BC VSA Salesperson Practice Test 1

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1. Under a vehicle distance-sales contract, the vehicle remains undelivered more than 30 days after the agreed supply date. What does BPCPA s. 49(1)(c) allow?

   1. Claim against the Compensation Fund right away
   2. Cancel only within the following 24 hours
   3. Cancel any time after that, while it is still undelivered
   4. Nothing, because online delivery dates are only rough estimates
   Show answer and explanation

   Correct answer: Cancel any time after that, while it is still undelivered

   The consumer may give notice of cancellation while the vehicle is still undelivered after the 30-day period. Related transactions, guarantees, security and supplier-extended or arranged credit are cancelled under s. 49(2); refund and return duties are addressed separately in ss. 50–51.

   Based on: BPCPA s. 49(1)(c), (2), ss. 50–51; official source checked 2026-10-24

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2. 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
   Show answer and explanation

   Correct answer: When it did not know and had no reason to suspect the ad broke the law

   The advertiser must prove it did not know and had no reason to suspect that publication would contravene section 5. The protection is for the listed sections 171, 172 and 189, not immunity from every possible legal duty. Section 6(3) separately requires the supplier’s name/address record.

   Based on: BPCPA s. 6(1)–(3); official source checked 2026-10-24

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3. 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
   Show answer and explanation

   Correct answer: The waiver is void

   Any waiver or release of rights, benefits or protections under the BPCPA is void unless the Act expressly permits it.

   Based on: BPCPA ss. 3; official source checked 2026-10-24

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4. 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
   Show answer and explanation

   Correct answer: 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.

   Based on: Sale of Goods Act s. 20(1)–(2); official source checked 2026-10-24

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

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

   Correct answer: It sells the owner's vehicle as the owner's agent

   A consignment is an arrangement where a vehicle is entrusted to a dealer for sale, under a conditional sale for resale, or for display for sale. The dealer acts as agent for the owner (consignor).

   Based on: Motor Dealer Consignment Sales Regulation s. 1; official source checked 2026-10-24

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6. 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

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7. 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
   Show answer and explanation

   Correct answer: 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.

   Based on: BPCPA ss. 4(1)–(2); official source checked 2026-10-24

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8. 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

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9. What must a claimant do before applying to the Fund?

   1. Wait until the dealer's registration has been cancelled
   2. Report the dealer to the police and get a file number
   3. Sue the dealer in Supreme Court and win a judgment first
   4. Make a written demand on the dealer within 4 years of the deal
   Show answer and explanation

   Correct answer: Make a written demand on the dealer within 4 years of the deal

   The claimant must first make a written demand on the dealer within 4 years after the transaction, and the dealer must have refused or failed to honour it within 30 days.

   Based on: Compensation Fund Regulation ss. 6; official source checked 2026-10-24

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

    1. There is no time limit
    2. Up to 4 years
    3. Up to 2 years
    4. Up to 6 months
    Show answer and explanation

    Correct answer: Up to 2 years

    A prosecution must not be commenced more than 2 years after the facts on which it is based first came to the attention of the registrar.

    Based on: Motor Dealer Act s. 36; official source checked 2026-10-24

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11. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Motor Dealer Act Regulation s. 33(2)(g); official source checked 2026-10-24

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12. 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
    Show answer and explanation

    Correct answer: $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.

    Based on: Compensation Fund Regulation ss. 2(1); official source checked 2026-10-24

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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
    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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14. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Motor Dealer Consignment Sales Regulation s. 4(1)–(2); official source checked 2026-10-24

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15. 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
    Show answer and explanation

    Correct answer: 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.

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

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16. 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
    Show answer and explanation

    Correct answer: An insurer licensed under the Insurance Act

    ICBC and insurers licensed under the Insurance Act are exempt from the Act. Businesses that sell vehicles to consumers, including RV and motorcycle dealers, must be registered.

    Based on: Motor Dealer Act Regulation s. 14(2)–(3); official source checked 2026-10-24

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17. 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
    Show answer and explanation

    Correct answer: 75 of 100 marks, including coursework and the exam

    The course needs 75 of 100 marks: 30 for coursework (4 assignments and 10 forum posts) and 70 for the exam of 70 multiple-choice and true/false questions.

    Based on: VSA Licensing course policies — course marks; exam retake; official source checked 2026-10-24

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18. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Motor Dealer Act s. 26.04(1)–(2); official source checked 2026-10-24

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19. What is the VSA's main tip on comparing vehicle deals?

    1. Accept the first financing offer to save time
    2. Choose the longest loan term available to lower each payment
    3. Pick whichever dealer offers the biggest free gift
    4. Shop for the vehicle's total price, not the monthly payment
    Show answer and explanation

    Correct answer: Shop for the vehicle's total price, not the monthly payment

    The VSA advises shopping for a vehicle, not a monthly payment: know the actual price, fees, financing costs and any balloon payment at the end of the term.

    Based on: VSA Negative Equity — loan balance, lender comparisons and total costs; official source checked 2026-10-24

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20. 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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21. 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
    Show answer and explanation

    Correct answer: Disclose it before signing and include it in the APR

    Finance arrangement or placement fees must be disclosed before the consumer signs, must be included in the APR calculation, and may not be described as required by the lender if they are not.

    Based on: VSA consumer protection facts — Dealer Fees; advertised prices; finance fees; official source checked 2026-10-24

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22. 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
    Show answer and explanation

    Correct answer: Only while holding a valid salesperson licence

    A person must not act as a salesperson unless they hold a valid salesperson licence, and a dealer must not employ an unlicensed salesperson. Work history or supervision does not replace the licence.

    Based on: Salesperson Licensing Regulation s. 2; official source checked 2026-10-24

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23. 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
    Show answer and explanation

    Correct answer: They are assigned to the consumer

    All warranties and guarantees made by the manufacturer to the dealer about the vehicle and its equipment are assigned to the consumer under the deemed lease provisions.

    Based on: Motor Dealer Act Regulation s. 31(7); official source checked 2026-10-24

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24. 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
    Show answer and explanation

    Correct answer: Promptly and courteously

    The code of conduct requires licensees and registrants to make sure consumer inquiries are responded to promptly and courteously.

    Based on: Motor Dealer Act Regulation s. 33(2)(d); official source checked 2026-10-24

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