Notes

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Study Guide What is the required  bond or cash amount?          $ 10,000 If you post cash, how many years after you close will  the DMV hold your money? 3 years What is the maximum distance between your retail display are and your office?  1000 ft.

Study Guide What is the minimum square footage of the retail dealer sign?    2 feet What is the minimum distance the sign can be read from?      50 feet What is the original application fee?    $  151

Study Guide What is the renewal application fee?    $ 101 What is the permanent or temporary branch location fee? $ 70 What is the processing fee for the                      Livescan fingerprint card? $ 44

Study Guide What is the fee for the dealer special plate not including county taxes? $ 30 When a dealership is going to be moved how far in advance must the DMV receive written notice?    0 When a dealership is going to be sold how far in advance must the DMV receive written notice?  10 days

Study Guide When a corporation is going to make a change how far in advance must the  DMV receive written notice?   30 days What is the corporate change fee?  $ 70 What is the initial autobroker fee? $ 50

Study Guide What is the renewal autobroker fee? $ 25 Once a consignment vehicle is sold how many days does the dealer have to make an accounting & payment? 20 days What is the maximum  a dealer  can charge for document preparation? $ 45

Study Guide What is the maximum a dealer can charge for smog inspection, which is taxable? $ 50 What is the maximum a dealer can charge for a smog certificate, which is not taxable? $ 8.25 What is the fee a dealer must charge for a retail transfer? $ 15

Study Guide How many days of registration  must remain on the date of sale to avoid collecting new fees from the customer?     60 days What is the basic sales tax rate? 7.25 % How many days does a dealer have to get the notice to DMV, not counting the date of sale? 5 days

Study Guide How many days does a dealer have to get the fees to DMV, not counting the date of sale? 20 days How many days does a dealer have to get the documents to DMV, not counting the date of sale? 30 days How many days does a dealer have to return corrections to DMV, not counting the date of sale? 50 days

Study Guide What is the dollar amount of penalty, ASF, when a dealer fails to send the  5 day notice? $ 5. What is the dollar amount of penalty,  ASF, when a dealer fails to post the correct notice in the vehicle? $ 5. What is the dollar amount of penalty, ASF, when a dealer fails to send the documents to DMV within 30 days?  $5.

Study Guide What is the dollar amount of penalty, ASF, when a dealer fails to complete the transaction within 50 days? $ 25 What is the dollar amount of a ONE WAY permit when a dealer sends a vehicle out of state? $ 10. What is the dollar amount of a quick title request? $ 15.

Study Guide How quickly is a quick title issued?  72 hour What is the minimum percentage of brake pad  allowable to pass the Division 12 safety inspection?  30 % What is the minimum depth of tire tread allowable to pass the Division 12 safety inspection?  2/32”

Study Guide What is the maximum mileage to register a vehicle without having to pass a smog inspection?  7500 miles What percentage of the price do you use to figure the monthly tax basis for personal use of the dealer plate? 1 / 40 What percentage of the price do you use to figure the salesperson’s monthly tax basis for personal use of the dealer plate?  1 / 60

Study Guide When a dealer places an ad, the  license plate or how many of the VIN must be used in the ad ? Last 6 When a dealer sells a vehicle, how much time is allowed to make  notification to remove the ad?  48 hours When a dealer hires or fires a vehicle  salesperson how much time is allowed to make notification to DMV? 10 days

NUMBERS TO REMEMBER! DMV EXAM: 70% Min Score $16 cost Allowable Vehicles sold w/o LIC: 0  BOND: $10,000, IF CASH, 3 years after posting RETAIL DISPLAY: Max distance 1000ft, 2ft by 2ft sign, read from 50 ft FEES: Original? Bacardi $151,  Livescan $40 Renewal? Highway $101, Branch Fee? $70

Dealer Examination How much grace time is allowed for license or bond renewal? a) 10 days b) One week c) None d) Varies by License  Who is required to sign the buyer’s guide? a) Buyer b) Seller c) Both d) Neither

Dealer Examination How much grace time is allowed for license or bond renewal? a) 10 days b) One week c) None d) Varies by License  Who is required to sign the buyer’s guide? a) Buyer b) Seller c) Both d) Neither

Dealer Examination Who is required to sign the conditional sales contract? a) Buyer b) Seller c) Both d) Neither The dealer erected sign must be visible from what distance? a) 15 Feet b) 25 Feet c) 50 Feet d) 100 Feet

Dealer Examination Who is required to sign the conditional sales contract? a) Buyer b) Seller c) Both d) Neither The dealer erected sign must be visible from what distance? a) 15 Feet b) 25 Feet c) 50 Feet d) 100 Feet

Dealer Examination Which of the following must be displayed in a retail location? a) Dealer license b) Inspection of vehicle notice c) No cooling off period notice d) All of these What must the dealer do if he is unable to provide financing for the buyer? a) Return all money b) Return the trade – in c) Return all money & the trade – in d) Return money but keep document fee

Dealer Examination Which of the following must be displayed in a retail location? a) Dealer license b) Inspection of vehicle notice c) No cooling off period notice d) All of these What must the dealer do if he is unable to provide financing for the buyer? a) Return all money b) Return the trade – in c) Return all money & the trade – in d) Return money but keep document fee

Dealer Examination What items must the dealer charge sales tax upon? a) Price of the vehicle b) Price of accessories c) Document Prep Fee d) Smog inspection fee e) All of these items are taxable  What is a non – complying title? a) Date & Odometer not printed on front of title b) Seller signature missing c) Duplicate title d) Odometer section blank e) Title w/ lienholder

Dealer Examination What items must the dealer charge sales tax upon? a) Price of the vehicle b) Price of accessories c) Document Prep Fee d) Smog inspection fee e) All of these items are taxable  What is a non – complying title? a) Date & Odometer not printed on front of title b) Seller signature missing c) Duplicate title d) Odometer section blank e) Title w/ lienholder

Dealer Examination What must a dealer never do? a) Sell from his home b) Lend his dealer plates c) Lend a ROS form d) Sell at a friend’s business e) All of these are a violation of DMV regulations How soon must the dealer pay the buyer when he sells a consigned vehicle?   a) Pay within 10 days b) Pay within 20 days c) Pay within 30 days d) Pay within 5 days e) Pay as agreed on the consignment document

Dealer Examination What must a dealer never do? a) Sell from his home b) Lend his dealer plates c) Lend a ROS form d) Sell at a friend’s business e) All of these are a violation of DMV regulations How soon must the dealer pay the buyer when he sells a consigned vehicle?   a) Pay within 10 days b) Pay within 20 days c) Pay within 30 days d) Pay within 5 days e) Pay as agreed on the consignment document

Dealer Examination Which of the following is an allowable advertising practice? a) Free gifts w/ test drive b) Free gifts w/purchase c) Coupon discount upon sale d) Advertise guaranteed trade – in allowance e) Return money but keep document fee How soon must the dealer notify DMV when a salesperson is hired or fired? a) No notification b) Notify DMV within 5 days c) Before 1st sale d) Notify DMV within 10 days

Dealer Examination Which of the following is an allowable advertising practice? a) Free gifts w/ test drive b) Free gifts w/purchase c) Coupon discount upon sale d) Advertise guaranteed trade – in allowance e) Return money but keep document fee How soon must the dealer notify DMV when a salesperson is hired or fired? a) No notification b) Notify DMV within 5 days c) Before 1st sale d) Notify DMV within 10 days

Dealer Examination What must the dealer do if he collects too much money from the buyer ? a) Return half the refund b) Return the excess c) Return  all money if asked d) Split the difference  What must the dealer do with the temporary operating permit ? a) Send to buyer b) Post in front window c) Place in glovebox d) Post behind the visor e) Place in any window visible from outside vehicle

Dealer Examination What must the dealer do if he collects too much money from the buyer ? a) Return half the refund b) Return the excess c) Return  all money if asked d) Split the difference  What must the dealer do with the temporary operating permit ? a) Send to buyer b) Post in front window c) Place in glovebox d) Post behind the visor e) Place in any window visible from outside vehicle

Dealer Examination What must the dealer do for DMV compliance if he sells a vehicle for out of state delivery? a) Hire a tow truck b) Secure one way permit c) Pre – register the vehicle d) Let the buyer do it e) Secure one way permit OR pre – register vehicle What must the dealer do for B/E compliance if he sells a vehicle for out of state delivery? a) Hire a tow truck b) Secure one way permit c) Pre – register the vehicle d) Let the buyer do it e) Secure notarized documents from out of state or hire a          licensed transporter

Dealer Examination What must the dealer do for DMV compliance if he sells a vehicle for out of state delivery? a) Hire a tow truck b) Secure one way permit c) Pre – register the vehicle d) Let the buyer do it e) Secure one way permit OR pre – register vehicle What must the dealer do for B/E compliance if he sells a vehicle for out of state delivery? a) Hire a tow truck b) Secure one way permit c) Pre – register the vehicle d) Let the buyer do it e) Secure notarized documents from out of state or hire a          licensed transporter

Dealer Examination What items can the dealer waive from Division 12 for retail delivery? a) Horn b) Windshield c) Muffler d) Smog compliance e) None of these items can be waived What items can the dealer waive from Division 12 for wholesale delivery? a) Horn b) Windshield c) Muffler d) Smog compliance e) All items can be waived with salvage disclosure

Dealer Examination What items can the dealer waive from Division 12 for retail delivery? a) Horn b) Windshield c) Muffler d) Smog compliance e) None of these items can be waived What items can the dealer waive from Division 12 for wholesale delivery? a) Horn b) Windshield c) Muffler d) Smog compliance e) All items can be waived with salvage disclosure

Dealer Examination The dealer must hold ROS forms in his office for how long? a) 7 years b) 5 years d) 1 year e) 2 years e) 4 years Which of the following penalties carries a $ 25. fine? a) No 5 day notice b) No documents in 30 days c) No window posting d) No fees in 20 days e) Title application & corrections not cleared in 50 days

Dealer Examination The dealer must hold ROS forms in his office for how long? a) 7 years b) 5 years d) 1 year e) 2 years e) 4 years Which of the following penalties carries a $ 25. fine? a) No 5 day notice b) No documents in 30 days c) No window posting d) No fees in 20 days e) Title application & corrections not cleared in 50 days

Dealer Examination Which of the following is the original license fee? a) $151. b) $101. c) $168. d) $70. e) $44. Which of the following is the Livescan fee? a) $151. b) $101. c) $70. d) $44. e) $30.

Dealer Examination Which of the following is the original license fee? a) $151. b) $101. c) $168. d) $70. e) $44. Which of the following is the Livescan fee? a) $151. b) $101. c) $70. d) $44. e) $30.

Dealer Examination Which of the following is the branch location fee? a) $151. b) $101. c) $168. d) $70. e) $44. Which of the following is the renewal license fee? a) $151. b) $101. c) $168. d) $70. e) $44.

Dealer Examination Which of the following is the branch location fee? a) $151. b) $101. c) $168. d) $70. e) $44. Which of the following is the renewal license fee? a) $151. b) $101. c) $168. d) $70. e) $44.

Dealer Examination How soon must the dealer notify DMV when there is a change of dealer ownership? a) No notification b) Notify DMV within 5 days c) Before 1st sale d) Notify DMV within 10 days e) 10 days prior to sale How soon must the dealer notify DMV when there is a change of dealer ownership involving a corporation? a) Notify DMV within 5 days b) Before 1st sale c) Notify DMV within 10 days d) 10 days prior to sale e) 30 days prior to sale

Dealer Examination How soon must the dealer notify DMV when there is a change of dealer ownership? a) No notification b) Notify DMV within 5 days c) Before 1st sale d) Notify DMV within 10 days e) 10 days prior to sale How soon must the dealer notify DMV when there is a change of dealer ownership involving a corporation? a) Notify DMV within 5 days b) Before 1st sale c) Notify DMV within 10 days d) 10 days prior to sale e) 30 days prior to sale

Dealer Examination What must the dealer do when using dealer plates? a) Display both plates b) Remove old plate c) Pre – register the vehicle d) Have plate in car e) Have dealer plate posted over original plate What must the dealer carry when using dealer plates? a) Driver’s license b) Registration card c) Dealer’s license d) Insurance card e) All of these items should be available

Dealer Examination What must the dealer do when using dealer plates? a) Display both plates b) Remove old plate c) Pre – register the vehicle d) Have plate in car e) Have dealer plate posted over original plate What must the dealer carry when using dealer plates? a) Driver’s license b) Registration card c) Dealer’s license d) Insurance card e) All of these items should be available

Dealer Examination What must the dealer do when selling to a Spanish speaking customer? a) Obtain translation b) Have Spanish contracts c) Attach Spanish copy to English sales contract d) Explain the English contract the best you can What must the dealer do when an odometer cannot be repaired and must be replaced? a) Fix the odometer b) Replace the odometer c) Adjust miles to zero, attach a  notice plate and      prepare statement of facts for buyer to sign d) Replace odometer and adjust to existing miles

Dealer Examination What must the dealer do when selling to a Spanish speaking customer? a) Obtain translation b) Have Spanish contracts c) Attach Spanish copy to English sales contract d) Explain the English contract the best you can What must the dealer do when an odometer cannot be repaired and must be replaced? a) Fix the odometer b) Replace the odometer c) Adjust miles to zero, attach a  notice plate and      prepare statement of facts for buyer to sign d) Replace odometer and adjust to existing miles

Dealer Examination What must the dealer do when selling from a branch location? a) Use main location on ROS form b) Use branch location on ROS form c) Use either address d) Use both addresses What must the dealer do when displaying a vehicle at a public event without a branch location license? a) Display with both plates b) Remove old plate c) Pre – register the vehicle d) Have plate in car e) Post a sign restricting deposits or trade – ins

Dealer Examination What must the dealer do when selling from a branch location? a) Use main location on ROS form b) Use branch location on ROS form c) Use either address d) Use both addresses What must the dealer do when displaying a vehicle at a public event without a branch location license? a) Display with both plates b) Remove old plate c) Pre – register the vehicle d) Have plate in car e) Post a sign restricting deposits or trade – ins

Dealer Examination What is the maximum the dealer can charge for document preparation? a) $101. b) $ 58.25 c) $50. d) $45. e) No Maximum  What is the maximum the dealer can charge for smog inspection? a) $101. b) $ 58.25 c) $50. d) $45. e) No Maximum

Dealer Examination What is the maximum the dealer can charge for document preparation? a) $101. b) $ 58.25 c) $50. d) $45. e) No Maximum  What is the maximum the dealer can charge for smog inspection? a) $101. b) $ 58.25 c) $50. d) $45. e) No Maximum

Dealer Examination What must the dealer do when sales tax has been collected? a) Send to DMV b) Send to Franchise Tax Board c) Send to the State Board of Equalization d) Hold until you receive a bill from DMV What must the dealer do when a buyer has added accessories prior to delivery and backs out? a) Return all money except document fee b) Return all money except accessories c) Return all money except deposit up to $ 500 d) Return all money

Dealer Examination What must the dealer do when sales tax has been collected? a) Send to DMV b) Send to Franchise Tax Board c) Send to the State Board of Equalization d) Hold until you receive a bill from DMV What must the dealer do when a buyer has added accessories prior to delivery and backs out? a) Return all money except document fee b) Return all money except accessories c) Return all money except deposit up to $ 500 d) Return all money

Dealer Examination What must the dealer do when disclosing prior history to a buyer? a) List on buyer’s guide b) Place a plate on frame c) Prepare statement of facts disclosure d) Make prior history notation on the sales contract What is the meaning of implied warranty? a) As – is vehicle b) Prior history vehicle c) No obvious problems with the vehicle d) The vehicle is safe and meets Division 12

Dealer Examination What must the dealer do when disclosing prior history to a buyer? a) List on buyer’s guide b) Place a plate on frame c) Prepare statement of facts disclosure d) Make prior history notation on the sales contract What is the meaning of implied warranty? a) As – is vehicle b) Prior history vehicle c) No obvious problems with the vehicle d) The vehicle is safe and meets Division 12

Dealer Examination What is the definition of a used vehicle? a) 12 months old b) Over 3000 miles c) Over 7500 miles d) Over 5000 miles What type of vehicles must the dealer disclose prior history of to a buyer? a) Rental b) Known damage c) New engine d) City, county, state vehicle e) All of these vehicles require written disclosure

Dealer Examination What is the definition of a used vehicle? a) 12 months old b) Over 3000 miles c) Over 7500 miles d) Over 5000 miles What type of vehicles must the dealer disclose prior history of to a buyer? a) Rental b) Known damage c) New engine d) City, county, state vehicle e) All of these vehicles require written disclosure

Dealer Examination What must the dealer do when showing a buyer’s guide to a buyer? a) Obtain buyer signature and give them a copy b) Just give them a copy c) Prepare statement of facts disclosure d) Make prior history notation on the sales contract What must the dealer do when an advertised vehicle has been sold? a) Remove ad within 24 hours b) Nothing c) Notify advertiser within 48 hours d) Cancel ad

Dealer Examination What must the dealer do when showing a buyer’s guide to a buyer? a) Obtain buyer signature and give them a copy b) Just give them a copy c) Prepare statement of facts disclosure d) Make prior history notation on the sales contract What must the dealer do when an advertised vehicle has been sold? a) Remove ad within 24 hours b) Nothing c) Notify advertiser within 48 hours d) Cancel ad

Dealer Examination What must the dealer complete when allowing a salesperson personal use of a vehicle? a) Attach dealer plate b) Rent or lease contract c) Place reg card on plate d) Use tax report e) All of these for salesperson personal use What must the dealer charge for retail transfer when selling a car? a) Included in price b) Up to $58.25 c) $14. d) $15. e) Up to $45.

Dealer Examination What must the dealer complete when allowing a salesperson personal use of a vehicle? a) Attach dealer plate b) Rent or lease contract c) Place reg card on plate d) Use tax report e) All of these for salesperson personal use What must the dealer charge for retail transfer when selling a car? a) Included in price b) Up to $58.25 c) $14. d) $15. e) Up to $45.

Dealer Examination What is the amount of the bond or cash the dealer must post prior to submitting an application? a) Depends on credit check b) $1,000. c) $50,000. d) $5,000. e) $10,000. What must the dealer pay to DMV when renewing each dealer plate? a) $15. b) $45. c) $30. d) $70. e) $101.

Dealer Examination What is the amount of the bond or cash the dealer must post prior to submitting an application? a) Depends on credit check b) $1,000. c) $50,000. d) $5,000. e) $10,000. What must the dealer pay to DMV when renewing each dealer plate? a) $15. b) $45. c) $30. d) $70. e) $101.

Dealer Examination What must the dealer do when he obtains ROS forms? a) Keep at home b) Place in locked box in office c) Keep in briefcase d) Rent safe deposit box What is not required when submitting an application for a dealer’s license? a) Bond or Cash deposit b) Liability insurance c) Livescan fingerprint card d) Class certificate

Dealer Examination What must the dealer do when he obtains ROS forms? a) Keep at home b) Place in locked box in office c) Keep in briefcase d) Rent safe deposit box What is not required when submitting an application for a dealer’s license? a) Bond or Cash deposit b) Liability insurance c) Livescan fingerprint card d) Class certificate

Dealer Examination What must the extended warranty, service contract disclose to a buyer? a) Description of vehicle b) Name of buyer c) Date of contract & expiration d) Parts covered e) All of these items must be on the contract What must the dealer do before offering a vehicle to a retail buyer? a) Attach buyer’s guide b) Obtain smog certificate c) Obtain Division 12 compliance d) All of these items must be completed

Dealer Examination What must the extended warranty, service contract disclose to a buyer? a) Description of vehicle b) Name of buyer c) Date of contract & expiration d) Parts covered e) All of these items must be on the contract What must the dealer do before offering a vehicle to a retail buyer? a) Attach buyer’s guide b) Obtain smog certificate c) Obtain Division 12 compliance d) All of these items must be completed