Dealer Test Questions with Correct
Answers 2025
AGdealer'sGlicenseGandGspecialGplatesGshallGbeGautomaticallyGcanceledGif:G-GCORRECTGANSWERG-
TheGdealerGabandonsGtheGestablishedGplaceGofGbusiness,GTheGdealerGfailsGtoGmaintainGanGadequat
eGbond,GandGTheGCDTFAGresaleGpermitGisGsuspended
AGdealerGmustGaffixGtoGallGvehiclesGofferedGforGsale:G-GCORRECTGANSWERG-
AGfederalGtradeGcommissionGbuyersGguide
EveryGretailGdealerGshallGhaveGaGsignGerectedGorGpostedGatGhisGplaceGofGbusiness.GTheGsignGshallGha
veGaGtotalGsizeGofGnotGlessGthan:G-GCORRECTGANSWERG-TwoGsquareGfeet
EachGretailGdealerGisGrequiredGtoGmaintainGaGproperGdisplayGarea:G-GCORRECTGANSWERG-
AtGallGtimes
SignsGonGallGvehiclesGindicatingGtheGmainGlocationGaddress:G-GCORRECTGANSWERG-
IsGnotGrequiredGatGaGlicensedGdealerGlocation
AGlicensedGdealerGlocationGmustGhaveGallGofGtheGfollowing:G-GCORRECTGANSWERG-
AnGofficeGforGtheGexclusiveGuseGofGtheGdealer,GAGSignGindicatingGtheGnameGandGaddressGofGtheGdea
ler,GandGAGDisplayGareaGlargeGenoughGtoGdisplayGtheGtypes
ShouldGtheGdealerGchangeGtheGsiteGorGlocationGofGhisGestablishedGplaceGofGbusiness,GheGshallGnotif
yGtheGdepartment:G-GCORRECTGANSWERG-Immediately
TheGbasicGfeeGforGtransferGofGownershipGonGaGCaliforniaGregisteredGvehicleGis:G-
GCORRECTGANSWERG-$15
,AnyGdealerGwhoGsellsGaGvehicleGwhenGtheGtitleGisGbrandedG"LemonGlawGbuybackG"shallGprovideGaGd
isclosureGstatementGtoGtheGbuyer:G-GCORRECTGANSWERG-PriorGtoGtheGsaleGofGtheGvehicle
ItGisGlegalGtoGresetGtheGodometerGreadingGonGaGvehicle:G-GCORRECTGANSWERG-
ItGisGneverGlegalGtoGresetGtheGodometerGreading
AGdealerGMUSTGwithdrawGanyGadvertisementGofGaGvehicleGthatGhasGbeenGsoldGwithin:G-
GCORRECTGANSWERG-48Ghours
AGdealerGmayGgenerateGanGelectronicGreportGofGsaleGbookGto:G-GCORRECTGANSWERG-
ItGisGneverGlegalGtoGgenerateGaGreportGofGsaleGbookGtoGanyone.
AnGautoGbrokerGmustGalsoGbeGlicensedGasGa:G-GCORRECTGANSWERG-RetailGdealer
AGconditionalGsalesGcontractGis:G-GCORRECTGANSWERG-
AnGagreementGbetweenGtheGbuyerGandGdealerGforGpayments.
IfGaGdealerGacceptsGaGvehicleGasGaGtrade-inGifGitGisGstolen,GwhichGofGtheGfollowingGwillGhappen?G-
GCORRECTGANSWERG-TheGvehicleGisGreturnedGtoGtheGrightfulGowner
LicensingGrequirementsGforGaGdealer'sGlicenseGinGCaliforniaGareGfrom:G-GCORRECTGANSWERG-
TheGvehicleGcode
AGdealerGmustGincludeGinGallGadvertisementsGallGofGtheGfollowingGexcept:G-GCORRECTGANSWERG-
TheGcolorGofGtheGvehicle
, AGdealerGmustGincludeGinGallGadvertisementsGallGofGtheGfollowing:G-GCORRECTGANSWERG-
TheGtotalGpriceGofGtheGvehicle,GTheGmakeGofGtheGvehicleGandGTheGvehicleGidentificationGnumberGor
GlicenseGplateGnumber
YouGmayGkeepGDMVGlicensingGfeesGinGexcessGofGDMVGfeesGpaidGtoGyou.G-GCORRECTGANSWERG-
YouGmayGneverGkeepGanyGexcessGDMVGfeesGpaidGtoGyou
WhichGemployeesGofGdealershipGmustGbeGlicensedGasGaGDMVGvehicleGsalesperson?G-
GCORRECTGANSWERG-Salespersons,GSalesGmanagers,GandGFinanceGmanagers
AllGtheGagreementsGofGtheGbuyerGandGsellerGwithGrespectGtoGtheGtotalGcostGandGtermsGofGpayment
GmustGbeGcontainedGinGaGsingleGdocument.GThatGdocumentGis:G-GCORRECTGANSWERG-
TheGconditionalGsalesGcontract
WhichGlegalGactionsGmayGbeGtakenGagainstGaGdealerGifGtheyGviolateGtheGlaws,GrulesGandGregulation
sGrelatedGtoGtheirGlicensedGactivity?G-GCORRECTGANSWERG-
AdministrativeGaction,GCriminalGaction,GandGCivilGaction
WithinG20GdaysGafterGtheGsaleGofGaGconsignedGvehicleGtheGdealerGmustGnotifyGtheGconsignerGof:G-
GCORRECTGANSWERG-
TheGdateGofGsale,GTheGamountGofGanyGlienGpayableGtoGtheGlienholder,GandGTheGtotalGsalesGprice
AGCaliforniaGlawGdoesGnotGprovideGanGincludedG"coolingGoffG"periodGorGotherGcancellationGperiodG
forGvehicleGsales.GTheGonlyGexceptionGis:G-GCORRECTGANSWERG-
ForGlegalGcauseGsuchGasGfraudGorGwithGtheGagreementGofGtheGseller
AsGtheGsellingGdealer,GyouGmayGallowGtheGcustomerGtoGtakeGtheGvehicleGtoGgetGtheirGownGsmogGce
rtificate:G-GCORRECTGANSWERG-
YouGmayGneverGallowGtheGcustomerGtoGtakeGtheGvehicleGtoGgetGtheirGownGsmogGcertificate
Answers 2025
AGdealer'sGlicenseGandGspecialGplatesGshallGbeGautomaticallyGcanceledGif:G-GCORRECTGANSWERG-
TheGdealerGabandonsGtheGestablishedGplaceGofGbusiness,GTheGdealerGfailsGtoGmaintainGanGadequat
eGbond,GandGTheGCDTFAGresaleGpermitGisGsuspended
AGdealerGmustGaffixGtoGallGvehiclesGofferedGforGsale:G-GCORRECTGANSWERG-
AGfederalGtradeGcommissionGbuyersGguide
EveryGretailGdealerGshallGhaveGaGsignGerectedGorGpostedGatGhisGplaceGofGbusiness.GTheGsignGshallGha
veGaGtotalGsizeGofGnotGlessGthan:G-GCORRECTGANSWERG-TwoGsquareGfeet
EachGretailGdealerGisGrequiredGtoGmaintainGaGproperGdisplayGarea:G-GCORRECTGANSWERG-
AtGallGtimes
SignsGonGallGvehiclesGindicatingGtheGmainGlocationGaddress:G-GCORRECTGANSWERG-
IsGnotGrequiredGatGaGlicensedGdealerGlocation
AGlicensedGdealerGlocationGmustGhaveGallGofGtheGfollowing:G-GCORRECTGANSWERG-
AnGofficeGforGtheGexclusiveGuseGofGtheGdealer,GAGSignGindicatingGtheGnameGandGaddressGofGtheGdea
ler,GandGAGDisplayGareaGlargeGenoughGtoGdisplayGtheGtypes
ShouldGtheGdealerGchangeGtheGsiteGorGlocationGofGhisGestablishedGplaceGofGbusiness,GheGshallGnotif
yGtheGdepartment:G-GCORRECTGANSWERG-Immediately
TheGbasicGfeeGforGtransferGofGownershipGonGaGCaliforniaGregisteredGvehicleGis:G-
GCORRECTGANSWERG-$15
,AnyGdealerGwhoGsellsGaGvehicleGwhenGtheGtitleGisGbrandedG"LemonGlawGbuybackG"shallGprovideGaGd
isclosureGstatementGtoGtheGbuyer:G-GCORRECTGANSWERG-PriorGtoGtheGsaleGofGtheGvehicle
ItGisGlegalGtoGresetGtheGodometerGreadingGonGaGvehicle:G-GCORRECTGANSWERG-
ItGisGneverGlegalGtoGresetGtheGodometerGreading
AGdealerGMUSTGwithdrawGanyGadvertisementGofGaGvehicleGthatGhasGbeenGsoldGwithin:G-
GCORRECTGANSWERG-48Ghours
AGdealerGmayGgenerateGanGelectronicGreportGofGsaleGbookGto:G-GCORRECTGANSWERG-
ItGisGneverGlegalGtoGgenerateGaGreportGofGsaleGbookGtoGanyone.
AnGautoGbrokerGmustGalsoGbeGlicensedGasGa:G-GCORRECTGANSWERG-RetailGdealer
AGconditionalGsalesGcontractGis:G-GCORRECTGANSWERG-
AnGagreementGbetweenGtheGbuyerGandGdealerGforGpayments.
IfGaGdealerGacceptsGaGvehicleGasGaGtrade-inGifGitGisGstolen,GwhichGofGtheGfollowingGwillGhappen?G-
GCORRECTGANSWERG-TheGvehicleGisGreturnedGtoGtheGrightfulGowner
LicensingGrequirementsGforGaGdealer'sGlicenseGinGCaliforniaGareGfrom:G-GCORRECTGANSWERG-
TheGvehicleGcode
AGdealerGmustGincludeGinGallGadvertisementsGallGofGtheGfollowingGexcept:G-GCORRECTGANSWERG-
TheGcolorGofGtheGvehicle
, AGdealerGmustGincludeGinGallGadvertisementsGallGofGtheGfollowing:G-GCORRECTGANSWERG-
TheGtotalGpriceGofGtheGvehicle,GTheGmakeGofGtheGvehicleGandGTheGvehicleGidentificationGnumberGor
GlicenseGplateGnumber
YouGmayGkeepGDMVGlicensingGfeesGinGexcessGofGDMVGfeesGpaidGtoGyou.G-GCORRECTGANSWERG-
YouGmayGneverGkeepGanyGexcessGDMVGfeesGpaidGtoGyou
WhichGemployeesGofGdealershipGmustGbeGlicensedGasGaGDMVGvehicleGsalesperson?G-
GCORRECTGANSWERG-Salespersons,GSalesGmanagers,GandGFinanceGmanagers
AllGtheGagreementsGofGtheGbuyerGandGsellerGwithGrespectGtoGtheGtotalGcostGandGtermsGofGpayment
GmustGbeGcontainedGinGaGsingleGdocument.GThatGdocumentGis:G-GCORRECTGANSWERG-
TheGconditionalGsalesGcontract
WhichGlegalGactionsGmayGbeGtakenGagainstGaGdealerGifGtheyGviolateGtheGlaws,GrulesGandGregulation
sGrelatedGtoGtheirGlicensedGactivity?G-GCORRECTGANSWERG-
AdministrativeGaction,GCriminalGaction,GandGCivilGaction
WithinG20GdaysGafterGtheGsaleGofGaGconsignedGvehicleGtheGdealerGmustGnotifyGtheGconsignerGof:G-
GCORRECTGANSWERG-
TheGdateGofGsale,GTheGamountGofGanyGlienGpayableGtoGtheGlienholder,GandGTheGtotalGsalesGprice
AGCaliforniaGlawGdoesGnotGprovideGanGincludedG"coolingGoffG"periodGorGotherGcancellationGperiodG
forGvehicleGsales.GTheGonlyGexceptionGis:G-GCORRECTGANSWERG-
ForGlegalGcauseGsuchGasGfraudGorGwithGtheGagreementGofGtheGseller
AsGtheGsellingGdealer,GyouGmayGallowGtheGcustomerGtoGtakeGtheGvehicleGtoGgetGtheirGownGsmogGce
rtificate:G-GCORRECTGANSWERG-
YouGmayGneverGallowGtheGcustomerGtoGtakeGtheGvehicleGtoGgetGtheirGownGsmogGcertificate