Dealer Test UPDATED Exam Questions
and CORRECT Answers
A dealer's license and special plates shall be automatically canceled if: - CORRECT
ANSWER- 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: - CORRECT ANSWER- 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: - CORRECT ANSWER- Two square feet
Each retail dealer is required to maintain a proper display area: - CORRECT ANSWER- At
all times
Signs on all vehicles indicating the main location address: - CORRECT ANSWER- Is not
required at a licensed dealer location
A licensed dealer location must have all of the following: - CORRECT ANSWER- 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
Should the dealer change the site or location of his established place of business, he shall
notify the department: - CORRECT ANSWER- Immediately
The basic fee for transfer of ownership on a California registered vehicle is: - CORRECT
ANSWER- $15
Any dealer who sells a vehicle when the title is branded "Lemon law buyback "shall provide
a disclosure statement to the buyer: - CORRECT ANSWER- Prior to the sale of the vehicle
It is legal to reset the odometer reading on a vehicle: - CORRECT ANSWER- It is never
legal to reset the odometer reading
,A dealer MUST withdraw any advertisement of a vehicle that has been sold within: -
CORRECT ANSWER- 48 hours
A dealer may generate an electronic report of sale book to: - CORRECT ANSWER- It is
never legal to generate a report of sale book to anyone.
An auto broker must also be licensed as a: - CORRECT ANSWER- Retail dealer
A conditional sales contract is: - CORRECT ANSWER- 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? -
CORRECT ANSWER- The vehicle is returned to the rightful owner
Licensing requirements for a dealer's license in California are from: - CORRECT ANSWER-
The vehicle code
A dealer must include in all advertisements all of the following except: - CORRECT
ANSWER- The color of the vehicle
A dealer must include in all advertisements all of the following: - CORRECT ANSWER- 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. - CORRECT
ANSWER- You may never keep any excess DMV fees paid to you
Which employees of dealership must be licensed as a DMV vehicle salesperson? -
CORRECT ANSWER- 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: - CORRECT ANSWER- 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? - CORRECT ANSWER- Administrative action,
Criminal action, and Civil action
Within 20 days after the sale of a consigned vehicle the dealer must notify the consigner of: -
CORRECT ANSWER- 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: - CORRECT ANSWER- For legal cause such
as fraud or with the agreement of the seller
As the selling dealer, you may allow the customer to take the vehicle to get their own smog
certificate: - CORRECT ANSWER- You may never allow the customer to take the vehicle to
get their own smog certificate
A dealer, changing ownership as a sole proprietor or partnership, is required to submit a new
application and pay all fees within: - CORRECT ANSWER- 10 days prior to the effective
date of the change
A retail dealer must maintain a surety bond or cash deposit in the amount of: - CORRECT
ANSWER- $50,000
How must safety equipment in division 12 of the vehicle be at the time of the sale? -
CORRECT ANSWER- in good working order
All dealers must renew their license prior to the expiration date. If a dealer fails to renew the
license, but is within the 30 day expiration period. Which of the following will occur? -
CORRECT ANSWER- The dealer can still renew, but will be required to pay a late fee
penalty
If a dealer is unable to find financing for a customer: - CORRECT ANSWER- The down
payment must be returned
According to the California code of regulation, which safety items must a dealer comply
with? - CORRECT ANSWER- Brakes, Lights, Windshield
and CORRECT Answers
A dealer's license and special plates shall be automatically canceled if: - CORRECT
ANSWER- 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: - CORRECT ANSWER- 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: - CORRECT ANSWER- Two square feet
Each retail dealer is required to maintain a proper display area: - CORRECT ANSWER- At
all times
Signs on all vehicles indicating the main location address: - CORRECT ANSWER- Is not
required at a licensed dealer location
A licensed dealer location must have all of the following: - CORRECT ANSWER- 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
Should the dealer change the site or location of his established place of business, he shall
notify the department: - CORRECT ANSWER- Immediately
The basic fee for transfer of ownership on a California registered vehicle is: - CORRECT
ANSWER- $15
Any dealer who sells a vehicle when the title is branded "Lemon law buyback "shall provide
a disclosure statement to the buyer: - CORRECT ANSWER- Prior to the sale of the vehicle
It is legal to reset the odometer reading on a vehicle: - CORRECT ANSWER- It is never
legal to reset the odometer reading
,A dealer MUST withdraw any advertisement of a vehicle that has been sold within: -
CORRECT ANSWER- 48 hours
A dealer may generate an electronic report of sale book to: - CORRECT ANSWER- It is
never legal to generate a report of sale book to anyone.
An auto broker must also be licensed as a: - CORRECT ANSWER- Retail dealer
A conditional sales contract is: - CORRECT ANSWER- 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? -
CORRECT ANSWER- The vehicle is returned to the rightful owner
Licensing requirements for a dealer's license in California are from: - CORRECT ANSWER-
The vehicle code
A dealer must include in all advertisements all of the following except: - CORRECT
ANSWER- The color of the vehicle
A dealer must include in all advertisements all of the following: - CORRECT ANSWER- 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. - CORRECT
ANSWER- You may never keep any excess DMV fees paid to you
Which employees of dealership must be licensed as a DMV vehicle salesperson? -
CORRECT ANSWER- 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: - CORRECT ANSWER- 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? - CORRECT ANSWER- Administrative action,
Criminal action, and Civil action
Within 20 days after the sale of a consigned vehicle the dealer must notify the consigner of: -
CORRECT ANSWER- 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: - CORRECT ANSWER- For legal cause such
as fraud or with the agreement of the seller
As the selling dealer, you may allow the customer to take the vehicle to get their own smog
certificate: - CORRECT ANSWER- You may never allow the customer to take the vehicle to
get their own smog certificate
A dealer, changing ownership as a sole proprietor or partnership, is required to submit a new
application and pay all fees within: - CORRECT ANSWER- 10 days prior to the effective
date of the change
A retail dealer must maintain a surety bond or cash deposit in the amount of: - CORRECT
ANSWER- $50,000
How must safety equipment in division 12 of the vehicle be at the time of the sale? -
CORRECT ANSWER- in good working order
All dealers must renew their license prior to the expiration date. If a dealer fails to renew the
license, but is within the 30 day expiration period. Which of the following will occur? -
CORRECT ANSWER- The dealer can still renew, but will be required to pay a late fee
penalty
If a dealer is unable to find financing for a customer: - CORRECT ANSWER- The down
payment must be returned
According to the California code of regulation, which safety items must a dealer comply
with? - CORRECT ANSWER- Brakes, Lights, Windshield
