DMV DMV - Representative Consumer Protection and Dispute Resolution 1 — Questions and Answers
Question 1: Under the California Consumers Legal Remedies Act (CLRA), a dealer who uses deceptive sales practices may be required to pay the consumer:
- Actual damages only
- Actual damages, punitive damages, and attorney's fees (Correct answer)
- A flat $500 penalty
- The dealer's profit on the transaction
Correct answer: Actual damages, punitive damages, and attorney's fees
The CLRA allows courts to award actual damages, punitive damages, injunctive relief, restitution, and attorney's fees against dealers who engage in deceptive practices.
Question 2: A buyer who wants to file a complaint about a California licensed dealer should contact which agency first?
- Federal Trade Commission
- California DMV Occupational Licensing (OL) Branch (Correct answer)
- California Attorney General
- Better Business Bureau
Correct answer: California DMV Occupational Licensing (OL) Branch
The DMV's Occupational Licensing Branch investigates and disciplines licensed dealers for violations of California Vehicle Code.
Question 3: What is the maximum amount a consumer can recover in California Small Claims Court for a vehicle-related dispute?
- $5,000
- $7,500
- $10,000 (Correct answer)
- $12,500
Correct answer: $10,000
As of current California law, individuals can sue for up to $10,000 in Small Claims Court for most civil disputes including vehicle transactions.
Question 4: Under California's Song-Beverly Consumer Warranty Act, what remedy is a buyer entitled to if their vehicle qualifies as a lemon?
- A free extended warranty
- Replacement or full refund minus a mileage offset (Correct answer)
- 50% reimbursement of repair costs
- A $1,000 cash settlement
Correct answer: Replacement or full refund minus a mileage offset
Lemon law remedies include either a comparable replacement vehicle or a full purchase price refund, reduced by a mileage usage offset for miles driven before the defect arose.
Question 5: The California Lemon Law buyback process requires the manufacturer to refund which of the following costs?
- Purchase price minus dealer profit
- Down payment, loan payments, registration, taxes, and incidental costs (Correct answer)
- Only the vehicle purchase price
- Repair costs only
Correct answer: Down payment, loan payments, registration, taxes, and incidental costs
A lemon law repurchase must include the down payment, monthly payments made, registration fees, taxes, and incidental costs such as towing and rental car fees.
Question 6: Which California law specifically prohibits a dealer from conditioning a vehicle sale on the buyer purchasing optional add-on products such as GAP insurance or paint protection?
- California Vehicle Code Section 11713.1
- The Automobile Sales Finance Act
- The California Finance Lenders Law
- The Rees-Levering Motor Vehicle Sales and Finance Act (Correct answer)
Correct answer: The Rees-Levering Motor Vehicle Sales and Finance Act
The Rees-Levering Act prohibits dealers from conditioning financing or vehicle delivery on the purchase of optional add-on products.
DMV DMV - Representative Consumer Protection and Dispute Resolution 1
Under the California Consumers Legal Remedies Act (CLRA), a dealer who uses deceptive sales practices may be required to pay the consumer: