Continuing Education Edition - Got Plates
Bottom of Form
|TABLE OF CONTENTS | |
|TABLE OF CONTENTS 1 | |
|ABOUT THE INTERIM REFRESHER COURSE ON AB 68 2 | |
|SECTION 1 3-10 | |
|OVERVIEW OF ASSEMBLY BILL 68 3 | |
|AB 68 PROVISIONS 3 | |
|AB 68 RETAIL POSTING NOTICE 4 | |
|EXISTING NO COOLING OFF PERIOD NOTICE 4 | |
|RETAIL HOURS OF OPERATION POSTING REGULATIONS 5 | |
|CANCELLATION FEE OPTION PRICING SCHEDULE 5 | |
|AB 68 CONTRACT CANCELLATION FEE POSTER 6 | |
|AB 68 CANCELATION OPTION AGREEMENT PROVISIONS 7 | |
|AB 68 OPTION RESTOCKING FEE POSTER 8 | |
|AB 68 CONDITIONAL SALES CONTRACT PROVISIONS 9 | |
|AB 68 CAR BUYER BILL OF RIGHTS PROVISIONS SIGN…………………………….10 | |
|SECTION 2 11-17 | |
|AB 68 VEHICLE RETURN PROVISIONS 11 | |
|AB 68 TRADE IN PROVISIONS 12 | |
|AB 68 REGISTRATION FEE PROVISIONS 12 | |
|AB 68 CREDIT SCORE DISCLOSURE PROVISIONS 13 | |
|AB 68 ADD-ON DISCLOSURE PROVISIONS 14 | |
|AB 68 ADD-ON DISCLOSURE FORM 14 | |
|AB 68 DEALER PROVIDED FINANCING MARKUP PROVISION 15 | |
|AB 68 CERTIFIED VEHICLE ADVERTISING PROVISIONS 16 | |
|AB 68 ENHANCED PENALTY PROVISIONS 17 | |
|AB 68 PROVISIONS 17 | |
|TEST QUESTIONS 1-20 18-19 | |
|Questions 1-10 18 | |
|Questions 11-20 19 | |
|TEST ANSWERS 1-20 20-21 | |
|Answers 1-10 20 | |
|Answers 11-20 21 | |
| | |
Continuing Education Edition
Refresher Course on AB 68
TriStar Motors, L. L. C. -
San Francisco, California 2011
THE INTERIM REFRESHER COURSE PROGRAM
1. The Refresher Course reviews the Car Buyer Bill of Rights (AB 68) which became effective July 01, 2006. If you are a car dealer you need to know the information provided in this study guide.
2. [pic]Did You Know icons which are located throughout the Study Guide, provide you with additional information and links about the given topic you are reviewing.
3. On many topics we also provide you with helpful links to sites and forms that we feel might be a useful resource for you - feel free to bookmark these sites as you go along.
4. At the end of the end of the study guide you will find a 20 question test with multiple choice answers.
Best Regards,
The TriStar Team
Also, Autogodfather is on and
Car dealer books are available at
Pre-Licensing Handbook $35
Registration Handbook $45
TriStar Forms Kit $55
Red Flags Rule – Complete Program $500
Study Guide | SECTION 1
OVERVIEW OF ASSEMBLY BILL 68
The Car Buyer's Bill of Rights
Effective July 01, 2006
Creates an optional cooling off period for used vehicle purchases minimum of 2 days ( 48 hours )
Creates NEW advertising requirements and requires each dealer to define certified used vehicles
Creates a cap ( maximum ) on the amount a dealer can mark up a finance rate
Creates additional disclosure requirements for credit scores and aftermarket add-on items.
Establishes NEW causes of action against a dealer's license.
For AB68 Provisions Sign go to:
AB 68 PROVISIONS
The new law, AB68, includes a provision which mandates the dealer to offer a contract cancellation option for the buyer of a used motor vehicle.
The dealer must offer a contract cancellation option to each buyer ( unless the sale is exempt, exemptions listed below )
A dealer must offer the contract cancellation option for the sale of any used vehicle unless:
• It is not a retail sale ( wholesale transactions do not require an option )
• The purchase price is over $40,000.
• The vehicle is a motorcycle, off road vehicle or recreational vehicle.
• The vehicle is sold for commercial use.
• The buyer has returned a vehicle to the same dealer under a contract cancellation option within the prior 30 days.
AB 68 RETAIL POSTING NOTICE
- For the Contract Cancellation Option Notice go to:
[pic]
|If the buyer declines to accept the contract cancellation option, the provisions of existing law apply. The existing signage must be in place at the |
|retail location and the no cooling off period provision remains a signoff on the retail conditional sales contract. |
EXISTING NO COOLING OFF PERIOD NOTICE
For “No Cooling Off Period” Notice go to:
[pic]
|The buyer declining the contract cancellation option actually improves the strength of the no cooling off provision for the dealer. The dealer must offer|
|the option. The buyer may accept or decline the contract cancellation option and must do so in written form. |
- For the new "Contract Cancellation Fee Schedule" sign go to:
- For the new "Contract Cancellation Restocking Fee Schedule" sign go to:
If the buyer chooses to accept the contract cancellation option, he may opt to cancel the contract under the provisions of the option. The dealer has a choice of fees and provisions for the option he must offer to the buyer.
The option must have a minimum time requirement to cancel the contract that minimum is the close of the dealer's place of business on the second day after the delivery of the vehicle. The dealer may extend the amount of time to exercise contract cancellation option.
RETAIL HOURS OF OPERATION POSTING REGULATIONS
[pic]
|This new law will require each retail dealer to maintain and post regular business hours. If a dealer sells a car on a Friday, and the buyer accepts the |
|contract cancellation option with the minimum 48 hour provision and the dealer is normally closed on Saturday and Sunday, the buyer would have until the |
|close of business on Tuesday to return the vehicle and exercise the option. |
CANCELLATION FEE OPTION PRICING SCHEDULE
The maximum purchase price for the contract cancellation option is based on the cash price of the vehicle.
The dealer may offer the contract cancellation option at no charge to the buyer. If the dealer does charge for the option, the provisions are:
• $75 for a vehicle with a cash price of $5,000 or less.
• $150 for a vehicle with a cash price of $5,000 but less than $10,000.
• $250 for a vehicle with a cash price of $10,000 but less than $30,000.
• 1% of purchase price for $30,000 but not more than $40,000
- For the new "Contract Cancellation Fee Schedule" sign go to:
The dealer must cancel a conditional sales contract if the buyer decides to obtain and exercise the contract cancellation option. The dealer shall, upon return of the vehicle and following a written return inspection, provide the buyer with a full refund. The dealer shall make the refund within two days of the date of cancellation, including sales tax and any registration fees, but excluding:
• The cost of the contract cancellation option
• A restocking fee: The restocking fee is limited to:
• $ 175 with a cash price of $5000 or less
• $ 350 with a cash price of less than $10,000.
• $ 500 with a cash price of $10,000 or more.
However, the cost of the contract cancellation option fee must be subtracted from the restocking fee.
A definition of "full refund" for the above purchases includes the return of any trade-in vehicle or, if it has been sold, either the fair market value of the traded in vehicle or its value stated in the contract, whichever is greater.
AB 68 CONTRACT CANCELLATION FEE POSTER
Assembly Bill 68
The Car Buyer's Bill of Rights
Effective July 01, 2006
The new law includes a provision which mandates the dealer must offer a contract cancellation option to the buyer of a used motor vehicle.
The maximum purchase price for the contract cancellation option is based on the cash price of the vehicle.
A dealer may offer the contract cancellation option at no charge to the buyer. If the dealer does charge for the option, the allowable fees:
• $ 75. cash price of $ 5,000 or less.
• $ 150. cash price of $ 5,000 but less than $10,000.
• $ 250. cash price of $ 10,000 but less than $ 30,000.
• 1% of purchase price cash price of $ 30,000 but not more than $ 40,000.
- For Contract Cancellation Option Agreement Disclosure Form go to:
[pic]
|Every retail dealer shall have these items posted in the main sales location, visible to the public. The notices must also be visible to the retail |
|customer at the time of document explanation and signing. The no cooling off period provisions are also a required signoff on the 553, retail sales |
|contract. |
AB68 CANCELATION OPTION AGREEMENT PROVISIONS
The Contract Cancellation Option Agreement must be a separate document from the sales contract and must include:
• The VIN# and description of the vehicle ( year make and model )
• Specification of the time frame for to exercise cancellation option
( Minimum of 2 days, no maximum time frame )
• The restocking fee charged to the buyer if the vehicle is returned.
( See schedule of allowable restocking fee and total option fee )
• A statement specifying the maximum number of miles allowed prior to return of the vehicle and exercise the cancellation option ( the amount specified must be no less than 250 miles )
( No limit to the maximum amount of miles a dealer may specify )
• Specification of allowable condition of the vehicle for return.
( Delivery and return inspections required )
• A place for the buyer's signature to elect the option to cancel.
( The buyer must elect to purchase the option in writing )
• Specification of the date and time that the buyer can exercise option.
( The business hours of the dealer may extend the option time )
[pic]
|The dealer may extend the time frame to any length they desire as long as the option has a minimum of 48 hours and the business is open during the option|
|period. |
[pic]
|The dealer may adjust the option fee and restocking fee amounts as long as the total contract cancellation fees do not exceed the allowable amounts. |
[pic]
|The dealer must allow 250 miles of use if the buyer accepts the contract cancellation option, but may increase that amount with no maximum. |
[pic]
|The dealer must institute a written system for inspection when the buyer elects to accept the contract cancellation option. We suggest an inspection form|
|for delivery and return and a minimum of 8 photos with each inspection. We suggest the buyer sign and acknowledge the inspection forms and of course, |
|receive a copy at signing. |
[pic]
|This new law will require each retail dealer to maintain and post regular business hours. We suggest the contract cancellation option have these hours |
|printed on the form and the contract cancellation option expiration date be clearly listed. A 24 hour number for emergency notification is also |
|suggested. |
- For Delivery Inspection Form go to:
AB 68 OPTION RESTOCKING FEE POSTER
Assembly Bill 68 The Car Buyer's Bill of Rights Effective July 01, 2006
The new law includes a provision which mandates the dealer must offer a contract cancellation option to the buyer of a used motor vehicle.
The maximum purchase price for the contract cancellation option and the restocking fee is based on the cash price of the vehicle.
A dealer may charge a restocking fee if the buyer accepts the option and the dealer accepts the vehicle for return. If the dealer does charge for the option and restocking, the total maximum allowable fees:
• $ 175. cash price of $ 5,000 or less.
• $ 350. cash price of $ 5,000 but less than $10,000.
• $ 500. cash price of $ 10,000 but less than $ 40,000.
Remember, the option fee must be subtracted from the total maximum allowable fees. The maximum restocking fee will be the amount remaining when the option fee has been subtracted.
- For the Contract Cancellation Option Notice go to:
AB 68 CONDITIONAL SALES CONTRACT PROVISIONS
A conditional sales contract must include a disclosure next to the space reserved for the buyer's signature, notifying the buyer that a used vehicle may be returned and the transaction cancelled within the time-frame specified in the dealer's cancellation option agreement.
The new law revises the existing contract disclosure and signage requirements regarding a cooling off period to note there is an optional cooling off period available for used vehicle sales.
For the Contract Cancellation Option Notice go to:
The dealer should remember that regardless of whether the buyer chooses to accept or decline the contract cancellation option, the vehicle is "sold" as of the date the buyer signs the contract and takes delivery.
The current regulations remain valid which state that registration fees (if applicable) are required and considered used when the vehicle is placed on the road without dealer plates. Remember, a retail buyer can only drive a dealer plated vehicle on a test drive. A new buyer cannot drive a "purchased" vehicle on dealer plates.
[pic]
|The buyer may make a test drive of an inventory vehicle with the written permission of the dealer for up to seven (7) days. The dealer should collect a |
|copy of the drivers license and current insurance card and issue a permission slip. If these regulations are followed, Insurance Code 11580 provides |
|primary coverage of the dealers car on the buyers insurance policy. We suggest you contact the buyer’s insurance agent and get a FAX confirming a current|
|insurance policy is on file. |
AB68 PROVISIONS SIGN
Online go to:
Study Guide | SECTION 2
AB 68 VEHICLE RETURN PROVISIONS
The new law specifies the return of a vehicle under a contract cancellation option must be documented in written form.
A contract cancellation under this option takes effect when the buyer gives written notice of cancellation to the dealer at the address specified in the contract and returns the vehicle to the dealer within the timeframe allowed.
The below conditions apply when the buyer decides to exercise the option and return the vehicle.
The vehicle must be in substantially the same condition as at delivery, excluding normal wear and tear. The written inspection standards must be outlined in a purchase inspection form and then matched with a return inspection form.
The mileage at the time of return must not exceed the mileage at delivery by more than 250 miles (or any greater amount as indicated in the contract cancellation option disclosure form).
The buyer must return to the dealer the original copy of the conditional sales contract and all original titling and registration documents provided to the buyer. This includes the temporary operating permit, known by the nickname "The Happy Sticker".
The vehicle must be free of all liens and encumbrances other than the ones created by the conditional sales contract, any loan arranged by the dealer, or any loan obtained by the buyer from a third party.
[pic]
|Your return agreement and inspection form should include a statement from the buyer accepting full responsibility for parking tickets, toll fees, fastrac|
|violations, in the event these become known to the dealer following a full refund. |
A dealer must cancel a conditional sales contract if the buyer decides to obtain and exercise the contract cancellation option. The dealer shall, upon return of the vehicle and following a written return inspection, provide the buyer with a full refund. The dealer shall make the refund within two days of the date of cancellation, including sales tax and any registration fees, but excluding:
• The cost of the contract cancellation option
• A restocking fee: The restocking fee is limited to:
o $ 175 with a cash price of $500 or less
o $ 350 with a cash price of less than $10,000.
o $ 500 with a cash price of $10,000 or more.
However, the cost of the contract cancellation option fee must be subtracted from the restocking fee.
A definition of "full refund" for the above purchases includes the return of any trade-in vehicle or, if it has been sold, either the fair market value of the traded in vehicle or its value stated in the contract, whichever is greater.
AB 68 TRADE IN PROVISIONS
If the purchase included a trade-in vehicle or comparable compensation for one, the dealer has two options, depending on whether or not a fee was charged for the contract cancellation option.
If the buyer paid any fee for the contract cancellation option, the dealer must retain the trade-in until the contract cancellation options stated expiration date and time has passed, taking into account hours of operation and availability of the dealer for the buyer to return the vehicle. The trade-in vehicle must remain available to return to the buyer, if the buyer’s elects to exercise the contract cancellation option.
If the trade-in is inadvertently sold or otherwise disposed of, the dealer must provide complete comparable compensation (based on the fair market value assigned to the trade-in the sales contract.)
Failure to retain the vehicle may be a cause for action, unless the dealer has a procedure in place to retain vehicles and sale is an error. If procedures are in place, there is no violation.
If the buyer paid no fee for the cancellation option, the dealer is not required to retain the trade-in. If the contract is cancelled, the dealer is not required to retain the trade-in. If the contract is cancelled, the dealer must return the trade-in ( if available ) or refund the fair market value or value stated in the sales contract.
[pic]
|A dealer entering into a contract cancellation option with a buyer is well advised to hold the trade - in vehicle until the option expires. A smog and |
|safety can be completed during the hold period, at the dealers expense, and the vehicle may legally be offered for sale, BUT, a dealers best bet is to |
|have the trade-in available if at all possible in case the return option is exercised. |
AB 68 REGISTRATION FEE PROVISIONS
The dealer must remember, the DMV requirements for fees/registration/documents are the same as for any other roll-back of a sale. The existing DMV requirements for when fees are due or when documents are required and due remain in effect.
[pic]
|Most dealers hire a registration service to process their DMV transactions. These services must be licensed, bonded and insured. The typical fee is |
|between $ 10 - $ 20 per car, well below the maximum document preparation fee a dealer is allowed to charge the retail buyer. |
The new law requires the dealer must return registration fees collected to the buyer when the contract cancellation option is exercised.
If the vehicle was operated so as to cause fees to become due (that is, the vehicle was not currently registered at the time of sale), then those fees must be posted with the DMV. A dealer may collect prorated registration fees (based on the number of months left in the registration year) from a subsequent buyer.
[pic]
|The dealer is only allowed to charge the retail buyer for registration fees from the date of sale forward. All back fees, penalties and liens upon a |
|vehicle are the responsibility of the dealer and must be paid upon retail sale. |
| |
|In a rollback situation these back fees are held by the DMV and the dealer may prorate the fees for current registration when the vehicle is resold. |
| |
|The dealer may not hold these fees from the buyer exercising the contract cancellation option. |
See Related Links
- For the DMV’s Fee Calculator go to:
- For TriStar’s Motors Contract Preparation Form go to:
- For our preferred registration service provider go to:
Also see Our Car Buyer Bill of Rights Contract Cancellation Option Agreement Forms:
- For the Delivery Inspection Disclosure go to:
- For the Delivery Inspection Form go to:
- For the Return Inspection Disclosure go to:
- For the Return Inspection Form go to:
- For the Refund Disposition go to:
- for the AB68 Option Denial Form go to:
AB 68 CREDIT SCORE DISCLOSURE PROVISIONS
Every dealer who prepares to make a sale and attempts to arrange financing using a conditional sale contract must clearly and conspicuously disclose to the buyer any three-digit credit score of the buyer obtained form a credit reporting agency. This credit score disclosure must be separate a document that includes the name and address of the seller, discloses the three digit credit score, the name, address and phone number of any credit reporting agency from which the dealer obtains a credit score, and the range of scores established by the credit agency.
- For the AB68 credit score disclosure form go to:
AB 68 ADD-ON DISCLOSURE PROVISIONS
If the sale or lease includes the sale of the following:
• service contract or maintenance plan
• insurance product
• theft product
• theft deterrent or protection product
• debt collection agreement
• exterior or interior surface protection
Every dealer must provide the buyer a separate written document that includes the name and address of the seller at the top and the date of the contract. The disclosure must reflect:
description and the cost of each individual item the total cost of all of the items the
amount of the installment payment if the buyer does not purchase the items the
amount of the installment payment if the buyer agrees to purchase the items.
After each separate disclosure is provided to the buyer, the buyer will have to decide to either purchase or not to purchase the item.
If the buyer rejects any item or decides to purchase additional items, then a new set of disclosure forms must be provided.
When the disclosures are completed, the totals must be shown on each disclosure.
[pic]
|The Car Buyer Bill of Rights, effective July 01, 2006, states that a dealer who fails to provide the buyer these disclosures risks: |
| |
|DMV enforcement of a cause for action against a dealer's license |
|and/or |
|misdemeanor crime prosecution by the local district attorneys office. |
- For the DMV Complaint Form go to:
AB 68 ADD-ON DISCLOSURE FORM
- For the Car Buyer Bill of Rights Conditional Sales Contract Itemized Add-On Disclosure go to:
AB 68 DEALER PROVIDED FINANCING MARKUP PROVISIONS
The Car Buyer Bill of Rights, effective July 01, 2006 prohibits every dealer, when assigning a conditional sale contract, to a lender or outside financing agency, from receiving or accepting a finance charge in an amount in excess of:
2.5% for contracts up to 60 months
and
2% for contracts over 60 months.
This limitation does not apply when:
the assignment requires the dealer to bear the entire risk of financial performance of the buyer.
the assignment is more than 6 months after the date of the conditional sale contract.
[pic]
|If a dealer decides to accept or receive an amount higher than that authorized above, the dealer risks: |
| |
|DMV enforcement action as a cause of action against their dealer's license |
|and/or |
|misdemeanor crime prosecution by the local district attorneys office. |
[pic]
|The DMV may view isolated instances resulting from bona fide errors as violations which may be correctable, provided that the dealer maintains reasonable|
|procedures to guard against such errors and if upon notice of the error, the dealer remits back to the buyer any amount received in excess of the amount |
|permitted. This ability to correct a violation will of course, lessen as the law becomes seasoned into the automotive industry. |
AB 68 CERTIFIED VEHICLE ADVERTISING PROVISIONS
The Car Buyer Bill of Rights begins to regulate the definition of "certified pre-owned" vehicles as current law does not regulate the advertising of "certified pre-owned" or other similar terms. The new law, AB 68 regulates the use of these terms both by prohibiting dealers from advertising for sale or selling certain vehicles as "certified" and establishing a specific set of requirements to be met in order to advertise a vehicle as "certified".
A Dealer may not advertise a vehicle as "certified" if:
The vehicle has sustained damage from an impact, fire, or flood that substantially impairs its use or safety
The dealer knows or should have known that the vehicle has sustained frame damage
The dealer knows or should have known that the odometer has been rolled back, altered or replaced to show fewer miles than
actually driven
The dealer knows and or should have known that the vehicle has been repurchased by a dealer or manufacturer due to state
or federal "lemon laws"
The vehicle's title has been branded as a lemon law buyback, manufacturer repurchase, salvage, junk, non-repairable, flood or
similar designation by CA or another state
The dealer disclaims any warranties on the vehicle or the vehicle is sold "as is"
A dealer cannot advertise a vehicle as "certified" unless:
Prior to the sale, the dealer gives the buyer a completed inspection report indicating all the components inspected under their
vehicle certification program.
[pic]
|If a dealer decides to use the terms " certified used vehicle " or similar terms without documentation, the dealer risks: DMV enforcement action as a |
|cause of action against their dealer's license and/or misdemeanor crime prosecution by the local district attorneys office. |
[pic]
|Every dealer using these terms would have to institute and maintain written details of exactly what constitutes their certified vehicle inspection |
|program. |
Also see these Links:
- For the Certified Vehicle Inspection Sign go to:
- For the How to Build a California Certified Vehicle Inspection Program Site go to:
- For Certified Vehicle Program Details go to:
- For our Sample Certified Checklist go to:
AB 68 ENHANCED PENALTY PROVISIONS
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|Under the provisions of the Car Buyer Bill of Rights, AB68, effective July 1, 2006, the following become crimes, actionable by DMV enforcement as a cause|
|of action against the dealer's license and/or misdemeanor crime prosecution by the local district attorneys office. |
It is unlawful to add charges to a contract for any goods or services after the contract has been completed.
All charges on the conditional sales contract must be itemized with previous written disclosure of the cost of each item to the buyer.
The dealer must obtain the buyer's prior consent in writing.
It is unlawful to inflate the amount of any installments, payment or down payment(s) or the extension of the maturity of a sale or lease contract for the purpose of disguising the actual charges for goods or services to be added by the dealer to the contract.
AB 68 PROVISIONS
The new law, AB68, includes a provision which mandates the dealer must offer a contract cancellation option to the buyer of a used motor vehicle.
The dealer must offer a contract cancellation option to each buyer ( unless the sale is exempt, exemptions listed below )
A dealer must offer the contract cancellation option for the sale of any used vehicle unless:
• It is not a retail sale ( wholesale transactions do not require an option ).
• The purchase price is over $40,000.
• The vehicle is a motorcycle, off road vehicle or recreational vehicle.
• The vehicle is sold for commercial use.
• The buyer has returned a vehicle to the same dealer under a contract cancellation option within the prior 30 days.
TEST AREA
Please Answer the 20 questions:
| |What is the minimum time allowed for the contract cancellation option? |
| | |
| |24 hours |
| | |
| |48 hours |
| | |
| | |
| |72 hours |
| | |
| |96 hours |
| | |
| |Who must be offered the contract cancellation option? |
| | |
| |Every financed customer |
| | |
| |Every retail buyer w/ cash price less than 40k |
| | |
| | |
| |Every retail buyer |
| | |
| |Every Spanish speaker |
| | |
| |What is the maximum contract cancellation option fee a dealer may charge for a $ 28,000 vehicle? |
| | |
| |$ 75. |
| | |
| |$ 280. |
| | |
| | |
| |$ 150. |
| | |
| |$ 250. |
| | |
| |When may the option fee be waived? |
| | |
| |Never |
| | |
| |Sales Price over $ 30,000. |
| | |
| | |
| |Anytime at the dealers discretion |
| | |
| |Less than $ 10,000 sales price |
| | |
| |What is the minimum allowable miles if the buyer purchases the cancellation option? |
| | |
| |200 |
| | |
| |250 |
| | |
| | |
| |500 |
| | |
| |1000 |
| | |
| |What is the maximum total option and restocking fee allowed? |
| | |
| |$ 175. |
| | |
| |$ 350. |
| | |
| | |
| |$ 500. |
| | |
| |$ 900. |
| | |
| |What is the definition of a full refund? |
| | |
| |total price minus option and restocking fee |
| | |
| |total price |
| | |
| | |
| |Total price minus taxes and fees |
| | |
| |Total price minus option taxes and fees |
| | |
| |Which of the following must be displayed in a retail location? |
| | |
| |Contract Cancellation Option notice |
| | |
| |Inspection of vehicle notice |
| | |
| | |
| |No cooling off period notice |
| | |
| |All of these |
| | |
| |Under AB 68, when the buyer elects to purchase the cancellation option the dealer must? |
| | |
| |Perform a walk-around with the buyer |
| | |
| |Perform a written inspection report |
| | |
| | |
| |Collect $ 250. at option signing |
| | |
| |Take photos of the vehicle |
| | |
| |Under AB 68, when the buyer elects to exercise the return option the dealer must? |
| | |
| |Write down the vehicle miles on the title |
| | |
| |Take photos of the vehicle |
| | |
| | |
| |Perform a written inspection report |
| | |
| |Collect $ 250. for restocking |
| | |
| |The new law, AB 68 increases the penalties for failure to disclose to? |
| | |
| |Infraction |
| | |
| |Civil Matter only |
| | |
| | |
| |Misdemeanor |
| | |
| |Felony |
| | |
| |When must a dealer make a credit score disclosure? |
| | |
| |When the dealer markups the loan rate |
| | |
| |When the dealer is unable to finance |
| | |
| | |
| |Whenever the dealer runs a credit check |
| | |
| |When the dealer offers in-house financing |
| | |
| |What is the maximum allowable dealer markup for loan assignment on a 60 month contract? |
| | |
| |2.5 % |
| | |
| |3 % |
| | |
| | |
| |2 % |
| | |
| |No limit, as long as the buyer signs a waiver |
| | |
| |What advertising terms under AB 68 have new requirements? |
| | |
| |certified |
| | |
| |reconditioned |
| | |
| | |
| |Safety checked |
| | |
| |Pre-owned reconditioned |
| | |
| |Under AB 68, when may a flood vehicle me sold as “ certified” ? |
| | |
| |With salvage certificate |
| | |
| |With division 12 safety check |
| | |
| | |
| |With a one year warranty |
| | |
| |Never |
| | |
| |Under AB 68, when may a lemon law buyback car be sold as “ certified “ ? |
| | |
| |With added one year warranty |
| | |
| |With written guarantee |
| | |
| | |
| |When vehicle cash price exceeds $ 10,000 |
| | |
| |Never |
| | |
| |Under AB 68, when a dealer advertises a “ certified “ vehicle the dealer must maintain? |
| | |
| |A mechanic on the premise |
| | |
| |A licensed repair facility |
| | |
| | |
| |A licensed smog inspection facility |
| | |
| |A vehicle certification program |
| | |
| |How many credit score disclosures must be presented? |
| | |
| |One using the highest score obtained |
| | |
| |One for each credit agency contacted |
| | |
| | |
| |two required every time |
| | |
| |Three required every time |
| | |
| |How many disclosures are required for dealer add-ons? |
| | |
| |One for each item |
| | |
| |One for each item, with a total for all add-ons |
| | |
| | |
| |No longer required |
| | |
| |Two disclosures for each item |
| | |
| |Under AB 68, when a dealer rejects an optioned return the dealer must? |
| | |
| |Return the trade-in |
| | |
| |Issue a written explanation for rejection |
| | |
| | |
| |Notify a dmv field office within 48 hours |
| | |
| |Return the option fee |
| | |
Answer Key
|1. |What is the minimum time allowed for the contract cancellation option? |
| | |
| |24 hours |
| |x |
| |48 hours |
| | |
| | |
| |72 hours |
| | |
| |96 hours |
| | |
|2. |Who must be offered the contract cancellation option? |
| | |
| |Every financed customer |
| |x |
| |Every retail buyer w/ cash price less than 40k |
| | |
| | |
| |Every retail buyer |
| | |
| |Every Spanish speaker |
| | |
|3. |What is the maximum contract cancellation option fee a dealer may charge for a $ 28,000 vehicle? |
| | |
| |$ 75. |
| | |
| |$ 280. |
| | |
| | |
| |$ 150. |
| |x |
| |$ 250. |
| | |
|4. |When may the option fee be waived? |
| | |
| |Never |
| | |
| |Sales Price over $ 30,000. |
| | |
| |x |
| |Anytime at the dealers discretion |
| | |
| |Less than $ 10,000 sales price |
| | |
|5. |What is the minimum allowable miles if the buyer purchases the cancellation option? |
| | |
| |200 |
| |x |
| |250 |
| | |
| | |
| |500 |
| | |
| |1000 |
| | |
|6. |What is the maximum total option and restocking fee allowed? |
| | |
| |$ 175. |
| | |
| |$ 350. |
| | |
| |x |
| |$ 500. |
| | |
| |$ 900. |
| | |
|7. |What is the definition of a full refund? |
| |x |
| |total price minus option and restocking fee |
| | |
| |total price |
| | |
| | |
| |Total price minus taxes and fees |
| | |
| |Total price minus option taxes and fees |
| | |
|8. |Which of the following must be displayed in a retail location? |
| | |
| |Contract Cancellation Option notice |
| | |
| |Inspection of vehicle notice |
| | |
| | |
| |No cooling off period notice |
| |x |
| |All of these |
| | |
|9. |Under AB 68, when the buyer elects to purchase the cancellation option the dealer must? |
| | |
| |Perform a walk-around with the buyer |
| |x |
| |Perform a written inspection report |
| | |
| | |
| |Collect $ 250. at option signing |
| | |
| |Take photos of the vehicle |
| | |
|10. |Under AB 68, when the buyer elects to exercise the return option the dealer must? |
| | |
| |Write down the vehicle miles on the title |
| | |
| |Take photos of the vehicle |
| | |
| |x |
| |Perform a written inspection report |
| | |
| |Collect $ 250. for restocking |
| | |
| 11. |The new law, AB 68 increases the penalties for failure to disclose to? |
| | |
| |Infraction |
| | |
| |Civil Matter only |
| | |
| |x |
| |Misdemeanor |
| | |
| |Felony |
| | |
|12. |When must a dealer make a credit score disclosure? |
| | |
| |When the dealer markups the loan rate |
| | |
| |When the dealer is unable to finance |
| | |
| |x |
| |Whenever the dealer runs a credit check |
| | |
| |When the dealer offers in-house financing |
| | |
|13. |What is the maximum allowable dealer markup for loan assignment on a 60 month contract? |
| |x |
| |2.5 % |
| | |
| |3 % |
| | |
| | |
| |2 % |
| | |
| |No limit, as long as the buyer signs a waiver |
| | |
|14. |What advertising terms under AB 68 have new requirements? |
| |x |
| |certified |
| | |
| |reconditioned |
| | |
| | |
| |Safety checked |
| | |
| |Pre-owned reconditioned |
| | |
|15. |Under AB 68, when may a flood vehicle me sold as “ certified” ? |
| | |
| |With salvage certificate |
| | |
| |With division 12 safety check |
| | |
| | |
| |With a one year warranty |
| |x |
| |Never |
| | |
|16. |Under AB 68, when may a lemon law buyback car be sold as “ certified “ ? |
| | |
| |With added one year warranty |
| | |
| |With written guarantee |
| | |
| | |
| |When vehicle cash price exceeds $ 10,000 |
| |x |
| |Never |
| | |
|17. |Under AB 68, when a dealer advertises a “ certified “ vehicle the dealer must maintain? |
| | |
| |A mechanic on the premise |
| | |
| |A licensed repair facility |
| | |
| | |
| |A licensed smog inspection facility |
| |x |
| |A vehicle certification program |
| | |
|18. |How many credit score disclosures must be presented? |
| | |
| |One using the highest score obtained |
| |x |
| |One for each credit agency contacted |
| | |
| | |
| |two required every time |
| | |
| |Three required every time |
| | |
|19. |How many disclosures are required for dealer add-ons? |
| | |
| |One for each item |
| |x |
| |One for each item, with a total for all add-ons |
| | |
| | |
| |No longer required |
| | |
| |Two disclosures for each item |
| | |
|20. |Under AB 68, when a dealer rejects an optioned return the dealer must? |
| | |
| |Return the trade-in |
| |x |
| |Issue a written explanation for rejection |
| | |
| | |
| |Notify a dmv field office within 48 hours |
| | |
| |Return the option fee |
| | |
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