California Dealer License Test Exam
Questions And Correct Answers| 2026 Updated
“A conditional Sales Contract contains which of the following?
a. Must be signed by both buyer and seller
b. Terms of financing must be disclosed
C. All of the above - CORRECT ANSWER C. All of the above"
"Which of the following are true regarding the Report of Sale(ROS)?
a. Dealer has 5 days to submit the bottom portion Report of Sale (not counting the date of
sale)
b. If late, dealer must pay $5.00 ASF penalty
c. Dealer must display bottom portion of ROS on Customer vehicle before delivery
d. All of the above - CORRECT ANSWER d. All of the above"
"Which of the following are true regarding the Vehicle title and Transfer fees?
a. Transfer fees are $15.00
b. If late, dealer must pay $5 ASF penalty
c. All of the above - CORRECT ANSWER C. All of the above"
"If the Board of Equalization revokes or suspends your Seller's Permit, what is the result?
a. Cancellation of Dealer's License
b. Automatic Revocation of Seller's Permit
c. Revocation or suspension of the Dealer's License - CORRECT ANSWER a.
Cancellation of Dealer's License"
"Every Dealer must notify DMV of the effective day of change of ownership:
a. 10 days prior to effective date
b. Within 5 days prior to effective date
c. Within 15 days
d. Within 20 days - CORRECT ANSWER a. 10 days prior to effective date"
"Every Dealer must notify DMV of the effective day of the change of location:
a. Immediately
b. Within 5 days
c. Within 10 days
d. Within 20 days - CORRECT ANSWER a. Immediately"
1
,"Which of the following are not taxable in a vehicle sales transaction?
a. Finance charges
b. Insurance charges
c. Smog certificate fee (paid to state)
d. All of the above - CORRECT ANSWER d. All of the above"
"DMV requires Special Plates (dealer plates) be placed where on the vehicle? - CORRECT
ANSWER In the rear, over the existing license plate."
"Auto-brokers must do which of the following:
a. Limit deposits to 2.5% of the purchase price, and put all deposits in a separate trust
account
b. Use any deposits received to pay the broker - CORRECT ANSWER a. Limit deposits to
2.5% of the purchase price and put all deposits in a separate trust account"
"Which of the following is not required to transfer a vehicle?
a. Endorsed Certificate of Ownership
b. A report of prior service records for the vehicle since new
c. Odometer mileage reading
d. Smog Certificate - CORRECT ANSWER b. A report of prior service records for the
vehicle since new"
"Which of the following must sign the Certificate of Ownership?
a. The legal owner
b. The registered owner
c. The transferee
d. All of the above - CORRECT ANSWER The legal owner, the registered owner, and the
transferee."
"Registration fees are due at the time of retail sale where ... - CORRECT ANSWER The
registration will expire within 30 days of the date of sale OR the registration has already
expired."
"If the registration of a vehicle expires while a vehicle is in the dealer's inventory, is the
dealer responsible for paying late registration penalties? - CORRECT ANSWER No"
2
, "The dealership display area must:
a. At least twice the size of the dealership office.
b. For the exclusive use of the dealer for display purposes only.
c. Within 1000 feet of the dealership office
d. Both B and C - CORRECT ANSWER d. Both B and C"
"Which of the following are required for dealership signs?
a. Each retail dealership must have a sign not less than 2 feet square that can be read from
50 feet away.
b. Each sign must be posted at three locations at the dealership.
c. Each sign must be lighted and/or viewable at night from a distance
d. Both A and B - CORRECT ANSWER a. Each retail dealership must have a sign that is 2
ft by 2 ft"
"What must a dealer post at every business location? - CORRECT ANSWER Each
salesperson's license and the Dealer license"
"The maximum a dealer may charge a customer for a smog test is:
a. $8
b. $12
c. $50
d. $45 - CORRECT ANSWER c. $50"
"The basic DMV transfer fee to transfer the title into the buyer's name is
a. $15
b. $12
c. $80
d. $25 - CORRECT ANSWER a. $15"
"An administrative service fee is imposed for which of the following:
a. All of the answers b, c, and d, below
b. Failing to notify DMV of a sale within 5 calendar days of the date of sale
c. Failing to attach a copy of the Temporary identification form on the vehicle
d. Failing to correct a returned application for registration within 50 days of the sale date -
CORRECT ANSWER a. All of the answers b, c, and d, below"
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Questions And Correct Answers| 2026 Updated
“A conditional Sales Contract contains which of the following?
a. Must be signed by both buyer and seller
b. Terms of financing must be disclosed
C. All of the above - CORRECT ANSWER C. All of the above"
"Which of the following are true regarding the Report of Sale(ROS)?
a. Dealer has 5 days to submit the bottom portion Report of Sale (not counting the date of
sale)
b. If late, dealer must pay $5.00 ASF penalty
c. Dealer must display bottom portion of ROS on Customer vehicle before delivery
d. All of the above - CORRECT ANSWER d. All of the above"
"Which of the following are true regarding the Vehicle title and Transfer fees?
a. Transfer fees are $15.00
b. If late, dealer must pay $5 ASF penalty
c. All of the above - CORRECT ANSWER C. All of the above"
"If the Board of Equalization revokes or suspends your Seller's Permit, what is the result?
a. Cancellation of Dealer's License
b. Automatic Revocation of Seller's Permit
c. Revocation or suspension of the Dealer's License - CORRECT ANSWER a.
Cancellation of Dealer's License"
"Every Dealer must notify DMV of the effective day of change of ownership:
a. 10 days prior to effective date
b. Within 5 days prior to effective date
c. Within 15 days
d. Within 20 days - CORRECT ANSWER a. 10 days prior to effective date"
"Every Dealer must notify DMV of the effective day of the change of location:
a. Immediately
b. Within 5 days
c. Within 10 days
d. Within 20 days - CORRECT ANSWER a. Immediately"
1
,"Which of the following are not taxable in a vehicle sales transaction?
a. Finance charges
b. Insurance charges
c. Smog certificate fee (paid to state)
d. All of the above - CORRECT ANSWER d. All of the above"
"DMV requires Special Plates (dealer plates) be placed where on the vehicle? - CORRECT
ANSWER In the rear, over the existing license plate."
"Auto-brokers must do which of the following:
a. Limit deposits to 2.5% of the purchase price, and put all deposits in a separate trust
account
b. Use any deposits received to pay the broker - CORRECT ANSWER a. Limit deposits to
2.5% of the purchase price and put all deposits in a separate trust account"
"Which of the following is not required to transfer a vehicle?
a. Endorsed Certificate of Ownership
b. A report of prior service records for the vehicle since new
c. Odometer mileage reading
d. Smog Certificate - CORRECT ANSWER b. A report of prior service records for the
vehicle since new"
"Which of the following must sign the Certificate of Ownership?
a. The legal owner
b. The registered owner
c. The transferee
d. All of the above - CORRECT ANSWER The legal owner, the registered owner, and the
transferee."
"Registration fees are due at the time of retail sale where ... - CORRECT ANSWER The
registration will expire within 30 days of the date of sale OR the registration has already
expired."
"If the registration of a vehicle expires while a vehicle is in the dealer's inventory, is the
dealer responsible for paying late registration penalties? - CORRECT ANSWER No"
2
, "The dealership display area must:
a. At least twice the size of the dealership office.
b. For the exclusive use of the dealer for display purposes only.
c. Within 1000 feet of the dealership office
d. Both B and C - CORRECT ANSWER d. Both B and C"
"Which of the following are required for dealership signs?
a. Each retail dealership must have a sign not less than 2 feet square that can be read from
50 feet away.
b. Each sign must be posted at three locations at the dealership.
c. Each sign must be lighted and/or viewable at night from a distance
d. Both A and B - CORRECT ANSWER a. Each retail dealership must have a sign that is 2
ft by 2 ft"
"What must a dealer post at every business location? - CORRECT ANSWER Each
salesperson's license and the Dealer license"
"The maximum a dealer may charge a customer for a smog test is:
a. $8
b. $12
c. $50
d. $45 - CORRECT ANSWER c. $50"
"The basic DMV transfer fee to transfer the title into the buyer's name is
a. $15
b. $12
c. $80
d. $25 - CORRECT ANSWER a. $15"
"An administrative service fee is imposed for which of the following:
a. All of the answers b, c, and d, below
b. Failing to notify DMV of a sale within 5 calendar days of the date of sale
c. Failing to attach a copy of the Temporary identification form on the vehicle
d. Failing to correct a returned application for registration within 50 days of the sale date -
CORRECT ANSWER a. All of the answers b, c, and d, below"
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