Questions and explained key to print

Free original practice with official sources; not reviewed by a licensed professional.

No sign-up
Every answer explained
Independent · not a government site

70 questions
Answer key included
Free, no sign-up

Print 70 original questions from the 144-concept bank, then use the explained key on later pages. Save as PDF through your browser or print on paper; no account or payment is needed. This is our practice sheet, not the official workbook or an actual exam answer key.

Attempt the selection before reading the key. After a mistake, identify the missing condition and check the cited official rule. A leased vehicle, an ordinary purchase and a distance contract do not have interchangeable cancellation rules. Return to the linked topic for practice on that distinction.

This selection reuses online concepts. It is not another independent bank and has no validated relationship to official performance. Use it for revision outside the live exam, following the provider’s own permitted-material rules.

After a session, retry mistakes within their teaching topic rather than memorizing only an answer letter. Keep the exception alongside the rule.

Jump to the answer key

1.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
2.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
3.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
4.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
5.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"
6.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
7.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
8.What annual contribution does each dealer pay to the Compensation Fund?
1. $300, paid when applying for or renewing registration
2. $1,000 a year, paid only by dealers selling new vehicles
3. $10 for every vehicle the dealer sells or leases
4. Nothing; only salespeople contribute to the Fund
9.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
10.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
11.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
12.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
13.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
14.Which act involving an odometer is an offence under the Motor Dealer Act?
1. Altering it to mislead a buyer about the distance travelled
2. Reading it aloud to the buyer during the test drive
3. Showing the reading in kilometres instead of miles
4. Replacing a broken one and recording the old reading on the agreement
15.What is negative equity?
1. A trade-in worth more than the new vehicle's price
2. A loan with an interest rate below the prime rate
3. A deposit the dealer does not have to refund
4. Owing more on a vehicle loan than the vehicle is worth
16.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
17.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
18.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
19.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
20.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
21.A consumer cancels a lease within the one-clear-day period. What happens?
1. The dealer keeps the whole deposit as a cancellation fee
2. The consumer pays one month's lease payment
3. The consumer must pay any taxes already charged
4. All money is refunded and no fee or penalty is charged
22.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
23.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
24.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
25.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
26.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
27.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
28.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
29.Which vehicles are exempt from the window-sticker requirements?
1. Vehicles in a storage area or inventory not yet prepared for sale
2. Vehicles that the dealer advertises online only
3. Vehicles priced over $100,000 that are parked on the showroom floor
4. Vehicles sold on consignment for a private owner
30.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
31.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
32.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
33.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
34.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
35.What must the purchase agreement for a consigned vehicle state?
1. The dealer's commission and the consignor's minimum price in full
2. The consignor's home address and phone number for follow-up questions
3. The vehicle is on consignment and payments go to the dealer's trust account
4. The vehicle is sold as-is and the buyer gives up the Sale of Goods Act
36.Under the Motor Dealer Act’s motor-dealer definition, what is the primary purpose of the recipient’s vehicle use?
1. Only export to buyers outside of Canada
2. Primarily personal, family or household use
3. Only commercial or business use of any kind
4. Any purpose, including fleet and commercial use
37.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
38.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
39.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
40.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
41.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
42.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
43.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
44.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
45.What is a distance sales contract for a vehicle?
1. One for a vehicle imported from another province for sale
2. A contract not entered into in person, without a pre-contract opportunity to inspect the goods
3. One that has a delivery date more than 30 days away
4. One signed at a dealer more than 100 km from the buyer's home
46.A salesperson promises a buyer free winter tires during negotiations. What does the code of conduct require?
1. Nothing, because spoken promises are never legally binding
2. A separate email sent after delivery
3. Only a note in the salesperson's own diary
4. The promise must be included in the written agreement
47.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
48.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
49.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
50.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
51.What does the VSA say about extended-term vehicle loans of 72 to 96 months?
1. They can lead to negative equity and a cycle of debt
2. They always cost less overall than shorter loans do
3. They are banned for consumer purchases in BC
4. They protect buyers from depreciation
52.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
53.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
54.A salesperson leaves out that a car was flood damaged, and the buyer is misled. Under the BPCPA this can be deceptive because of what?
1. Offering a financing rate above the bank's rate
2. Quoting a price that includes freight and PDI
3. Using an accurate stock photo of the same model in the ad
4. Failing to state a material fact with a misleading effect
55.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
56.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
57.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
58.A salesperson blocks the door and tells a hesitant buyer they cannot leave until they sign. Which duty is breached?
1. The duty to include the dealer number in ads
2. The duty to show the total price prominently
3. The duty not to intimidate a consumer
4. The duty to deposit trust money within one day
59.Unless the consignor waives it in writing after the sale, when must the sale proceeds be paid out?
1. Within 14 days after the sale
2. Within 2 days after the sale
3. Within 90 days after the sale
4. Within 30 days after the sale
60.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
61.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
62.The registrar has reason to believe a person has contravened the Act. Which written compliance instrument may the registrar accept?
1. A written undertaking, for example to compensate consumers
2. A verbal promise to do better next time
3. A donation to a consumer charity
4. A transfer of the dealer's licence to one of its managers
63.In a retail sale of a NEW vehicle, can the contract exclude the implied conditions of quality and fitness?
1. Yes, if the vehicle is sold on consignment
2. Yes, if the buyer initials the clause
3. Yes, if the price is discounted
4. No, such terms are void for new goods
64.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
65.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
66.A buyer signs a clause giving up all BPCPA rights in exchange for a discount. What is the effect?
1. The waiver is valid once initialled by both parties
2. The waiver is void
3. The waiver is valid for used vehicles only
4. The waiver is valid because a discount was given
67.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
68.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
69.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
70.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

Answer key with explanations

1. B — 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.
Sale agreements and material facts · Based on: Motor Dealer Act Regulation s. 21(3); official source checked 2026-10-24
2. B — No, the two cannot both be used
If an administrative penalty is imposed, a prosecution for the same contravention may not be brought, and a conviction prevents a penalty for the same circumstances.
Complaints, enforcement, odometers and curbers · Based on: Motor Dealer Act s. 26.04(3)–(4); official source checked 2026-10-24
3. A — The seller's right to sell and the buyer's quiet possession
For retail new or used goods, s. 20(3) prevents diminishing s. 16 title protections. Different rules can apply to quality/fitness exclusions for used goods, but an as-is clause does not erase all other consumer-law or disclosure duties.
Sale of Goods Act, liens and financing · Based on: Sale of Goods Act ss. 16, 20; official source checked 2026-10-24
4. D — One $55 retake within five business days, or re-register
A failed exam can be retaken once for $55 within 5 business days of being notified. Failing the retake, or missing that window, means re-registering for the course at full cost.
Salesperson licensing · Based on: VSA Licensing course policies — course marks; exam retake; official source checked 2026-10-24
5. D — Its price and, if applicable, "Not Suitable for Transportation"
A used vehicle offered for sale must show its price and, if it is not suitable for transportation, the words "Not Suitable for Transportation".
Advertising, price display and dealer fees · Based on: Motor Dealer Act Regulation s. 27; official source checked 2026-10-24
6. D — A grossly excessive total price compared with similar transactions readily available to similar consumers
The court considers all surrounding circumstances the supplier knew or ought to have known. Grossly excessive comparable pricing is one listed factor; merely finding a cheaper vehicle later is not the same test.
Deceptive and unconscionable practices (BPCPA) · Based on: BPCPA s. 8(2)–(3)(c); official source checked 2026-10-24
7. C — 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.
Dealer registration, premises and records · Based on: Motor Dealer Act s. 3(1)(a); official source checked 2026-10-24
8. A — $300, paid when applying for or renewing registration
Every motor dealer pays an annual $300 contribution when applying for or renewing registration. The $10 per-vehicle charge is the separate VSA transaction levy.
Motor Dealer Customer Compensation Fund · Based on: Compensation Fund Regulation ss. 2(1); official source checked 2026-10-24
9. A — There is no general change-of-mind cooling-off right; specific cancellation rights or agreed terms may still apply
Do not confuse an ordinary purchase with the specific one-clear-day consumer lease rule. Contract terms, distance-sale rules, misrepresentation and other statutory remedies can change the result.
Leases, distance sales, deposits and returns · Based on: VSA Deposits; Motor Dealer Act Regulation s. 31; BPCPA Part 4; official source checked 2026-10-24
10. B — Licensees must not aid or abet anyone breaking the law
The code forbids aiding, abetting or causing anyone to contravene the Motor Dealer Act, the BPCPA, any other law or a licence or registration condition. A manager's instruction or a fee does not change that.
Code of conduct · Based on: Motor Dealer Act Regulation s. 33(2)(i); official source checked 2026-10-24
11. D — At the time the consignor signs it
Section 2(1) requires the dealer to prepare the consignment agreement and give the consignor a copy at signing. This document requirement does not replace any licence conditions on consignment activity.
Consignment sales · Based on: Motor Dealer Consignment Sales Regulation s. 2(1); official source checked 2026-10-24
12. B — The Vehicle Sales Authority of BC
The Motor Dealer Council of BC, operating as the Vehicle Sales Authority (VSA), administers the Motor Dealer Act through the registrar. ICBC handles vehicle insurance and registration, and the other bodies regulate other industries.
The VSA, the Motor Dealer Act and who is regulated · Based on: Motor Dealer Act s. 1, authority; s. 2; official source checked 2026-10-24
13. B — 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.
Sale agreements and material facts · Based on: Motor Dealer Act Regulation s. 22; official source checked 2026-10-24
14. A — Altering it to mislead a buyer about the distance travelled
Section 34(2) prohibits altering, disconnecting or replacing an odometer with intent to mislead a prospective buyer about distance. A replacement without that intent is not this particular offence; other operating, record and disclosure duties can still apply.
Complaints, enforcement, odometers and curbers · Based on: Motor Dealer Act s. 34(2); Regulation s. 23(e); official source checked 2026-10-24
15. D — Owing more on a vehicle loan than the vehicle is worth
Negative equity means owing more on the loan than the vehicle is worth. It can come from small down payments, long terms, high rates, trading in too soon or rolling old negative equity into a new loan.
Sale of Goods Act, liens and financing · Based on: VSA Negative Equity — loan balance, lender comparisons and total costs; official source checked 2026-10-24
16. B — Taking part in arranging a sale for a dealer in hope of a reward
The Act includes an individual participating in soliciting, negotiating or arranging a dealer’s sale for or expecting a fee, gain or reward. The other scenarios are limited to the stated non-selling duties; a job title alone does not exempt someone who actually participates in sales.
Salesperson licensing · Based on: Motor Dealer Act s. 1(1), salesperson; official source checked 2026-10-24
17. D — The consumer expressly agreed to the higher price first
Section 4(3)(c)(iii) identifies a materially low estimate as deceptive unless the consumer expressly consented to the higher price before supply. A later explanation that work took longer is not the stated prior-consent exception. This is the deception provision, not a complete account of every repair-contract remedy.
Advertising, price display and dealer fees · Based on: BPCPA s. 4(3)(c)(iii); official source checked 2026-10-24
18. A — An unconscionable act or practice
Undue pressure and taking advantage of an inability to protect one’s interests are listed circumstances. Age or language alone does not automatically make every transaction unconscionable; the court examines all surrounding circumstances.
Deceptive and unconscionable practices (BPCPA) · Based on: BPCPA s. 8(2)–(3)(a)–(b); official source checked 2026-10-24
19. A — 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.
Dealer registration, premises and records · Based on: Motor Dealer Act Regulation s. 5; official source checked 2026-10-24
20. C — 120 days
An application must be made within 120 days after the demand, unless the registrar accepts that extenuating circumstances prevented it.
Motor Dealer Customer Compensation Fund · Based on: Compensation Fund Regulation ss. 8.1; official source checked 2026-10-24
21. D — All money is refunded and no fee or penalty is charged
On a valid cancellation the dealer must reimburse any deposit or other money paid for the lease, and the consumer is not liable for any charge, fee or penalty.
Leases, distance sales, deposits and returns · Based on: Motor Dealer Act Regulation s. 31(5); official source checked 2026-10-24
22. B — Promptly and courteously
The code of conduct requires licensees and registrants to make sure consumer inquiries are responded to promptly and courteously.
Code of conduct · Based on: Motor Dealer Act Regulation s. 33(2)(d); official source checked 2026-10-24
23. B — It cannot be used as collateral by the dealer
Payments are held in trust for the consignor and lien holder, remain their beneficial property, must not be used as collateral and are not subject to seizure against the dealer.
Consignment sales · Based on: Motor Dealer Consignment Sales Regulation s. 6(1)–(2); official source checked 2026-10-24
24. B — The person's name, the amount and the reason
The registrar may publish enforcement actions, including penalties, with the person's name, the penalty amount and the reason or nature of the contravention.
The VSA, the Motor Dealer Act and who is regulated · Based on: Motor Dealer Act s. 13.2(1)(h), (2); official source checked 2026-10-24
25. A — 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.
Sale agreements and material facts · Based on: Motor Dealer Act Regulation s. 23(e); official source checked 2026-10-24
26. A — Several vehicles listed with the same phone number and no dealer number
Multiple ads with one phone number and no dealer number are warning signs, not proof on their own. Check the seller’s identity and vehicle registration, and verify dealer status through the official licensee search.
Complaints, enforcement, odometers and curbers · Based on: VSA Report a Curber — warning signs; official source checked 2026-10-24
27. D — Goods will be durable for a reasonable period of time
Durability must be reasonable in light of normal use and all surrounding circumstances. The section does not specify a universal repair-free period. This question makes no comparison with unverified laws in other provinces.
Sale of Goods Act, liens and financing · Based on: Sale of Goods Act s. 18(c); official source checked 2026-10-24
28. D — Retake the licensing course and any required CE modules
People re-entering the industry who took the course before 2018, or who have been out of the industry for more than 3 years, must complete the Salesperson Licensing Course again plus any applicable continuing education modules.
Salesperson licensing · Based on: VSA Licensing course policies — re-entering the industry; official source checked 2026-10-24
29. A — Vehicles in a storage area or inventory not yet prepared for sale
The sticker rules do not apply to vehicles in a storage area or to inventory that has not yet been prepared for sale.
Advertising, price display and dealer fees · Based on: Motor Dealer Act Regulation s. 28; official source checked 2026-10-24
30. D — The transaction is not binding on the consumer
Subject to the separate mortgage-loan provision in s. 10(2), a consumer transaction involving an unconscionable practice is not binding on the consumer or guarantor.
Deceptive and unconscionable practices (BPCPA) · Based on: BPCPA s. 10; official source checked 2026-10-24
31. B — 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.
Dealer registration, premises and records · Based on: Motor Dealer Act s. 4(2); official source checked 2026-10-24
32. A — A claim based on the poor quality of the vehicle received
A claim is not eligible if it is based on the cost, value or quality of the vehicle received, if a warranty loss can be recovered from the warranty's insurer, or for the business-expense share of a vehicle's use.
Motor Dealer Customer Compensation Fund · Based on: Compensation Fund Regulation ss. 7; official source checked 2026-10-24
33. A — What it is for, whether it is refundable and on what terms
The VSA recommends a written deposit agreement stating what the deposit is for, whether it is refundable and under what terms, whether it applies to the price and when the vehicle will be available.
Leases, distance sales, deposits and returns · Based on: VSA Deposits — written deposit agreement best practice; official source checked 2026-10-24
34. D — They must be safeguarded
Licensees and registrants must safeguard records about consumers that are in their possession or control.
Code of conduct · Based on: Motor Dealer Act Regulation s. 33(2)(h); official source checked 2026-10-24
35. C — The vehicle is on consignment and payments go to the dealer's trust account
Besides the usual content, the purchase agreement states that the vehicle is on consignment and that cheques, drafts or money orders must be payable to the dealer's trust account at a BC savings institution.
Consignment sales · Based on: Motor Dealer Consignment Sales Regulation s. 4(1)–(2); official source checked 2026-10-24
36. B — Primarily personal, family or household use
The definition covers business activity disposing of vehicles to another person primarily for personal, family or household purposes, including holding out, advertising and promotion. This question concerns that definition, not a claim that all commercial or wholesale activity is unregulated under every law.
The VSA, the Motor Dealer Act and who is regulated · Based on: Motor Dealer Act s. 1(1), motor dealer; official source checked 2026-10-24
37. D — 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.
Sale agreements and material facts · Based on: Motor Dealer Act Regulation s. 21(1); official source checked 2026-10-24
38. D — The dealer is deemed a party to the offence
Section 34(4) deems the owner or dealer a party when the specified entrusted person commits an offence under subsection (1). It does not say that every subsection (2) tampering offence automatically has this same deemed-liability rule.
Complaints, enforcement, odometers and curbers · Based on: Motor Dealer Act s. 34(1), (4); official source checked 2026-10-24
39. B — Which lenders get the application and what each offers
The VSA suggests asking who the application will be sent to, getting a copy of what was submitted and seeing each lender's offer, noting that multiple credit checks can affect a credit score.
Sale of Goods Act, liens and financing · Based on: VSA Negative Equity — loan balance, lender comparisons and total costs; official source checked 2026-10-24
40. D — The referrer would be acting as an unlicensed salesperson
VSA explains that soliciting for a dealer’s consumer sale with an expected fee, gain or reward is salesperson activity requiring a licence. Cash, services and upgrades can be rewards. The case specifies unlicensed referrers; it does not say a licensed salesperson’s authorized work is forbidden.
Salesperson licensing · Based on: VSA Referral Fees — unlicensed referral rewards; official source checked 2026-10-24
41. C — VIN, make, model, all-in price and each attached option
A new vehicle offered for sale must carry the VIN, make and model, a price including attached options, freight and PDI, and an itemized list of each attached accessory or option.
Advertising, price display and dealer fees · Based on: Motor Dealer Act Regulation s. 26; official source checked 2026-10-24
42. A — A representation or conduct that could deceive or mislead a consumer
A deceptive act is any oral, written, visual or other representation, or any conduct, by a supplier that has the capability, tendency or effect of deceiving or misleading a consumer. It can occur before, during or after the transaction.
Deceptive and unconscionable practices (BPCPA) · Based on: BPCPA ss. 4(1)–(2); official source checked 2026-10-24
43. C — 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.
Dealer registration, premises and records · Based on: Motor Dealer Act s. 12; official source checked 2026-10-24
44. D — $20,000
The maximum compensation payable for a loss is $20,000.
Motor Dealer Customer Compensation Fund · Based on: Compensation Fund Regulation ss. 9; official source checked 2026-10-24
45. B — A contract not entered into in person, without a pre-contract opportunity to inspect the goods
Both elements matter: the contract is not entered into in person and the consumer has no opportunity to inspect the goods before contracting. A phone or online transaction is not automatically a distance sale if that inspection opportunity existed.
Leases, distance sales, deposits and returns · Based on: BPCPA s. 17, distance sales contract definition; official source checked 2026-10-24
46. D — The promise must be included in the written agreement
Licensees and dealers must include in the written agreement any representations made, orally or in writing, about the transaction. Leaving a verbal promise out breaches the code.
Code of conduct · Based on: Motor Dealer Act Regulation s. 33(2)(c); official source checked 2026-10-24
47. A — The minimum price the consignor will accept
The consignment agreement must include a full vehicle description, the minimum price the consignor will accept, how the dealer is paid, the duration, trust and title statements, warranty and insurance details, and the duties on sale.
Consignment sales · Based on: Motor Dealer Consignment Sales Regulation s. 2(2)(b); official source checked 2026-10-24
48. C — No; the stated commercial-fleet purpose does not meet that definition
The stated exclusive business use does not satisfy the primarily personal, family or household purpose in the motor-dealer definition. Other obligations or remedies may apply; this does not mean commercial vehicles or wholesale businesses are exempt from every law.
The VSA, the Motor Dealer Act and who is regulated · Based on: Motor Dealer Act s. 1(1), motor dealer; official source checked 2026-10-24
49. D — 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.
Sale agreements and material facts · Based on: Motor Dealer Act Regulation s. 23(b)(i); official source checked 2026-10-24
50. B — Whether the contravention was deliberate or repeated
The registrar considers previous enforcement, gravity and magnitude, harm to others, whether it was repeated or continuous, whether it was deliberate, any economic benefit and efforts to correct it.
Complaints, enforcement, odometers and curbers · Based on: Motor Dealer Act s. 26.04(1)–(2); official source checked 2026-10-24
51. A — They can lead to negative equity and a cycle of debt
The VSA warns that extended-term loans (typically 72–96 months) can lead to negative equity and a cycle of debt; buyers should consider how long they will keep the vehicle and whether it will last the term.
Sale of Goods Act, liens and financing · Based on: VSA Negative Equity — loan balance, lender comparisons and total costs; official source checked 2026-10-24
52. B — That the applicant has read and understood the code of conduct
Applications include a declaration that the applicant has read and understood the code of conduct, along with declarations about past conduct and convictions and consent to a criminal record check.
Salesperson licensing · Based on: Salesperson Licensing Regulation ss. 3(2)–(5); official source checked 2026-10-24
53. A — They are legal but must be disclosed during price negotiations
Dealer fees are not illegal and have no set amount, but they must be disclosed when the final price is being negotiated. Adding them after a price is agreed, or calling them mandatory or government fees, is improper.
Advertising, price display and dealer fees · Based on: VSA consumer protection facts — Dealer Fees; advertised prices; finance fees; official source checked 2026-10-24
54. D — Failing to state a material fact with a misleading effect
Using exaggeration, innuendo or ambiguity about a material fact, or failing to state a material fact, is deceptive if the effect is misleading.
Deceptive and unconscionable practices (BPCPA) · Based on: BPCPA ss. 4(3)(b)(vi); official source checked 2026-10-24
55. A — 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.
Dealer registration, premises and records · Based on: Motor Dealer Act ss. 1, 3(1)–(1.1); official source checked 2026-10-24
56. D — An individual buying a primarily personal-use vehicle from a registered dealer who suffers an eligible loss
Section 4 covers individuals in the listed vehicle, warranty/service-plan and consignment transactions with registered dealers, subject to eligible loss and other requirements. Eligibility to apply is not a promise of payment.
Motor Dealer Customer Compensation Fund · Based on: Compensation Fund Regulation ss. 4–7; official source checked 2026-10-24
57. D — Who is responsible for maintenance and servicing of the vehicle
Before a lease, the dealer discloses warranty costs due at signing, all express warranties, who maintains and services the vehicle, required insurance, use limits, the tax in each payment and the one-clear-day rights.
Leases, distance sales, deposits and returns · Based on: Motor Dealer Act Regulation s. 30(2); official source checked 2026-10-24
58. C — The duty not to intimidate a consumer
Section 33(2)(g) prohibits intimidation of a consumer. Preventing a hesitant buyer from leaving is the stated intimidation scenario. Other consumer-protection rules may also be relevant, but this question identifies the Code duty rather than deciding every possible legal remedy.
Code of conduct · Based on: Motor Dealer Act Regulation s. 33(2)(g); official source checked 2026-10-24
59. A — Within 14 days after the sale
Disbursement of the sale proceeds must take place within 14 days after the sale unless the consignor specifically waives this right in writing after the sale.
Consignment sales · Based on: Motor Dealer Consignment Sales Regulation s. 2(2)(j)(ii); official source checked 2026-10-24
60. B — A travel trailer designed for recreational accommodation
Motor vehicles include self-propelled highway vehicles and trailers designed for accommodation during travel or recreation. ATVs, farm tractors and construction machinery are excluded.
The VSA, the Motor Dealer Act and who is regulated · Based on: Motor Dealer Act s. 1(1), motor vehicle; official source checked 2026-10-24
61. D — 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.
Sale agreements and material facts · Based on: Motor Dealer Act Regulation s. 21(2); official source checked 2026-10-24
62. A — A written undertaking, for example to compensate consumers
A written undertaking may include compliance, stopping a practice, consumer compensation, security and investigation costs. It is not an automatic exemption from other enforcement; the registrar may terminate a proceeding on accepting it.
Complaints, enforcement, odometers and curbers · Based on: Motor Dealer Act s. 26.01; official source checked 2026-10-24
63. D — No, such terms are void for new goods
In a retail sale or lease of goods that are not used, any term that negates or diminishes the conditions in sections 17 to 19 is void.
Sale of Goods Act, liens and financing · Based on: Sale of Goods Act s. 20(1)–(2); official source checked 2026-10-24
64. D — At least 2 years after the last dealing
The listed possible condition requires at least two years after the last dealing or transaction to which the record relates. Section 6 describes conditions the authority may impose; this question states the condition applies. Required production under section 6(1)(g) is on written request for the stated licensing assessment.
Salesperson licensing · Based on: Salesperson Licensing Regulation s. 6(1)(f)–(g); official source checked 2026-10-24
65. B — Written approval from the registrar
A dealer or licensed person may display the authority's name and logo only with the registrar's written approval and in line with any terms the registrar sets.
Advertising, price display and dealer fees · Based on: Motor Dealer Act s. 13(4); official source checked 2026-10-24
66. B — The waiver is void
Any waiver or release of rights, benefits or protections under the BPCPA is void unless the Act expressly permits it.
Deceptive and unconscionable practices (BPCPA) · Based on: BPCPA ss. 3; official source checked 2026-10-24
67. B — 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.
Dealer registration, premises and records · Based on: Motor Dealer Act s. 3(1.1); official source checked 2026-10-24
68. A — At the registrar’s discretion when all statutory payment, fund-sufficiency and risk conditions are met
The dealer must have made full $300 contributions for three consecutive years and complied with additional contribution calls. The waiver must not put fund sufficiency in doubt, and the registrar must consider the dealer not a significant risk. Three years alone does not guarantee a waiver.
Motor Dealer Customer Compensation Fund · Based on: Compensation Fund Regulation s. 2(3); official source checked 2026-10-24
69. C — 7 days
For this ground, notice must be given within 7 days after receipt of the contract copy. Do not confuse this with the separate missing-copy or delayed-delivery rules. A refund under s. 50 is due within 15 days after the later applicable trigger, which may include return of goods when the statutory conditions are met.
Leases, distance sales, deposits and returns · Based on: BPCPA ss. 18.2, 18.4(1), (2)(c), 50–51; official source checked 2026-10-24
70. D — Adversely affecting the reputation of the VSA or other licensees
Section 33(2)(f) expressly prohibits adversely affecting the reputation of the authority, a licensee, a registrant or the registrar. This question identifies the provision’s wording; it does not conclude that any particular criticism, competitive ad or complaint breaches it.
Code of conduct · Based on: Motor Dealer Act Regulation s. 33(2)(f); official source checked 2026-10-24
Original practice questions by Canada Exam Prep. Not official test questions. Free to print for personal study.

FAQ