DMV Dealer License Test Flashcards

DMV Dealer License Test Flashcards Within how many days must a dealer submit an application for registration or transfer of registration of a vehicle?30 days What must a dealer offer a customer when selling vehicles for less than $40,000.00?Contract Cancellation agreement allowing the buyer to return the vehicle within 2 days.Where can the rules for dealer licensing be found?The California Vehicle Code 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 zerob.

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

• Both A and B

If the registration of a vehicle expires while a vehicle is in the dealer's inventory, is the dealer responsible for paying late registration penalties?No Who is required to have a salesperson license? All managers What is the basic DMV transfer fee to transfer the title into the buyer's name?

$15.00

To obtain a dealer license, you must obtain a surety bond for what amount?

$50,000

When a dealer sells a vehicle that was consigned to them

to sell, they must:a. 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 29

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

• All of the above

How many vehicles can a private party buy and sell for profit in a year without a dealer license?

ZERO Which of the following are taxable in a vehicle sales transaction?a. Document preparation feeb. $50 smog fee paid to seller/dealerc. Both A and Bd. Insurance fees

• Both A and B

What must a dealer do when selling a Lemon Law Buyback vehicle?Provide the buyer a disclosure statement to be signed by the buyer AND Affix a decal to the left front doorframe inscribing "Lemon Law Buyback" How long is an occupational license valid for? 2 years Failure to renew the dealership license by the expiration

date results in:

Cancellations of the license after a 30 day extension period AND late penalties if the license is renewed during the 30 day extension period.Why is an Administrative Service Fee is imposed? Failing to notify DMV of a sale within 5 calendar days of the date of sale.Failing to attach a copy of the Temporary Identification Form on the vehicle.Failing to correct a

returned application for registration within 50 days of the sale date.Which of the following must sign the Certificate of Ownership?a. The legal ownerb. The registered ownerc.

The transfereed. All of the above The legal owner, the registered owner, and the transferee.

When is a branch license required?When vehicles are ACTUALLY SOLD at a permanent location beyond 1000 ft from the dealer's main location.

Buy Here Pay Here (self-financing) Dealers must:a. Charge

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

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

notices on their vehicles What is the maximum a dealer may charge a buyer for smog testing a vehicle?

$50.00

What must the dealer attach to every used vehicle offered for sale?Federal Trade Commission Buyers Guide California registration fees are not due if the buyer is not from California, the vehicle will not be registered in California, and what other circumstance?The vehicle is driven only outside of California after the sale by the buyer with a DMV One Trip Permit.What must a dealer post at every business location?Each salesperson's license and the Dealer license Where can a dealer get an emergency supply of Report of Sale forms?The dealer's DMV INSPECTOR DMV requires Special Plates (dealer plates) be placed where on the vehicle?In the rear, over the existing license plate.

Special Plates may property be used:a. On a dealer's work

or service vehicle routinely used to get parts or to service vehiclesb. By employees during the course and scope of their employmentc. By a prospective customer for 30 days

• By employees during the course and cope of their

empoyment

A dealer must not:a. Lend a special plate, or dealership

license to another person to engage in the purchase or sale of vehicles.b. Employ unlicensed salespersonsc. Pay "Bird Dog" fees to any unlicensed person to obtain sales.d. All of the above d.A dealer shall submit a registration application and fees to DMV within how many days of the date of sale?30 days Automatic cancellation of a dealer's license will occur upon the happening of which event?a. Failure to maintain adequate bond.b. Getting suedc. A buyer complaining to DMV about your dealership activitiesd. Both A and C Failure to maintain adequate bond If the buyer defaults on a Conditional Sales Contract, the

dealer may, subject to proper notification to the buyer:a.

Accelerate the amount dob. Repossess vehiclec. Sell the vehicled. All of the above

• All of the above

What is the maximum a dealer may charge a customer for a smog test?

$50.00

Which of the following is not required to transfer a vehicle?a. 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