DMV - Wholesale Dealer License Practice Test (40 Questions) UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS
What is the minimum bond amount required for a B. $50,000
wholesale dealer in California?
A. $25,000
B. $50,000
C. $75,000
D. $100,000
A wholesale dealer may sell vehicles to: B. Licensed dealers only
A. Anyone who wants to buy
B. Licensed dealers only
C. The general public
D. Retail buyers and dealers
How long must you keep all business records? C. 4 years
A. 2 years
B. 3 years
C. 4 years
D. 5 years
The surety bond protects: C. The public and other dealers from fraudulent acts
A. The dealer from losses
B. The DMV from lost fees
C. The public and other dealers from fraudulent acts
D. Insurance companies
, The Report of Sale (REG 51) must be submitted within: B. 5 days
A. 3 days
B. 5 days
C. 7 days
D. 10 days
A wholesale dealer must maintain a business office that: B. Meets local zoning and has space for records
A. Can be in a home garage
B. Meets local zoning and has space for records
C. Must display at least five vehicles
D. Is shared with another business
Which of the following is not required for a wholesale C. Public display lot for customers
license?
A. City or county business license
B. Seller’s permit from CDTFA
C. Public display lot for customers
D. Surety bond
Wholesale dealers must display their license and seller's B. In a visible area of the business office
permit: A. At the DMV
B. In a visible area of the business office
C. In their vehicle
D. Only when requested
Which statement is true about advertising? C. Advertising must clearly state "Wholesale Only."
A. Wholesale dealers can advertise directly to the public.
B. They can post vehicles on public sales sites like
Craigslist.
C. Advertising must clearly state "Wholesale Only."
D. No advertising is allowed at all.
The penalty for knowingly selling a vehicle to an B. Suspension or revocation of the license
unlicensed person may include:
A. A warning letter only
B. Suspension or revocation of the license
C. $50 fine
D. No consequence
Which federal law requires accurate odometer disclosure B. Truth in Mileage Act
when selling vehicles?
A. Clean Air Act
B. Truth in Mileage Act
C. Vehicle Safety Act
D. Consumer Protection Act
How long must a wholesale dealer wait before renewing C. Every 2 years
their occupational license?
A. Every 6 months
B. Every year
C. Every 2 years
D. Every 5 years
ACTUAL QUESTIONS AND CORRECT ANSWERS
What is the minimum bond amount required for a B. $50,000
wholesale dealer in California?
A. $25,000
B. $50,000
C. $75,000
D. $100,000
A wholesale dealer may sell vehicles to: B. Licensed dealers only
A. Anyone who wants to buy
B. Licensed dealers only
C. The general public
D. Retail buyers and dealers
How long must you keep all business records? C. 4 years
A. 2 years
B. 3 years
C. 4 years
D. 5 years
The surety bond protects: C. The public and other dealers from fraudulent acts
A. The dealer from losses
B. The DMV from lost fees
C. The public and other dealers from fraudulent acts
D. Insurance companies
, The Report of Sale (REG 51) must be submitted within: B. 5 days
A. 3 days
B. 5 days
C. 7 days
D. 10 days
A wholesale dealer must maintain a business office that: B. Meets local zoning and has space for records
A. Can be in a home garage
B. Meets local zoning and has space for records
C. Must display at least five vehicles
D. Is shared with another business
Which of the following is not required for a wholesale C. Public display lot for customers
license?
A. City or county business license
B. Seller’s permit from CDTFA
C. Public display lot for customers
D. Surety bond
Wholesale dealers must display their license and seller's B. In a visible area of the business office
permit: A. At the DMV
B. In a visible area of the business office
C. In their vehicle
D. Only when requested
Which statement is true about advertising? C. Advertising must clearly state "Wholesale Only."
A. Wholesale dealers can advertise directly to the public.
B. They can post vehicles on public sales sites like
Craigslist.
C. Advertising must clearly state "Wholesale Only."
D. No advertising is allowed at all.
The penalty for knowingly selling a vehicle to an B. Suspension or revocation of the license
unlicensed person may include:
A. A warning letter only
B. Suspension or revocation of the license
C. $50 fine
D. No consequence
Which federal law requires accurate odometer disclosure B. Truth in Mileage Act
when selling vehicles?
A. Clean Air Act
B. Truth in Mileage Act
C. Vehicle Safety Act
D. Consumer Protection Act
How long must a wholesale dealer wait before renewing C. Every 2 years
their occupational license?
A. Every 6 months
B. Every year
C. Every 2 years
D. Every 5 years
