1|Page
Dealers Liscense Practice Exam (Latest Exam
2026/2027) || Most Recent Exam Actual Complete Real
Verified Exam Questions And Correct Answers
(Verified Answers) Already Graded A+ | Guaranteed
Success!! Brand New Version!!!
Who may operate a vehicle with special plates for any
purpose?*Select ALL the correct answers - Answer-1. A
sole owner, corporate officer, or director of a Dealer
provided that individual is actively engaged in the
management and control of the
Dealer's business operations
2. A manager who is actively engaged in the management
and control of the Dealer when no other individual meets
the criteria above
True or False
A Conditional Sales Contract must include all of the
following (for cars under $40k)
A Contract Cancellation Option with a "2-day cooling-off
period"
All costs & terms of payment
Written disclosure(s) for any aftermarket add-on items
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All financial aspects of the sale
Signatures of both the Buyer and the Seller - Answer-True
True or False
Dealers must disclose any vehicle modifications which
alter the vehicle from the vehicle manufacturer's original
specification. - Answer-True
Who may operate a vehicle with special plates with
limitations?*Select ALL the correct answers - Answer-1.
Employees of a Dealer when they are acting within and
scope of their employment
2. A prospective buyer or lessee, to test drive a vehicle (up
to seven days)
True or False
Interest rates must be shown on the Contract as "APR*"
so Buyers can understand the actual yearly cost of
borrowing.*APR means "Annual Percentage Rate" -
Answer-True
What is a Dealer required to do when selling a vehicle with
a 5-digit odometer that has passed 99,999 miles? -
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Answer-Check the "Mileage EXCEEDS the mechanical
limits" box on the REG 262
Dealers are not allowed to sell or offer for sale a vehicle
unless all of its safety equipment is in proper working
condition unless:
Select ALL the correct answers - Answer-1. The vehicle is
sold to another Dealer
2. The vehicle is used exclusively off-highway -or- being
legally wrecked and dismantled
3. The vehicle is leased, registered in California, and sold
to the person leasing it
True or False
A Dealer's License is automatically canceled when the:
Dealer abandons or changes their location without
immediately notifying the DMV
Dealer fails to maintain an adequate Surety Bond
Person designated as the Dealer has changed
Corporate status of the Dealer is suspended or revoked
Board of Equalization suspends or revokes the Dealer's
Seller's Permit - Answer-True
Dealers Liscense Practice Exam (Latest Exam
2026/2027) || Most Recent Exam Actual Complete Real
Verified Exam Questions And Correct Answers
(Verified Answers) Already Graded A+ | Guaranteed
Success!! Brand New Version!!!
Who may operate a vehicle with special plates for any
purpose?*Select ALL the correct answers - Answer-1. A
sole owner, corporate officer, or director of a Dealer
provided that individual is actively engaged in the
management and control of the
Dealer's business operations
2. A manager who is actively engaged in the management
and control of the Dealer when no other individual meets
the criteria above
True or False
A Conditional Sales Contract must include all of the
following (for cars under $40k)
A Contract Cancellation Option with a "2-day cooling-off
period"
All costs & terms of payment
Written disclosure(s) for any aftermarket add-on items
,2|Page
All financial aspects of the sale
Signatures of both the Buyer and the Seller - Answer-True
True or False
Dealers must disclose any vehicle modifications which
alter the vehicle from the vehicle manufacturer's original
specification. - Answer-True
Who may operate a vehicle with special plates with
limitations?*Select ALL the correct answers - Answer-1.
Employees of a Dealer when they are acting within and
scope of their employment
2. A prospective buyer or lessee, to test drive a vehicle (up
to seven days)
True or False
Interest rates must be shown on the Contract as "APR*"
so Buyers can understand the actual yearly cost of
borrowing.*APR means "Annual Percentage Rate" -
Answer-True
What is a Dealer required to do when selling a vehicle with
a 5-digit odometer that has passed 99,999 miles? -
, 3|Page
Answer-Check the "Mileage EXCEEDS the mechanical
limits" box on the REG 262
Dealers are not allowed to sell or offer for sale a vehicle
unless all of its safety equipment is in proper working
condition unless:
Select ALL the correct answers - Answer-1. The vehicle is
sold to another Dealer
2. The vehicle is used exclusively off-highway -or- being
legally wrecked and dismantled
3. The vehicle is leased, registered in California, and sold
to the person leasing it
True or False
A Dealer's License is automatically canceled when the:
Dealer abandons or changes their location without
immediately notifying the DMV
Dealer fails to maintain an adequate Surety Bond
Person designated as the Dealer has changed
Corporate status of the Dealer is suspended or revoked
Board of Equalization suspends or revokes the Dealer's
Seller's Permit - Answer-True
