Official Test Set Questions with Correct Detailed
Verified Answers 2025–2026
INTRODUCTION:
This document contains the full set of official California Dealer
License exam preparation materials for 2025–2026. It includes
complete multiple-choice questions with correct and detailed
verified answers, covering topics such as dealer licensing
requirements, DMV regulations, report of sale procedures,
advertising rules, dealer bonds, consumer protection laws, and
smog/transfer fees. Designed as a comprehensive study guide, it
ensures thorough preparation for passing the California Dealer
License Exam.
EXAM QUESTIONS AND ANSWERS:
Is it illegal to tamper with the odometer, disconnect, reset or
rollback, etc.
a. True
b. False --- correct answer ---True
,Prior history disclosure is required in writing that states if a
vehicle is which of the following:
a. Rental Vehicle
b. Taxi cab
c. Insurance Salvage vehicle
d. Former public vehicle
e. All of the above --- correct answer ---d. 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
, An unwind usually results from the dealer's failure to obtain
financing for the customer from a lending institution.
a. True
b. False --- correct answer ---A. true
If the purchaser overpays the dealer an amount for the licensing or
transfer of the title of vehicle other than 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
customer --- correct answer ---b. Dealer may never keep
overpayment and must return it to customer
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
What is it most that a dealer can charge customer for smog fee and
smog certificate?
a. $25
b. $35
c. $45