,1. Question: Which of the following regulatory bodies oversees
the enforcement of vehicle safety standards in the U.S.?
- A) Federal Trade Commission (FTC)
- B) Environmental Protection Agency (EPA)
- C) National Highway Traffic Safety Administration (NHTSA)
- D) Securities and Exchange Commission (SEC)
Answer: C) National Highway Traffic Safety Administration
(NHTSA)
Rationale: NHTSA is responsible for setting and enforcing
vehicle safety standards.
, 3. Question: Under the Dealer Franchise Rule, which statement
is true regarding termination of a dealership agreement?
- A) A dealer can be terminated without cause.
- B) A dealer must be provided written notice and an opportunity
to cure.
- C) Termination does not require any notice.
- D) A dealer can appeal to the FTC after termination.
Answer: B) A dealer must be provided written notice and an
opportunity to cure.
Rationale: The rule requires dealers to receive appropriate
notice and a chance to correct any issues.
4. Question: In compliance with the Fair Credit Reporting Act
(FCRA), which document must a dealership provide if a credit
application is denied based on a consumer’s credit report?
- A) Purchase Agreement
- B) Adverse Action Notice
- C) Vehicle Sales Receipt
- D) Credit Score Disclosure
Answer: B) Adverse Action Notice
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