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

Being registered and maintaining repair facilities or a repair contract

Belonging to a provincial dealers' association

Holding a Red Seal automotive service technician certificate personally

Having sold at least 50 vehicles in another province

Where must a dealer display its certificate of registration?

In a conspicuous location at its usual place of business

Inside the glovebox of every vehicle offered for sale

In a locked file the VSA can ask to see

On its website only, not at the dealership

Where and under what name may a registered dealer trade?

Only in its registered name, at or from its business premises

From any location in BC, including the owner's home

Under any trade name, as long as the VSA is told within a year

At any public parking lot, with a temporary sign

BC VSA Salesperson overview

BC VSA Salesperson: Dealer registration, premises and records

What a dealer needs to be registered, trading only in the registered name from registered premises, online sales, per-location registration and expiry, refusal and cancellation, changes to report in 14 days, certificates, records kept two years and wholesale auctions.

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Question 1 of 12Dealer registration, premises and records · Question 1Score 0/0

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

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Study reference: Official-source editorial checking, no licensed review — Dealer registration, premises and records

All 12 questions in this test

Every original question, with optional answers, explanations and official references. Open an answer to study, or take the test above for instant feedback.

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
Show answer and explanation
Correct answer: The matter can be decided without the dealer present
The registrar must notify the dealer of the right to be heard at a stated time and place, and that if the dealer does not attend, the matter may be dealt with in its absence.
Based on: Motor Dealer Act s. 6; official source checked 2026-10-24
Official reference ↗
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
Show answer and explanation
Correct answer: Being registered and maintaining repair facilities or a repair contract
A dealer must be registered, provide the required security, pay the annual fee, maintain repair facilities or file a service contract for repairs, keep a sign identifying the business and have premises suitable for displaying vehicles.
Based on: Motor Dealer Act s. 3(1)(a); official source checked 2026-10-24
Official reference ↗
Where must a dealer display its certificate of registration?
1. In a conspicuous location at its usual place of business
2. Inside the glovebox of every vehicle offered for sale
3. In a locked file the VSA can ask to see
4. On its website only, not at the dealership
Show answer and explanation
Correct answer: In a conspicuous location at its usual place of business
A registrant must display its certificate of registration in a conspicuous location at its usual place of business.
Based on: Motor Dealer Act Regulation s. 5; official source checked 2026-10-24
Official reference ↗
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
Show answer and explanation
Correct answer: 14 days
A dealer must notify the registrar in writing within 14 days of a change in registered name or address, officers or directors (or partners) or the beneficial ownership of its shares.
Based on: Motor Dealer Act s. 12; official source checked 2026-10-24
Official reference ↗
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
Show answer and explanation
Correct answer: Only in its registered name, at or from its business premises
Section 3(1)(b)–(c) uses the registered name and business-premises rules; the statutory premises definition excludes residential premises/parts. Section 3(1.1) provides a specific electronic-business exception for vehicles in inventory, and the regulation addresses approved off-site events. Do not omit these qualifications.
Based on: Motor Dealer Act ss. 1, 3(1)–(1.1); official source checked 2026-10-24
Official reference ↗
On what basis can the registrar refuse or cancel a dealer's registration?
1. The dealer choosing to sell only used motorcycles
2. Financial responsibility or past conduct, judged against the public interest
3. The dealer's sales falling below a set yearly minimum
4. Online customer reviews that average under three stars for a full year
Show answer and explanation
Correct answer: Financial responsibility or past conduct, judged against the public interest
If the financial responsibility or past conduct of the applicant or registrant, or of a corporation's officers or directors, makes registration contrary to the public interest, the registrar can refuse, refuse to renew, cancel or suspend it.
Based on: Motor Dealer Act s. 5; official source checked 2026-10-24
Official reference ↗
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
Show answer and explanation
Correct answer: Registrants, licensed wholesalers, ICBC and licensed insurers
Only eligible bidders — registered dealers, licensed wholesalers, ICBC and licensed insurers — may bid. People in the bidding area wear visible photo ID, and online bidding is limited to eligible bidders.
Based on: Motor Dealer Act Regulation s. 14.1(1), (4); official source checked 2026-10-24
Official reference ↗
A dealer's registration is cancelled. What must it do with its demonstration licences and plates?
1. Surrender them to ICBC and return the certificate to the registrar
2. Keep them for use on its personal vehicles
3. Sell them to another registered dealer nearby
4. Hold them on the lot until the registration is renewed next year
Show answer and explanation
Correct answer: Surrender them to ICBC and return the certificate to the registrar
On suspension or cancellation, a dealer must immediately return its certificate to the registrar and surrender any demonstration licences and number plates to ICBC.
Based on: Motor Dealer Act Regulation s. 9; official source checked 2026-10-24
Official reference ↗
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
Show answer and explanation
Correct answer: One for each of the three locations
An applicant that carries on business at more than one location in BC must apply for registration for each location.
Based on: Motor Dealer Act s. 4(2); official source checked 2026-10-24
Official reference ↗
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
Show answer and explanation
Correct answer: When every vehicle it sells online is in its own inventory
The premises rule does not apply to a dealer doing business electronically, including on the internet, if every vehicle it deals with that way is in the dealer's inventory.
Based on: Motor Dealer Act s. 3(1.1); official source checked 2026-10-24
Official reference ↗
When may the registrar allow a dealer to sell vehicles away from its usual business premises?
1. For any weekend sale event held in a shopping mall parking lot
2. Only for vehicles priced under $5,000
3. Whenever the dealer's lot is full and has no room
4. For a motor show, RV show, public auction or other approved purpose
Show answer and explanation
Correct answer: For a motor show, RV show, public auction or other approved purpose
On application, the registrar may exempt a dealer to sell at a motor show, recreational vehicle show or exhibition, an auction open to the public, or for another purpose the registrar accepts.
Based on: Motor Dealer Act Regulation s. 6; official source checked 2026-10-24
Official reference ↗
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
Show answer and explanation
Correct answer: At least 2 years from the original transaction
Dealers keep purchase orders, sales orders and written records of all purchase and sale transactions for at least 2 years, and for used vehicles records of material reconditioning with repair orders and costs.
Based on: Motor Dealer Act Regulation s. 20; official source checked 2026-10-24
Official reference ↗

Dealer registration, premises and records: key rules to remember

Our summary of what the official handbook says on this topic, in our own words. Read it before or after the practice questions above, then check the original chapter. Read the official chapter ↗

Dealer registration, premises and records

Which is a requirement before a person can carry on business as a motor dealer in BC?: A dealer must be registered, provide the required security, pay the annual fee, maintain repair facilities or file a service contract for repairs, keep a sign identifying the business and have premises suitable for displaying vehicles.
Where and under what name may a registered dealer trade?: Section 3(1)(b)–(c) uses the registered name and business-premises rules; the statutory premises definition excludes residential premises/parts. Section 3(1.1) provides a specific electronic-business exception for vehicles in inventory, and the regulation addresses approved off-site events. Do not omit these qualifications.
When may a dealer sell vehicles online away from its business premises?: The premises rule does not apply to a dealer doing business electronically, including on the internet, if every vehicle it deals with that way is in the dealer's inventory.
A dealer runs three lots in different BC cities. How many registrations does it need?: An applicant that carries on business at more than one location in BC must apply for registration for each location.
A dealer appoints a new director. Within how many days must the registrar be told in writing?: A dealer must notify the registrar in writing within 14 days of a change in registered name or address, officers or directors (or partners) or the beneficial ownership of its shares.
On what basis can the registrar refuse or cancel a dealer's registration?: If the financial responsibility or past conduct of the applicant or registrant, or of a corporation's officers or directors, makes registration contrary to the public interest, the registrar can refuse, refuse to renew, cancel or suspend it.
The registrar proposes to suspend a dealer's registration and the dealer ignores the hearing notice. What can happen?: The registrar must notify the dealer of the right to be heard at a stated time and place, and that if the dealer does not attend, the matter may be dealt with in its absence.
Where must a dealer display its certificate of registration?: A registrant must display its certificate of registration in a conspicuous location at its usual place of business.
A dealer's registration is cancelled. What must it do with its demonstration licences and plates?: On suspension or cancellation, a dealer must immediately return its certificate to the registrar and surrender any demonstration licences and number plates to ICBC.
How long must a dealer keep its purchase and sales records under the regulation?: Dealers keep purchase orders, sales orders and written records of all purchase and sale transactions for at least 2 years, and for used vehicles records of material reconditioning with repair orders and costs.
At a wholesale auction exempt under the regulation, who may bid?: Only eligible bidders — registered dealers, licensed wholesalers, ICBC and licensed insurers — may bid. People in the bidding area wear visible photo ID, and online bidding is limited to eligible bidders.
When may the registrar allow a dealer to sell vehicles away from its usual business premises?: On application, the registrar may exempt a dealer to sell at a motor show, recreational vehicle show or exhibition, an auction open to the public, or for another purpose the registrar accepts.

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