Michigan Collections Manager License Practice Test

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Prepare for the Michigan Collections Manager License Test with flashcards and multiple choice questions. Each question is equipped with hints and detailed explanations to enhance your understanding and readiness.

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In an installment sales contract, what must be stated regarding the vehicle?

A full vehicle description
Market value of the vehicle
Insurance requirements for the vehicle
Warranty information of the vehicle

The correct answer is: A full vehicle description

In an installment sales contract, it is crucial to provide a full description of the vehicle. This includes important details such as the make, model, year, VIN (Vehicle Identification Number), and any additional identifying features. This comprehensive description serves multiple purposes: it ensures that both parties have a clear understanding of the actual vehicle being sold, helps in preventing disputes regarding the specific vehicle involved in the transaction, and establishes ownership and uniqueness of the vehicle. Having a complete vehicle description allows for easier identification if there are any issues that arise later in the sales process, such as liens, registration, or title concerns. Market value, insurance requirements, and warranty information, while important in the context of vehicle sales, are not mandatory elements that must be included in the installment sales contract. Market value fluctuates and may not be necessary for the contract itself, insurance requirements often depend on the buyer's preferences, and warranty information, while informative, does not need to be stated as part of the contract's essential components.