Practice question

What is the primary purpose of a motor vehicle dealer surety bond?

  1. To insure the dealership's vehicle inventory against theft or damage.
  2. To pay for the dealership's licensing and registration fees with the state.
  3. To provide a source of funds for paying dealership employees and vendors.
  4. To protect consumers from financial loss due to a dealer's fraudulent or unlawful actions.

Answer: D — To protect consumers from financial loss due to a dealer's fraudulent or unlawful actions.

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