Dealer's License Study Group

Pier Angeli Harris
Flashcards by Pier Angeli Harris, updated more than 1 year ago
Pier Angeli Harris
Created by Pier Angeli Harris about 4 years ago
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Description

Test Questions for DMV Dealer's license test

Resource summary

Question Answer
When the odometer past 99,999 miles on a 5 digit odometer, a dealer must Advise the buyer and mark the 262 form as "exceeds the mechanical limits"
A dealer may not advertise for sale or sell a used vehicle as "Certified" if No Inspection Report, Odometer discrepancies, Lemon, Branded title, Frame Damage, As-Is
All dealer's must obtain a history report for vehicles for sale except: Off-Road Vehicles, Recreational Vehicles, motorcycles
What is NMVTIS? the National Motor Vehicle Title Information System
When does a 2-day cooling off period begin? Signature and Delivery
Which would a dealer not be required to offer a contract cancellation option agreement? When used vehicles purchase price of $40,000 or more
Which of the following is a correct statement of the law with regard to smog checks: A dealer must have a smog check for every vehicle offered for sale to the public
Your occupational license will be automatically canceled without a hearing if: Your sellers permit is revoked You have a bond reduction You take your make sign down and relinquish your office
When is a Federal Buyers Guide Required to be display? Whenever the vehicle is being displayed for sale in the dealers display area
How much is the vehicle transfer fee, on a California registered vehicle $15 dollars
When is a retail dealer required to maintain a vehicle display area? At all times while licensed
How many hours does a dealer have to notify the advertiser, in writing that a vehicle has been sold or withdrawn? 48 hours
When is it proper to reset an odometer? Never
If you are an auto-broker, then you must also be licensed as a? Dealer
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? Never
If a dealer is suspected of violating the laws that regulate dealers, which of the following actions may be taken against the dealer? Administrative hearing Possible prosecution by the District Attorney Civil Action for money damages
How many days after a vehicle is sold does a dealer have to pay the consignor (person you sold the car for) 20 Days
What would be an exception to the no cooling off period? In the event of fraud or where the seller agrees to cancel the sale
What is a conditional sales contract? A contract where the sale is conditioned upon the buyer obtaining financing and where a lien is created
Which document is used to account for the total cost and terms of payments? The coditional sales contract
When is it proper for a dealer to give a report of sale to another? Never
What is the minimum size for a main sign for a retail dealer? 2 square feet
Which of the following things must a dealer have? Sign with the dealership name and address An office for the use of the dealer Display area for the display of cars
If a dealer plans on changing the location of his established place of business, when is it required to notify the DMV? immediately
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? Before the sale of the vehicle
Which is the main body of law used to regulate dealers? The vehicle code
What will happen if a dealer unknowingly buys a stolen car? The dealer will have to return the car to the rightful owner
How much is the most that can be charged for a document preparation fee? $65 or $80 depending on the process used to file paperwork
Before you can apply for your dealer license, you need to get a resale permit (sellers permit) from where? The state board of equalization
What is required in an auto dealers advertisement for a vehicle for sale? Make and model VIN Dealership name
When is it acceptable to keep excess registration fees paid by the customer? Never
Which of the following persons must have a salespersons license at an auto delareship? Salesperson Sales Manager Finance Manager
As of january 1, 2003 a Retail Dealer must maintain a bond in the amount of? $50,000 dollars
What is the purpose of Division 12 of the vehicle code? Regulates the manner in which vehicles are equipped for safe operation
How many cars can a private individual legally sell per year with an intent to profit? None
Division 12 safety requirement may be waived: Never
After selling a vehicle in California, How many days does a dealer have to mail the USED VEHICLE DEALER NOTICE to the DMV? 5 Days
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? 30 Days
What are examples of when a dealer MUST disclose vehicle history in writing? Frame damage, Salvage title, Lemon Law buyback title, fire, flood, or odometer discrepancies.
Which is a DMV policy, but not an actual law? Dealers may not use highlighter pens.
If you run out of report of sales where can an emergency supply be ob obtained? Call your DMV Inspector for an emergency supply.
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? $5 dollars penalty fee
What will happen if you fail to renew your dealer license on time and enter the 30 day grace? 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.
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? $25 dollars
How often will you be required to take continuing dealer education? every 2 years
How many questions are in the dealers test multiple choice? 40
What is a passing score? 70% or 28 right questions
How much time is the test for? :50 minutes
How do you make an appointment to take the test? Contact the nearest DMV inspector
Get a business license from: THE CITY
Get your sellers permit from: STATE BOARD OF EQUALIZATION
Get a fictitious name statement from: COUNTY RECORDER
For $100 dollars more you can get a brokers ENDORSEMENT
Get your property use verification form signed by the CITY PLANNING DEPARTMENT
Wholesale dealers need a bond in the amount of: $10,000 dollars if they sell less than 25 cars per year.
The dealer license application fee is? $175 dollars plus $1 Family support
Each dealer plate cost $41 dollars plus county fees
Your dealer license is renew: every year Renewal fee: $125 dollars
The fingerprinting is called: LIVE SCAN fingerprinting
What causes an automatic cancellation of your dealers license? Bond reductions and Bond lapses
The Conditional Sales Contract must include all: Cost and Terms of payments
Conditional sales contract must be used when: Sale involves FINANCING
Conditional sales contract COPY must be furnished to: Buyer
Conditional Sales Contract must be in: Writing
And include signatures of: BUYER AND SELLER
Types of Conditional Sales Contract: PRECOMPUTED SIMPLE INTEREST
Maximum Motor vehicle financing allowable interest rate? 29.9% APR
Early payoff of loan under PRECOMPUTED interest BAD deal for the consumer
An Upside down trade in means: BUYER OWES MORE THAN CAR IS WORTH
Financing falls through the dealer has 10 day recission right to cancel the contract
TRUTH IN LENDING Contract not executed means the customer can not take delivery unless the contract is signed
TRUTH IN LENDING You must resell a repo vehicle in a commercially reasonable manner
TRUTH IN LENDING max documentation prep fee: 45 dollars
A break in the contract is also known as a: BREACH
After the REPO, mail the customer a notice of intent to: DISPOSE
REDEMPTION means: The customer must pay balance in full
The customer has: 15 days to reinstate or redeem
If you resell the car and make less than the customer owe you, you can sue the customer for a: DEFICIENCY
The Gramm-Leach-Bliley Act is a law that protects the customers PRIVACY
SALES AND USE TAX The use tax rate is the same rate as SALES TAX
BOE stands for: BOARD OF EQUALIZATION
What is taxable? Price of VEHICLE + accesories/Document PREPARATION FEE
smog FEE paid to: SELLER
You charge the tax rate of the county where the customer: LIVES
The BOE: Can audit your records at anytime
BOE website www.boe.ca.gov
The general rule is to collect tax from: RETAIL PUBLIC
You report (pay) the tax to: BOE
OUT of state sales require either a bill of LANDING or form number BT448
What sign must a dealer post at his place of business? Buyer's Right to Inspect Sign
How much is the current smog fee? $50+state certificate fee
How much is the Administrative Service Fee (ASF) if the dealer fails to mail the dealer portion of report of sale within 5 days? $5 dollars
If you hire or fire a salesperson, you must notify the DMV within: 10 days
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