CALIFORNIA DEALER TEST
COMPREHENSIVE TEST BANK 2026
COMPLETE ANSWERS ACCURATE
⫸ At which price would a dealer not be required to offer a contract
cancellation option agreement Answer: Over $40,000
⫸ Your occupational license will automatically be canceled without a
hearing if Answer: A your sales tax permit is revoked B your bond falls
below required about C you take your main sign down and move out of
your office without notice
⫸ What is the maximum markup that dealers may add to a loan for their
own profit Answer: 2.5% on loans 60 months or less and 2% on loans
more than 60 months
⫸ How much is the vehicle transfer fee on a California registered
vehicle? Answer: $15
⫸ When is a retail dealer required to maintain a vehicle display area
Answer: At all times with licensed
⫸ How many hours does a dealer have to notify the advertiser in writing
that a vehicle has been sold or withdrawn? Answer: 48 hours
, ⫸ When is it proper to reset an odometer? Answer: Never
⫸ Dealers who advertise a vehicle as certified will be a violation of the
law. If the vehicle they are referring to the ad has the following history.
Answer: Salvage or frame damage
⫸ Selling a car to a retail customer, when is it proper for the dealer to
allow the customer to attain a smog certificate on their own Answer:
Never
⫸ If a dealer is suspected of violating the laws that regulate dealers,
which actions may be taken against the dealer? Answer: Administrative
hearing, criminal court, and civil court
⫸ What is the maximum time period a dealer is provided to pay the
proceeds of a consignment sale and make an accounting to a
cosigner(The person you sold the car for?) Answer: 20 days
⫸ What would be an exception to the no cooling off period? Answer: In
the event of fraud or where the seller agrees to cancel the sale
⫸ What is a conditional sales contract? Answer: A contract where the
sale is conditioned about the buyer obtaining financing and where a lead
is created
COMPREHENSIVE TEST BANK 2026
COMPLETE ANSWERS ACCURATE
⫸ At which price would a dealer not be required to offer a contract
cancellation option agreement Answer: Over $40,000
⫸ Your occupational license will automatically be canceled without a
hearing if Answer: A your sales tax permit is revoked B your bond falls
below required about C you take your main sign down and move out of
your office without notice
⫸ What is the maximum markup that dealers may add to a loan for their
own profit Answer: 2.5% on loans 60 months or less and 2% on loans
more than 60 months
⫸ How much is the vehicle transfer fee on a California registered
vehicle? Answer: $15
⫸ When is a retail dealer required to maintain a vehicle display area
Answer: At all times with licensed
⫸ How many hours does a dealer have to notify the advertiser in writing
that a vehicle has been sold or withdrawn? Answer: 48 hours
, ⫸ When is it proper to reset an odometer? Answer: Never
⫸ Dealers who advertise a vehicle as certified will be a violation of the
law. If the vehicle they are referring to the ad has the following history.
Answer: Salvage or frame damage
⫸ Selling a car to a retail customer, when is it proper for the dealer to
allow the customer to attain a smog certificate on their own Answer:
Never
⫸ If a dealer is suspected of violating the laws that regulate dealers,
which actions may be taken against the dealer? Answer: Administrative
hearing, criminal court, and civil court
⫸ What is the maximum time period a dealer is provided to pay the
proceeds of a consignment sale and make an accounting to a
cosigner(The person you sold the car for?) Answer: 20 days
⫸ What would be an exception to the no cooling off period? Answer: In
the event of fraud or where the seller agrees to cancel the sale
⫸ What is a conditional sales contract? Answer: A contract where the
sale is conditioned about the buyer obtaining financing and where a lead
is created
