DEALER TEST EXAM QUESTIONS AND
ANSWERS 100% PASS 2026/2027
A dealer's license and special plates shall be automatically canceled if: - ANS The dealer
abandons the established place of business, The dealer fails to maintain an adequate bond, and
The CDTFA resale permit is suspended
A dealer must affix to all vehicles offered for sale: - ANS A federal trade commission buyers
guide
Every retail dealer shall have a sign erected or posted at his place of business. The sign shall
have a total size of not less than: - ANS Two square feet
Each retail dealer is required to maintain a proper display area: - ANS At all times
Signs on all vehicles indicating the main location address: - ANS Is not required at a licensed
dealer location
A licensed dealer location must have all of the following: - ANS An office for the exclusive use
of the dealer, A Sign indicating the name and address of the dealer, and A Display area large
enough to display the types
@2026 ALLRIGHTS RESERVED 1
,Should the dealer change the site or location of his established place of business, he shall notify
the department: - ANS Immediately
The basic fee for transfer of ownership on a California registered vehicle is: - ANS $15
Any dealer who sells a vehicle when the title is branded "Lemon law buyback "shall provide a
disclosure statement to the buyer: - ANS Prior to the sale of the vehicle
It is legal to reset the odometer reading on a vehicle: - ANS It is never legal to reset the
odometer reading
A dealer MUST withdraw any advertisement of a vehicle that has been sold within: - ANS 48
hours
A dealer may generate an electronic report of sale book to: - ANS It is never legal to generate
a report of sale book to anyone.
An auto broker must also be licensed as a: - ANS Retail dealer
A conditional sales contract is: - ANS An agreement between the buyer and dealer for
payments.
If a dealer accepts a vehicle as a trade-in if it is stolen, which of the following will happen? -
ANS The vehicle is returned to the rightful owner
Licensing requirements for a dealer's license in California are from: - ANS The vehicle code
@2026 ALLRIGHTS RESERVED 2
, A dealer must include in all advertisements all of the following except: - ANS The color of the
vehicle
A dealer must include in all advertisements all of the following: - ANS The total price of the
vehicle, The make of the vehicle and The vehicle identification number or license plate number
You may keep DMV licensing fees in excess of DMV fees paid to you. - ANS You may never
keep any excess DMV fees paid to you
Which employees of dealership must be licensed as a DMV vehicle salesperson? -
ANS Salespersons, Sales managers, and Finance managers
All the agreements of the buyer and seller with respect to the total cost and terms of payment
must be contained in a single document. That document is: - ANS The conditional sales
contract
Which legal actions may be taken against a dealer if they violate the laws, rules and regulations
related to their licensed activity? - ANS Administrative action, Criminal action, and Civil action
Within 20 days after the sale of a consigned vehicle the dealer must notify the consigner of: -
ANS The date of sale, The amount of any lien payable to the lienholder, and The total sales
price
A California law does not provide an included "cooling off "period or other cancellation period
for vehicle sales. The only exception is: - ANS For legal cause such as fraud or with the
agreement of the seller
@2026 ALLRIGHTS RESERVED 3
ANSWERS 100% PASS 2026/2027
A dealer's license and special plates shall be automatically canceled if: - ANS The dealer
abandons the established place of business, The dealer fails to maintain an adequate bond, and
The CDTFA resale permit is suspended
A dealer must affix to all vehicles offered for sale: - ANS A federal trade commission buyers
guide
Every retail dealer shall have a sign erected or posted at his place of business. The sign shall
have a total size of not less than: - ANS Two square feet
Each retail dealer is required to maintain a proper display area: - ANS At all times
Signs on all vehicles indicating the main location address: - ANS Is not required at a licensed
dealer location
A licensed dealer location must have all of the following: - ANS An office for the exclusive use
of the dealer, A Sign indicating the name and address of the dealer, and A Display area large
enough to display the types
@2026 ALLRIGHTS RESERVED 1
,Should the dealer change the site or location of his established place of business, he shall notify
the department: - ANS Immediately
The basic fee for transfer of ownership on a California registered vehicle is: - ANS $15
Any dealer who sells a vehicle when the title is branded "Lemon law buyback "shall provide a
disclosure statement to the buyer: - ANS Prior to the sale of the vehicle
It is legal to reset the odometer reading on a vehicle: - ANS It is never legal to reset the
odometer reading
A dealer MUST withdraw any advertisement of a vehicle that has been sold within: - ANS 48
hours
A dealer may generate an electronic report of sale book to: - ANS It is never legal to generate
a report of sale book to anyone.
An auto broker must also be licensed as a: - ANS Retail dealer
A conditional sales contract is: - ANS An agreement between the buyer and dealer for
payments.
If a dealer accepts a vehicle as a trade-in if it is stolen, which of the following will happen? -
ANS The vehicle is returned to the rightful owner
Licensing requirements for a dealer's license in California are from: - ANS The vehicle code
@2026 ALLRIGHTS RESERVED 2
, A dealer must include in all advertisements all of the following except: - ANS The color of the
vehicle
A dealer must include in all advertisements all of the following: - ANS The total price of the
vehicle, The make of the vehicle and The vehicle identification number or license plate number
You may keep DMV licensing fees in excess of DMV fees paid to you. - ANS You may never
keep any excess DMV fees paid to you
Which employees of dealership must be licensed as a DMV vehicle salesperson? -
ANS Salespersons, Sales managers, and Finance managers
All the agreements of the buyer and seller with respect to the total cost and terms of payment
must be contained in a single document. That document is: - ANS The conditional sales
contract
Which legal actions may be taken against a dealer if they violate the laws, rules and regulations
related to their licensed activity? - ANS Administrative action, Criminal action, and Civil action
Within 20 days after the sale of a consigned vehicle the dealer must notify the consigner of: -
ANS The date of sale, The amount of any lien payable to the lienholder, and The total sales
price
A California law does not provide an included "cooling off "period or other cancellation period
for vehicle sales. The only exception is: - ANS For legal cause such as fraud or with the
agreement of the seller
@2026 ALLRIGHTS RESERVED 3
