CALIFORNIA DEALER LICENSE TEST EXAM QUESTIONS WITH
VERIFIED CORRECT ANSWERS | NEWEST UPDATE 2026/2027 |
GRADED A+ | 100% ASSURED PASS.
“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 - CORRECT ANSWER C. All of the above"
"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 - CORRECT ANSWER d. All of the above"
"Which of the following are true regarding the Vehicle title and Transfer fees? a.
Transfer fees are $15.00
b. If late, dealer must pay $5 ASF penalty
c. All of the above - CORRECT ANSWER C. All of the above"
"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"
1
,"Every Dealer must notify DMV of the effective day of change of ownership: a.
10 days prior to effective date
b. Within 5 days prior to effective date
c. Within 15 days
d. Within 20 days - CORRECT ANSWER a. 10 days prior to effective date"
"Which of the following is not required to transfer a vehicle?
a. Endorsed Certificate of Ownership
b. A report of prior service records for the vehicle since new
c. Odometer mileage reading
d. Smog Certificate - CORRECT ANSWER b. A report of prior service records for
the vehicle since new"
"Which of the following must sign the Certificate of Ownership?
a. The legal owner
b. The registered owner
c. The transferee
d. All of the above - CORRECT ANSWER The legal owner, the registered owner,
and the transferee."
"Registration fees are due at the time of retail sale where ... - CORRECT ANSWER
The registration will expire within 30 days of the date of sale OR the registration has
already expired."
"If the registration of a vehicle expires while a vehicle is in the dealer's inventory, is
the dealer responsible for paying late registration penalties? - CORRECT
ANSWER No"
2
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"The dealership display area must:
a. At least twice the size of the dealership office.
3
, b. For the exclusive use of the dealer for display purposes only.
c. Within 1000 feet of the dealership office
d. Both B and C - CORRECT ANSWER d. Both B and C"
"Every Dealer must notify DMV of the effective day of the change of location:
a. Immediately
b. Within 5 days
c. Within 10 days
d. Within 20 days - CORRECT ANSWER a. Immediately"
"Which of the following are not taxable in a vehicle sales transaction?
a. Finance charges
b. Insurance charges
c. Smog certificate fee (paid to state)
d. All of the above - CORRECT ANSWER d. All of the above"
"DMV requires Special Plates (dealer plates) be placed where on the vehicle? -
CORRECT ANSWER In the rear, over the existing license plate."
"Auto-brokers must do which of the following:
a. Limit deposits to 2.5% of the purchase price, and put all deposits in a separate
trust account
b. Use any deposits received to pay the broker - CORRECT ANSWER a. Limit
deposits to 2.5% of the purchase price and put all deposits in a separate trust
account"
4
VERIFIED CORRECT ANSWERS | NEWEST UPDATE 2026/2027 |
GRADED A+ | 100% ASSURED PASS.
“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 - CORRECT ANSWER C. All of the above"
"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 - CORRECT ANSWER d. All of the above"
"Which of the following are true regarding the Vehicle title and Transfer fees? a.
Transfer fees are $15.00
b. If late, dealer must pay $5 ASF penalty
c. All of the above - CORRECT ANSWER C. All of the above"
"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"
1
,"Every Dealer must notify DMV of the effective day of change of ownership: a.
10 days prior to effective date
b. Within 5 days prior to effective date
c. Within 15 days
d. Within 20 days - CORRECT ANSWER a. 10 days prior to effective date"
"Which of the following is not required to transfer a vehicle?
a. Endorsed Certificate of Ownership
b. A report of prior service records for the vehicle since new
c. Odometer mileage reading
d. Smog Certificate - CORRECT ANSWER b. A report of prior service records for
the vehicle since new"
"Which of the following must sign the Certificate of Ownership?
a. The legal owner
b. The registered owner
c. The transferee
d. All of the above - CORRECT ANSWER The legal owner, the registered owner,
and the transferee."
"Registration fees are due at the time of retail sale where ... - CORRECT ANSWER
The registration will expire within 30 days of the date of sale OR the registration has
already expired."
"If the registration of a vehicle expires while a vehicle is in the dealer's inventory, is
the dealer responsible for paying late registration penalties? - CORRECT
ANSWER No"
2
,Thank you for Purchasing this exam
Study Guide. We provide high-quality
academic materials to help students
excel in exams. Our other Services
include but not limited to: academic
research, University & College
assignments writing, essay writing,
Online Classes, and research projects.
Our services are reliable, affordable,
and plagiarism-free. All the Best in your
Exam. For more information; Contact us
at: or
0R +254
741484450
"The dealership display area must:
a. At least twice the size of the dealership office.
3
, b. For the exclusive use of the dealer for display purposes only.
c. Within 1000 feet of the dealership office
d. Both B and C - CORRECT ANSWER d. Both B and C"
"Every Dealer must notify DMV of the effective day of the change of location:
a. Immediately
b. Within 5 days
c. Within 10 days
d. Within 20 days - CORRECT ANSWER a. Immediately"
"Which of the following are not taxable in a vehicle sales transaction?
a. Finance charges
b. Insurance charges
c. Smog certificate fee (paid to state)
d. All of the above - CORRECT ANSWER d. All of the above"
"DMV requires Special Plates (dealer plates) be placed where on the vehicle? -
CORRECT ANSWER In the rear, over the existing license plate."
"Auto-brokers must do which of the following:
a. Limit deposits to 2.5% of the purchase price, and put all deposits in a separate
trust account
b. Use any deposits received to pay the broker - CORRECT ANSWER a. Limit
deposits to 2.5% of the purchase price and put all deposits in a separate trust
account"
4
