?

    1. What it is for, whether it is refundable and on what terms
    2. Only the amount and the salesperson's initials
    3. Only the vehicle's VIN and the deposit date
    4. Only the dealer's registration number and business address

43. Which item must a new vehicle sale agreement include?

    1. The dealer's invoice cost and its expected profit on the vehicle
    2. The names of the factory workers who assembled the vehicle
    3. The trade-in value the buyer can expect in five years' time
    4. The vehicle identification number and the actual selling price

44. What minimum type size applies to consignment and purchase agreements?

    1. 12 point bold throughout
    2. 8 point, in plain language
    3. 10 point, in capital letters only
    4. 6 point, in legal language

45. Which claim is NOT eligible for compensation?

    1. A claim based on the poor quality of the vehicle received
    2. A trade-in the dealer kept without delivering
    3. A consigned car the dealer did not return
    4. A deposit not refunded after the dealer closed down for good

46. What must the sticker on a new vehicle offered for sale list?

    1. Only the price, with options listed at the desk
    2. The names of previous test-drive customers
    3. VIN, make, model, all-in price and each attached option
    4. The dealer's cost and the salesperson's commission on the sale

47. A lease says the vehicle may not leave BC without permission. When must the dealer tell the consumer?

    1. At the end of the lease when it is returned
    2. Only if the consumer asks about travel plans
    3. After the first monthly payment is made
    4. In writing before the consumer signs the lease

48. Which way of paying the dealer is allowed in a consignment agreement?

    1. A fee taken from the buyer's deposit before the sale is final
    2. An amount above an agreed minimum price, payable only if sold
    3. A share of the consignor's other income for one year
    4. A monthly storage charge set later at the dealer's choice

49. A distance-sales contract omits information required by BPCPA s. 18.2. Under s. 18.4, what is the cancellation deadline after the consumer receives the copy?

    1. 30 days
    2. 1 clear day
    3. 7 days
    4. 90 days

50. Known damage to a new car with a $40,000 asking price required $6,000 of repairs. Does that cost alone exceed section 23(b)(i)’s 20% threshold?

    1. Only if the repair was done by another shop
    2. Yes, any damage to a new car must be disclosed
    3. Yes, because it is over the $2,000 used-car limit
    4. No; $6,000 is 15%, below that particular threshold

51. For which purpose may a dealer withdraw consignment trust funds?

    1. To pay the consignor or a lien holder under the agreement
    2. To cover a short-term shortfall in the dealer's payroll
    3. To pay the dealer's fee before the consignor is paid
    4. To make a deposit on another vehicle for its inventory

52. Which prohibition is expressly listed among possible salesperson licence conditions in section 6(2)?

    1. The licensee must not handle a consumer's money
    2. The licensee must sell a minimum number of cars
    3. The licensee must work only weekend shifts
    4. The licensee must charge no documentation fees

53. A salesperson says they can approve a final price when only the manager can. What does the BPCPA call this?

    1. A breach only of company policy
    2. A deceptive act about their authority
    3. An unconscionable price
    4. A permitted and common negotiating technique

54. Which durability condition appears in BC Sale of Goods Act s. 18(c)?

    1. Goods will be delivered within seven days
    2. Goods will be sold at the advertised price
    3. Goods will include free scheduled maintenance for a year
    4. Goods will be durable for a reasonable period of time

55. A dealer passes the VSA levy on to a buyer. How must it appear?

    1. Added only if the buyer finances the vehicle
    2. Hidden inside the documentation fee
    3. As a separate line item on the bill of sale
    4. Increased to cover the dealer's own costs

56. What is the maximum administrative penalty for a salesperson (an individual who does not own the business)?

    1. $100,000
    2. $50,000
    3. $5,000
    4. $200,000

57. A dealer knowingly exploits a buyer’s inability to understand the transaction language and applies undue pressure to obtain a loan signature. Which BPCPA issue should be examined?

    1. An unconscionable act or practice
    2. A permitted credit promotion
    3. A distance sales contract
    4. A future performance contract

58. What does the VSA suggest a buyer ask when a dealer arranges financing?

    1. For the names of other buyers using that lender
    2. Which lenders get the application and what each offers
    3. For the salesperson's commission on the loan
    4. For the dealer's own credit score and history

59. When may a dealer sell vehicles online away from its business premises?

    1. Only for vehicles located outside of British Columbia
    2. When every vehicle it sells online is in its own inventory
    3. Whenever the buyer signs a waiver of their consumer rights
    4. Only after paying a separate internet sales licence fee

60. A dealer prepares a written vehicle purchase agreement and takes a deposit. What must that agreement include under Regulation s. 21(1)(j)?

    1. A statement that every deposit is non-refundable in all circumstances
    2. A promise to refund only if the buyer buys a warranty
    3. Only the deposit amount, with no refund conditions
    4. The terms and conditions under which the deposit is refundable

61. Which person is NOT treated as a motor dealer when disposing of a vehicle?

    1. A business that advertises cars for consumers
    2. A person who buys one car at auction to resell it
    3. An executor selling a car from an estate
    4. A person selling cars for friends for a commission

62. When may the registrar waive a dealer's annual Fund contribution?

    1. At the registrar’s discretion when all statutory payment, fund-sufficiency and risk conditions are met
    2. After the dealer's first year without complaints
    3. Only if the dealer sells fewer than 20 vehicles in a year
    4. Whenever the dealer asks in writing before renewal

63. A student fails the VSA licensing exam. What happens next under the course policies?

    1. Automatic review by the registrar to adjust the mark
    2. Unlimited free retakes until the conditional licence ends
    3. A mandatory 30-day wait before any retake is allowed
    4. One $55 retake within five business days, or re-register

64. The registrar proposes to suspend a dealer's registration and the dealer ignores the hearing notice. What can happen?

    1. The registrar must schedule a second hearing
    2. The matter can be decided without the dealer present
    3. The suspension is automatically cancelled
    4. The matter is sent to the Supreme Court

65. A supplier’s $400 estimate is materially below its later $650 demand. What prior event is the exception stated in BPCPA section 4(3)(c)(iii)?

    1. The dealer posted its labour rate in the shop
    2. The repair job took much longer than the dealer expected
    3. The higher price was under $1,000 in total
    4. The consumer expressly agreed to the higher price first

66. At a wholesale auction exempt under the regulation, who may bid?

    1. Any adult with photo ID who registers that day
    2. Registrants, licensed wholesalers, ICBC and licensed insurers
    3. Consumers who bring a licensed salesperson with them
    4. Anyone, as long as the vehicles are sold as-is

67. A former salesperson took the licensing course in 2015 and wants to return. What must they do?

    1. Nothing, because a passed course never expires
    2. Only complete the code of conduct module online before starting
    3. Only pay a reinstatement fee to the VSA
    4. Retake the licensing course and any required CE modules

68. An employee commits an odometer operating offence under s. 34(1) involving a vehicle entrusted by the dealer. Under s. 34(4), what is the dealer’s position?

    1. The dealer has no liability at all
    2. The dealer is liable only if it profited from it
    3. Only the employee's licence is affected
    4. The dealer is deemed a party to the offence

69. Which circumstance must a court consider when deciding if a practice was unconscionable?

    1. The dealer advertised the vehicle on social media
    2. The dealer's own profit margin on the deal was under 10 per cent
    3. The consumer later found a cheaper vehicle somewhere else
    4. A grossly excessive total price compared with similar transactions readily available to similar consumers

70. Which agreement is covered by the code of conduct's definition of agreement?

    1. An agreement for an extended warranty or service plan
    2. A dealer's lease of its building from a landlord
    3. An employment contract with a lot attendant
    4. A dealer's contract with its cleaning company