BC VSA Salesperson Practice Test 2

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

1. 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
   Show answer and explanation

   Correct answer: 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.

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

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2. 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
   Show answer and explanation

   Correct answer: 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.

   Based on: BPCPA s. 17, distance sales contract definition; official source checked 2026-10-24

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3. 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
   Show answer and explanation

   Correct answer: 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.

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

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4. A dealer passes the VSA levy on to a buyer. How must it appear?

   1. Added only if the buyer finances the vehicle
   2. Hidden inside the documentation fee
   3. As a separate line item on the bill of sale
   4. Increased to cover the dealer's own costs
   Show answer and explanation

   Correct answer: As a separate line item on the bill of sale

   The VSA SOP requires separate itemization when the dealer recovers the levy from the consumer and prohibits markup of the $10 amount. Hiding it in a documentation fee does not meet that instruction. The dealer’s own administration charge is a separate issue.

   Based on: VSA Transaction Levy Remittance SOP, step 4; official source checked 2026-10-24

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5. 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
   Show answer and explanation

   Correct answer: Final, reviewable in court only on law or jurisdiction

   The Board’s within-jurisdiction decisions are final subject to the statutory court-review exception for law or excess of jurisdiction. Sections 18.1–18.2 separately permit reconsideration; a party’s request normally has a 30-day limit. These are different processes, not a guarantee that any decision is immune from challenge.

   Based on: Motor Dealer Act ss. 16, 18.1–18.2; official source checked 2026-10-24

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6. 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
   Show answer and explanation

   Correct answer: The truck must be reasonably fit for that purpose

   Section 18(a) implies reasonable fitness when its stated purpose, reliance and supply conditions are met, subject to the specified patent or trade-name exception. This is not a promise that every vehicle can tow any load.

   Based on: Sale of Goods Act s. 18(a); official source checked 2026-10-24

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7. 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

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8. 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
   Show answer and explanation

   Correct answer: Refusing to deal with a customer because of their religion

   Code section 33(2)(b) forbids discrimination on the listed grounds, including religion. The other choices do not themselves state discrimination on such a ground; this does not mean that every ID or deposit policy is lawful in every factual situation.

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

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9. After a consumer signs a vehicle lease, how long must the dealer keep the vehicle, during which the consumer may cancel?

   1. Two business days
   2. Until the first payment
   3. Seven calendar days
   4. One clear day
   Show answer and explanation

   Correct answer: One clear day

   Unless waived in writing, the dealer must keep the vehicle for one clear day after the lease is signed, and the consumer may cancel during that time.

   Based on: Motor Dealer Act Regulation s. 31(3)–(4); official source checked 2026-10-24

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10. 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

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11. 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
    Show answer and explanation

    Correct answer: 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.

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

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12. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Salesperson Licensing Regulation ss. 3(2)–(5); official source checked 2026-10-24

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13. Where must a dealer display the code of conduct?

    1. Only on the back page of each sale agreement form
    2. In a conspicuous place at its business premises
    3. Only in the staff lunchroom
    4. Nowhere, it only has to be read once
    Show answer and explanation

    Correct answer: In a conspicuous place at its business premises

    Dealers, licensed broker-agents and licensed wholesalers must display a copy of the code of conduct, in the registrar's form, in a conspicuous place at their business premises.

    Based on: Motor Dealer Act Regulation s. 34; official source checked 2026-10-24

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14. 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
    Show answer and explanation

    Correct answer: A deceptive act about their authority

    Misrepresenting the authority of a representative, employee or agent to negotiate the final terms of a consumer transaction is a deceptive act or practice.

    Based on: BPCPA ss. 4(3)(b)(v); official source checked 2026-10-24

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15. 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

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16. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: VSA Report a Curber — warning signs; official source checked 2026-10-24

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17. 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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18. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Compensation Fund Regulation ss. 4–7; official source checked 2026-10-24

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19. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Motor Dealer Act s. 13.2(1)(h), (2); official source checked 2026-10-24

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20. 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
    Show answer and explanation

    Correct answer: Business activity can require registration even below the five-vehicle deeming threshold

    The Act’s business definition can apply without reaching the separate deeming threshold of five vehicles in 12 months. Do not assume one personal disposal is a business, or that staying below five creates a safe exemption.

    Based on: Motor Dealer Act ss. 1, 3; official source checked 2026-10-24

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21. What must the consignment agreement tell the consignor about the ownership transfer forms?

    1. Give them to the first person who test-drives it
    2. Leave them with ICBC until the vehicle is sold
    3. Sign them in blank so the dealer can sell quickly
    4. Do not sign them over to the dealer in blank
    Show answer and explanation

    Correct answer: Do not sign them over to the dealer in blank

    The agreement must state that the consignor must not sign vehicle ownership registration forms over to the dealer in blank.

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

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22. A dealer advertises a price for a new vehicle. What must that price be?

    1. The manufacturer's price before dealer accessories
    2. The base price before any freight, delivery or inspection charges
    3. The monthly lease payment without any other costs
    4. The total asking price, including freight, PDI and attached options
    Show answer and explanation

    Correct answer: The total asking price, including freight, PDI and attached options

    An ad may not mention a new vehicle's price unless it is the total asking price, including attached accessories and options, delivery charges and any pre-delivery inspection the dealer charges.

    Based on: Motor Dealer Act Regulation s. 26.1; s. 26(b); official source checked 2026-10-24

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23. A consumer alleges a dealer engaged in a deceptive practice. Who bears the burden of proof?

    1. The dealer must prove it did not happen
    2. Neither side; the court decides on its own
    3. The VSA must prove it with an inspection
    4. The consumer must prove it beyond doubt
    Show answer and explanation

    Correct answer: The dealer must prove it did not happen

    If it is alleged that a supplier engaged in a deceptive act or practice, the burden of proving it did not is on the supplier. The same applies to unconscionable practices.

    Based on: BPCPA ss. 5(2), 9(2); official source checked 2026-10-24

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24. 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
    Show answer and explanation

    Correct answer: 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.

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

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