Dealer License

Question 1

1. Which of the following are taxable in a vehicle sales
   transaction?

a. Document preparation fee
b. Smog fee paid to seller (not including certificate issuing fee paid to the State) Both A & B.
d. Insurance fees

Answer 1

c.Both A & B

Question 2

2. All dealers must have a display area except:

a. Wholesale dealers
b. Dealers selling electric-powered vehicles
c. Dealers selling less than 5 vehicles per month
d. Both B & C

Answer 2

a. Wholesale Dealers

Question 3

3. The dealership display area must:

a. At least twice the size of the dealership office
b. Be made of concrete
c. Be for cars only
d. Be for the exclusive use of the dealer for display purposes only

Answer 3

d. Be for the exclusive use of the dealer for display

purposes only

Question 4

4. Which of the following are permitted methods for
   computing interest rates?

a. The Pre-Computed Basis Method
b. The Simple Interest Basis Method Both A & B
d. The Friedman Method

Answer 4

c. Both A & B

Question 5

5. The dealer may charge a customer for smogging
   the vehicle is:

a. $50.00
b. $8.00
c. s12.00
d. $45.00

Answer 5

a. $50.00

Question 6

6. If the dealer is a Buy Here Pay Here dealer
   (financing their own cars), the dealer must:

a. Take at least a 50% deposit on the vehicle.
b. Send 10% of the profit to DMV
c. Sell only cars less than five years old
d. Put a decal on the vehicle stating the reasonable market value of the vehicle

Answer 6

d. Put a decal on the vehicle stating the reasonable market value of the vehicle

Question 7

7. The basic DMV transfer fee to transfer the title into
   the buyer’s name is:

a. $12.00
b. $80.00
c. $15.00
d. s25.00

Answer 7

c. $15.00

Question 8

8. If the buyer defaults on a Conditional Sales
   Contract (stops making the payments), the dealer
   may, with proper notification to the buyer

a. Accelerate amount due
b. Repossess vehicle
c. Sell vehicle
d. All of the above

Answer 8

d. All of the above

Question 9

9. The National Motor Vehicle Title Information System
   requires which of the following? All warranty
   agreements be sent to a bank for review A red
   warning decal be placed on vehicles with branded
   titles.

a. All Warranty agreements be sent to a bank for
review
b. A red warning decal be places on vehicles with
branded titles.
c. All vehicles have a Car Fax
d. Both A & B

Answer 9

b. A red warning decal be places on vehicles with

branded titles.

Question 10

10. Can a dealer charge a buyer a restocking fee when
    the buyer purchases a 2 day cancellation
    agreement, and brings the vehicle back within two
    days for a refund?

a. No
b. Yes
c. Only if the vehicle is gas powered
d. Only if the vehicle is diesel powered

Answer 10

b. Yes

Question 11

11. Which of the following is a required Safety
    Equipment item?

a. Power steering Smog Equipment
b. Smog Equipment
c. Door locks
d. Reclining seatbacks

Answer 11

b. Smog Equipment

Question 12

12. Advertisements must identify the dealer by which of
    the following:

a. Phone number
b. The dealership name
c. “dlr”
d. “Dealer”

Answer 12

b. The dealership name

Question 13

13. If a vehicle has been sold, any advertising on that vehicle must be withdrawn within:

a. 12 hours
b. 48 hours
c. 36 hours
d. One week

Answer 13

b. 48 hours