BC VSA Salesperson Practice Test 3

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

1. 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
   Show answer and explanation

   Correct answer: 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.

   Based on: Salesperson Licensing Regulation s. 6(1)(f)–(g); official source checked 2026-10-24

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2. 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

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3. What is the maximum fine for a corporation convicted of an offence under the Motor Dealer Act?

   1. $100,000
   2. $500,000
   3. $50,000
   4. $200,000
   Show answer and explanation

   Correct answer: $200,000

   An individual can be fined up to $100,000 and/or jailed up to 6 months; a corporation can be fined up to $200,000.

   Based on: Motor Dealer Act s. 35.1; official source checked 2026-10-24

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4. Which way of paying the dealer is allowed in a consignment agreement?

   1. A fee taken from the buyer's deposit before the sale is final
   2. An amount above an agreed minimum price, payable only if sold
   3. A share of the consignor's other income for one year
   4. A monthly storage charge set later at the dealer's choice
   Show answer and explanation

   Correct answer: An amount above an agreed minimum price, payable only if sold

   The dealer's pay may be a fixed amount if sold, a fixed fee whether or not sold, a percentage of the selling price if sold, an amount above an agreed minimum if sold, or a combination of those fees.

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

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5. A service advisor tells a buyer a costly repair is needed when it is not. How does the BPCPA treat this?

   1. As an unconscionable lease term
   2. As a matter only for ICBC
   3. As a deceptive act or practice
   4. As acceptable sales puffery
   Show answer and explanation

   Correct answer: As a deceptive act or practice

   A representation that a service, part, replacement or repair is needed when it is not is listed as a deceptive act or practice.

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

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6. 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
   Show answer and explanation

   Correct answer: 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.

   Based on: VSA Deposits; Motor Dealer Act Regulation s. 31; BPCPA Part 4; official source checked 2026-10-24

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7. How far ahead must a salesperson apply to renew their licence?

   1. On the expiry date at the latest
   2. Within 30 days after it expires
   3. At least 90 days before it expires
   4. At least 14 days before it expires
   Show answer and explanation

   Correct answer: At least 14 days before it expires

   A renewal application must be made at least 14 days before the salesperson licence expires.

   Based on: Salesperson Licensing Regulation ss. 3(4); official source checked 2026-10-24

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8. Which person is NOT treated as a motor dealer when disposing of a vehicle?

   1. A business that advertises cars for consumers
   2. A person who buys one car at auction to resell it
   3. An executor selling a car from an estate
   4. A person selling cars for friends for a commission
   Show answer and explanation

   Correct answer: An executor selling a car from an estate

   Section 14(4)(b) exempts the person for vehicle dealings in the course of specified estate, court or insolvency duties. It is not a general exemption for all the person’s unrelated business. Other sellers must be assessed against the actual business-activity definition and any applicable exemption.

   Based on: Motor Dealer Act Regulation s. 14(4)(b); official source checked 2026-10-24

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9. Which vehicle does the regulation exclude from the definition of motor vehicle?

   1. A motorhome built on a truck chassis
   2. A utility trailer rated at 1,400 kg or less
   3. A pickup truck used for personal errands
   4. A motorcycle bought for weekend highway riding
   Show answer and explanation

   Correct answer: A utility trailer rated at 1,400 kg or less

   The regulation excludes boat trailers, utility trailers with a gross vehicle weight rating of 1,400 kg or less, and golf carts. Motorcycles, pickups and motorhomes are motor vehicles.

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

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10. Which protection does the BC Sale of Goods Act give a buyer about title?

    1. A promise that resale value will hold for a year
    2. An implied condition that the seller has the right to sell
    3. A right to return the vehicle within 30 days
    4. A guarantee that the price paid was the lowest available anywhere
    Show answer and explanation

    Correct answer: An implied condition that the seller has the right to sell

    Section 16 implies a condition that the seller has the right to sell, a warranty of quiet possession and a warranty that the goods are free from undisclosed third-party charges.

    Based on: Sale of Goods Act s. 16; official source checked 2026-10-24

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11. Which sale is NOT a retail sale for the Sale of Goods Act's no-waiver rule?

    1. A sale of a motorcycle to a student for commuting
    2. A sale of a used minivan to a retired couple
    3. A sale to a corporation for its business
    4. A sale of a new car to a teacher for family use
    Show answer and explanation

    Correct answer: A sale to a corporation for its business

    Retail sales exclude sales for resale, to buyers using goods primarily for business, to corporations or by trustees, liquidators or sheriffs.

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

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12. Under the code of conduct, how must licensees and dealers act in the course of business?

    1. With honesty and integrity
    2. With a sale as the only goal
    3. With speed above all else
    4. With the dealer's interests first
    Show answer and explanation

    Correct answer: With honesty and integrity

    The first duty in the code of conduct is to act with honesty and integrity. The other duties build on it.

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

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13. Under current BPCPA ss. 14.2–14.3, a consumer contract prohibits reviews of the transaction and requires arbitration of future disputes. How are those terms treated?

    1. Only the review ban is valid
    2. Both terms are valid if printed in bold type and initialled
    3. Both terms are void in a consumer contract
    4. Only the arbitration clause is valid
    Show answer and explanation

    Correct answer: Both terms are void in a consumer contract

    The review prohibition and mandatory pre-dispute resolution terms described in these sections are void in a consumer contract. A separate agreement to use arbitration after a dispute arises remains possible. This question concerns the current statutory provisions, not every historical or business-to-business contract.

    Based on: BPCPA ss. 14.1–14.3; official source checked 2026-10-24

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14. A dealer replaces a faulty odometer and the reading changes. What must it record?

    1. The before and sale-time readings, on the agreement and in its records
    2. Nothing, because replacing a faulty odometer is only routine maintenance
    3. Only the cost of the odometer part, on the repair invoice
    4. Only the new odometer reading, on the vehicle's window sticker
    Show answer and explanation

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

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

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

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15. 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"
    Show answer and explanation

    Correct answer: 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".

    Based on: Motor Dealer Act Regulation s. 27; official source checked 2026-10-24

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16. 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
    Show answer and explanation

    Correct answer: 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.

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

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17. 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
    Show answer and explanation

    Correct answer: They must be safeguarded

    Licensees and registrants must safeguard records about consumers that are in their possession or control.

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

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18. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Motor Dealer Act Regulation s. 30(2); official source checked 2026-10-24

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19. A dealer knows a used car had collision damage requiring $2,500 in repairs. Does it exceed section 23(b)(ii)’s disclosure threshold?

    1. No, only damage over 20 per cent of the price counts
    2. Yes, used vehicle damage over $2,000 must be disclosed
    3. Only if the buyer asks about past accidents
    4. No, the limit for used vehicles is $5,000
    Show answer and explanation

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

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

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

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20. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Compensation Fund Regulation s. 2(3); official source checked 2026-10-24

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21. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: BPCPA s. 4(3)(c)(iii); official source checked 2026-10-24

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22. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Motor Dealer Act s. 26.04(3)–(4); official source checked 2026-10-24

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23. 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

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24. 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
    Show answer and explanation

    Correct answer: $20,000

    The maximum compensation payable for a loss is $20,000.

    Based on: Compensation Fund Regulation ss. 9; official source checked 2026-10-24

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