DMV
Car Dealer License
COMPLETE TEST GUIDE
©2024/2025
,1. Question: Which regulatory body is primarily responsible for
enforcing consumer protection laws related to car dealerships in
the United States?
- A. Federal Trade Commission (FTC)
- B. Department of Motor Vehicles (DMV)
- C. National Highway Traffic Safety Administration (NHTSA)
- D. Securities and Exchange Commission (SEC)
Correct Answer: A. Federal Trade Commission (FTC)
Rationale: The FTC enforces consumer protection laws
relevant to advertising and sales practices within car dealerships.
2. Question: What is the main purpose of the Truth in Lending
Act (TILA) in the automotive industry?
- A. To ensure fair lending practices
- B. To regulate the prices of vehicles
- C. To require dealerships to disclose safety features
- D. To mandate transparency in vehicle financing terms
©2024/2025
, Correct Answer: D. To mandate transparency in vehicle
financing terms
Rationale: TILA requires disclosures regarding interest rates
and terms to help consumers understand the cost of borrowing.
3. Question: The Clean Air Act affects car dealerships by
imposing regulations on which of the following?
- A. Vehicle financing options
- B. Emissions standards for vehicles sold
- C. Mechanic certifications
- D. Sales tax on vehicles
Correct Answer: B. Emissions standards for vehicles sold
Rationale: The Clean Air Act sets emissions standards to
control air pollution from vehicles.
### Sales and Marketing
4. Question: Which marketing strategy is the most effective for
car dealerships trying to reach environmentally conscious
consumers?
- A. Traditional TV advertising
- B. Social media campaigns focusing on electric vehicles
©2024/2025
, - C. Direct mail promotions
- D. Sponsoring local events
Correct Answer: B. Social media campaigns focusing on
electric vehicles
Rationale: Social media allows targeted outreach to specific
demographics, including environmentally conscious consumers.
5. Question: What is one of the key benefits of offering a vehicle
certification program at a dealership?
- A. It reduces warranty costs for the dealership.
- B. It builds consumer confidence in purchasing used vehicles.
- C. It allows the dealership to sell vehicles at higher prices
without added value.
- D. It increases the number of vehicle recalls.
Correct Answer: B. It builds consumer confidence in
purchasing used vehicles.
Rationale: Certification programs provide assurance to
customers regarding the quality and reliability of used vehicles.
©2024/2025
Car Dealer License
COMPLETE TEST GUIDE
©2024/2025
,1. Question: Which regulatory body is primarily responsible for
enforcing consumer protection laws related to car dealerships in
the United States?
- A. Federal Trade Commission (FTC)
- B. Department of Motor Vehicles (DMV)
- C. National Highway Traffic Safety Administration (NHTSA)
- D. Securities and Exchange Commission (SEC)
Correct Answer: A. Federal Trade Commission (FTC)
Rationale: The FTC enforces consumer protection laws
relevant to advertising and sales practices within car dealerships.
2. Question: What is the main purpose of the Truth in Lending
Act (TILA) in the automotive industry?
- A. To ensure fair lending practices
- B. To regulate the prices of vehicles
- C. To require dealerships to disclose safety features
- D. To mandate transparency in vehicle financing terms
©2024/2025
, Correct Answer: D. To mandate transparency in vehicle
financing terms
Rationale: TILA requires disclosures regarding interest rates
and terms to help consumers understand the cost of borrowing.
3. Question: The Clean Air Act affects car dealerships by
imposing regulations on which of the following?
- A. Vehicle financing options
- B. Emissions standards for vehicles sold
- C. Mechanic certifications
- D. Sales tax on vehicles
Correct Answer: B. Emissions standards for vehicles sold
Rationale: The Clean Air Act sets emissions standards to
control air pollution from vehicles.
### Sales and Marketing
4. Question: Which marketing strategy is the most effective for
car dealerships trying to reach environmentally conscious
consumers?
- A. Traditional TV advertising
- B. Social media campaigns focusing on electric vehicles
©2024/2025
, - C. Direct mail promotions
- D. Sponsoring local events
Correct Answer: B. Social media campaigns focusing on
electric vehicles
Rationale: Social media allows targeted outreach to specific
demographics, including environmentally conscious consumers.
5. Question: What is one of the key benefits of offering a vehicle
certification program at a dealership?
- A. It reduces warranty costs for the dealership.
- B. It builds consumer confidence in purchasing used vehicles.
- C. It allows the dealership to sell vehicles at higher prices
without added value.
- D. It increases the number of vehicle recalls.
Correct Answer: B. It builds consumer confidence in
purchasing used vehicles.
Rationale: Certification programs provide assurance to
customers regarding the quality and reliability of used vehicles.
©2024/2025
