CALIFORNIA DEALER LICENSE FINAL PAPER 2025/2026
QUESTIONS WITH ANSWERS GRADED A+
✔✔The Report of Sales Book is provided by the DMV and is the property of the dealer.
a. True
b. False - ✔✔b. False
✔✔After a hearing, the department May revoke and/or suspend a dealers license if they
have
a. Wrote the department a check with insufficient funds at the bank
b. knowingly permits someone to illegally use their special plates
c. fall asleep or wrong information on the registration of a vehicle
d. All of the above - ✔✔d. All of the above
✔✔When a dealer runs out of ROS and needs emergency supplies, where does he/ she
get them from?
a. Another dealer
b. DMV Sacramento
c. Occupational Licensing Inspector - ✔✔c. Occupational Licensing Inspector
✔✔Which are true regarding the dealer Special Plates?
a. Dealer can use the SPecial Plates to go on vacation
b. Prospective customer can use Special Plates for "Test Drive" for up to 7 days
c. All of the above - ✔✔c. All of the above
✔✔When test driving the vehicle, what is the proper placement of the Special Plates?
a. In the rear window
b. In lower right corner of front window
c. Mounted on the back rear of vehicle - ✔✔c. Mounted on the back rear of vehicle
✔✔The employee can use the Special Plates to visit a sick friend.
a. True
b. False - ✔✔b. False
✔✔How much is the bond that the dealer must have prior to the issuance of its Dealer
License?
a. $10,000
b. $50,000
c. $15,000
d. $20,000 - ✔✔b. $50,000
✔✔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 - ✔✔a. Cancellation of Dealer's
License
✔✔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 - ✔✔a. 10 days prior to effective date
✔✔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 - ✔✔a. Immediately
✔✔A dealer may obtain a branch location outside his established place of business.
How many display places for vehicles does he need to maintain branch location.
a. 4
b. 5
c. 2 - ✔✔c. 2
✔✔You have passed the inspection and are ready to sell vehicles. Which of the
following are true regarding your established place of business?
a. The display area must be clearly for the exclusive use of the Dealer for display
purposes only even if you have no vehicles on the lot
b. The dealer must erect permanent signs at each location that can withstand climatic
effects and be readable within 50 feet.
c. The sign must have an area of not less than 2 square feet per side displayed and
contain lettering not less than 6 inches in size.
d. All of the above - ✔✔d. All of the above
✔✔How many days does the dealer to report to the DMV the employment or termination
of an employee?
a. 10 days
b. 5 days
c. 15 days
d. 20 days - ✔✔a. 10 days
✔✔On a consignment, how many days after the date of sale does the dealer have to
make account of all transactions and pay the agreed amount to consignor?
a. 5 days
b. 10 days
c. 15 days
QUESTIONS WITH ANSWERS GRADED A+
✔✔The Report of Sales Book is provided by the DMV and is the property of the dealer.
a. True
b. False - ✔✔b. False
✔✔After a hearing, the department May revoke and/or suspend a dealers license if they
have
a. Wrote the department a check with insufficient funds at the bank
b. knowingly permits someone to illegally use their special plates
c. fall asleep or wrong information on the registration of a vehicle
d. All of the above - ✔✔d. All of the above
✔✔When a dealer runs out of ROS and needs emergency supplies, where does he/ she
get them from?
a. Another dealer
b. DMV Sacramento
c. Occupational Licensing Inspector - ✔✔c. Occupational Licensing Inspector
✔✔Which are true regarding the dealer Special Plates?
a. Dealer can use the SPecial Plates to go on vacation
b. Prospective customer can use Special Plates for "Test Drive" for up to 7 days
c. All of the above - ✔✔c. All of the above
✔✔When test driving the vehicle, what is the proper placement of the Special Plates?
a. In the rear window
b. In lower right corner of front window
c. Mounted on the back rear of vehicle - ✔✔c. Mounted on the back rear of vehicle
✔✔The employee can use the Special Plates to visit a sick friend.
a. True
b. False - ✔✔b. False
✔✔How much is the bond that the dealer must have prior to the issuance of its Dealer
License?
a. $10,000
b. $50,000
c. $15,000
d. $20,000 - ✔✔b. $50,000
✔✔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 - ✔✔a. Cancellation of Dealer's
License
✔✔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 - ✔✔a. 10 days prior to effective date
✔✔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 - ✔✔a. Immediately
✔✔A dealer may obtain a branch location outside his established place of business.
How many display places for vehicles does he need to maintain branch location.
a. 4
b. 5
c. 2 - ✔✔c. 2
✔✔You have passed the inspection and are ready to sell vehicles. Which of the
following are true regarding your established place of business?
a. The display area must be clearly for the exclusive use of the Dealer for display
purposes only even if you have no vehicles on the lot
b. The dealer must erect permanent signs at each location that can withstand climatic
effects and be readable within 50 feet.
c. The sign must have an area of not less than 2 square feet per side displayed and
contain lettering not less than 6 inches in size.
d. All of the above - ✔✔d. All of the above
✔✔How many days does the dealer to report to the DMV the employment or termination
of an employee?
a. 10 days
b. 5 days
c. 15 days
d. 20 days - ✔✔a. 10 days
✔✔On a consignment, how many days after the date of sale does the dealer have to
make account of all transactions and pay the agreed amount to consignor?
a. 5 days
b. 10 days
c. 15 days
