Dealer Test Questions with Varified Answers
1. A dealer's license and special The dealer abandons the established
plates shall be automatically can- place of business, The dealer fails to
celed if: maintain an adequate bond, and The
CDTFA resale permit is suspended
2. A dealer must affix to all vehicles A federal trade commission buyers
offered for sale: guide
3. Every retail dealer shall have a Two square feet
sign erected or posted at his
place of business. The sign shall
have a total size of not less than:
4. Each retail dealer is required to At all times
maintain a proper display area:
5. Signs on all vehicles indicating Is not required at a licensed dealer loca-
the main location address: tion
6. A licensed dealer location must An office for the exclusive use of the
have all of the following: dealer, A Sign indicating the name and
address of the dealer, and A Display
area large enough to display the types
7. Should the dealer change the Immediately
site or location of his established
place of business, he shall notify
the department:
8. The basic fee for transfer of own- $15
ership on a California registered
vehicle is:
9. Any dealer who sells a vehicle Prior to the sale of the vehicle
when the title is branded "Lemon
law buyback "shall provide a dis-
closure statement to the buyer:
10. It is legal to reset the odometer It is never legal to reset the odometer
reading on a vehicle: reading
, Dealer Test Questions with Varified Answers
11. A dealer MUST withdraw any ad- 48 hours
vertisement of a vehicle that has
been sold within:
12. A dealer may generate an elec- It is never legal to generate a report of
tronic report of sale book to: sale book to anyone.
13. An auto broker must also be li- Retail dealer
censed as a:
14. A conditional sales contract is: An agreement between the buyer and
dealer for payments.
15. If a dealer accepts a vehicle as a The vehicle is returned to the rightful
trade-in if it is stolen, which of the owner
following will happen?
16. Licensing requirements for a The vehicle code
dealer's license in California are
from:
17. A dealer must include in all ad- The color of the vehicle
vertisements all of the following
except:
18. A dealer must include in all ad- The total price of the vehicle, The make
vertisements all of the following: of the vehicle and The vehicle identifica-
tion number or license plate number
19. You may keep DMV licensing You may never keep any excess DMV
fees in excess of DMV fees paid fees paid to you
to you.
20. Which employees of dealership Salespersons, Sales managers, and Fi-
must be licensed as a DMV vehi- nance managers
cle salesperson?
21. All the agreements of the buy- The conditional sales contract
er and seller with respect to the
, total cost and terms of payment
must be contained in a single
document. That document is:
22. Which legal actions may be taken Administrative action, Criminal action,
against a dealer if they violate the and Civil action
laws, rules and regulations relat-
ed to their licensed activity?
23. Within 20 days after the sale of The date of sale, The amount of any lien
a consigned vehicle the dealer payable to the lienholder, and The total
must notify the consigner of: sales price
24. A California law does not provide For legal cause such as fraud or with the
an included "cooling off "period agreement of the seller
or other cancellation period for
vehicle sales. The only exception
is:
25. As the selling dealer, you may al- You may never allow the customer to
low the customer to take the ve- take the vehicle to get their own smog
hicle to get their own smog cer- certificate
tificate:
26. A dealer, changing ownership as 10 days prior to the effective date of the
a sole proprietor or partnership, change
is required to submit a new appli-
cation and pay all fees within:
27. A retail dealer must maintain a $50,000
surety bond or cash deposit in
the amount of:
28. How must safety equipment in di- in good working order
vision 12 of the vehicle be at the
time of the sale?
29. All dealers must renew their li- The dealer can still renew, but will be
cense prior to the expiration required to pay a late fee penalty
date. If a dealer fails to renew the
1. A dealer's license and special The dealer abandons the established
plates shall be automatically can- place of business, The dealer fails to
celed if: maintain an adequate bond, and The
CDTFA resale permit is suspended
2. A dealer must affix to all vehicles A federal trade commission buyers
offered for sale: guide
3. Every retail dealer shall have a Two square feet
sign erected or posted at his
place of business. The sign shall
have a total size of not less than:
4. Each retail dealer is required to At all times
maintain a proper display area:
5. Signs on all vehicles indicating Is not required at a licensed dealer loca-
the main location address: tion
6. A licensed dealer location must An office for the exclusive use of the
have all of the following: dealer, A Sign indicating the name and
address of the dealer, and A Display
area large enough to display the types
7. Should the dealer change the Immediately
site or location of his established
place of business, he shall notify
the department:
8. The basic fee for transfer of own- $15
ership on a California registered
vehicle is:
9. Any dealer who sells a vehicle Prior to the sale of the vehicle
when the title is branded "Lemon
law buyback "shall provide a dis-
closure statement to the buyer:
10. It is legal to reset the odometer It is never legal to reset the odometer
reading on a vehicle: reading
, Dealer Test Questions with Varified Answers
11. A dealer MUST withdraw any ad- 48 hours
vertisement of a vehicle that has
been sold within:
12. A dealer may generate an elec- It is never legal to generate a report of
tronic report of sale book to: sale book to anyone.
13. An auto broker must also be li- Retail dealer
censed as a:
14. A conditional sales contract is: An agreement between the buyer and
dealer for payments.
15. If a dealer accepts a vehicle as a The vehicle is returned to the rightful
trade-in if it is stolen, which of the owner
following will happen?
16. Licensing requirements for a The vehicle code
dealer's license in California are
from:
17. A dealer must include in all ad- The color of the vehicle
vertisements all of the following
except:
18. A dealer must include in all ad- The total price of the vehicle, The make
vertisements all of the following: of the vehicle and The vehicle identifica-
tion number or license plate number
19. You may keep DMV licensing You may never keep any excess DMV
fees in excess of DMV fees paid fees paid to you
to you.
20. Which employees of dealership Salespersons, Sales managers, and Fi-
must be licensed as a DMV vehi- nance managers
cle salesperson?
21. All the agreements of the buy- The conditional sales contract
er and seller with respect to the
, total cost and terms of payment
must be contained in a single
document. That document is:
22. Which legal actions may be taken Administrative action, Criminal action,
against a dealer if they violate the and Civil action
laws, rules and regulations relat-
ed to their licensed activity?
23. Within 20 days after the sale of The date of sale, The amount of any lien
a consigned vehicle the dealer payable to the lienholder, and The total
must notify the consigner of: sales price
24. A California law does not provide For legal cause such as fraud or with the
an included "cooling off "period agreement of the seller
or other cancellation period for
vehicle sales. The only exception
is:
25. As the selling dealer, you may al- You may never allow the customer to
low the customer to take the ve- take the vehicle to get their own smog
hicle to get their own smog cer- certificate
tificate:
26. A dealer, changing ownership as 10 days prior to the effective date of the
a sole proprietor or partnership, change
is required to submit a new appli-
cation and pay all fees within:
27. A retail dealer must maintain a $50,000
surety bond or cash deposit in
the amount of:
28. How must safety equipment in di- in good working order
vision 12 of the vehicle be at the
time of the sale?
29. All dealers must renew their li- The dealer can still renew, but will be
cense prior to the expiration required to pay a late fee penalty
date. If a dealer fails to renew the
