BC VSA Salesperson Practice Test 4

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

1. For how long can a BC salesperson licence be issued or renewed?

   1. Up to one year
   2. Up to two years
   3. For life, unless revoked
   4. Up to three years
   Show answer and explanation

   Correct answer: Up to one year

   The VSA may issue or renew a salesperson licence for a term not exceeding one year.

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

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2. For the code of conduct's ban on age discrimination, what does age mean?

   1. An age of 65 years or more
   2. An age of 19 years or more
   3. An age of 16 to 25 years
   4. Any age, including minors
   Show answer and explanation

   Correct answer: An age of 19 years or more

   For the code of conduct, age means an age of 19 years or more, the age of majority in BC.

   Based on: Motor Dealer Act Regulation s. 33(1), age; official source checked 2026-10-24

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3. 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
   Show answer and explanation

   Correct answer: 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.

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

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4. The same dealer has two active ads for one car at $18,900 and $19,400. Which price is the buyer entitled to?

   1. $19,400, the most recent ad's price
   2. The average of the two prices
   3. $18,900, the lower advertised price
   4. Whichever price the manager approves
   Show answer and explanation

   Correct answer: $18,900, the lower advertised price

   VSA guidance says that if prices vary for the same vehicle in different active ads by the same dealer, the consumer is entitled to the lowest price.

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

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5. A dealer prepares a written vehicle purchase agreement and takes a deposit. What must that agreement include under Regulation s. 21(1)(j)?

   1. A statement that every deposit is non-refundable in all circumstances
   2. A promise to refund only if the buyer buys a warranty
   3. Only the deposit amount, with no refund conditions
   4. The terms and conditions under which the deposit is refundable
   Show answer and explanation

   Correct answer: The terms and conditions under which the deposit is refundable

   A written purchase agreement must include deposit refund terms and conditions. VSA separately recommends a clear written deposit agreement when taking money before a purchase agreement. A missing document does not resolve every legal dispute automatically.

   Based on: Motor Dealer Act Regulation s. 21(1)(j); official source checked 2026-10-24

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6. Which prohibition is expressly listed among possible salesperson licence conditions in section 6(2)?

   1. The licensee must not handle a consumer's money
   2. The licensee must sell a minimum number of cars
   3. The licensee must work only weekend shifts
   4. The licensee must charge no documentation fees
   Show answer and explanation

   Correct answer: The licensee must not handle a consumer's money

   Section 6(2)(b) expressly permits a condition prohibiting handling consumer money. The regulation also lists supervision, management and dealer-type conditions, and retains a public-interest power for other conditions. The question asks which option is expressly listed, not every condition that could ever be imposed.

   Based on: Salesperson Licensing Regulation s. 6(2)(b), (f); official source checked 2026-10-24

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7. A buyer's car is repossessed by a bank because the dealer never cleared an old loan on it. Is this an eligible loss?

   1. Yes, failure to give clear title free of undisclosed charges
   2. No, the Fund only ever covers deposits and down payments
   3. Yes, but only if the buyer is a registered business
   4. No, title problems are always the buyer's own risk
   Show answer and explanation

   Correct answer: Yes, failure to give clear title free of undisclosed charges

   The dealer's failure to provide clear title, or to ensure the vehicle was free of an undisclosed third-party charge, is an eligible loss.

   Based on: Compensation Fund Regulation ss. 5(1)(a)(iv); official source checked 2026-10-24

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8. Under the BPCPA, what makes a supply of goods a consumer transaction?

   1. It is for primarily personal, family or household purposes
   2. The goods are manufactured in Canada
   3. The supplier is a registered corporation based in British Columbia
   4. The buyer pays at least $1,000 in total
   Show answer and explanation

   Correct answer: It is for primarily personal, family or household purposes

   A consumer transaction is a supply of goods, services or real property to a consumer for purposes that are primarily personal, family or household, including the solicitation, offer, advertising or promotion of it.

   Based on: BPCPA ss. 1; official source checked 2026-10-24

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9. To the best of the dealer’s knowledge and belief, which prior use is expressly listed in section 23(a) for disclosure in the sale agreement?

   1. Use by a single owner commuting to work
   2. Use for a family camping trip
   3. Use in organized racing
   4. Use for a driving school lesson once
   Show answer and explanation

   Correct answer: Use in organized racing

   Section 23(a) expressly lists the specified taxi use, police/emergency use and organized racing. Other material facts can matter under other rules. A distractor’s absence from this particular list does not establish that the dealer may make a misleading statement about it.

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

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10. After a consigned vehicle sells, when must the dealer notify the consignor?

    1. Within one day after the sale
    2. Within 14 days after the sale
    3. Only once the buyer's cheque clears
    4. At the end of the agreement's term
    Show answer and explanation

    Correct answer: Within one day after the sale

    The agreement must state that the dealer notifies the consignor of the sale within one day after it, and that proceeds are paid within 14 days unless the consignor waives this in writing after the sale.

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

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11. What is the maximum administrative penalty for a salesperson (an individual who does not own the business)?

    1. $100,000
    2. $50,000
    3. $5,000
    4. $200,000
    Show answer and explanation

    Correct answer: $50,000

    An individual who owns and operates the business, or a corporation, can face up to $100,000; any other individual, such as a salesperson, up to $50,000.

    Based on: Motor Dealer Act s. 26.05; official source checked 2026-10-24

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12. 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
    Show answer and explanation

    Correct answer: 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.

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

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13. For which purpose may a dealer withdraw consignment trust funds?

    1. To pay the consignor or a lien holder under the agreement
    2. To cover a short-term shortfall in the dealer's payroll
    3. To pay the dealer's fee before the consignor is paid
    4. To make a deposit on another vehicle for its inventory
    Show answer and explanation

    Correct answer: To pay the consignor or a lien holder under the agreement

    Withdrawals are allowed only to pay sale proceeds to the consignor or lien holder, to correct a deposit made by mistake, or to pay the dealer as the agreement allows after those disbursements.

    Based on: Motor Dealer Consignment Sales Regulation s. 6(4); official source checked 2026-10-24

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14. 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
    Show answer and explanation

    Correct answer: 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.

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

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15. The Fund pays a claim caused by a dealer. What must the dealer do?

    1. Pay only half, since the Fund shares the risk
    2. Repay it at its next annual renewal, without interest
    3. Repay the claim and determined investigation costs within 30 days of receiving notice, or a longer time allowed by the registrar
    4. Nothing, because the Fund exists to absorb all dealer losses
    Show answer and explanation

    Correct answer: Repay the claim and determined investigation costs within 30 days of receiving notice, or a longer time allowed by the registrar

    The notice identifies the claim payment and any investigation costs determined by the Board. Repayment is due within 30 days of receipt unless the registrar specifies a longer period. Non-payment can lead to cancellation of dealer registration.

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

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16. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Motor Dealer Act Regulation s. 31(5); official source checked 2026-10-24

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17. When may the registrar allow a dealer to sell vehicles away from its usual business premises?

    1. For any weekend sale event held in a shopping mall parking lot
    2. Only for vehicles priced under $5,000
    3. Whenever the dealer's lot is full and has no room
    4. For a motor show, RV show, public auction or other approved purpose
    Show answer and explanation

    Correct answer: For a motor show, RV show, public auction or other approved purpose

    On application, the registrar may exempt a dealer to sell at a motor show, recreational vehicle show or exhibition, an auction open to the public, or for another purpose the registrar accepts.

    Based on: Motor Dealer Act Regulation s. 6; official source checked 2026-10-24

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18. Subject to a regulatory exemption, what volume of the defined dealer activities triggers the Act’s deemed-dealer rule?

    1. Two or more vehicles within six months
    2. Five or more vehicles within 12 months
    3. Ten or more vehicles within 24 months
    4. Any number above three in a calendar year
    Show answer and explanation

    Correct answer: Five or more vehicles within 12 months

    Section 1(2) deems a person a dealer when they carry on the defined activities for five or more vehicles in a 12-month period, subject to exemption. The ordinary business-activity definition can apply below five; four sales are not an automatic safe harbour.

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

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19. Why should a buyer from a private seller in BC do a lien search?

    1. Private sellers must pay the buyer's taxes if there is no lien
    2. A lien search is required before any test drive
    3. A lien holder can repossess the vehicle from the new owner
    4. Liens make the vehicle's insurance cost double
    Show answer and explanation

    Correct answer: A lien holder can repossess the vehicle from the new owner

    An undisclosed unpaid loan or garage lien can expose a private buyer to repossession. Search the appropriate registry and make the transaction conditional on clear title; consider timing and out-of-province registrations. A search is a protection step, not an unlimited guarantee.

    Based on: VSA Curbers and Private Sales — lien checks; official source checked 2026-10-24

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20. When may a dealer call a vehicle a demonstrator or executive car?

    1. When a manager drove it home for one weekend
    2. When it is the current model year and still in the dealer's stock
    3. When used in normal business and bought by the dealer new
    4. When it has under 10,000 km on the odometer
    Show answer and explanation

    Correct answer: When used in normal business and bought by the dealer new

    Section 24 requires both normal-business use by the dealer/manufacturer and acquisition by the dealer as a new automobile before using the listed description. Low mileage or model year alone does not establish both conditions. A manager’s one-weekend use, without the acquisition condition, is insufficient evidence.

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

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21. A dealer's registration is cancelled. What must it do with its demonstration licences and plates?

    1. Surrender them to ICBC and return the certificate to the registrar
    2. Keep them for use on its personal vehicles
    3. Sell them to another registered dealer nearby
    4. Hold them on the lot until the registration is renewed next year
    Show answer and explanation

    Correct answer: Surrender them to ICBC and return the certificate to the registrar

    On suspension or cancellation, a dealer must immediately return its certificate to the registrar and surrender any demonstration licences and number plates to ICBC.

    Based on: Motor Dealer Act Regulation s. 9; official source checked 2026-10-24

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22. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Motor Dealer Act s. 34(1), (4); official source checked 2026-10-24

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23. An ad shows a bi-weekly payment in large type. What does the BPCPA require about the total price?

    1. It must be shown with at least the same prominence
    2. It may be left out if the payment is accurate
    3. It must be shown only if the buyer asks for it
    4. It may appear only on the dealer's website
    Show answer and explanation

    Correct answer: It must be shown with at least the same prominence

    It is a deceptive act to give the price of an instalment without giving the total price at least the same prominence.

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

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24. A dealer says a car has never been in a rental fleet when it has. Under the BPCPA this is a representation about what?

    1. A price benefit that does not exist
    2. A delivery date the supplier cannot meet
    3. A prior history or usage the vehicle does not have
    4. A sponsorship or approval the supplier does not have
    Show answer and explanation

    Correct answer: A prior history or usage the vehicle does not have

    Representing that goods have a particular prior history or usage they do not have, including saying they are new when they are not, is a deceptive act or practice.

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

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