California Dealer License Test Actual
Questions And 100% Correct Answers
Question 1
When a dealer runs out of ROS and needs emergency supplies, where does he/ she
get them from?
a. Another dealer
b. DMV Sacramento
c. Occupational Licensing Inspector
Correct Answer
c. Occupational Licensing Inspector
Question 2
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
Question 3
The Federal Buyers Guide must be displayed on the side windows of the vehicle so
that both sides of the label can be read. It must be signed on the back by the
customer.
a. True
b. False
Correct Answer
a. True
Page 1 of 61
,Question 4
When Advertising, which of the following does the Dealer not have to disclose?
a. Vehicle Identification Number or License number
b. Total price
c. Statement "not including taxes, doc & smog fees, registration & CA tire fee
d. Color
Correct Answer
d. Color
Question 5
What is it most that a dealer can charge customer for smog fee and smog certificate?
a. $25
b. $35
c. $45
d. $50
Correct Answer
d. $50
Question 6
The maximum fee allowed for documentation preparation is:
a. $10
b. $25
c. $30
d. $65
Correct Answer
d. $65
Page 2 of 61
,Question 7
If the mileage exceed the mechanical function of the odometer and goes over
100,000 miles, this means that the odometer cannot register the actual mileage. You
must:
a. Reset it
b. Replace it
c. Leave it and sell it with the vehicle "As Is"
d. You must disclose this with the purchaser
Correct Answer
d. You must disclose this with the purchaser
Question 8
All deals negotiated in Spanish require the dealer to provide a spanish language
contract.
a. True
B. False
Correct Answer
a. True
Question 9
The employee can use the Special Plates to visit a sick friend.
a. True
b. False
Correct Answer
b. False
Question 10
It is unlawful to violate any law prohibiting Bait and Switching Advertising: the
practice of advertising a low price with the intent to switch the consumer to a higher
priced vehicle.
a. True
b. False
Correct Answer
a. True
Page 3 of 61
, Question 11
How many days does used vehicle dealer have to COMPLETE APPLICATION complete
application to the department from the date of sale?
a. 50
b. 30
c. 60
d. 20
Correct Answer
b. 30
Question 12
After a hearing, the department May revoke and/or suspend a dealers license if they
have
a. Wrote the department a check with insufficient funds at the bank
b. knowingly permits someone to illegally use their special plates
c. fall asleep or wrong information on the registration of a vehicle
d. All of the above
Correct Answer
d. All of the above
Question 13
You have passed the inspection and are ready to sell vehicles. Which of the following
are true regarding your established place of business?
a. The display area must be clearly for the exclusive use of the Dealer for display
purposes only even if you have no vehicles on the lot
b. The dealer must erect permanent signs at each location that can withstand climatic
effects and be readable within 50 feet.
c. The sign must have an area of not less than 2 square feet per side displayed and
contain lettering not less than 6 inches in size.
d. All of the above
Correct Answer
d. All of the above
Page 4 of 61
Questions And 100% Correct Answers
Question 1
When a dealer runs out of ROS and needs emergency supplies, where does he/ she
get them from?
a. Another dealer
b. DMV Sacramento
c. Occupational Licensing Inspector
Correct Answer
c. Occupational Licensing Inspector
Question 2
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
Question 3
The Federal Buyers Guide must be displayed on the side windows of the vehicle so
that both sides of the label can be read. It must be signed on the back by the
customer.
a. True
b. False
Correct Answer
a. True
Page 1 of 61
,Question 4
When Advertising, which of the following does the Dealer not have to disclose?
a. Vehicle Identification Number or License number
b. Total price
c. Statement "not including taxes, doc & smog fees, registration & CA tire fee
d. Color
Correct Answer
d. Color
Question 5
What is it most that a dealer can charge customer for smog fee and smog certificate?
a. $25
b. $35
c. $45
d. $50
Correct Answer
d. $50
Question 6
The maximum fee allowed for documentation preparation is:
a. $10
b. $25
c. $30
d. $65
Correct Answer
d. $65
Page 2 of 61
,Question 7
If the mileage exceed the mechanical function of the odometer and goes over
100,000 miles, this means that the odometer cannot register the actual mileage. You
must:
a. Reset it
b. Replace it
c. Leave it and sell it with the vehicle "As Is"
d. You must disclose this with the purchaser
Correct Answer
d. You must disclose this with the purchaser
Question 8
All deals negotiated in Spanish require the dealer to provide a spanish language
contract.
a. True
B. False
Correct Answer
a. True
Question 9
The employee can use the Special Plates to visit a sick friend.
a. True
b. False
Correct Answer
b. False
Question 10
It is unlawful to violate any law prohibiting Bait and Switching Advertising: the
practice of advertising a low price with the intent to switch the consumer to a higher
priced vehicle.
a. True
b. False
Correct Answer
a. True
Page 3 of 61
, Question 11
How many days does used vehicle dealer have to COMPLETE APPLICATION complete
application to the department from the date of sale?
a. 50
b. 30
c. 60
d. 20
Correct Answer
b. 30
Question 12
After a hearing, the department May revoke and/or suspend a dealers license if they
have
a. Wrote the department a check with insufficient funds at the bank
b. knowingly permits someone to illegally use their special plates
c. fall asleep or wrong information on the registration of a vehicle
d. All of the above
Correct Answer
d. All of the above
Question 13
You have passed the inspection and are ready to sell vehicles. Which of the following
are true regarding your established place of business?
a. The display area must be clearly for the exclusive use of the Dealer for display
purposes only even if you have no vehicles on the lot
b. The dealer must erect permanent signs at each location that can withstand climatic
effects and be readable within 50 feet.
c. The sign must have an area of not less than 2 square feet per side displayed and
contain lettering not less than 6 inches in size.
d. All of the above
Correct Answer
d. All of the above
Page 4 of 61