CAR DEALERSHIP LICENSE
CALIFORNIA STUDY GUIDE EXAM
QUESTIONS AND ANSWERS 100% PASS
2026/2027
Conditional sales contracts must be completed ___________? - ANS In writing
A contract cancellation display at each sales office and cubicle must have minimum dimensions
of ________? - ANS 8"x10"
If a costumer purchases a vehicle for $5,000 and decides to purchase a contract cancellation
option, the dealer may charge the customer up to _________? - ANS $75
If a costumer purchases a vehicle for $10,000 and decides to purchase a contract cancellation
option, the dealer may charge the customer up to _________? - ANS $150
If a costumer purchases a vehicle for $30,000 and decides to purchase a contract cancellation
option, the dealer may charge the customer up to _________? - ANS $250
If a costumer purchases a vehicle for $30,000-39,000 and decides to purchase a contract
cancellation option, the dealer may charge the customer up to _________? - ANS !% of the
selling price
@2026 ALLRIGHTS RESERVED 1
, If a costumer purchases a vehicle for $40,001 how much can the dealer charge the customer to
purchase a contract cancellation option _________? - ANS $0
What is Reg Z ______? - ANS Law that states all terms and costs of financing must be
disclosed to the buyer(s)
What must be furnished to the buyer after a sale? - ANS Conditional Sales Contract
What is the maximum deposit an auto broker may accept from a customer _______? -
ANS 2.5% of the selling price
What is consignment _______? - ANS An arrangement under which a dealer agrees to accept
possession of a vehicle from an owner of record for the purpose of selling the vehicle
If a dealer notices curbstoning, what agency should you file a complaint to _________? -
ANS DMV
If a costumer purchased a vehicle less than $5,000 and a contract cancellation option contract
and decides to return the vehicle within the time specified, the dealer can charge a maximum
restocking fee of _________? - ANS $175
If a costumer purchased a vehicle less than $10,000 and a contract cancellation option contract
and decides to return the vehicle within the time specified, the dealer can charge a maximum
restocking fee of _________? - ANS $350
If a costumer purchased a vehicle less than $10,000-39,000 and a contract cancellation option
contract and decides to return the vehicle within the time specified, the dealer can charge a
maximum restocking fee of _________? - ANS $500
@2026 ALLRIGHTS RESERVED 2
CALIFORNIA STUDY GUIDE EXAM
QUESTIONS AND ANSWERS 100% PASS
2026/2027
Conditional sales contracts must be completed ___________? - ANS In writing
A contract cancellation display at each sales office and cubicle must have minimum dimensions
of ________? - ANS 8"x10"
If a costumer purchases a vehicle for $5,000 and decides to purchase a contract cancellation
option, the dealer may charge the customer up to _________? - ANS $75
If a costumer purchases a vehicle for $10,000 and decides to purchase a contract cancellation
option, the dealer may charge the customer up to _________? - ANS $150
If a costumer purchases a vehicle for $30,000 and decides to purchase a contract cancellation
option, the dealer may charge the customer up to _________? - ANS $250
If a costumer purchases a vehicle for $30,000-39,000 and decides to purchase a contract
cancellation option, the dealer may charge the customer up to _________? - ANS !% of the
selling price
@2026 ALLRIGHTS RESERVED 1
, If a costumer purchases a vehicle for $40,001 how much can the dealer charge the customer to
purchase a contract cancellation option _________? - ANS $0
What is Reg Z ______? - ANS Law that states all terms and costs of financing must be
disclosed to the buyer(s)
What must be furnished to the buyer after a sale? - ANS Conditional Sales Contract
What is the maximum deposit an auto broker may accept from a customer _______? -
ANS 2.5% of the selling price
What is consignment _______? - ANS An arrangement under which a dealer agrees to accept
possession of a vehicle from an owner of record for the purpose of selling the vehicle
If a dealer notices curbstoning, what agency should you file a complaint to _________? -
ANS DMV
If a costumer purchased a vehicle less than $5,000 and a contract cancellation option contract
and decides to return the vehicle within the time specified, the dealer can charge a maximum
restocking fee of _________? - ANS $175
If a costumer purchased a vehicle less than $10,000 and a contract cancellation option contract
and decides to return the vehicle within the time specified, the dealer can charge a maximum
restocking fee of _________? - ANS $350
If a costumer purchased a vehicle less than $10,000-39,000 and a contract cancellation option
contract and decides to return the vehicle within the time specified, the dealer can charge a
maximum restocking fee of _________? - ANS $500
@2026 ALLRIGHTS RESERVED 2
