Dealers Liscense Practice UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
True or False: True
ANY of the following actions could result in a Dealer
license suspension:
Misuse of Special (Dealer) Plates
Bait & Switch advertising schemes
Failure to pay Administrative Service Fees when due
Submission of dishonored check to Department
Selling at unlicensed locations
Failure to transfer title
Paying "Bird Dog" fees
True of False: True
Retail Dealers (selling more than 6 vehicles per year)
must display Federal Buyer's Guide in plain view (with
both sides visible) and may be either:
Hung from the rear-view mirror or outside side-view
mirror
Placed under a windshield wiper
Attached to a side window
True or False: False
State and Federal regulatory agencies have no authority
over Dealers. Only the DMV can impose penalties should
they fail to abide by the laws and regulations governing
Dealers.
Used Car Dealers must have a Surety Bond valued at: $10,000 for Wholesale Dealers / $50,000 for Retail Dealers
, Never advertise or sell a Used Car as "Certified" if: 1. The odometer does not indicate the actual mileage of the vehicle
Select ALL the correct answers 2. The title is branded (lemon law, salvage, junk, non-repairable, etc.)
3. The vehicle has frame damage or sold "as is"
If a vehicle's odometer is repaired and cannot register the Set the odometer to read "0" (zero) with a notice attached to the vehicle's left
same mileage as before the repair: door frame by the person performing the service or repair
Dealers must securely store their Reports of Sale at their 3 months (90 days) on-site, then 33 months more digitally or off-site
principal place of business for:
Select ONLY the correct answer
The "Car Buyer Bill of Rights" limits a Dealer's 2.5% for terms up to 60 months -or- 2.0% for terms of 60 months or longer
compensation from an institution financing the purchase
of a vehicle to:
True or False True
When a Dealer sells a Lemon Law buyback vehicle, they
must notify the buyer on letter-size paper of the
following:
The year, make, model, and vehicle identification number
That the vehicle title is marked "Lemon Law Buyback"
The nature of each nonconformity reported by the
vehicle's original buyer or lessee
Any repairs made to the vehicle in an attempt to correct
each nonconformity
True or False True
Dealers must renew their license every year (a two-year
term is optional) and should complete and submit the
following to renew their license:
Renewal Application (DMV form OL 45)
Proof of Continuing Education (required every two years)
Proof of Surety Bond (dated to match the renewal
period)
Who may operate a vehicle with special plates for any 1. A sole owner, corporate officer, or director of a Dealer provided that individual
purpose?*Select ALL the correct answers is actively engaged in the management and control of the
Dealer's business operations
2. A manager who is actively engaged in the management and control of the
Dealer when no other individual meets the criteria above
True or False True
A Conditional Sales Contract must include all of the
following (for cars under $40k)
A Contract Cancellation Option with a "2-day cooling-off
period"
All costs & terms of payment
Written disclosure(s) for any aftermarket add-on items
All financial aspects of the sale
Signatures of both the Buyer and the Seller
ANSWERS
True or False: True
ANY of the following actions could result in a Dealer
license suspension:
Misuse of Special (Dealer) Plates
Bait & Switch advertising schemes
Failure to pay Administrative Service Fees when due
Submission of dishonored check to Department
Selling at unlicensed locations
Failure to transfer title
Paying "Bird Dog" fees
True of False: True
Retail Dealers (selling more than 6 vehicles per year)
must display Federal Buyer's Guide in plain view (with
both sides visible) and may be either:
Hung from the rear-view mirror or outside side-view
mirror
Placed under a windshield wiper
Attached to a side window
True or False: False
State and Federal regulatory agencies have no authority
over Dealers. Only the DMV can impose penalties should
they fail to abide by the laws and regulations governing
Dealers.
Used Car Dealers must have a Surety Bond valued at: $10,000 for Wholesale Dealers / $50,000 for Retail Dealers
, Never advertise or sell a Used Car as "Certified" if: 1. The odometer does not indicate the actual mileage of the vehicle
Select ALL the correct answers 2. The title is branded (lemon law, salvage, junk, non-repairable, etc.)
3. The vehicle has frame damage or sold "as is"
If a vehicle's odometer is repaired and cannot register the Set the odometer to read "0" (zero) with a notice attached to the vehicle's left
same mileage as before the repair: door frame by the person performing the service or repair
Dealers must securely store their Reports of Sale at their 3 months (90 days) on-site, then 33 months more digitally or off-site
principal place of business for:
Select ONLY the correct answer
The "Car Buyer Bill of Rights" limits a Dealer's 2.5% for terms up to 60 months -or- 2.0% for terms of 60 months or longer
compensation from an institution financing the purchase
of a vehicle to:
True or False True
When a Dealer sells a Lemon Law buyback vehicle, they
must notify the buyer on letter-size paper of the
following:
The year, make, model, and vehicle identification number
That the vehicle title is marked "Lemon Law Buyback"
The nature of each nonconformity reported by the
vehicle's original buyer or lessee
Any repairs made to the vehicle in an attempt to correct
each nonconformity
True or False True
Dealers must renew their license every year (a two-year
term is optional) and should complete and submit the
following to renew their license:
Renewal Application (DMV form OL 45)
Proof of Continuing Education (required every two years)
Proof of Surety Bond (dated to match the renewal
period)
Who may operate a vehicle with special plates for any 1. A sole owner, corporate officer, or director of a Dealer provided that individual
purpose?*Select ALL the correct answers is actively engaged in the management and control of the
Dealer's business operations
2. A manager who is actively engaged in the management and control of the
Dealer when no other individual meets the criteria above
True or False True
A Conditional Sales Contract must include all of the
following (for cars under $40k)
A Contract Cancellation Option with a "2-day cooling-off
period"
All costs & terms of payment
Written disclosure(s) for any aftermarket add-on items
All financial aspects of the sale
Signatures of both the Buyer and the Seller
