Wisconsin Motor Vehicle Salesperson Manual Practice Test

When should you tell a customer about flood damage?

1. Always

2. Only if the customer asks

3. When the damage affects the car's performance

4. When negotiating the price

The correct answer is: Always

Telling a customer about flood damage is important for transparency and trust in the customer-business relationship. Always informing the customer allows them to make an informed decision and avoids any misunderstandings or legal issues in the future. Option B of only telling the customer if they ask may be seen as deceitful or trying to hide something, and can damage the business's reputation. Option C only mentions when the damage affects performance, but flood damage can also have long term effects on the car's safety and reliability, making it important for the customer to know. Option D of only mentioning flood damage when negotiating the price can be seen as manipulative and can lead to legal issues. Therefore, the best approach is to always inform the customer about flood damage.