BC VSA Salesperson Practice Test 6

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

1. Which fact about a used vehicle must the dealer disclose?

   1. It has had its tires rotated regularly
   2. It was serviced at a different dealership in another city
   3. It was washed and detailed before display
   4. It was brought into BC specifically to be sold
   Show answer and explanation

   Correct answer: It was brought into BC specifically to be sold

   Section 23(d) expressly concerns a used vehicle brought into BC specifically for sale, disclosed to the best of the dealer’s knowledge and belief. Section 23(c) separately covers lease/rental history and paragraph (e) covers odometer accuracy.

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

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2. From April 1, 2026, what VSA levy applies to a qualifying consumer vehicle sale or lease by a licensed BC dealer?

   1. A $25 levy that applies only to new vehicles
   2. A $50 levy paid by the salesperson
   3. A 1 per cent VSA levy on the selling price
   4. A fixed $10 VSA transaction levy
   Show answer and explanation

   Correct answer: A fixed $10 VSA transaction levy

   The VSA SOP sets a fixed $10 levy for qualifying consumer transactions from April 1, 2026. It includes qualifying consumer consignments but excludes wholesale and non-motor-vehicle transactions. The dealer owes the levy whether or not it recovers it from the consumer.

   Based on: VSA Transaction Levy Remittance SOP, scope and qualifying transaction; official source checked 2026-10-24

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3. Which act involving an odometer is an offence under the Motor Dealer Act?

   1. Altering it to mislead a buyer about the distance travelled
   2. Reading it aloud to the buyer during the test drive
   3. Showing the reading in kilometres instead of miles
   4. Replacing a broken one and recording the old reading on the agreement
   Show answer and explanation

   Correct answer: Altering it to mislead a buyer about the distance travelled

   Section 34(2) prohibits altering, disconnecting or replacing an odometer with intent to mislead a prospective buyer about distance. A replacement without that intent is not this particular offence; other operating, record and disclosure duties can still apply.

   Based on: Motor Dealer Act s. 34(2); Regulation s. 23(e); official source checked 2026-10-24

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4. Which activity can make someone a salesperson under the Motor Dealer Act?

   1. Answering phones and booking service appointments
   2. Taking part in arranging a sale for a dealer in hope of a reward
   3. Washing vehicles on the lot for an hourly wage
   4. Repairing customer vehicles in the dealer's service bay for wages
   Show answer and explanation

   Correct answer: Taking part in arranging a sale for a dealer in hope of a reward

   The Act includes an individual participating in soliciting, negotiating or arranging a dealer’s sale for or expecting a fee, gain or reward. The other scenarios are limited to the stated non-selling duties; a job title alone does not exempt someone who actually participates in sales.

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

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5. A salesperson tells a buyer that a dealer documentation fee is a government charge. Which code duty does this break?

   1. The duty to display the code of conduct at the premises
   2. The duty to report changes in address within 14 days
   3. The duty to keep consumer records for two years
   4. No false or misleading statements about amounts charged
   Show answer and explanation

   Correct answer: No false or misleading statements about amounts charged

   The code forbids false or misleading representations about any amount charged in a consumer transaction. VSA guidance also says presenting dealer fees as government fees is improper.

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

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6. What minimum type size applies to consignment and purchase agreements?

   1. 12 point bold throughout
   2. 8 point, in plain language
   3. 10 point, in capital letters only
   4. 6 point, in legal language
   Show answer and explanation

   Correct answer: 8 point, in plain language

   Every consignment agreement and purchase agreement must be in plain language, in not less than 8 point type, and easy for a reasonable person to understand.

   Based on: Motor Dealer Consignment Sales Regulation s. 5; official source checked 2026-10-24

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7. When goods are bought by description from a seller who deals in them, which condition is implied?

   1. They come with a five-year warranty
   2. They are of merchantable quality
   3. They will keep their full value
   4. They will never need any repairs
   Show answer and explanation

   Correct answer: They are of merchantable quality

   There is an implied condition that the goods are of merchantable quality, except for defects that the buyer's own examination ought to have revealed.

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

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8. Unless the consignor waives it in writing after the sale, when must the sale proceeds be paid out?

   1. Within 14 days after the sale
   2. Within 2 days after the sale
   3. Within 90 days after the sale
   4. Within 30 days after the sale
   Show answer and explanation

   Correct answer: Within 14 days after the sale

   Disbursement of the sale proceeds must take place within 14 days after the sale unless the consignor specifically waives this right in writing after the sale.

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

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9. A salesperson promises a buyer free winter tires during negotiations. What does the code of conduct require?

   1. Nothing, because spoken promises are never legally binding
   2. A separate email sent after delivery
   3. Only a note in the salesperson's own diary
   4. The promise must be included in the written agreement
   Show answer and explanation

   Correct answer: The promise must be included in the written agreement

   Licensees and dealers must include in the written agreement any representations made, orally or in writing, about the transaction. Leaving a verbal promise out breaches the code.

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

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10. Which body administers the Motor Dealer Act for vehicle sales to consumers in BC?

    1. Consumer Protection BC, through its travel branch
    2. The Vehicle Sales Authority of BC
    3. The BC Financial Services Authority
    4. The Insurance Corporation of British Columbia
    Show answer and explanation

    Correct answer: The Vehicle Sales Authority of BC

    The Motor Dealer Council of BC, operating as the Vehicle Sales Authority (VSA), administers the Motor Dealer Act through the registrar. ICBC handles vehicle insurance and registration, and the other bodies regulate other industries.

    Based on: Motor Dealer Act s. 1, authority; s. 2; official source checked 2026-10-24

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11. Which vehicles are exempt from the window-sticker requirements?

    1. Vehicles in a storage area or inventory not yet prepared for sale
    2. Vehicles that the dealer advertises online only
    3. Vehicles priced over $100,000 that are parked on the showroom floor
    4. Vehicles sold on consignment for a private owner
    Show answer and explanation

    Correct answer: Vehicles in a storage area or inventory not yet prepared for sale

    The sticker rules do not apply to vehicles in a storage area or to inventory that has not yet been prepared for sale.

    Based on: Motor Dealer Act Regulation s. 28; official source checked 2026-10-24

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12. Which is a listed potentially eligible Fund loss, subject to the other claim requirements?

    1. Lost wages while the car was in for warranty repairs
    2. Repair costs because the car turned out to be unreliable
    3. A deposit the dealer cannot return because it went bankrupt
    4. The difference between the price paid and market value
    Show answer and explanation

    Correct answer: A deposit the dealer cannot return because it went bankrupt

    Bankruptcy or similar dealer failure causing loss of a deposit is listed. Refusal without lawful justification, dishonesty and undisclosed title charges are other specified grounds. Cost, value or quality complaints about a received vehicle are excluded; approval is not automatic.

    Based on: Compensation Fund Regulation ss. 5–7; official source checked 2026-10-24

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13. The registrar has reason to believe a person has contravened the Act. Which written compliance instrument may the registrar accept?

    1. A written undertaking, for example to compensate consumers
    2. A verbal promise to do better next time
    3. A donation to a consumer charity
    4. A transfer of the dealer's licence to one of its managers
    Show answer and explanation

    Correct answer: A written undertaking, for example to compensate consumers

    A written undertaking may include compliance, stopping a practice, consumer compensation, security and investigation costs. It is not an automatic exemption from other enforcement; the registrar may terminate a proceeding on accepting it.

    Based on: Motor Dealer Act s. 26.01; official source checked 2026-10-24

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14. After making the demand on the dealer, how long does the claimant normally have to apply to the Fund?

    1. 30 business days
    2. 1 year
    3. 120 days
    4. 4 years
    Show answer and explanation

    Correct answer: 120 days

    An application must be made within 120 days after the demand, unless the registrar accepts that extenuating circumstances prevented it.

    Based on: Compensation Fund Regulation ss. 8.1; official source checked 2026-10-24

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15. What does the VSA say about extended-term vehicle loans of 72 to 96 months?

    1. They can lead to negative equity and a cycle of debt
    2. They always cost less overall than shorter loans do
    3. They are banned for consumer purchases in BC
    4. They protect buyers from depreciation
    Show answer and explanation

    Correct answer: They can lead to negative equity and a cycle of debt

    The VSA warns that extended-term loans (typically 72–96 months) can lead to negative equity and a cycle of debt; buyers should consider how long they will keep the vehicle and whether it will last the term.

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

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16. A dealer offers unlicensed customers $200 for each friend they solicit who buys a car. Why does VSA guidance prohibit this?

    1. Only manufacturers may run referral reward programs
    2. The reward must be paid through the VSA to be legal
    3. Referral rewards must be at least $500 to be legal
    4. The referrer would be acting as an unlicensed salesperson
    Show answer and explanation

    Correct answer: The referrer would be acting as an unlicensed salesperson

    VSA explains that soliciting for a dealer’s consumer sale with an expected fee, gain or reward is salesperson activity requiring a licence. Cash, services and upgrades can be rewards. The case specifies unlicensed referrers; it does not say a licensed salesperson’s authorized work is forbidden.

    Based on: VSA Referral Fees — unlicensed referral rewards; official source checked 2026-10-24

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17. What should a written deposit agreement state?

    1. What it is for, whether it is refundable and on what terms
    2. Only the amount and the salesperson's initials
    3. Only the vehicle's VIN and the deposit date
    4. Only the dealer's registration number and business address
    Show answer and explanation

    Correct answer: What it is for, whether it is refundable and on what terms

    The VSA recommends a written deposit agreement stating what the deposit is for, whether it is refundable and under what terms, whether it applies to the price and when the vehicle will be available.

    Based on: VSA Deposits — written deposit agreement best practice; official source checked 2026-10-24

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18. A dealer knowingly exploits a buyer’s inability to understand the transaction language and applies undue pressure to obtain a loan signature. Which BPCPA issue should be examined?

    1. An unconscionable act or practice
    2. A permitted credit promotion
    3. A distance sales contract
    4. A future performance contract
    Show answer and explanation

    Correct answer: An unconscionable act or practice

    Undue pressure and taking advantage of an inability to protect one’s interests are listed circumstances. Age or language alone does not automatically make every transaction unconscionable; the court examines all surrounding circumstances.

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

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19. Can a consumer give up the one-clear-day lease cancellation period?

    1. Yes, but only for used vehicle leases
    2. Yes, by waiving it in writing
    3. Yes, verbally to the salesperson
    4. No, it can never be waived
    Show answer and explanation

    Correct answer: Yes, by waiving it in writing

    A consumer may waive in writing the requirement that the dealer keep the vehicle for one clear day. A verbal waiver does not meet the rule.

    Based on: Motor Dealer Act Regulation s. 31(6); official source checked 2026-10-24

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20. What must every written sale agreement and ad from a BC dealer include?

    1. The manufacturer's head office address and its warranty phone line
    2. The dealer's name and the word dealer with its registration number
    3. The VSA's mailing address and fax number on each page
    4. The salesperson's home phone number and email address
    Show answer and explanation

    Correct answer: The dealer's name and the word dealer with its registration number

    Every written sale or purchase agreement, advertisement and written representation must include the dealer's name and the word "dealer" followed by its registration number.

    Based on: Motor Dealer Act s. 13(1); official source checked 2026-10-24

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21. Where must a dealer display its certificate of registration?

    1. In a conspicuous location at its usual place of business
    2. Inside the glovebox of every vehicle offered for sale
    3. In a locked file the VSA can ask to see
    4. On its website only, not at the dealership
    Show answer and explanation

    Correct answer: In a conspicuous location at its usual place of business

    A registrant must display its certificate of registration in a conspicuous location at its usual place of business.

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

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22. A salesperson leaves out that a car was flood damaged, and the buyer is misled. Under the BPCPA this can be deceptive because of what?

    1. Offering a financing rate above the bank's rate
    2. Quoting a price that includes freight and PDI
    3. Using an accurate stock photo of the same model in the ad
    4. Failing to state a material fact with a misleading effect
    Show answer and explanation

    Correct answer: Failing to state a material fact with a misleading effect

    Using exaggeration, innuendo or ambiguity about a material fact, or failing to state a material fact, is deceptive if the effect is misleading.

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

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23. When may a dealer sell vehicles online away from its business premises?

    1. Only for vehicles located outside of British Columbia
    2. When every vehicle it sells online is in its own inventory
    3. Whenever the buyer signs a waiver of their consumer rights
    4. Only after paying a separate internet sales licence fee
    Show answer and explanation

    Correct answer: When every vehicle it sells online is in its own inventory

    The premises rule does not apply to a dealer doing business electronically, including on the internet, if every vehicle it deals with that way is in the dealer's inventory.

    Based on: Motor Dealer Act s. 3(1.1); official source checked 2026-10-24

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24. What must the sticker on a new vehicle offered for sale list?

    1. Only the price, with options listed at the desk
    2. The names of previous test-drive customers
    3. VIN, make, model, all-in price and each attached option
    4. The dealer's cost and the salesperson's commission on the sale
    Show answer and explanation

    Correct answer: VIN, make, model, all-in price and each attached option

    A new vehicle offered for sale must carry the VIN, make and model, a price including attached options, freight and PDI, and an itemized list of each attached accessory or option.

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

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