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Review Questions §3.17 Review

Lesson 3:
Vehicle Repairs, Sales, & Leases

1. Which of these services are covered under the Automotive Repair Act:

a. Repairing tires

b. Changing tires

c. Lubricating vehicles

d. Installing light bulbs

e. Installing windshield wiper blades

f. Adjusting or replacing spark plugs

g. Replacing fan belts, oil, and air filters

h. None of the Above

2. Buddy’s car breaks down. Buddy brings the car to Friendly Auto Shop where Buddy agrees to pay Friendly $5000 for the repair work and parts. No written estimate was provided to Buddy but both agree that the price was $5000 and that they shook hands on it. Once the work was completed, Buddy failed to come up with the money. Friendly brings a small claims action for recovery of the $5000. Can Friendly recover?



3. Under the Rees-Levering Motor Vehicle Sales and Finance Act, which of the following are requirements of a conditional sales contract for a motor vehicle:

a. The contract must be in writing

b. The contract may include a lien on the buyer’s home in case the buyer defaults on the contract payments

c. The contract must include in a single document the total costs and terms of payment

d. The contract may include a penalty for prepayment

e. The contract may include a delinquency charge for a default in payments for a period less than 10 days

f. a & c

g. b,d, & e

4. Which of the following types of relief is the buyer entitled to seek under the Rees-Levering Act if the seller breaches the contract?

a. Refund of all payments made if the contract is not executed

b. Recovery of a vehicle given in down payment or the greater of its fair market value or value as stated in the contract

c. Rescission and full restitution if the seller leaves blank spaces in the contract to be filled in after signing   

d. Recovery of three times the amount of the finance charge paid if the seller failed to refund the unearned finance charges due to the buyer’s prepayment

e. All of the above

5. A contract for lease of a vehicle must include which of the following under the Vehicle Leasing Act?

a. Blank spaces for the lessor to fill in after the contract has been signed by both parties

b. A waiver of any right of action against the lessor for any illegal acts done in collection or repossession

c. A provision relieving the lessor from liability for the lessee's remedies under the contract

d. The inclusion of title to or a lien on any personal or real property, other than the vehicle that is the subject matter of the lease contract, as security for the payment of the contract obligations

e. None of the above

6. A lessee decides to terminate the lease before the specified date in the contract. What may the lessor charge the lessee?

a. Any unpaid lease payments that were due before the termination of the lease

b. Reasonable fees for early termination, including a disposition fee and a reasonable purchase option charge if the lessee terminates and purchases the vehicle

c. The difference between the adjusted capitalized cost disclosed in the contract and the sum of (1) all depreciation amounts through the date of early termination and (2) the realized value of the vehicle

d. Costs of reconditioning, repossessing, and storing the vehicle
e. All of the above

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