Wisconsin Motor Vehicle Salesperson Manual Practice Test

What must be completed and signed by both the dealer and the seller before offering a consignment vehicle for sale?

1. A consignment sale agreement

2. A bill of sale

3. A warranty agreement

4. An insurance document

The correct answer is: A consignment sale agreement

A consignment sale agreement is the correct answer because it is a legal contract that outlines the terms and conditions of the consignment sale between the dealer and the seller. This document provides protection for both parties and ensures that all necessary information, such as the vehicle's condition and sale price, is agreed upon before the sale takes place. Option B, a bill of sale, is incorrect because it only serves as proof of transfer of ownership and does not include all the necessary details and agreements that a consignment sale agreement does. Option C, a warranty agreement, is incorrect because it pertains to a guarantee on the vehicle's condition or repairs, rather than the actual sale transaction. Option D, an insurance document, is incorrect because it has no relevance to the process of offering a vehicle for consignment sale.