DMV - Representative Advertising and Sales Practices Questions and Answers

Question 1

A California vehicle dealer's newspaper advertisement lists a specific SUV for $25,000.
According to the California Vehicle Code, which of the following costs can be legally excluded from this advertised price?

Accepted Answer

The dealer document processing charge

Answer

Dealer-installed options already on the vehicle

Answer

A mandatory "market adjustment" fee

Answer

The cost of a pre-installed vehicle theft deterrent system

Question 2

A dealership advertises a "Certified Pre-Owned" vehicle. However, they fail to provide the buyer with a copy of the required inspection report before the sale. Which of the following is also a prohibited reason for advertising a vehicle as "certified" in California?

Accepted Answer

The vehicle's title is branded as a "Lemon Law Buyback"

Answer

The vehicle was previously a rental car

Answer

The vehicle has minor cosmetic repairs

Answer

The vehicle is being sold with a limited warranty

Question 3

A customer comes into a dealership interested in a sedan they saw advertised for a very low price. The salesperson immediately informs them that the advertised car was "just sold," but then aggressively steers them toward a much more expensive model. This sales tactic is an example of:

Accepted Answer

Bait and switch

Answer

Upselling

Answer

Promotional pricing

Answer

A guaranteed trade-in

Question 4

Which of the following is a mandatory requirement for any advertisement that lists a specific vehicle for sale?

Accepted Answer

The vehicle's license number or VIN

Answer

The name of the salesperson to contact

Answer

The date the vehicle arrived on the lot

Answer

The vehicle's original MSRP

Question 5

A dealership's advertisement includes the phrase "FREE flat-screen TV with every car purchase!" This type of advertising is:

Accepted Answer

Prohibited, as it's a gift contingent on purchasing a vehicle

Answer

Permitted if the TV is valued under $100

Answer

Permitted during special holiday sales events

Answer

Prohibited unless the TV manufacturer co-sponsors the ad

Question 6

A dealership advertises a vehicle online. After the vehicle is sold, how long does the dealer have to remove the advertisement?

Accepted Answer

48 hours

Answer

24 hours

Answer

72 hours

Answer

5 business days

A California vehicle dealer's newspaper advertisement lists a specific SUV for $25,000.According to the California Vehicle Code, which of the following costs can be legally excluded from this advertised price?

A California vehicle dealer's newspaper advertisement lists a specific SUV for $25,000.
According to the California Vehicle Code, which of the following costs can be legally excluded from this advertised price?