Pre-Licensing Used Vehicle Dealer Examination Flashcards

Pre-Licensing Used Vehicle Dealer Examination Flashcards used vehicle dealers must offer which of the following selling vehicles for less than 40,000?A) A contract cancellation agreement allowing the buyer to return the vehicle within 2 daysB) A complete inspection of the vehicle and warranty for one yearC) A six month service agreement at no chargeD) both A and B

• A contract cancellation agreement allowing the buyer to

return the vehicle within 2 days If a dealer fails to renew the dealer bond, which of the

following will happen:A) The dealer will be given 30 days to

obtain another bondB) The dealer license will be canceled on the date of the expiration of the bondC) The dealer supplies will be picked up by the DMV and held until a new bond is obtainedD) the dealer will need to obtain a bond rider

• The dealer license will be canceled on the date of the

expiration of the bond A 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 and B

• A red warning decal be placed on vehicles with branded

titles If a dealer sells a vehicle, and registration fees are not due, the transfer of ownership must be submitted to DMV

within:A) 30 daysB) 40 daysC) 50 daysD) 90 days

• 30 days

which of the following are required for dealerships sign?A) each retail dealership must have a sign not less than 2 feet square that can be read from 50 feet awayB) each sign must be posted at three locations at the dealershipC) each sign must be lighted and/or viewable at night from a distance of 25 feetD) both A and B

• each retail dealership must have a sign not less than 2

feet square that can be read from 50 feet away

A dealers office must have all of the following except:A) A

direct entrance into the office from the exterior of the buildingB) Must not be temporary or transitoryC) Must contain the books and records of the businessD) Must be at least 1000 feet from any other auto dealership

• must be at least 1000 feet from any other auto

dealership 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

if an advertised vehicle is sold, the advertisement must be

withdrawn, in writing within:A) 24 hoursB) 36 hoursC) 48

hoursD) 72 hours

• 48 hours

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

When a dealer sells a consigned vehicle, the consign or

must be paid the agreed upon amount within:A) 10 daysB)

20 daysC) 30 daysD) 40 days

• 20 days

which of the following is required to have a salespersons

license:A) sales managerB) secretaryC) Finance

managerD) both a and c

• both a and c

Dealer records and supplies must be maintained:A) At the

owner's homeB) At the dealer's place of of businessC) In a briefcaseD) In the trunk of a vehicle in dealer inventory

• At the dealer's place of of business

The maximum a dealer may charge a buyer for smog

testing a vehicle is:A) $25B) $30C) $45, minus the cost of

the certificateD) $50, plus the cost of the certificate

• $50, plus the cost of the certificate

A dealer must post which of the following every business location?A) each salesperson's licenseB) the name and residence address of the individual owner of the dealershipC) dealer's licenseD) both A and C

• both A and C

A dealer plate may be used by:A) A service manager taking

a child to the dentistB) The son of a dealer taking a behind the wheel test at DMVC) The spouse of a dealer, not on the license, taking children to schoolD) A prospective customer taking a sales test drive

• A prospective customer taking a sales test drive

A dealer must not:A) lend a special plate or dealership

license to another person to engage in the purchase or sale of vehiclesB) employee unlicensed salespersonsC) pay "bird dog" fees to any unlicensed person to obtain salesD) all of the above

• all of the above

which of the following is not required to transfer a

vehicle:A) endorsed certificate of ownershipB) a report of

prior service records for the vehicleC) odometer mileage readingD) smog certificate

• a report of prior service records for the vehicle

where can a dealer get an emergency supply of report of sales form?A) nowhere. there is no such thing as an emergency supplyB) the local DMVC) the state attorney general's officeD) the dealer's DMV inspector

• the dealer's DMV inspector

registration fees are due at the time of retail sale where:A)

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 and b

• both a and b

Which of the following is a required safety equipment item?A) Padded DashboardsB) Smog equipmentC) door locksD) reclining seats

• smog equipment

to obtain a dealers license to sell used vehicle to the public, you must obtain a bond in the amount of?A) $5000B)

$15000C) $25000D) $50000

D) $50000

all dealers must have a display area except:A) wholesale

dealersB) dealers selling electric-powered vehiclesC) dealers selling less than 5 vehicles per monthD) both b and c

• wholesale dealers

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

It is legal to reset the odometer reading on a vehicle:A) if

you can make more moneyB) if you place additional miles on the odometerC) it is never legal to reset the odometer readingD) if you don't know the true mileage

• it is never legal to rest the odometer reading

A vehicle does not require a smog inspection when:A) The

vehicle was constructed during the 1990sB) The buyer waives the inspectionC) The vehicle is sold at wholesale between dealersD) both a and c

• The vehicle is sold at wholesale between dealers

automatic cancellation of a dealers license will occur upon the happening of which event?A) Failure to maintain adequate bondB) getting suedC) a buyer complaining to DMV about your relationship activitiesD) both A and C

• Failure to maintain adequate bond

Where can the rules for dealer licensing be found?A) the california penal codeB) the california rules of professional conductC) the public utilities commissionD) the california vehicle code

• the california vehicle code

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 sale dateB) Test drives 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 date

A dealer must:A) Display each salespersons license at the

dealershipB) employ two or more salespersons per dealershipC) register all employees with the DMVD) none of the above

• Display each salespersons license at the dealership

Licensing requirements for dealers in california are found

in:A) The business and professions codeB) The health and

safety codeC) The penal codeD) the vehicle code

• the vehicle code

A dealer must disclose which of the following?A) publicly owned vehiclesB) rental carsC) taxi cabsD) all of the above

• all of the above

The maximum a dealer may charge a customer for a smog

test is:A) $8.00B) $12.00C) $50.00D) $45.00

C) $50.00

A dealer must report to DMV in writing employment or

termination of a salesperson within:A) 5 daysB) 10 daysC)

15 daysD) 20 days

• 10 days

failure to renew the dealership license by the expiration

date results in:A) cancellation of the license after a 30 day

extension periodB) late penalties if the license is renewed

during the 30 day extension periodC) forfeiture of bondD) both a and b

• both a and b

The basic DMV transfer fee to transfer the title into the

buyers name is:A) $15.00B) $12.00C) $80.00D) $25.00

A) $15.00