CALIFORNIA DEALER LICENSE LAWS
AND REGULATIONS: CE TEST REVIEW
EXAM QUESTIONS AND ANSWERS 100%
PASS 2026/2027
What must a dealer do if a vehicle is missing one or both license plates? - ANS Print a set of
temporary license plates (TLPS) and affix to vehicle
What makes it illegal to advertise a vehicle as 'Certified' under the Car Buyer's Bill of Rights? -
ANS If the vehicle is sold 'AS-IS', without a warranty.
Which languages require a dealer to deliver a translation of the conditional sales contract? -
ANS Spanish, Chinese, Tagalog, Vietnamese, Korean.
Where do dealers obtain Reports of Sales? - ANS Electronically by registering with a First Line
Provider
What must be submitted to the DMV within 30 days after selling a car? - ANS Application
copy
What happens if you overlook a history problem? - ANS You may still be responsible.
@2026 ALLRIGHTS RESERVED 1
, How many cars must wholesale-only dealers sell to require a $10,000 bond? - ANS 25
What form contains the odometer disclosure? - ANS Form number 262.
What form is needed to change your dealership address? - ANS Application for Modification.
What type of credit is a pre-computed interest contract generally for? - ANS Bad credit
What was the Assembly Bill number for the Car Buyer's Bill of Rights? - ANS AB68.
The TRANSFER FEE Is what the DMV charges every time you transfer - ANS Ownership
When may a dealer waive Division 12 safety requirements? - ANS Safety requirements may
never be waived
Truth in lending is a nationwide federal law that says certain disclosures need to be in ________
contracts. - ANS Financing
Which of the following is NOT a Federal Truth-in-Lending term? - ANS Statement of
Insurance.
What does it mean when a dealer carries the contract? - ANS They offer in-house financing.
The Gramm Leach Bllley act is a federal law that says you need to give your customer a copy of
your privacy policy if you collect personal
information. - ANS Financial
@2026 ALLRIGHTS RESERVED 2
AND REGULATIONS: CE TEST REVIEW
EXAM QUESTIONS AND ANSWERS 100%
PASS 2026/2027
What must a dealer do if a vehicle is missing one or both license plates? - ANS Print a set of
temporary license plates (TLPS) and affix to vehicle
What makes it illegal to advertise a vehicle as 'Certified' under the Car Buyer's Bill of Rights? -
ANS If the vehicle is sold 'AS-IS', without a warranty.
Which languages require a dealer to deliver a translation of the conditional sales contract? -
ANS Spanish, Chinese, Tagalog, Vietnamese, Korean.
Where do dealers obtain Reports of Sales? - ANS Electronically by registering with a First Line
Provider
What must be submitted to the DMV within 30 days after selling a car? - ANS Application
copy
What happens if you overlook a history problem? - ANS You may still be responsible.
@2026 ALLRIGHTS RESERVED 1
, How many cars must wholesale-only dealers sell to require a $10,000 bond? - ANS 25
What form contains the odometer disclosure? - ANS Form number 262.
What form is needed to change your dealership address? - ANS Application for Modification.
What type of credit is a pre-computed interest contract generally for? - ANS Bad credit
What was the Assembly Bill number for the Car Buyer's Bill of Rights? - ANS AB68.
The TRANSFER FEE Is what the DMV charges every time you transfer - ANS Ownership
When may a dealer waive Division 12 safety requirements? - ANS Safety requirements may
never be waived
Truth in lending is a nationwide federal law that says certain disclosures need to be in ________
contracts. - ANS Financing
Which of the following is NOT a Federal Truth-in-Lending term? - ANS Statement of
Insurance.
What does it mean when a dealer carries the contract? - ANS They offer in-house financing.
The Gramm Leach Bllley act is a federal law that says you need to give your customer a copy of
your privacy policy if you collect personal
information. - ANS Financial
@2026 ALLRIGHTS RESERVED 2
