Page | 1
DEALER TEST QUESTIONS WITH
ANSWERS.
1. What items must the dealer charge sales tax upon? - correct
answer -Price of accessories, Price of the vehicle, Document
Prep Fee
2. What must the dealer create and have in his office with every
sale? - correct answer -Jacket
3. The dealer must hold ROS forms in his office for how long? -
correct answer -4 years
4. In what order must the dealer use ROS forms? - correct answer
-Numerical Order
5. The temporary memo regarding DMV fees due on the retail
ROS allows posting within how many business days to avoid a
$ 5 ASF ? - correct answer -30 days
, Page | 2
6. What of the following ASF penalties carry a $25 fine? - correct
answer -Title application & corrections not cleared in 50 days
7. What must the dealer do with the temporary operating permit? -
correct answer -Place in any window visible from outside the
vehicle
8. What must the dealer do for DMV compliance if he is sells a
vehicle for out of state delivery? - correct answer -Secure one
way vehicle permit OR preregister vehicle
9. What must the dealer charge for one way trip permkt when
selling a car for O/S delivery? - correct answer -$19
10. What is the minimum time allowed for the contract
cancellation option? - correct answer -48 hours
11. Who must be offered the contract cancellation option? -
correct answer -Every retail buyer w/ cash price less than 40k
, Page | 3
12. What is the maximum contract cancellation option fee a
dealer may charge for a $ 28,000 vehicle? - correct answer -
$250
13. When may the option fee be waived? - correct answer -
Anytime at the dealers discretion
14. What is the minimum allowable miles if the buyer purchases
the cancellation option? - correct answer -250
15. What is the maximum total option and restocking fee
allowed? - correct answer -$500
16. What is the definition of a full refund? - correct answer -total
price minus option and restocking fee
, Page | 4
17. Which of the following must be displayed in a retail location?
- correct answer -Contract Cancellation Option notice,
Inspection of vehicle notice, and No cooling off period notice
18. Under AB 68, when the buyer elects to purchase the
cancellation option the dealer must? - correct answer -Perform
a written inspection report
19. Under AB 68, when the buyer elects to exercise the return
option the dealer must? - correct answer -Perform a written
inspection report
20. The new law, AB 68 increases the penalties for failure to
disclose to? - correct answer -Misdemeanor
21. When must a dealer make a credit score disclosure? -
correct answer -Whenever the dealer runs a credit check
22. What is the maximum allowable dealer markup for loan
assignment on a 60 month contract? - correct answer -2.5%
DEALER TEST QUESTIONS WITH
ANSWERS.
1. What items must the dealer charge sales tax upon? - correct
answer -Price of accessories, Price of the vehicle, Document
Prep Fee
2. What must the dealer create and have in his office with every
sale? - correct answer -Jacket
3. The dealer must hold ROS forms in his office for how long? -
correct answer -4 years
4. In what order must the dealer use ROS forms? - correct answer
-Numerical Order
5. The temporary memo regarding DMV fees due on the retail
ROS allows posting within how many business days to avoid a
$ 5 ASF ? - correct answer -30 days
, Page | 2
6. What of the following ASF penalties carry a $25 fine? - correct
answer -Title application & corrections not cleared in 50 days
7. What must the dealer do with the temporary operating permit? -
correct answer -Place in any window visible from outside the
vehicle
8. What must the dealer do for DMV compliance if he is sells a
vehicle for out of state delivery? - correct answer -Secure one
way vehicle permit OR preregister vehicle
9. What must the dealer charge for one way trip permkt when
selling a car for O/S delivery? - correct answer -$19
10. What is the minimum time allowed for the contract
cancellation option? - correct answer -48 hours
11. Who must be offered the contract cancellation option? -
correct answer -Every retail buyer w/ cash price less than 40k
, Page | 3
12. What is the maximum contract cancellation option fee a
dealer may charge for a $ 28,000 vehicle? - correct answer -
$250
13. When may the option fee be waived? - correct answer -
Anytime at the dealers discretion
14. What is the minimum allowable miles if the buyer purchases
the cancellation option? - correct answer -250
15. What is the maximum total option and restocking fee
allowed? - correct answer -$500
16. What is the definition of a full refund? - correct answer -total
price minus option and restocking fee
, Page | 4
17. Which of the following must be displayed in a retail location?
- correct answer -Contract Cancellation Option notice,
Inspection of vehicle notice, and No cooling off period notice
18. Under AB 68, when the buyer elects to purchase the
cancellation option the dealer must? - correct answer -Perform
a written inspection report
19. Under AB 68, when the buyer elects to exercise the return
option the dealer must? - correct answer -Perform a written
inspection report
20. The new law, AB 68 increases the penalties for failure to
disclose to? - correct answer -Misdemeanor
21. When must a dealer make a credit score disclosure? -
correct answer -Whenever the dealer runs a credit check
22. What is the maximum allowable dealer markup for loan
assignment on a 60 month contract? - correct answer -2.5%
