Car Dealer License Test Flashcards

Car Dealer License Test Flashcards Is it ever legal for a dealer to reset, or "roll back" an odometer to show less than the actual mileage?a. Yes if the dealer tells the buyer how much he rolled back the odometerb. Yes if the dealer puts the original mileage in writing on the contractc. Yes if the dealer asks the buyer if it is okay with them to do the roll backd. No

• No

The basic DMV transfer fee to transfer the title into the buyer's name isa. $15b. $12c. $80d. $25

• $15

If the registration of a vehicle expires while a vehicle is in the dealer's inventory, is the dealer responsible for paying late registration penaltiesa. Yesb. Sometimesc. No

• No

Which of the following is not required to transfer a vehiclea.Endorsed Certificate of Ownershipb. A report of prior service records for the vehicle since newc. Odometer mileage readingd. Smog Certificate

• A report of prior service records for the vehicle since new

If a dealer buys a vehicle with an odometer that is not working, the dealer musta. Tell the buyer that the odometer is brokenb. Repair the odometer before selling the vehiclec.Sign a declaration the odometer is not operating to be filed with DMVd. Do nothing

• Repair the odometer before selling the vehicle

Advertisements must identify the dealer by which of the followinga. Phone numberb. The dealership namec. "dlr"d."Dealer"

• The dealership name

Auto brokers must do which of the followinga. Limit deposits to 2.5% of the purchase price, and all deposits in a separate trust accountb. Use any deposits received to pay the broker

• Limit deposits to 2.5% of the purchase price, and all

deposits in a separate trust account Registration fees are due at the time of the retail sale wherea. The registration will expire within 30 days of the date of saleb. The registration has already expiredc.Registration fees are always due at the time of saled. Both A & B

• Both A & B

An administrative service fee is imposed for which of the

following:a. All of the answers b, c, and d, belowb. Failing

to notify DMV of a sale within 5 calendar days of the date of salec. Failing to attach a copy of the Temporary identification form on the vehicled. Failing to correct a returned application for registration within 50 days of the sale date

• All of the answers b, c, and d, below

A dealer shall submit a registration application and fees to DMV within how many days of the date of sale?a. 10b. 20c.

30d. 40

• 30

DMV requires special plates (dealer plates) be placed where on the vehicle?a. On the dashboardb. In the rear windowc. In the rear, over the existing license plated. On the trunk, or hanging off the bumper

• In the rear, over the existing license plate

If the buyer defaults on a conditional sales contract, the dealer may, subject to proper notification to the buyera.Accelerate amount dueb. Repossess vehiclec. Sell vehicled. All of the above

• All of the above

Where the dealer repairs an odometer, and the odometer is incapable of registering the same mileage as before

service, the dealer must:a. Set the odometer to 0b. Attach

a written notice to the left doorframe specifying the previous mileage and date of repairc. Estimate mileage and set the odometer to that mileaged. Both A & B

• Both A & B

Which of he following are permitted methods for computing interest ratesa. The pre-computed Basis methodb. The simple Interest basis methodc. The Friedman Methodd.Both A & B

• Both A & B

when a dealer sells a vehicle that was consigned to them to sell, they musta. Provide the seller an accounting and payment within 20 days of the saleb. Test drive it before agreeing to sell itc. Provide a warrantyd. None of the above

• provide the seller an accounting and payment within 20

days of the sale Which of the following are taxable in a vehicle sales transaction?a. document preparation feeb. $50 Smog fee paid to the seller/dealerc. Both A & Bd. Insurance fees

• Both A & B

The national Motor Vehicle Title information System requires which of the following?a. All warranty agreements be sent to DMVb. All vehicles have a Car Faxc. A red warning decal be placed on vehicles with branded titlesd.Both A & B

• A red warning decal be placed on vehicles with branded

titles The maximum a dealer may charge a customer for a smog

test is:a. $8b. $12c. $50d. $45

• $50

Buy here pay here (self-financing) dealers must:a. Charge

interest rates that are 20% less than 20% above prime rateb. Offer 30 day or 1,000 mile warranties, and put fair market value notices on their vehiclesc. send 50% of all interest charged to DMVd. Finance all vehicles sold for more than $50,000

• Offer 30 day or 1,000 mile warranties, and put fair

market value notices on their vehicles Which of the following is a required safety equipment itema. Padded dashboardsb. Smog Equipmentc. Door Locksd. Reclining Seatbacks

• Smog Equipment

If a vehicle has been sold, any advertising on that vehicle

must be withdrawn within:a. 12 hoursb. 48 hoursc. 36

hoursd. One Week

• 48 hours

Which of the following are not taxable in a vehicle sales transaction?a. Finance Chargesb. Insurance chargesc.Smog certificate fee (paid to the state)d. All of the above

• All of the above

Which of the following must sign the Certificate of Ownership?a. The legal ownerb. The registered ownerc.The transfereed. All of the above

• All of the above