Car Dealer License Test

Front 1

When the odometer past 99,999 miles on a 5 digit odometer, a dealer must?

Back 1

Advise the buyer and mark the 262 form as "exceeds the mechanical limits"

Front 2

Which of the following is a correct statement of the law with regard to smog checks:

Back 2

A dealer must have a smog check for every vehicle offered for sale to the public

Front 3

Your occupational license will be automatically canceled without a hearing if:

Back 3

Your sellers permit is revoked
You have a bond reduction
You take your make sign down and relinquish your office

Front 4

When is a Federal Buyers Guide Required to be display?

Back 4

Whenever the vehicle is being display for sale in the dealers display area

Front 5

How much is the vehicle transfer fee, on a California registered vehicle

Back 5

$15 dlls

Front 6

When is a retail dealer required to maintain a vehicle display area?

Back 6

At all times while licensed

Front 7

How many hours does a dealer have to notify the advertiser, in writing that a vehicle has been sold or withdrawn?

Back 7

48 hours

Front 8

When is it proper to reset an odometer?

Back 8

Never

Front 9

If you are an autobroker, then you must also be licensed as a?

Back 9

Dealer

Front 10

When you are a dealer selling a car to a retail customer, when is it proper for the dealer to allow the customers to obtain a smog certificate of their own?

Back 10

Never

Front 11

If a dealer is suspected of viloating th laws that regulate dealers, wich of the following actions may be taken against the dealer?

Back 11

Administrative hearing
Possible prosecution by the District Attorney
Civil Action for money damages

Front 12

How many days after a vehicle is sold does a dealer have to pay the cosignor (person you sold the car for)

Back 12

20 Days

Front 13

What would be an exception to the no cooling off period

Back 13

In the event of fraud or where the seller agrees to cancel the sale

Front 14

What is a conditional sales contract?

Back 14

A contract where the sale is conditioned upon the buyer obtaining financing and where a lien is created

Front 15

Which document is used to accout for the total cost and terms of payments?

Back 15

The coditional sales contract

Front 16

When is it proper for a dealer to give a report of sale to another?

Back 16

Never

Front 17

What is the minimum size for a main sign for a retail dealer?

Back 17

2 square feet

Front 18

Which of the following things must a dealer have?

Back 18

Sign with the dealership name and address
An office for the use of the dealer
Display area for the display of cars

Front 19

If a dealer plans on changing the location of his established place of business, when is it required to notify the DMV?

Back 19

immediately

Front 20

When is a dealer, who sells a vehicle that has a title branded SALVAGE, required to disclose the status of the title to the retail customer?

Back 20

Before the sale of the vehicle

Front 21

Which is the main body of law used to regulate dealers?

Back 21

The vehicle code

Front 22

What will happen if a dealer unkowingly buys a stolen car?

Back 22

The dealer will have to return the car to the rightful owner

Front 23

How much is the most that can be charged for a document preparation fee?

Back 23

$45

Front 24

Before you can apply for your dealer license, you need to get a resale permit (sellers permit) from where?

Back 24

The state board of equalization

Front 25

What is required in an auto dealers advertisement for a vehicle for sale?

Back 25

Make and model
VIN
Dealership name

Front 26

When is it acceptable to keep excess registration fees paid by the customer?

Back 26

Never

Front 27

Which of the following persons must have a salespersons license at an auto delareship?

Back 27

Salesperson
Sales Manager
Finance Manager

Front 28

As of january 1, 2003 a Retail Dealer must maintain a bond in the amount of?

Back 28

$50,000 dlls

Front 29

What is the purpose of Division 12 of the vehicle code?

Back 29

Regulates the manner in wich vehicles are equipped for safe operation

Front 30

How many cars can a private individual legally sell per year with an intent to profit?

Back 30

None

Front 31

Division 12 safety requirement may be waived:

Back 31

Never

Front 32

After selling a vehicle in California, How many days does a dealer have to mail the USED VEHICLE DEALER NOTICE to the DMV?

Back 32

5 Days

Front 33

After selling a vehicle in California, how many days does a dealer have to submit the report of sale application copy, supporting documents and fees to the DMV?

Back 33

30 Days

Front 34

What are examples of when a dealer MUST disclose vehicle history in writing?

Back 34

Frame damage, Salvage title, Lemon Law buyback title, fire, flood, or odmeter discrepancies.

Front 35

Which is a DMV policy, but not an actual law?

Back 35

Dealers may not use highlighter pens.

Front 36

If you run out of report of sales where can an emergency supply be obtained?

Back 36

Call your DMV Inspector for an emergency supply.

Front 37

How much is the Administrative Service Fee (ASF) If a dealer fails to mail the dealer notice portion of the report of sale within 5 days OR fail to submit the title, application copy of the report of sale and supporting documents within 30 days?

Back 37

$5 dlls

Front 38

What will happen if you fail to renew your dealer license on time and enter the 30 day grace?

Back 38

You will keep the dealer license as long as you pay the renewal fee PLUS a $150 penalty (100% of initial application) plus a prorated fine for each dealer plate.

Front 39

If you fail to submit the title, report of sale application copy and supporting documents to the DMV within 50 days after you sell a car, how much of an administrative service fee will you be charged?

Back 39

$25 dlls

Front 40

How often will you be required to take continuing dealer education?

Back 40

every 2 years

Front 41

How many questions are in the dealers test multiple choice?

Back 41

40

Front 42

Passing score?

Back 42

70% or 28 right questions

Front 43

How much time is the test for?

Back 43

:50 minutes

Front 44

How do you make an appointment to take the test?

Back 44

Contact the nearest DMV isnpector

Front 45

Get a business license from:

Back 45

THE CITY

Front 46

Get your sellers permit from:

Back 46

STATE BOARD OF EQUALIZATION

Front 47

Get a fictitious name statement from:

Back 47

COUNTY RECORDER

Front 48

For $70 dlls more you can get a brokers

Back 48

ENDORSEMENT

Front 49

Get your property use verification form signed by the

Back 49

CITY PLANNING DEPARTMENT

Front 50

Wholesale dealers need a bond in the amount of:

Back 50

$10,000 dlls if they sell less than 25 cars per year.

Front 51

The dealer license application fee is?

Back 51

$150 dlls

Front 52

Each dealer plate cost

Back 52

$41 dlls plus county fees

Front 53

Your dealer license is renew:

Back 53

every year

Front 54

How many hrs of continuing education is needed to maintain the license?

Back 54

4 Hours

Front 55

The fingerprinting is called:

Back 55

LIVE SCAN fingerprinting

Front 56

What causes an automatic cancellation of your dealers license?

Back 56

Bond reductions and Bond lapses

Front 57

Who do you called for a cheap E-Z bond?

Back 57

ANNE

Front 58

The Conditional Sales Contract must include all:

Back 58

Cost and Terms of payment.

Front 59

Conditional sales contract must be used when:

Back 59

Sale involves FINANCING

Front 60

Conditional sales contract COPY must be furnished to:

Back 60

BUYER

Front 61

Conditional Sales Contract must be in:

Back 61

WRITING

Front 62

And include signatures of:

Back 62

BUYER AND SELLER

Front 63

Types of Conditional Sales Contract:

Back 63

PRECOMPUTED
SIMPLE INTEREST

Front 64

Maximum Motor vehicle financing allowable interest rate?

Back 64

29.9% APR

Front 65

Early payoff of loan under PRECOMPUTED interest

Back 65

BAD deal for the consumer

Front 66

An Upside down trade in means:

Back 66

BUYER OWES MORE THAN CAR IS WORTH

Front 67

Financing falls trough the dealer has

Back 67

10 day recission right to cancel the contract

Front 68

TRUTH IN LENDING

Back 68

Contract not executed means the customer can not take delivery unless the contract is signed

Front 69

TRUTH IN LENDING

Back 69

You must resell a repo vehicle in a commercially reasonable manner

Front 70

TRUTH IN LENDING max documentation prep fee:

Back 70

$45 dlls

Front 71

A break in the contract is also known as a:

Back 71

BREACH

Front 72

After the REPO, mail the customer a notice of intent to:

Back 72

DISPOSE

Front 73

REDEMPTION means:

Back 73

The customer must pay balance in full

Front 74

The customer has:

Back 74

15 days to reinstate or redeem

Front 75

If you resell the car and make lees than the customer owe you, you can sue the customer for a:

Back 75

DEFICIENCY

Front 76

The Gramm-Leach-Bliley Act is a law that protects the customers

Back 76

PRIVACY

Front 77

SALES AND USE TAX
The use tax rate is the same rate as

Back 77

SALES TAX

Front 78

BOE stands for:

Back 78

BOARD OF EQUALIZATION

Front 79

What is taxable?

Back 79

Price of VEHICLE + accesories/Document PREPARATION FEE

Front 80

FEE smog paid to:

Back 80

SELLER

Front 81

You charge the tax rate of the county where the customer:

Back 81

LIVES

Front 82

The BOE:

Back 82

Can audit your records at anytime

Front 83

BOE website

Back 83

www.boe.ca.gov

Front 84

The gral rule is to collect tax from:

Back 84

RETAIL PUBLIC

Front 85

You report (pay) the tax to:

Back 85

BOE

Front 86

OUT of state sales require either a bill of

Back 86

LANDING or form number BT448