Car Dealer License EXAM AND PRACTICE EXAM
NEWEST ACTUAL EXAM COMPLETE 280
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
With a consignment what must be disclosed to the cosigner (person you sold the car
for) within 20 days of sale? - CORRECT ANSWER -Date of sale
-Selling price
-Amount of the Lien that was paid, if any
Of the followinh used vehicle sales prices, which would a dealer not be required to offer
a contract cancellation option agreement? - CORRECT ANSWER -Anything
over $40k
Your occupational license will be automatically canceled without a hearing if: -
CORRECT ANSWER -Your seller's permit is revoked
-You have a bond reduction
-You take your main sign down and relinquish your office
What is the maximum markup that dealers may add to a loan for their own profit? -
CORRECT ANSWER -2.5% on loans 60 or fewer months, and 2& on loans 60
months or fewer***
How much is the vehicle transfer fee, on a Californian registered vehicle? - CORRECT
ANSWER -$15
When is a retail dealer required to maintain a vehicle display area? - CORRECT
ANSWER -At all times while licensed.
How many hours does a dealer have to notify the advertiser, in writing that a vehicle has
been sold or withdrawn? - CORRECT ANSWER -48 Hours
When is it proper to reset an odometer? - CORRECT ANSWER -Never
,Effectively July 1, 2006, dealers who advertise a vehicle as "certified" will be in
violations of the law if the vehicle they are referring to in the ad has the following history:
- CORRECT ANSWER -Salvage
-Frame Damage
When you are a dealer selling a car to a retail customer, when is it proper for the dealer
to allow the customers to obtain a smog certificate on their own? - CORRECT
ANSWER -Never
If a dealer is suspected of violating the laws that regulate dealers, which of the following
actions may be taken against the dealer: - CORRECT ANSWER -Administrative
hearing
-Possible prosecution by the District Attorney
-Civil Action for money damages
What is the maximum time period a dealer is provided to pay the proceeds of a
consignment sale and make an accounting to a cosignor? (person you sold the car for)?
- CORRECT ANSWER -20 Days
What would be an exception to the no cooling off period? - CORRECT ANSWER
-In the event of fraud or where the seller agrees to cancel the sale
What is a conditional sales contract? - CORRECT ANSWER -A contract where
the sale is conditioned upon the buyer obtaining financing and where a lien is created
Which document is used to account for the total cost and terms of payment? -
CORRECT ANSWER -THE CONDITIONAL SALES CONTRACT
When is it proper for a dealer to give a report of sale to another dealer? - CORRECT
ANSWER -NEVER
What is the minimum size for a main sign for a retail dealer? - CORRECT
ANSWER -2 SQUARE FEET
Which of the following things must a RETAIL dealer have ? - CORRECT ANSWER
-Sign with the dealership name and address
-An office for the use of the dealer
-Display area for the display of cars
, If a dealer plans on changing the location of his established place of business, when is
he required to notify the DMV? - CORRECT ANSWER -IMMEDIATELY
When is a dealer, who sells a vehicle that has a title branded SALVAGE or LEMON
LAW BUYBACK, required to disclose the status of the title to the retail customer? -
CORRECT ANSWER -BEFORE THE SALE OF THE VEHICLE
Which is the main body of law used to regulate dealers? - CORRECT ANSWER
-THE VEHICLE CODE
What will happen if a dealer unknowingly buys a stolen car? - CORRECT ANSWER
-THE DEALER WILL HAVE TO RETURN THE CAR TO THE RIGHTFUL OWNER
How much is the most that can be charged for a document processing charge? -
CORRECT ANSWER -$65 OR $85 DEPENDING ON THE PROCESS USED
TO FILE PAPERWORK
Before you can apply for your dealer license, you need to a get a resale permit (seller's
permit) from where? - CORRECT ANSWER -THE STATE BOARD OF
EQUALIZATION
What is required in an auto dealer's advertisement for a vehicle for sale? - CORRECT
ANSWER -Make and Model
-VIN
-Dealership Name
When is it acceptable to keep excess registration fees paid by the customer? -
CORRECT ANSWER -IT IS NEVER ACCEPTABLE TO KEEP EXCESS
REGISTRATION FEES
Which of the following persons must have a salesperson's license at an auto
dealership? - CORRECT ANSWER -Salespersons
-Sales Managers
-Finance Manager
A Retail Dealer must maintain a bond in the amount of? - CORRECT ANSWER
-$50,000
NEWEST ACTUAL EXAM COMPLETE 280
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
With a consignment what must be disclosed to the cosigner (person you sold the car
for) within 20 days of sale? - CORRECT ANSWER -Date of sale
-Selling price
-Amount of the Lien that was paid, if any
Of the followinh used vehicle sales prices, which would a dealer not be required to offer
a contract cancellation option agreement? - CORRECT ANSWER -Anything
over $40k
Your occupational license will be automatically canceled without a hearing if: -
CORRECT ANSWER -Your seller's permit is revoked
-You have a bond reduction
-You take your main sign down and relinquish your office
What is the maximum markup that dealers may add to a loan for their own profit? -
CORRECT ANSWER -2.5% on loans 60 or fewer months, and 2& on loans 60
months or fewer***
How much is the vehicle transfer fee, on a Californian registered vehicle? - CORRECT
ANSWER -$15
When is a retail dealer required to maintain a vehicle display area? - CORRECT
ANSWER -At all times while licensed.
How many hours does a dealer have to notify the advertiser, in writing that a vehicle has
been sold or withdrawn? - CORRECT ANSWER -48 Hours
When is it proper to reset an odometer? - CORRECT ANSWER -Never
,Effectively July 1, 2006, dealers who advertise a vehicle as "certified" will be in
violations of the law if the vehicle they are referring to in the ad has the following history:
- CORRECT ANSWER -Salvage
-Frame Damage
When you are a dealer selling a car to a retail customer, when is it proper for the dealer
to allow the customers to obtain a smog certificate on their own? - CORRECT
ANSWER -Never
If a dealer is suspected of violating the laws that regulate dealers, which of the following
actions may be taken against the dealer: - CORRECT ANSWER -Administrative
hearing
-Possible prosecution by the District Attorney
-Civil Action for money damages
What is the maximum time period a dealer is provided to pay the proceeds of a
consignment sale and make an accounting to a cosignor? (person you sold the car for)?
- CORRECT ANSWER -20 Days
What would be an exception to the no cooling off period? - CORRECT ANSWER
-In the event of fraud or where the seller agrees to cancel the sale
What is a conditional sales contract? - CORRECT ANSWER -A contract where
the sale is conditioned upon the buyer obtaining financing and where a lien is created
Which document is used to account for the total cost and terms of payment? -
CORRECT ANSWER -THE CONDITIONAL SALES CONTRACT
When is it proper for a dealer to give a report of sale to another dealer? - CORRECT
ANSWER -NEVER
What is the minimum size for a main sign for a retail dealer? - CORRECT
ANSWER -2 SQUARE FEET
Which of the following things must a RETAIL dealer have ? - CORRECT ANSWER
-Sign with the dealership name and address
-An office for the use of the dealer
-Display area for the display of cars
, If a dealer plans on changing the location of his established place of business, when is
he required to notify the DMV? - CORRECT ANSWER -IMMEDIATELY
When is a dealer, who sells a vehicle that has a title branded SALVAGE or LEMON
LAW BUYBACK, required to disclose the status of the title to the retail customer? -
CORRECT ANSWER -BEFORE THE SALE OF THE VEHICLE
Which is the main body of law used to regulate dealers? - CORRECT ANSWER
-THE VEHICLE CODE
What will happen if a dealer unknowingly buys a stolen car? - CORRECT ANSWER
-THE DEALER WILL HAVE TO RETURN THE CAR TO THE RIGHTFUL OWNER
How much is the most that can be charged for a document processing charge? -
CORRECT ANSWER -$65 OR $85 DEPENDING ON THE PROCESS USED
TO FILE PAPERWORK
Before you can apply for your dealer license, you need to a get a resale permit (seller's
permit) from where? - CORRECT ANSWER -THE STATE BOARD OF
EQUALIZATION
What is required in an auto dealer's advertisement for a vehicle for sale? - CORRECT
ANSWER -Make and Model
-VIN
-Dealership Name
When is it acceptable to keep excess registration fees paid by the customer? -
CORRECT ANSWER -IT IS NEVER ACCEPTABLE TO KEEP EXCESS
REGISTRATION FEES
Which of the following persons must have a salesperson's license at an auto
dealership? - CORRECT ANSWER -Salespersons
-Sales Managers
-Finance Manager
A Retail Dealer must maintain a bond in the amount of? - CORRECT ANSWER
-$50,000
