NADA
Car Dealer License
LATEST TEST GUIDE
©2024/2025
,1. Which federal agency is primarily responsible for enforcing
laws related to automotive safety and fuel economy?
- A) FTC
- B) EPA
- C) NHTSA
- D) SEC
Correct Answer: C) NHTSA
Rationale: The National Highway Traffic Safety
Administration (NHTSA) enforces laws designed to improve
automotive safety and fuel economy.
2. What is the primary purpose of the Consumer Financial
Protection Bureau (CFPB) in relation to car dealerships?
- A) Regulate car prices
- B) Oversee advertising standards
- C) Protect consumers in lending and financial practices
- D) Manage dealer licenses
Correct Answer: C) Protect consumers in lending and
financial practices
Rationale: The CFPB oversees financial products and services,
ensuring fair practices that protect consumers.
©2024/2025
, ### Sales and Marketing
3. What is the primary purpose of a dealership's advertising
campaign?
- A) Increase inventory turnover
- B) Build brand awareness
- C) Enhance employee training
- D) Reduce operational costs
Correct Answer: B) Build brand awareness
Rationale: The main objective of an advertising campaign is to
create recognition and interest in the dealership's brand and
offerings.
4. Which of the following is considered deceptive advertising in
car sales?
- A) Offering discounts on clearance models
- B) Advertising a car as “certified” without proper checks
- C) Running ads during prime time television hours
- D) Offering financing options for buyers
Correct Answer: B) Advertising a car as “certified” without
proper checks
©2024/2025
Car Dealer License
LATEST TEST GUIDE
©2024/2025
,1. Which federal agency is primarily responsible for enforcing
laws related to automotive safety and fuel economy?
- A) FTC
- B) EPA
- C) NHTSA
- D) SEC
Correct Answer: C) NHTSA
Rationale: The National Highway Traffic Safety
Administration (NHTSA) enforces laws designed to improve
automotive safety and fuel economy.
2. What is the primary purpose of the Consumer Financial
Protection Bureau (CFPB) in relation to car dealerships?
- A) Regulate car prices
- B) Oversee advertising standards
- C) Protect consumers in lending and financial practices
- D) Manage dealer licenses
Correct Answer: C) Protect consumers in lending and
financial practices
Rationale: The CFPB oversees financial products and services,
ensuring fair practices that protect consumers.
©2024/2025
, ### Sales and Marketing
3. What is the primary purpose of a dealership's advertising
campaign?
- A) Increase inventory turnover
- B) Build brand awareness
- C) Enhance employee training
- D) Reduce operational costs
Correct Answer: B) Build brand awareness
Rationale: The main objective of an advertising campaign is to
create recognition and interest in the dealership's brand and
offerings.
4. Which of the following is considered deceptive advertising in
car sales?
- A) Offering discounts on clearance models
- B) Advertising a car as “certified” without proper checks
- C) Running ads during prime time television hours
- D) Offering financing options for buyers
Correct Answer: B) Advertising a car as “certified” without
proper checks
©2024/2025
