True or False: All dealers are required to maintain a trust account under the MVDA.

The correct answer is that it is false that all dealers are required to maintain a trust account under the Motor Vehicle Dealers Act (MVDA). In reality, only certain types of dealers, particularly those who handle customer deposits or trust funds, are mandated to maintain a trust account. This is aimed at ensuring that customer funds are protected and properly managed.

Dealers who do not deal with trust funds, such as those focused solely on the sale of vehicles without taking deposits, are not under the obligation to have a trust account. This requirement is in place to promote ethical practices and safeguard consumer interests when transactions involve advance payments. Understanding this nuance is vital for dealers to ensure compliance with the regulations set out in the MVDA.