BC VSA Salesperson Mock Exam 2

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

1. 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

2. At a dealership, a consumer signs an ordinary vehicle purchase contract and simply changes their mind the next day. Which statement is safest?

   1. There is no general change-of-mind cooling-off right; specific cancellation rights or agreed terms may still apply
   2. A 24-hour right to return for a full refund
   3. A 30-day trial period on used vehicles
   4. A 10-day cooling-off period on all vehicle purchases

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. Which is a requirement before a person can carry on business as a motor dealer in BC?

   1. Belonging to a provincial dealers' association
   2. Holding a Red Seal automotive service technician certificate personally
   3. Being registered and maintaining repair facilities or a repair contract
   4. Having sold at least 50 vehicles in another province

5. 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

6. 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

7. What does VSA guidance say about dealer documentation fees?

   1. They are legal but must be disclosed during price negotiations
   2. They are set by the VSA at $250 per sale
   3. They may be added at signing, after the price is already agreed
   4. They are illegal and must never be charged

8. 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

9. Which of these is a motor vehicle under the Motor Dealer Act?

   1. An all terrain vehicle used on trails
   2. A travel trailer designed for recreational accommodation
   3. An excavator built and sold for construction work
   4. A farm tractor sold to a hobby farmer

10. In a consumer lease, what happens to the manufacturer's warranties on the vehicle?

    1. They end when the lease is signed
    2. They pass to the leasing company's insurer
    3. They stay with the dealer only
    4. They are assigned to the consumer

11. A dealer appoints a new director. Within how many days must the registrar be told in writing?

    1. 30 days
    2. 90 days
    3. 14 days
    4. 5 days

12. A dealer offers unlicensed customers $200 for each friend they solicit who buys a car. Why does VSA guidance prohibit this?

    1. Only manufacturers may run referral reward programs
    2. The reward must be paid through the VSA to be legal
    3. Referral rewards must be at least $500 to be legal
    4. The referrer would be acting as an unlicensed salesperson

13. 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

14. Where and under what name may a registered dealer trade?

    1. Only in its registered name, at or from its business premises
    2. From any location in BC, including the owner's home
    3. Under any trade name, as long as the VSA is told within a year
    4. At any public parking lot, with a temporary sign

15. 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

16. 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

17. 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

18. A company buys ten pickups exclusively for its commercial fleet. Does that purpose meet the Act’s primarily personal/family/household dealer-sale definition?

    1. Yes, every vehicle sale in BC is a consumer sale
    2. Yes, because the trucks will be driven on highways
    3. No; the stated commercial-fleet purpose does not meet that definition
    4. Only if the company is a sole proprietorship

19. 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

20. 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

21. 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

22. What is a deceptive act or practice under the BPCPA?

    1. A representation or conduct that could deceive or mislead a consumer
    2. Only a misleading statement printed in an advertisement
    3. Only a written statement that the supplier knew at the time was false
    4. Only a statement made after the contract is signed

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. 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"

25. 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

26. Which consigned vehicle can fall within the Act’s definition of a dealer’s inventory?

    1. A vehicle the dealer is authorized to sell under a compliant consignment agreement
    2. Any stranger’s vehicle copied into an advertisement without authority
    3. Any customer’s car merely parked nearby with no selling agreement
    4. Any vehicle the dealer hopes to buy but has no right to sell

27. Which prohibition appears expressly in Code section 33(2)(f)?

    1. Offering a free first oil change with a purchase
    2. Advertising a vehicle at a price below the competition's price
    3. Selling vehicles on weekends and statutory holidays
    4. Adversely affecting the reputation of the VSA or other licensees

28. 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

29. 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

30. 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

31. A dealer wants to put the VSA logo on its website. What is needed?

    1. Nothing, all licensed dealers may use it
    2. Written approval from the registrar
    3. A fee paid to ICBC for each use
    4. Approval from the dealer's manufacturer

32. Which is a common sign that a private seller may be a curber?

    1. Several vehicles listed with the same phone number and no dealer number
    2. The seller meets the buyer at their home and accepts a bank draft
    3. The seller shows a registration in their own name and a service history
    4. The seller suggests an inspection by a mechanic of the buyer's choice

33. If the authority imposes the record condition in section 6(1)(f), how long must the covered notes and correspondence be kept?

    1. Only until the vehicle is delivered
    2. At least 7 years after the licence ends
    3. At least 6 months after the sale closes
    4. At least 2 years after the last dealing

34. From April 1, 2026, what VSA levy applies to a qualifying consumer vehicle sale or lease by a licensed BC dealer?

    1. A $25 levy that applies only to new vehicles
    2. A $50 levy paid by the salesperson
    3. A 1 per cent VSA levy on the selling price
    4. A fixed $10 VSA transaction levy

35. 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

36. 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

37. 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

38. 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

39. 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

40. Compared with a new vehicle agreement, what extra detail does a used vehicle agreement need?

    1. The colour the vehicle was painted at the factory
    2. The original sticker price when the vehicle was new
    3. The name of every person who test-drove the vehicle
    4. The recorded odometer reading at the time of sale

41. 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

42. 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

43. 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

44. Which item must a consignment agreement contain?

    1. The minimum price the consignor will accept
    2. The dealer's commission on its other sales
    3. The names of buyers who viewed the vehicle
    4. The highest price the dealer expects to get

45. A person regularly buys vehicles to resell for profit to retail consumers. Which statement about BC dealer registration is correct?

    1. Business activity can require registration even below the five-vehicle deeming threshold
    2. A person selling their own car after driving it for years
    3. A person giving their old car to a family member
    4. A person who trades in their car at a licensed dealer

46. A manager asks a salesperson to help a curber register a car in a buyer's name. What does the code say?

    1. It is allowed if the curber pays the dealer a fee
    2. Licensees must not aid or abet anyone breaking the law
    3. It is allowed if the manager takes full responsibility for it
    4. It is allowed if the buyer agrees in writing

47. 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

48. What limit applies to additional contributions the registrar can demand in one year?

    1. No more than 10 per cent of the dealer's sales
    2. No more than the annual contribution itself
    3. There is no limit on additional contributions
    4. No more than twice the annual contribution

49. In a retail sale of a USED vehicle, which implied protection can never be excluded?

    1. The seller's right to sell and the buyer's quiet possession
    2. The condition that the vehicle will stay durable for several years
    3. The condition that it has no worn-out parts
    4. The condition that it is fit for every purpose

50. 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

51. A dealer knows a used car had collision damage requiring $2,500 in repairs. Does it exceed section 23(b)(ii)’s disclosure threshold?

    1. No, only damage over 20 per cent of the price counts
    2. Yes, used vehicle damage over $2,000 must be disclosed
    3. Only if the buyer asks about past accidents
    4. No, the limit for used vehicles is $5,000

52. 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

53. 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

54. Which statement about consignment trust money is correct?

    1. It can be seized by the dealer's creditors
    2. It cannot be used as collateral by the dealer
    3. It belongs to the dealer once deposited
    4. It may pay the dealer's rent if it is repaid later

55. 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

56. 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

57. Which factor must the registrar consider before imposing an administrative penalty?

    1. How many staff the dealer employs on weekends
    2. Whether the contravention was deliberate or repeated
    3. Whether the dealer advertises on the radio
    4. The dealer's ranking in manufacturer sales contests

58. 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

59. Can a consumer give up the one-clear-day lease cancellation period?

    1. Yes, but only for used vehicle leases
    2. Yes, by waiving it in writing
    3. Yes, verbally to the salesperson
    4. No, it can never be waived

60. 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

61. Which declaration must every salesperson licence application include?

    1. That the applicant will work only for franchised dealers
    2. That the applicant has read and understood the code of conduct
    3. That the applicant has sold vehicles in another province before
    4. That the applicant owns a vehicle registered in British Columbia

62. 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

63. 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

64. After making the demand on the dealer, how long does the claimant normally have to apply to the Fund?

    1. 30 business days
    2. 1 year
    3. 120 days
    4. 4 years

65. 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

66. 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

67. 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

68. For the specific BPCPA sections listed in section 6(2), what defence can a newspaper prove when it publishes another supplier’s misleading ad?

    1. When the newspaper is printed and distributed outside of British Columbia
    2. When the dealer paid for the ad in advance with cash
    3. When the ad ran only once in the weekend edition
    4. When it did not know and had no reason to suspect the ad broke the law

69. 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

70. 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