California Dealer License Exam
Questions and Correct Answers| 2026
Updated| GRADED A+
1. 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
Answer: c. All of the above
2. The maximum fee allowed for documentation preparation
is:
a. $10
b. $25
c. $30
d. $65
Answer: d. $65 (Note: newer sources suggest this may have
increased to $85, so verify current law)
3. The maximum fee allowed for smog is:
a. $15
b. $20
c. $30
d. $50
Answer: d. $50
4. How many days does a used vehicle dealer have to
COMPLETE the application to the department from the date
,of sale?
a. 50
b. 30
c. 60
d. 20
Answer: b. 30
5. How many days does a used vehicle dealer have to CLEAR
the application to the department from the date of sale?
a. 20
b. 30
c. 50
d. 60
Answer: c. 50
6. All deals negotiated in Spanish require the dealer to
provide a Spanish language contract.
a. True
b. False
Answer: a. True
7. In advertising, a dealer must identify himself/herself by:
a. Slogan name or Business License Name
b. License number
c. Address
Answer: a. Slogan name or Business License Name
8. When a vehicle is sold prior to the expiration of the ad, the
dealer has 48 hours to request (IN WRITING) withdrawal of
the vehicle ad or overprint the word "SOLD" over the
particular vehicle.
a. True
,b. False
Answer: a. True
9. 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
Answer: d. Color
10. "Bait-and-switch" advertising is:
a. A lawful competitive practice
b. Unlawful and prohibited by statute
c. Permitted if disclosed in the ad
d. Only regulated for new vehicles
Answer: b. Unlawful and prohibited by statute
11. 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
Answer: d. All of the above
12. Which of the following are true regarding the Vehicle title
and Transfer fees?
a. Transfer fees are $15
, b. If late, dealer must pay $5 ASF penalty
c. All of the above
Answer: c. All of the above
13. An unwind usually results from the dealer's failure to
obtain financing for the customer from a lending institution.
a. True
b. False
Answer: a. True
14. If the purchaser overpays the dealer an amount for the
licensing or transfer of the title of the vehicle other than the
actual amount due, the dealer may:
a. Keep the overpayment as part of down payment
b. Dealer may never keep overpayment and must return it to the
customer
Answer: b. Dealer may never keep overpayment and must return
it to the customer
15. 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
Answer: a. True
16. The Report of Sales Book is provided by the DMV and is
the property of the dealer.
a. True
b. False
Answer: b. False
Questions and Correct Answers| 2026
Updated| GRADED A+
1. 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
Answer: c. All of the above
2. The maximum fee allowed for documentation preparation
is:
a. $10
b. $25
c. $30
d. $65
Answer: d. $65 (Note: newer sources suggest this may have
increased to $85, so verify current law)
3. The maximum fee allowed for smog is:
a. $15
b. $20
c. $30
d. $50
Answer: d. $50
4. How many days does a used vehicle dealer have to
COMPLETE the application to the department from the date
,of sale?
a. 50
b. 30
c. 60
d. 20
Answer: b. 30
5. How many days does a used vehicle dealer have to CLEAR
the application to the department from the date of sale?
a. 20
b. 30
c. 50
d. 60
Answer: c. 50
6. All deals negotiated in Spanish require the dealer to
provide a Spanish language contract.
a. True
b. False
Answer: a. True
7. In advertising, a dealer must identify himself/herself by:
a. Slogan name or Business License Name
b. License number
c. Address
Answer: a. Slogan name or Business License Name
8. When a vehicle is sold prior to the expiration of the ad, the
dealer has 48 hours to request (IN WRITING) withdrawal of
the vehicle ad or overprint the word "SOLD" over the
particular vehicle.
a. True
,b. False
Answer: a. True
9. 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
Answer: d. Color
10. "Bait-and-switch" advertising is:
a. A lawful competitive practice
b. Unlawful and prohibited by statute
c. Permitted if disclosed in the ad
d. Only regulated for new vehicles
Answer: b. Unlawful and prohibited by statute
11. 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
Answer: d. All of the above
12. Which of the following are true regarding the Vehicle title
and Transfer fees?
a. Transfer fees are $15
, b. If late, dealer must pay $5 ASF penalty
c. All of the above
Answer: c. All of the above
13. An unwind usually results from the dealer's failure to
obtain financing for the customer from a lending institution.
a. True
b. False
Answer: a. True
14. If the purchaser overpays the dealer an amount for the
licensing or transfer of the title of the vehicle other than the
actual amount due, the dealer may:
a. Keep the overpayment as part of down payment
b. Dealer may never keep overpayment and must return it to the
customer
Answer: b. Dealer may never keep overpayment and must return
it to the customer
15. 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
Answer: a. True
16. The Report of Sales Book is provided by the DMV and is
the property of the dealer.
a. True
b. False
Answer: b. False
