Question 1

c.) On an on-going basis, the guidelines specifically state the training must be ongoing.

Question 2

a.) True, according to the new "U.S. Sentencing guidelines", that become effective November 1, 2004, a dealerships criminal liability could be reduced by as much as 95%.

Question 3

b.) False, according to the "Federal Truth in Lending Act", your customer must be offered the opportunity to take the finance contract home and review the finance contract before signing.

Question 4

a.) True, not displaying a buyers guide in Spanish on the vehicle when doing a transaction in Spanish, will result in a fine ranging from $250 to $11,000 per occurrence.

Question 5

a.) True, not checking the "SDN List" can result in the following punishment for your dealership: fines ranging from $50,000 to $10 million dollars and jail time.

Question 6

b.) False, this is called payment packing and is one of the "hot" targets that the Attorney General's office is using in class action lawsuits.

Question 7

b.) False, the main complaint is that the practice does not follow the guidelines the "Federal Trade Commission's Reg Z" established for handling "Negative Equity", by handling "Negative Equity" this way also violates the "Retail Installment Sales Act" (RISA).

Question 8

a.) True, every customer who wants the dealership to secure a loan must be submitted to a lender. If not, your are in violation of the "Equal Credit Opportunity Act" (ECOA). Regardless of how ridiculous the deal may look, you must still submit the application to a lender.

If you have any questions regarding these answers or if you want solutions for your dealership for any of the above circumstances, please contact

Dealership Development at (847) 382-1095.