California Dealer Test with
Complete Questions and
Correct Verified Answers
(Detailed Answers) Already
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to Pass Concepts
Section 1: Licenses and Regulations
1. What is the primary purpose of the California Vehicle Code?
a) To generate revenue for the state.
b) To regulate sales of goods and services.
c) To regulate the sale, transfer, and transportation of vehicles. ✓
d) To set standards for vehicle manufacturing.
2. A licensed dealer in California is required to have their license prominently displayed:
a) In their wallet for identification.
b) At their primary place of business. ✓
c) In their home office.
d) Only at the DMV headquarters.
3. What is the maximum number of vehicles a person can sell in a 12-month period
without a dealer's license?
a) 2
b) 4
c) 5 ✓
d) Unlimited, if they are for personal use.
,4. A "Wholesale-only" dealer is permitted to:
a) Sell vehicles retail if they get a special permit.
b) Sell vehicles only to the general public.
c) Sell vehicles only to other licensed dealers. ✓
d) Sell vehicles at auction only.
5. A temporary permit (TP) allows a dealer to:
a) Operate without a permanent location.
b) Sell vehicles for up to 90 days while the license application is processed.
c) Move a vehicle for purposes of repair, demonstration, or sale. ✓
d) Lend a vehicle to a customer indefinitely.
6. It is illegal for a dealer to employ a person to sell vehicles if that person:
a) Has less than 2 years of experience.
b) Does not have a high school diploma.
c) Has been convicted of a crime involving moral turpitude and has not received a DMV
determination. ✓
d) Works part-time.
7. A dealer's license is valid for a period of:
a) 1 year ✓
b) 2 years
c) 4 years
d) 5 years
8. A "Salesperson" is defined as a person who is:
a) Employed by a dealer to sell vehicles. ✓
b) The owner of the dealership.
c) A mechanic performing repairs.
d) A finance manager only.
9. A dealer must notify the DMV within 10 days of a change in:
a) The color of their building.
b) Their business name or address. ✓
c) The number of employees.
d) Their preferred vehicle manufacturer.
10. What document must a dealer carry when conducting business away from the
established place of business?
a) A personal driver's license.
, b) A copy of the vehicle's title.
c) A branch location certificate. ✓
d) A business tax receipt.
Section 2: Sales and Contracts
11. A "Buyer's Guide" (also known as a window sticker):
a) Is an optional courtesy.
b) Must be displayed on all used vehicles offered for sale. ✓
c) Is only required for vehicles over 10 years old.
d) Is provided only upon request.
12. When a vehicle is sold "As Is," it means:
a) The dealer guarantees the engine for 30 days.
b) The dealer will pay for all repairs after the sale.
c) The buyer pays for any repairs needed after the sale. ✓
d) The vehicle has no known defects.
13. The "Cooling-Off Rule" is:
a) A California state law that allows a 3-day right to cancel any car sale.
b) A federal rule that applies to sales away from the dealer's permanent place of
business. ✓
c) A mandatory 24-hour waiting period before taking delivery.
d) A dealer's voluntary return policy.
14. A "Purchase Contract" must include all of the following EXCEPT:
a) The total sale price.
b) The vehicle's make, model, and VIN.
c) The buyer's credit score. ✓
d) The dealer's name and license number.
15. What is the purpose of a "Documentary Preparation Fee"?
a) It is a profit margin for the salesperson.
b) It is a state-mandated tax.
c) It is meant to cover the dealer's costs for preparing and processing documents. ✓
d) It is a fee for detailing the vehicle.
16. A dealer is required to provide a copy of the signed contract to the buyer:
a) At the time of sale. ✓
b) Within 10 business days.
, c) Only if the buyer requests it.
d) After the loan is funded by the bank.
17. If a dealer advertises a specific vehicle at a specific price, they must have:
a) At least one such vehicle available at that price. ✓
b) A similar, more expensive model available.
c) The ability to order the vehicle at that price.
d) No obligation to have the vehicle in stock.
18. The "Total Sale Price" on a contract includes:
a) The negotiated price of the vehicle only.
b) The negotiated price plus all optional goods and services. ✓
c) Only the mandatory state fees.
d) The down payment and first month's payment.
19. A "Lienholder" is:
a) The person who buys the vehicle.
b) The legal owner of the vehicle until the loan is paid. ✓
c) The dealership selling the vehicle.
d) The insurance company.
20. Before selling a previously owned vehicle, a dealer must:
a) Perform a full mechanical inspection.
b) Smog certify the vehicle (with limited exceptions). ✓
c) Replace all tires.
d) Provide a 1-year warranty.
Section 3: Titling and Registration
21. The "Certificate of Title" is proof of:
a) Vehicle insurance.
b) Legal ownership. ✓
c) A passed smog test.
d) Registration payment.
22. A dealer must apply for transfer of title and registration on behalf of the buyer within:
a) 5 days
b) 10 days
c) 30 days ✓
d) 60 days
Complete Questions and
Correct Verified Answers
(Detailed Answers) Already
Graded A+ 100% Guaranteed
to Pass Concepts
Section 1: Licenses and Regulations
1. What is the primary purpose of the California Vehicle Code?
a) To generate revenue for the state.
b) To regulate sales of goods and services.
c) To regulate the sale, transfer, and transportation of vehicles. ✓
d) To set standards for vehicle manufacturing.
2. A licensed dealer in California is required to have their license prominently displayed:
a) In their wallet for identification.
b) At their primary place of business. ✓
c) In their home office.
d) Only at the DMV headquarters.
3. What is the maximum number of vehicles a person can sell in a 12-month period
without a dealer's license?
a) 2
b) 4
c) 5 ✓
d) Unlimited, if they are for personal use.
,4. A "Wholesale-only" dealer is permitted to:
a) Sell vehicles retail if they get a special permit.
b) Sell vehicles only to the general public.
c) Sell vehicles only to other licensed dealers. ✓
d) Sell vehicles at auction only.
5. A temporary permit (TP) allows a dealer to:
a) Operate without a permanent location.
b) Sell vehicles for up to 90 days while the license application is processed.
c) Move a vehicle for purposes of repair, demonstration, or sale. ✓
d) Lend a vehicle to a customer indefinitely.
6. It is illegal for a dealer to employ a person to sell vehicles if that person:
a) Has less than 2 years of experience.
b) Does not have a high school diploma.
c) Has been convicted of a crime involving moral turpitude and has not received a DMV
determination. ✓
d) Works part-time.
7. A dealer's license is valid for a period of:
a) 1 year ✓
b) 2 years
c) 4 years
d) 5 years
8. A "Salesperson" is defined as a person who is:
a) Employed by a dealer to sell vehicles. ✓
b) The owner of the dealership.
c) A mechanic performing repairs.
d) A finance manager only.
9. A dealer must notify the DMV within 10 days of a change in:
a) The color of their building.
b) Their business name or address. ✓
c) The number of employees.
d) Their preferred vehicle manufacturer.
10. What document must a dealer carry when conducting business away from the
established place of business?
a) A personal driver's license.
, b) A copy of the vehicle's title.
c) A branch location certificate. ✓
d) A business tax receipt.
Section 2: Sales and Contracts
11. A "Buyer's Guide" (also known as a window sticker):
a) Is an optional courtesy.
b) Must be displayed on all used vehicles offered for sale. ✓
c) Is only required for vehicles over 10 years old.
d) Is provided only upon request.
12. When a vehicle is sold "As Is," it means:
a) The dealer guarantees the engine for 30 days.
b) The dealer will pay for all repairs after the sale.
c) The buyer pays for any repairs needed after the sale. ✓
d) The vehicle has no known defects.
13. The "Cooling-Off Rule" is:
a) A California state law that allows a 3-day right to cancel any car sale.
b) A federal rule that applies to sales away from the dealer's permanent place of
business. ✓
c) A mandatory 24-hour waiting period before taking delivery.
d) A dealer's voluntary return policy.
14. A "Purchase Contract" must include all of the following EXCEPT:
a) The total sale price.
b) The vehicle's make, model, and VIN.
c) The buyer's credit score. ✓
d) The dealer's name and license number.
15. What is the purpose of a "Documentary Preparation Fee"?
a) It is a profit margin for the salesperson.
b) It is a state-mandated tax.
c) It is meant to cover the dealer's costs for preparing and processing documents. ✓
d) It is a fee for detailing the vehicle.
16. A dealer is required to provide a copy of the signed contract to the buyer:
a) At the time of sale. ✓
b) Within 10 business days.
, c) Only if the buyer requests it.
d) After the loan is funded by the bank.
17. If a dealer advertises a specific vehicle at a specific price, they must have:
a) At least one such vehicle available at that price. ✓
b) A similar, more expensive model available.
c) The ability to order the vehicle at that price.
d) No obligation to have the vehicle in stock.
18. The "Total Sale Price" on a contract includes:
a) The negotiated price of the vehicle only.
b) The negotiated price plus all optional goods and services. ✓
c) Only the mandatory state fees.
d) The down payment and first month's payment.
19. A "Lienholder" is:
a) The person who buys the vehicle.
b) The legal owner of the vehicle until the loan is paid. ✓
c) The dealership selling the vehicle.
d) The insurance company.
20. Before selling a previously owned vehicle, a dealer must:
a) Perform a full mechanical inspection.
b) Smog certify the vehicle (with limited exceptions). ✓
c) Replace all tires.
d) Provide a 1-year warranty.
Section 3: Titling and Registration
21. The "Certificate of Title" is proof of:
a) Vehicle insurance.
b) Legal ownership. ✓
c) A passed smog test.
d) Registration payment.
22. A dealer must apply for transfer of title and registration on behalf of the buyer within:
a) 5 days
b) 10 days
c) 30 days ✓
d) 60 days
