BC VSA Salesperson: Sale agreements and material facts

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1. 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
   Show answer and explanation

   Correct answer: Not suitable for transportation; sold for parts or other purposes

   Every written representation for a vehicle not intended for transportation must state that it is not suitable for transportation and is sold for parts only or purposes other than transportation.

   Based on: Motor Dealer Act Regulation s. 22; official source checked 2026-10-24

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2. When may a dealer call a vehicle a demonstrator or executive car?

   1. When a manager drove it home for one weekend
   2. When it is the current model year and still in the dealer's stock
   3. When used in normal business and bought by the dealer new
   4. When it has under 10,000 km on the odometer
   Show answer and explanation

   Correct answer: When used in normal business and bought by the dealer new

   Section 24 requires both normal-business use by the dealer/manufacturer and acquisition by the dealer as a new automobile before using the listed description. Low mileage or model year alone does not establish both conditions. A manager’s one-weekend use, without the acquisition condition, is insufficient evidence.

   Based on: Motor Dealer Act Regulation s. 24(a)–(b); official source checked 2026-10-24

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3. 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
   Show answer and explanation

   Correct answer: When the dealer accepts the agreement

   A dealer must give a copy of the sales or purchase agreement to the purchaser or seller at the time the dealer accepts it.

   Based on: Motor Dealer Act Regulation s. 21(3); official source checked 2026-10-24

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4. Which fact about a used vehicle must the dealer disclose?

   1. It has had its tires rotated regularly
   2. It was serviced at a different dealership in another city
   3. It was washed and detailed before display
   4. It was brought into BC specifically to be sold
   Show answer and explanation

   Correct answer: It was brought into BC specifically to be sold

   Section 23(d) expressly concerns a used vehicle brought into BC specifically for sale, disclosed to the best of the dealer’s knowledge and belief. Section 23(c) separately covers lease/rental history and paragraph (e) covers odometer accuracy.

   Based on: Motor Dealer Act Regulation s. 23(c)–(e); official source checked 2026-10-24

   Official reference ↗

5. 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
   Show answer and explanation

   Correct answer: Yes, used vehicle damage over $2,000 must be disclosed

   The used-vehicle threshold is damage requiring repairs costing more than $2,000. The scenario states the dealer knows the facts; section 23’s knowledge-and-belief qualification remains relevant. The new-vehicle 20% test is a separate provision, and other material facts can also require truthful disclosure.

   Based on: Motor Dealer Act Regulation s. 23(b)(ii); official source checked 2026-10-24

   Official reference ↗

6. 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
   Show answer and explanation

   Correct answer: The recorded odometer reading at the time of sale

   Used vehicle agreements add any documentation or transfer fee, the recorded odometer reading at sale, other jurisdictions where it was registered, an itemized list of repairs to be done, and a Motor Vehicle Act compliance or not-suitable-for-transportation statement.

   Based on: Motor Dealer Act Regulation s. 21(2); official source checked 2026-10-24

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7. To the best of the dealer’s knowledge and belief, which prior use is expressly listed in section 23(a) for disclosure in the sale agreement?

   1. Use by a single owner commuting to work
   2. Use for a family camping trip
   3. Use in organized racing
   4. Use for a driving school lesson once
   Show answer and explanation

   Correct answer: Use in organized racing

   Section 23(a) expressly lists the specified taxi use, police/emergency use and organized racing. Other material facts can matter under other rules. A distractor’s absence from this particular list does not establish that the dealer may make a misleading statement about it.

   Based on: Motor Dealer Act Regulation s. 23(a); official source checked 2026-10-24

   Official reference ↗

8. The dealer knows the odometer shows 90,000 km but the car’s true distance is substantially higher. Which fact does section 23(e) require it to disclose?

   1. That the odometer does not accurately record the true distance
   2. That the low reading proves the car has never been used before
   3. That a clean exterior legally replaces mileage disclosure
   4. That the buyer must accept the displayed reading as guaranteed accurate
   Show answer and explanation

   Correct answer: That the odometer does not accurately record the true distance

   Section 23(e) requires disclosure, to the dealer’s best knowledge and belief, of whether the odometer accurately records the true distance travelled. A low reading is not proof of a low-distance history when the dealer knows contrary facts. This is separate from section 25’s record rule for a changed odometer.

   Based on: Motor Dealer Act Regulation s. 23(e); official source checked 2026-10-24

   Official reference ↗

9. 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
   Show answer and explanation

   Correct answer: The dealer's name and the word dealer with its registration number

   Every written sale or purchase agreement, advertisement and written representation must include the dealer's name and the word "dealer" followed by its registration number.

   Based on: Motor Dealer Act s. 13(1); official source checked 2026-10-24

   Official reference ↗

10. 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
    Show answer and explanation

    Correct answer: The before and sale-time readings, on the agreement and in its records

    If an odometer is exchanged or repaired and the reading changes, the dealer records the reading before the work and the reading at the time of sale on the sales agreement and in its permanent records.

    Based on: Motor Dealer Act Regulation s. 25; official source checked 2026-10-24

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11. 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
    Show answer and explanation

    Correct answer: No; $6,000 is 15%, below that particular threshold

    20% of $40,000 is $8,000; $6,000 is 15%. The stated cost alone does not exceed this particular new-vehicle threshold. That does not authorize misleading statements or decide whether another material-fact or consumer-protection duty requires disclosure.

    Based on: Motor Dealer Act Regulation s. 23(b)(i); official source checked 2026-10-24

    Official reference ↗

12. 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
    Show answer and explanation

    Correct answer: The vehicle identification number and the actual selling price

    A new vehicle agreement lists the parties, sale date, make, model year, VIN, body type, added or removed equipment with prices, actual selling price, provincial sales tax, deposit and refund terms, balance and other itemized charges.

    Based on: Motor Dealer Act Regulation s. 21(1); official source checked 2026-10-24

    Official reference ↗