Questions with Correct Answers

DMV Dealer Pre-License Training Questions with Correct Answers

ANYGofGtheGfollowingGactionsGcouldGresultGinGaGDealerGlicenseGsuspension:G-GCORRECTGANSWERG-- GMisuseGofGSpecialG(Dealer)GPlates -GBaitG&GSwitchGadvertisingGschemes -GFailureGtoGpayGAdministrativeGServiceGFeesGwhenGdue -GSubmissionGofGdishonoredGcheckGtoGDepartment -GSellingGatGunlicensedGlocations -GFailureGtoGtransferGtitle -GPayingG"BirdGDog"Gfees

TheGGuideGmustGbeGinGplainGviewG(withGbothGsidesGvisible)GandGmayGbeGeither:G-

GCORRECTGANSWERG--GHungGfromGtheGrear-viewGmirrorGorGoutsideGside-viewGmirror -GPlacedGunderGaGwindshieldGwiper.-GAttachedGtoGaGsideGwindow

AGGuideGinGaGgloveGcompartment,GtrunkGorGunderGtheGseatGisGnotGconspicuousGbecauseGitGisGnotGi nGplainGsight.

WhatGcanGtheGDMV,GasGwellGasGStateGandGFederalGregulatoryGagenciesGdo?G-GCORRECTGANSWERG- TheGDMV,GasGwellGasGStateGandGFederalGregulatoryGagencies,GcanGlimit,Gsuspend,GorGrevokeGaGDeal er'sGlicenseGandGorGimposeGpenaltiesGshouldGtheyGfailGtoGabideGbyGtheGlawsGandGregulationsGgover ningGDealers.

AllGDealersGmustGhaveGaGSuretyGBondGvaluedGonGtheirGlicenseGtypeGandGprovideGproof:G- GCORRECTGANSWERG--GOLG25GNewGorGUsedGAuto-CommercialGDealerG($50,000) 1 / 3

-GOLG25BGMotorcycleGDealer,GMotorcycleGLessor-Retailer,GAll- TerrainGVehicleGDealer,GorGWholesale-OnlyGDealerG(LessGThanG25GVehiclesGPerGYear)G$10,000

NeverGadvertiseGorGsellGasGusedGcarGasG"Certified"GwhenGthe:G-GCORRECTGANSWERG-- GOdometerGdoesGnotGindicateGtheGactualGmileageGofGtheGvehicle.- GVehicleGwasGreacquiredGbyGtheGmanufacturerGorGdealerGunderGstateGorGfederalGwarrantyGlawG(i.e.G"lemonGlaw").- GVehicleGwasGdamagedGbyGaGcollision,Gfire,GorGfloodGunlessGrepairedGtoGsafeGoperationalGcondition GpriorGtoGsale -GTitleGwasGbrandedGasGaGlemonGlawGbuyback,GmanufacturerGrepurchase,Gsalvage,Gjunk,Gnon- repairable,GorGsimilarGdesignation -GVehicleGhasGframeGdamageGorGwasGsoldG"asGis"

IfGtheGodometerGcannotGregisterGtheGsameGmileageGasGbeforeGtheGrepair:G-GCORRECTGANSWERG- itGmustGbeGadjustedGtoGreadG"0"GwithGaGnoticeGattachedGtoGtheGvehicle'sGleftGdoorGframeG(specifyi ngGtheGpriorGmileageGandGtheGdateGonGwhichGitGwasGserviced,Grepaired,GorGreplaced)GbyGtheGperso nGperformingGtheGserviceGorGrepair

DealersGmustGsecurelyGstoreGtheirGReportsGofGSaleGatGtheirGprincipalGplaceGofGbusinessGforG-

GCORRECTGANSWERG-

andGareGrequiredGtoG"implementGfederalGsafeguardGstandardsGforGstorage"GandGmaintainGtheGreco rdsGvehicleGtransactionGforG90GdaysG(wasG18Gmonths)GatGtheGprincipalGplaceGofGbusinessGorGbranch Glocation.

AfterG3GmonthsG(90Gdays),GuseGanGoffsiteGstorageGfacilityGwithinGtheGstateGorGthird- partyGvendorGtoGmaintainGrecordsGforGaGtotalGstorageGrequirementGofG36GmonthsG/G3Gyears.-GDigitalGstorageGisGacceptableGafterGtheGinitialG90Gdays -GDMVGrequestedGrecordsGmustGbeGprovidedGwithinG3GbusinessGdays

• / 3

California'sG"CarGBuyerGBillGofGRights"G(ABG68)GlimitsGaGDealer'sGcompensationGfromGanGinstitution GfinancingGtheGpurchaseGofGaGvehicleGisGlimitedGtoGnoGmoreGthan:G-GCORRECTGANSWERG-- G2.5%GforGtermsGupGtoG60Gmonths -G2.0%GforGtermsGofG60GmonthsGorGlonger

ThisGlimitationGdoesGnotGapplyGwhenGtheGassignmentGrequiresGtheGDealerGtoGbearGtheGentireGriskG ofGfinancialGperformanceGforGtheGconsumerGorGwhenGtheGassignmentGisGmoreGthanGsixGmonthsGaf terGtheGdateGofGtheGConditionalGSaleGContract.

WhenGaGDealerGsellsGaGLemonGLawGbuybackGvehicle,GtheyGmustGnotifyGtheGbuyerGonGletter-

sizeGpaperGofGtheGfollowing:G-GCORRECTGANSWERG--

GTheGyear,Gmake,Gmodel,GandGvehicleGidentificationGnumber -GThatGtheGvehicleGtitleGisGmarkedG"LemonGLawGBuyback" -GTheGnatureGofGeachGnonconformityGreportedGbyGtheGvehicle'sGoriginalGbuyerGorGlessee -GAnyGrepairsGmadeGtoGtheGvehicleGinGanGattemptGtoGcorrectGeachGnonconformity

DealersGshouldGcompleteGandGsubmitGtheGfollowingGtoGrenewGtheirGlicense:G-

GCORRECTGANSWERG--GRenewalGApplicationG(DMVGformGOLG45) -GProofGofGContinuingGEducationG(everyGtwoGyears) -GProofGofGSuretyGBond -GPaymentGofGRenewalGFees

WhoGmayGoperateGaGvehicleGwithGspecialGplatesGforGanyGpurpose?G-GCORRECTGANSWERG- (a)GAGsoleGowner,GaGgeneralGpartner,GaGmanagerGofGaGlimitedGliabilityGcompany,GorGaGcorporateGoffi cerGorGdirectorGofGaGDealerGprovidedGthatGindividualGisGactivelyGengagedGinGtheGmanagementGandG controlGofGtheGDealer'sGbusinessGoperations (b)GAGgeneralGmanager,GorGbusinessGmanager,GorGsalesGmanagerGwhoGisGactivelyGengagedGinGtheG managementGandGcontrolGofGtheGbusinessGoperationsGofGtheGDealerGwhenGnoGotherGindividualGm eetsGtheGcriteriaGinG(a)Gabove (c)GAGdriverG-if-GanGindividualGidentifiedGinGsectionG(b)GisGalsoGinGtheGvehicle.

• / 3