DEALER LICENSE (CA) QUIZ SECTION 15-21 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST
UPDATE 2026
Dealer-wholesale can only sell to _________ - Answers d. Vehicle dealers
________ dealers can sell to the general public and dealers - Answers b. Retail
dealer application package must include a photograph of the business location. - Answers True
are dealer applicants required to obtain a city or county business license in the area where
your business is located? - Answers True
the licensee is not required to obtain a ficticious name statement from the county where the
business is located? - Answers False
as part of the application process is a copy of the lease or rental agreement required? - Answers Yes
All retail dealer must provide the dmv with a _________ bond - Answers c. $50,000
All wholesale dealer must provide the dmv with a _________ bond - Answers c. $10,000
Original license fee is? - Answers c. $175
Renewal of dealer license and plates are valid for ______ year(s) - Answers b. 2
every dealer shall have posted in a place conspicuous to the public the dealer's regular
business days and hours - Answers Yes
a retail dealer must have an established place of business which has an office and display
area situated on the same property? - Answers True
wholesalers are required to have posted signage not less than two feet by two feet? - Answers False
Car buyer's bill of rights signed into law july 26, 2005 include (circle all) - Answers b. Two day cooling
off period
c. Disclosure of credit score
e. Optional product and service
disclosure
Retail buyers of vehicles sold for less than ______ must be offered a two day cooling off option -
Answers c. $40,000
is the two day cooling off period option be a separate document? - Answers Yes
The maximum a dealer can charge a customer for a vehicle with a cash price of $5,000 or less is? -
Answers a. $75
The maximum a dealer can charge a customer for a vehicle with a cash price of $5,001 to $10,000 is? -
Answers b. $150
The maximum a dealer can charge a customer for a vehicle with a cash price of $10,001 to $30,000 is?
- Answers c. $250
The maximum a dealer can charge a customer for a vehicle with a cash price of $30,001 to $39,999 is?
- Answers d. Up to $400
The maximum a dealer can charge a customer for a restocking fee for a vehicle with a cash price of
$5,000? - Answers a. $175
The maximum a dealer can charge a customer for a restocking fee for a vehicle with a cash price of
$5,001 to $10,000? - Answers b. $350
The maximum a dealer can charge a customer for a restocking fee for a vehicle with a cash price of
$10,001 to $39,999? - Answers c. $500
Two day cooling off period signage dimensions should not be less than ______? - Answers b. 8" x 10"
the customers bill of rights do not apply to auto brokers and consignment dealers? - Answers False
The cap on dealer finance income is limited to? - Answers b. 2.5% for contracts upto 60 months and
2.0% for contract over 60 months
dealer may use dealers plates for business and pleasure - Answers True
family members may use dealers plates for pleasure - Answers False
is a branch location the principal place of business of the dealer? - Answers No
dealer plates can be used to deliver a vehicle when the title does not pass to the purchaser until after
delivery? - Answers Yes
it is unlawful to display a vehicle for sale without a federal trade commissioner's buyers guide? -
Answers True
Dmv enforcement actions include (circle all correct answers) - Answers a. Administrative
b. Criminal
c. Misdemeanor violations
d. Civil
UPDATE 2026
Dealer-wholesale can only sell to _________ - Answers d. Vehicle dealers
________ dealers can sell to the general public and dealers - Answers b. Retail
dealer application package must include a photograph of the business location. - Answers True
are dealer applicants required to obtain a city or county business license in the area where
your business is located? - Answers True
the licensee is not required to obtain a ficticious name statement from the county where the
business is located? - Answers False
as part of the application process is a copy of the lease or rental agreement required? - Answers Yes
All retail dealer must provide the dmv with a _________ bond - Answers c. $50,000
All wholesale dealer must provide the dmv with a _________ bond - Answers c. $10,000
Original license fee is? - Answers c. $175
Renewal of dealer license and plates are valid for ______ year(s) - Answers b. 2
every dealer shall have posted in a place conspicuous to the public the dealer's regular
business days and hours - Answers Yes
a retail dealer must have an established place of business which has an office and display
area situated on the same property? - Answers True
wholesalers are required to have posted signage not less than two feet by two feet? - Answers False
Car buyer's bill of rights signed into law july 26, 2005 include (circle all) - Answers b. Two day cooling
off period
c. Disclosure of credit score
e. Optional product and service
disclosure
Retail buyers of vehicles sold for less than ______ must be offered a two day cooling off option -
Answers c. $40,000
is the two day cooling off period option be a separate document? - Answers Yes
The maximum a dealer can charge a customer for a vehicle with a cash price of $5,000 or less is? -
Answers a. $75
The maximum a dealer can charge a customer for a vehicle with a cash price of $5,001 to $10,000 is? -
Answers b. $150
The maximum a dealer can charge a customer for a vehicle with a cash price of $10,001 to $30,000 is?
- Answers c. $250
The maximum a dealer can charge a customer for a vehicle with a cash price of $30,001 to $39,999 is?
- Answers d. Up to $400
The maximum a dealer can charge a customer for a restocking fee for a vehicle with a cash price of
$5,000? - Answers a. $175
The maximum a dealer can charge a customer for a restocking fee for a vehicle with a cash price of
$5,001 to $10,000? - Answers b. $350
The maximum a dealer can charge a customer for a restocking fee for a vehicle with a cash price of
$10,001 to $39,999? - Answers c. $500
Two day cooling off period signage dimensions should not be less than ______? - Answers b. 8" x 10"
the customers bill of rights do not apply to auto brokers and consignment dealers? - Answers False
The cap on dealer finance income is limited to? - Answers b. 2.5% for contracts upto 60 months and
2.0% for contract over 60 months
dealer may use dealers plates for business and pleasure - Answers True
family members may use dealers plates for pleasure - Answers False
is a branch location the principal place of business of the dealer? - Answers No
dealer plates can be used to deliver a vehicle when the title does not pass to the purchaser until after
delivery? - Answers Yes
it is unlawful to display a vehicle for sale without a federal trade commissioner's buyers guide? -
Answers True
Dmv enforcement actions include (circle all correct answers) - Answers a. Administrative
b. Criminal
c. Misdemeanor violations
d. Civil
