Which of the following is a potential consequence of title jumping?

Title jumping refers to the practice of transferring ownership of a vehicle without properly completing the necessary title documentation. This could result in various legal issues and consequences.

A fine or penalty from the state is a potential consequence of title jumping because it constitutes a violation of state vehicle transfer laws. States have regulations in place to ensure that vehicle ownership changes are properly documented to protect consumers and provide a clear chain of ownership. When these regulations are not followed, individuals or dealerships may face fines, penalties, or other legal repercussions. This reinforces the importance of adhering to title transfer laws to maintain compliance and protect both the business and its customers.

The other choices, while positives for a dealership, are not relevant in the context of consequences for title jumping. Increased customer trust, higher profit margins, and reduced inventory costs would be outcomes desirable for any business, yet they are not linked to the illegal practice of bypassing proper title procedures. Instead, these outcomes are more likely to arise from ethical practices and transparency in transactions.