BC VSA Salesperson Practice Test 5

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

1. 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
   Show answer and explanation

   Correct answer: 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.

   Based on: VSA Licensing course policies — re-entering the industry; official source checked 2026-10-24

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2. Which consigned vehicle can fall within the Act’s definition of a dealer’s inventory?

   1. A vehicle the dealer is authorized to sell under a compliant consignment agreement
   2. Any stranger’s vehicle copied into an advertisement without authority
   3. Any customer’s car merely parked nearby with no selling agreement
   4. Any vehicle the dealer hopes to buy but has no right to sell
   Show answer and explanation

   Correct answer: A vehicle the dealer is authorized to sell under a compliant consignment agreement

   The inventory definition includes vehicles the dealer is authorized to sell under a consignment agreement complying with the Motor Dealer Consignment Sales Regulation. A dealer need not own every qualifying consigned vehicle, but possession or advertising alone does not establish the required authority.

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

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3. 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
   Show answer and explanation

   Correct answer: 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.

   Based on: BPCPA s. 8(2)–(3)(c); official source checked 2026-10-24

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4. 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
   Show answer and explanation

   Correct answer: 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.

   Based on: BPCPA ss. 18.2, 18.4(1), (2)(c), 50–51; official source checked 2026-10-24

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5. 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
   Show answer and explanation

   Correct answer: 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.

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

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6. Before the VSA refuses a salesperson licence in the public interest, what must it give the applicant?

   1. A second attempt at the licensing exam
   2. Notice, a chance to be heard and written reasons
   3. A referral to the Compensation Fund Board
   4. A full refund of the course fee and nothing else
   Show answer and explanation

   Correct answer: Notice, a chance to be heard and written reasons

   The VSA may refuse if, given the applicant's conduct, licensing would not be in the public interest, but only after notice, an opportunity to be heard (written, electronic or oral) and written reasons.

   Based on: Salesperson Licensing Regulation ss. 5, 8; official source checked 2026-10-24

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7. 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
   Show answer and explanation

   Correct answer: 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.

   Based on: Sale of Goods Act ss. 16, 20; official source checked 2026-10-24

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8. 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
   Show answer and explanation

   Correct answer: 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.

   Based on: Motor Dealer Act s. 13(4); official source checked 2026-10-24

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9. Which agreement is covered by the code of conduct's definition of agreement?

   1. An agreement for an extended warranty or service plan
   2. A dealer's lease of its building from a landlord
   3. An employment contract with a lot attendant
   4. A dealer's contract with its cleaning company
   Show answer and explanation

   Correct answer: An agreement for an extended warranty or service plan

   Agreements under the code include vehicle purchase or sale agreements, broker-agent service agreements, credit agreements, warranty or service plan agreements, insurance agreements and other consumer supply agreements — not the dealer's own business contracts.

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

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10. How soon must a dealer deposit a buyer's payment for a consigned vehicle into its trust account?

    1. When the consignor asks
    2. Within seven days of receiving it
    3. At the end of the month
    4. Within one day of receiving it
    Show answer and explanation

    Correct answer: Within one day of receiving it

    Within one day after receiving payment from the purchaser, the dealer must deposit it in a designated trust account at a savings institution in BC.

    Based on: Motor Dealer Consignment Sales Regulation s. 6(3); official source checked 2026-10-24

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11. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Motor Dealer Act ss. 1, 3(1)–(1.1); official source checked 2026-10-24

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12. 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
    Show answer and explanation

    Correct answer: 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.

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

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13. The registrar receives a complaint and asks a dealer in writing for information. What must the dealer do?

    1. Reply only if a court orders it to
    2. Refer the registrar to the customer who complained instead
    3. Wait until the next annual renewal
    4. Provide the information the registrar requests
    Show answer and explanation

    Correct answer: Provide the information the registrar requests

    When the registrar receives a complaint and requests information in writing, indicating the nature of the complaint, the dealer must provide it. The registrar may also enter the premises during normal business hours to inspect.

    Based on: Motor Dealer Act s. 25(1)–(3); official source checked 2026-10-24

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14. 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
    Show answer and explanation

    Correct answer: 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.

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

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15. A lease says the vehicle may not leave BC without permission. When must the dealer tell the consumer?

    1. At the end of the lease when it is returned
    2. Only if the consumer asks about travel plans
    3. After the first monthly payment is made
    4. In writing before the consumer signs the lease
    Show answer and explanation

    Correct answer: In writing before the consumer signs the lease

    Limits on the consumer's use and enjoyment of the vehicle, such as authorized drivers or taking it out of BC, must be disclosed in writing before the lease is signed and included in the lease.

    Based on: Motor Dealer Act Regulation s. 30(2)(e), (3); official source checked 2026-10-24

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16. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Motor Dealer Consignment Sales Regulation s. 6(1)–(2); official source checked 2026-10-24

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17. 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
    Show answer and explanation

    Correct answer: 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.

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

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18. 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
    Show answer and explanation

    Correct answer: 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.

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

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19. 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
    Show answer and explanation

    Correct answer: 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.

    Based on: Motor Dealer Act s. 3(1)(a); official source checked 2026-10-24

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20. Neither a vehicle’s ad nor its window sticker states an additional dealer documentation fee. Under VSA guidance, what may the buyer assume about that dealer fee?

    1. That any fees are already included in the price
    2. That the dealer may add up to $500 in fees
    3. That the usual fees will still be added at signing
    4. That government fees will be shown later
    Show answer and explanation

    Correct answer: That any fees are already included in the price

    VSA guidance says the consumer may assume an unmentioned additional dealer fee is included in the displayed price. This question is about the dealer documentation fee, not a blanket statement that tax or every registration charge must be treated identically. Read any stated exclusions and the actual total-price rules.

    Based on: VSA consumer protection facts — Dealer Fees, advertised/window-sticker price; official source checked 2026-10-24

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21. What limit applies to additional contributions the registrar can demand in one year?

    1. No more than 10 per cent of the dealer's sales
    2. No more than the annual contribution itself
    3. There is no limit on additional contributions
    4. No more than twice the annual contribution
    Show answer and explanation

    Correct answer: No more than twice the annual contribution

    The registrar may require additional contributions to keep the fund sufficient, but not more than twice the annual contribution in any one year; dealers pay within 21 days of notice.

    Based on: Compensation Fund Regulation ss. 3; official source checked 2026-10-24

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22. 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
    Show answer and explanation

    Correct answer: 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.

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

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23. When may the registrar enter a dealer's premises to inspect about a complaint?

    1. Only with a search warrant from a judge
    2. Only when the dealer's owner is present
    3. Only after giving the dealer 30 days' written notice
    4. At any reasonable time during normal business hours
    Show answer and explanation

    Correct answer: At any reasonable time during normal business hours

    For a complaint, the registrar or a person designated in writing may enter the dealer's business premises at any reasonable time during normal business hours to inspect.

    Based on: Motor Dealer Act s. 25(3); official source checked 2026-10-24

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24. 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
    Show answer and explanation

    Correct answer: 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.

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

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