Question 1: California's Lemon Law (Song-Beverly Consumer Warranty Act) presumes a vehicle is a lemon if the manufacturer cannot repair the same defect after how many attempts?

• 3
• 4 (Correct answer)
• 5
• 2

Correct answer: 4

The Song-Beverly Act creates a presumption of a lemon after 4 unsuccessful repair attempts for the same substantial defect.

Question 2: From the driver's manual: 'You must yield the right-of-way to emergency vehicles using sirens and flashing lights. Pull to the right edge of the road and stop until the emergency vehicle has passed.' What must you do when you see an emergency vehicle?

• Pull to the left and stop
• Pull to the right and stop until it passes (Correct answer)
• Slow down but continue driving
• Flash your headlights and keep moving

Correct answer: Pull to the right and stop until it passes

The manual requires pulling to the right edge and stopping until the emergency vehicle has completely passed.

Question 3: What should a driver do when approaching an intersection with a stop sign and the stop line is obscured by snow?

• Stop at a point where you can see cross traffic safely
• Proceed slowly without stopping since the line is invisible
• Call police before proceeding
• Stop before the crosswalk if visible, or at the edge of the intersection (Correct answer)

Correct answer: Stop before the crosswalk if visible, or at the edge of the intersection

When markings are obscured, drivers must stop at the crosswalk or, if not visible, at the point nearest the intersecting road with a clear view.

Question 4: Road sign text: 'WEIGHT LIMIT 10 TONS.' A truck weighing 22,000 pounds approaches this bridge. May the truck cross?

• No, only vehicles under 5 tons may cross
• Yes, if the truck travels slowly
• No, because 22,000 pounds equals 11 tons, which exceeds 10 tons (Correct answer)
• Yes, because 22,000 pounds equals 11 tons, which is close enough

Correct answer: No, because 22,000 pounds equals 11 tons, which exceeds 10 tons

22,000 pounds equals 11 tons, which exceeds the posted 10-ton weight limit, so the truck may not cross.

Question 5: What federal law requires auto dealers to disclose the Annual Percentage Rate (APR) and total finance charge on a retail installment sale contract?

• The Consumer Financial Protection Act
• The Fair Credit Reporting Act
• The Equal Credit Opportunity Act
• The Truth in Lending Act (TILA / Regulation Z) (Correct answer)

Correct answer: The Truth in Lending Act (TILA / Regulation Z)

The Truth in Lending Act (TILA), implemented through Regulation Z, requires creditors and dealers to clearly disclose the APR, total finance charge, and other credit terms to consumers.

Question 6: How long did Mary rule Scotland as queen?

• 25 years (Correct answer)
• 15 years
• 45 years
• 18 years

Correct answer: 25 years

Explanation: <br> Mary was beheaded and passed away in 1587 (45 years after she was born), although her reign came to an end when she was forced to resign in 1567. Mary was born in 1542 and assumed the kingdom that same year.

Question 7: A vehicle salesperson's license in California is typically valid for what period before it needs to be renewed?

• Five years
• Two years
• One year
• Three years (Correct answer)

Correct answer: Three years

A California vehicle salesperson's license is valid for a period of three years from the date of issuance, unless it is suspended, canceled, or revoked by the DMV.

Question 8: A driver travels 150 miles in 3 hours. What is the average speed in miles per hour?

• 55 mph
• 50 mph (Correct answer)
• 45 mph
• 40 mph

Correct answer: 50 mph

Average speed = distance ÷ time = 150 ÷ 3 = 50 mph.

Question 9: A buyer who wants to file a complaint about a California licensed dealer should contact which agency first?

• California Attorney General
• California DMV Occupational Licensing (OL) Branch (Correct answer)
• Federal Trade Commission
• 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 10: A dealer who sells a vehicle with a rolled-back odometer can be prosecuted under which federal law?

• The Motor Vehicle Safety Act
• The Federal Odometer Act (Truth in Mileage Act) (Correct answer)
• The National Traffic and Motor Vehicle Safety Act
• The Consumer Protection Disclosure Act

Correct answer: The Federal Odometer Act (Truth in Mileage Act)

The Federal Odometer Act (also called the Truth in Mileage Act) makes it a federal crime to tamper with or misrepresent a vehicle's odometer reading.

Question 11: A dealer sells a vehicle and the parties agree the purchase price includes a trade-in allowance. If the trade-in value is later adjusted downward without the buyer's consent, this could be:

• Required by state DMV rules
• Standard practice requiring no notice
• Permitted if the vehicle appraisal changes overnight
• A breach of the purchase agreement (Correct answer)

Correct answer: A breach of the purchase agreement

Once a trade-in value is agreed upon in a signed contract, unilaterally reducing it without consent constitutes a breach of that agreement.

Question 12: If a buyer signed a contract under economic duress or fraudulent misrepresentation, which legal remedy allows them to cancel the contract and be restored to their original position?

• Accord and satisfaction
• Rescission (Correct answer)
• Novation
• Reformation

Correct answer: Rescission

Rescission cancels a contract and restores both parties to their pre-contract positions, and it is available when a contract was induced by fraud or duress.

Question 13: A dealership's internet ad for a vehicle fails to include the dealer's license number as required by state law. This advertisement is:

• Acceptable if the price is accurate
• Acceptable if the phone number is listed
• A violation regardless of whether the price is accurate (Correct answer)
• Only a violation if a complaint is filed

Correct answer: A violation regardless of whether the price is accurate

Omitting a required dealer license number is a regulatory violation independent of whether other ad content is accurate.

Question 14: In the process of transferring a vehicle's ownership, who is defined by the California Vehicle Code § 640 as the 'transferee'?

• The person who has acquired ownership of or an equity in the vehicle. (Correct answer)
• The DMV employee who processes the title transfer paperwork.
• The lienholder who is releasing their interest in the vehicle.
• The person or entity selling the vehicle.

Correct answer: The person who has acquired ownership of or an equity in the vehicle.

CVC § 640 explicitly defines a 'transferee' as the person who has acquired sole ownership or an equity interest in a vehicle. They are the recipient of the transfer.

Question 15: If you drive at 60 mph for 2.5 hours, how far will you travel?

• 165 miles
• 120 miles
• 150 miles (Correct answer)
• 135 miles

Correct answer: 150 miles

Distance = speed × time = 60 × 2.5 = 150 miles.

Question 16: What is one-fourth of Jack's weekly income if two-thirds of it is $480?

• $280
• $240
• $165
• $180 (Correct answer)

Correct answer: $180

Explanation: <br> Let's start by setting up an equation to represent the information given in the problem:<br> <br> (2/3) * Jack's weekly income = $480 <br> To solve for Jack's weekly income, we can isolate the variable by dividing both sides of the equation by 2/3: <br> Jack's weekly income = $480 / (2/3) = $480 * (3/2) = $720 <br> Now that we know Jack's weekly income is $720, we can find one-fourth of it by multiplying by 1/4: <br> One-fourth of Jack's weekly income = $720 * (1/4) = $180 <br> Therefore, one-fourth of Jack's weekly income is $180.

Question 17: A California dealer must conduct a VIN inspection using form REG 31 when selling a vehicle that was:

• Purchased from a private party
• Last registered out of state (Correct answer)
• More than 10 years old
• Driven more than 100,000 miles

Correct answer: Last registered out of state

An out-of-state vehicle must have a physical VIN verification (REG 31) completed before it can be registered in California.

Question 18: How is the registration fee for a commercial truck typically determined differently from a passenger vehicle?

• By the color and age of the truck
• By the driver's commercial license class
• By the number of axles only
• By the declared gross vehicle weight (GVW) (Correct answer)

Correct answer: By the declared gross vehicle weight (GVW)

Commercial truck registration fees are based on the declared gross vehicle weight, which reflects the vehicle's load-carrying capacity.

Question 19: Read the following passage: 'A flashing yellow light means proceed with caution. Drivers should slow down and be prepared to stop if necessary, but are not required to come to a complete stop.' What does a flashing yellow light require drivers to do?

• Treat it the same as a green light
• Come to a complete stop before proceeding
• Stop only if other vehicles are present
• Slow down and proceed with caution (Correct answer)

Correct answer: Slow down and proceed with caution

The passage states drivers must slow down and proceed with caution but are not required to stop completely.

Question 20: A consumer suffers a financial loss because a dealer failed to transfer title and pay required fees to the DMV. The primary purpose of the dealer's surety bond is to:

• Cover the dealer's business operating expenses.
• Pay for the dealer's inventory financing.
• Reimburse the state for unpaid sales tax.
• Provide a source of compensation for the consumer's loss. (Correct answer)

Correct answer: Provide a source of compensation for the consumer's loss.

A dealer's surety bond is required by the state to protect consumers, sellers, financing agencies, and government agencies from monetary loss resulting from a dealer's fraud, misrepresentation, or failure to comply with licensing laws, such as remitting fees and transferring title.

Question 21: The monthly wage for Jenny is $2,650.00. What would be her new monthly salary if she received a 5% pay raise?

• $2,900.00
• $2,782.50
• $2,785.00
• $3,001.50

Explanation: <br> To calculate Jenny's new monthly salary after a 5% pay raise, we can use the following formula: <br> <br> new salary = current salary + (percent increase x current salary) <br> First, we need to calculate 5% of Jenny's current salary: <br> 5% of $2,650.00 = 0.05 x $2,650.00 = $132.50 <br> Next, we can substitute the values into the formula: <br> new salary = $2,650.00 + ($132.50) = $2,782.50 <br> Therefore, Jenny's new monthly salary after a 5% pay raise would be $2,782.50.

Question 22: Which of the following is a mandatory requirement for obtaining a California Vehicle Salesperson license?

• At least one year of prior sales experience.
• Submitting to a background check via Live Scan fingerprinting. (Correct answer)
• A college degree in business or marketing.
• Passing a written examination on vehicle mechanics.

Correct answer: Submitting to a background check via Live Scan fingerprinting.

The California DMV requires all applicants for a vehicle salesperson license to undergo a background check, which is initiated by submitting Live Scan fingerprints.

Question 23: A dealer's finance manager adds a credit insurance product to the contract without telling the customer. Under TILA, this is:

• Acceptable if the customer can cancel later
• Permitted if it reduces the APR
• Required by most state lending laws
• A violation because it is an undisclosed credit-related charge (Correct answer)

Correct answer: A violation because it is an undisclosed credit-related charge

TILA requires all credit-related charges to be disclosed; adding undisclosed products inflates the finance charge and violates disclosure requirements.

Question 24: What is the minimum display area (lot) requirement typically imposed on licensed motor vehicle dealers?

• A minimum of one acre of paved surface
• A minimum of 5,000 square feet in all states
• No lot is required for online-only dealers in most states (Correct answer)
• An enclosed showroom with at least 10 vehicles

Correct answer: No lot is required for online-only dealers in most states

Many states allow online or wholesale dealers to operate without a physical display lot, though requirements vary significantly by state.

Question 25: A dealership adds a $500 'dealer prep fee' not mentioned during negotiation. This fee must be:

• Hidden in the APR calculation
• Absorbed by the dealer by law
• Disclosed verbally before the customer signs
• Listed separately on the purchase contract (Correct answer)

Correct answer: Listed separately on the purchase contract

All fees must be itemized separately on the purchase contract; undisclosed fees added at signing may violate consumer protection rules.

Question 26: Gas costs $3.60 per gallon. A driver needs 12.5 gallons to fill up. What is the total cost?

• $43.50
• $46.50
• $42.00
• $45.00 (Correct answer)

Correct answer: $45.00

$3.60 × 12.5 = $45.00.

Question 27: The California Lemon Law buyback process requires the manufacturer to refund which of the following costs?

• Down payment, loan payments, registration, taxes, and incidental costs (Correct answer)
• Purchase price minus dealer profit
• Repair costs only
• Only the vehicle purchase price

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 28: A fine for speeding is $125 base plus $15 for each mph over the limit. A driver is 8 mph over. What is the total fine?

• $235
• $225
• $245 (Correct answer)
• $255

Correct answer: $245

$125 + (8 × $15) = $125 + $120 = $245.

Question 29: Passage: 'School buses must stop at all railroad crossings, open the door, look and listen before crossing, and then proceed if the tracks are clear.' What is the PRIMARY reason a school bus opens its door at a railroad crossing?

• To signal to train operators
• To allow the driver to hear approaching trains better (Correct answer)
• To meet the weight requirement for crossings
• To let students exit quickly if needed

Correct answer: To allow the driver to hear approaching trains better

Opening the door improves the driver's ability to hear an approaching train that may not be visible.

Question 30: 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:

• Bait and switch (Correct answer)
• A guaranteed trade-in
• Promotional pricing
• Upselling

Correct answer: Bait and switch

This scenario describes "bait and switch" advertising, which is illegal. It occurs when a dealer advertises a vehicle at a specific price with no intention of selling it, in order to lure customers in and then pressure them into buying a different, typically more expensive, vehicle.

Question 31: A customer asks a salesperson whether the vehicle was previously used as a rental. The salesperson does not know but says 'No.' This could constitute:

• A minor disclosure error with no consequence
• An acceptable sales tactic
• Material misrepresentation (Correct answer)
• Dealer puffery protected by law

Correct answer: Material misrepresentation

Making a false statement about a material fact—even without knowing it is false—can constitute misrepresentation under consumer protection laws.

Question 32: Under California's Smog Check Program, which of the following vehicles is generally exempt from the biennial smog inspection requirement?

• A commercial vehicle being sold after 3 years of use
• A 20-year-old diesel-powered truck with a GVWR of 12,000 lbs
• A 5-year-old gasoline-powered vehicle (Correct answer)
• A 10-year-old gasoline-powered sedan

Correct answer: A 5-year-old gasoline-powered vehicle

Gasoline-powered vehicles that are eight model years old or newer are exempt from the biennial smog check. Instead, the owner pays a smog abatement fee.

Question 33: What document must be part of a dealer's business records to show a vehicle was legally acquired at auction?

• Retail installment contract
• Smog certificate
• Auction receipt or bill of sale (Correct answer)
• Finance company approval letter

Correct answer: Auction receipt or bill of sale

An auction receipt or bill of sale proves the dealer acquired the vehicle through a legitimate purchase at a licensed auction.

Question 34: If you fail to transfer a vehicle title within the required timeframe after purchase, what penalty may apply?

• The sale is declared void
• The vehicle is impounded
• A late penalty fee is added to the transfer fee (Correct answer)
• Your driver's license is suspended immediately

Correct answer: A late penalty fee is added to the transfer fee

Failing to transfer a title within the required window (commonly 10–30 days) results in a late penalty fee added to the standard transfer cost.

Question 35: 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 California Finance Lenders Law
• The Automobile Sales Finance Act
• 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.

Question 36: It is an unlawful act for a manufacturer or distributor to coerce a dealer in any of the following ways EXCEPT:

• Threatening to cancel a franchise agreement if the dealer does not agree to prejudicial terms.
• Notifying a dealer in good faith of a violation of the terms of their franchise agreement. (Correct answer)
• Forcing the dealer to accept delivery of vehicles that the dealer has not voluntarily ordered.
• Requiring the dealer to participate in an advertising campaign at the dealer's expense.

Correct answer: Notifying a dealer in good faith of a violation of the terms of their franchise agreement.

California Vehicle Code section 11713.2 outlines several unlawful coercive acts by manufacturers. However, the code explicitly states that a notice in good faith to any dealer of the dealer's violation of any terms or provisions of their franchise or contractual agreement does not constitute a violation.

Question 37: Under the Magnuson-Moss Warranty Act, a written warranty on a consumer product costing more than $15 must be designated as either:

• Dealer or manufacturer
• Standard or extended
• Express or implied
• Full or limited (Correct answer)

Correct answer: Full or limited

Magnuson-Moss requires written warranties on consumer products over $15 to be clearly labeled as either 'full' or 'limited' to help consumers understand the scope of coverage.

Question 38: Under what circumstance may the DMV waive accrued registration renewal penalties for a transferee (such as a dealer)?

• If the transferee promises to pay the back fees within 90 days of the transfer.
• If the transferee was unaware of the due fees and the vehicle displays a valid sticker for the year in question. (Correct answer)
• If the vehicle was purchased for less than $5,000.
• Penalties can never be waived for a dealer.

Correct answer: If the transferee was unaware of the due fees and the vehicle displays a valid sticker for the year in question.

California Vehicle Code §9562 allows for the waiver of penalties if the transferee was not aware of the unpaid fees and the vehicle's license plate displays a valid year sticker for which the waiver is being requested. A Statement of Facts (REG 256) is typically required.

Question 39: A dealership is audited by the DMV. The dealer has stored all original paper records for sales transactions from the last two years at a secure, third-party facility in California. When the DMV requests these records, how much time does the dealer have to produce them?

• 24 hours
• 30 calendar days
• 10 business days
• 3 business days (Correct answer)

Correct answer: 3 business days

According to California Code of Regulations, Title 13, Section 272.02, after an initial 90-day onsite retention period, original paper records may be stored at an offsite location. However, if the DMV requests these records, they must be retrieved and made available for inspection within 3 business days.

Question 40: A buyer has 10 days to complete a vehicle title transfer after purchase to avoid penalties. What is the seller's corresponding responsibility and timeframe regarding liability?

• The seller has 10 days to report the transfer of ownership.
• The seller has 5 days to submit a Notice of Transfer and Release of Liability (NRL). (Correct answer)
• The seller must co-sign the transfer application within 3 days.
• The seller is not required to take any action after the sale.

Correct answer: The seller has 5 days to submit a Notice of Transfer and Release of Liability (NRL).

While the buyer has 10 days to transfer the title, the seller is legally required to submit a Notice of Transfer and Release of Liability (NRL) to the DMV within 5 days of the sale. This protects the seller from any future liability associated with the vehicle, such as parking tickets or traffic violations.

Question 41: 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
• A flat $500 penalty
• Actual damages, punitive damages, and attorney's fees (Correct answer)
• 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 42: A vehicle owner's registration expired 25 days ago. According to California DMV penalty schedules, what percentage of the vehicle license fee and weight fee will be added as a penalty?

• 20% (Correct answer)
• 10%
• 60%
• 40%

Correct answer: 20%

If registration renewal fees are paid between 11 and 30 days after the expiration date, the penalty includes 20% of the annual vehicle license fee and 20% of the weight fee, if applicable.

Question 43: According to the California Vehicle Code (CVC) § 285, a person is generally defined as a 'dealer' if they do which of the following for compensation?

• Sell a personal vehicle that they have owned for more than one year.
• Buy or sell vehicles, or offer them for sale, as a business activity. (Correct answer)
• Transport vehicles from an auction to a retail lot.
• Perform smog inspections on vehicles intended for sale.

Correct answer: Buy or sell vehicles, or offer them for sale, as a business activity.

CVC § 285 defines a dealer as someone who, for money or other value, is engaged wholly or in part in the business of selling, buying, or otherwise dealing in vehicles.

Question 44: A dealer offers 0% APR financing. Under TILA, the dealer must:

• Still disclose the APR and all other credit terms in writing (Correct answer)
• Use a simplified one-page form instead of the full contract
• Only disclose the monthly payment amount
• Omit APR because no interest is charged

Correct answer: Still disclose the APR and all other credit terms in writing

TILA requires full written disclosure of all credit terms—including a 0% APR—before the consumer signs any credit agreement.

Question 45: A buyer purchases a used vehicle and later discovers it was previously declared a total loss by an insurer. The dealer did not disclose this. The buyer's strongest legal claim is likely based on:

• Breach of the Buyers Guide warranty
• Failure to disclose a material fact (Correct answer)
• Product liability
• Violation of the Truth in Lending Act

Correct answer: Failure to disclose a material fact

Total loss history is a material fact that must be disclosed; failure to do so supports a claim of fraudulent concealment or unfair trade practice.

Question 46: Under the FTC's Holder Rule, if a buyer finances a vehicle purchase through dealer-arranged financing, their claims against the dealer:

• Must be resolved in arbitration only
• Can also be asserted against the assignee finance company (Correct answer)
• Are limited to warranty claims
• Are waived upon signing the contract

Correct answer: Can also be asserted against the assignee finance company

The FTC Holder Rule requires that any holder of a consumer credit contract (assignee finance company) be subject to the same claims and defenses the buyer has against the dealer.

Question 47: When calculating the Use Tax for a vehicle purchased in a private party sale, what value does the DMV generally use as the basis for the tax?

• The seller's original purchase price.
• The vehicle's trade-in value, if any.
• A flat rate determined by the vehicle's age.
• The purchase price or the vehicle's market value, whichever is higher. (Correct answer)

Correct answer: The purchase price or the vehicle's market value, whichever is higher.

Use tax is calculated based on the purchase price or the vehicle's determined market value. The DMV uses the higher of the two figures to ensure the correct amount of tax is collected, preventing under-reporting of the sale price.

Question 48: What does a 'non-operation' (PNO) or planned non-operation filing allow a vehicle owner to do?

• Transfer the vehicle to another state tax-free
• Exempt the vehicle from smog checks permanently
• Drive the vehicle only on private property without registering
• Avoid paying full registration fees by declaring the vehicle will not be driven on public roads (Correct answer)

Correct answer: Avoid paying full registration fees by declaring the vehicle will not be driven on public roads

A PNO filing lets owners of vehicles stored off public roads pay a reduced fee instead of full registration, as long as the vehicle is not driven.

Question 49: Which of the following actions would most likely result in revocation of a salesperson license?

• Forging a customer's signature on a vehicle contract (Correct answer)
• Forgetting to notify the DMV of a new employer
• Taking more than 30 days to complete a sale
• Selling a vehicle on a Sunday

Correct answer: Forging a customer's signature on a vehicle contract

Forging a customer's signature constitutes fraud, which is grounds for license revocation.

Question 50: Each of the 18 workers at a social services agency is in charge of managing a 360-case caseload. The caseload of three departing employees is divided equally among the remaining staff members. How many cases are currently under the maintenance of each of the remaining employees?

• 468
• 432 (Correct answer)
• 472
• 405

Correct answer: 432

To solve this, first calculate the total cases from the three departing employees (3 workers * 360 cases/worker = 1080 cases). Next, determine the number of remaining staff members (18 - 3 = 15 employees). Finally, divide the departing employees' cases equally among the remaining staff (1080 cases / 15 employees = 72 cases per person) and add this to their original caseload (360 + 72 = 432 cases).

Question 51: Under federal law, which vehicles are required to display a Buyers Guide (Monroney sticker equivalent for used cars) before being offered for sale?

• Used vehicles sold by dealers (Correct answer)
• Used vehicles with fewer than 125,000 miles
• All new and used vehicles sold by dealers
• All vehicles regardless of age

Correct answer: Used vehicles sold by dealers

The FTC Used Car Rule requires dealers to display a Buyers Guide on all used vehicles offered for sale.

Question 52: A vehicle salesperson is terminated from their employment at a dealership. It is discovered they sold a personal vehicle to a customer using the dealership's report of sale documents without informing the dealer. According to the California Vehicle Code, this action is considered:

• Standard industry practice for private sales.
• An unlawful act and grounds for license suspension or revocation. (Correct answer)
• Permissible if the salesperson reimburses the dealership for the forms.
• A minor infraction resulting only in a formal warning.

Correct answer: An unlawful act and grounds for license suspension or revocation.

California Vehicle Code section 11806(j) explicitly makes it unlawful for a salesperson to act as a dealer by purchasing or selling a vehicle using the license, report of sale books, or other supplies of a dealer to facilitate the transaction when not acting on behalf of that dealer. This is a serious violation and can lead to disciplinary action, including license suspension or revocation.

Question 53: Which of the following is a key requirement for a transferee to potentially have registration late-payment penalties waived?

• The vehicle's license plate displayed a valid year sticker for the year in which fees were unpaid, and the transferee was unaware of the due fees. (Correct answer)
• The vehicle was purchased from an out-of-state dealer.
• The transferee is an active-duty military member.
• The transferee paid the registration fees within 90 days of the purchase date.

Correct answer: The vehicle's license plate displayed a valid year sticker for the year in which fees were unpaid, and the transferee was unaware of the due fees.

The DMV may waive penalties if the transferee was unaware of unpaid fees, especially if the license plate showed a valid sticker for that period, leading them to believe the registration was current.

Question 54: What is the minimum safe following distance recommended under normal conditions?

• 3-second rule (Correct answer)
• 2-second rule
• 5-second rule
• 1-second rule

Correct answer: 3-second rule

The 3-second rule is the standard recommended following distance for normal driving conditions.

Question 55: A driver approaches a roundabout. Who has the right of way?

• Larger vehicles always have priority
• Drivers already circulating inside the roundabout (Correct answer)
• The driver arriving first regardless of position
• Drivers entering the roundabout

Correct answer: Drivers already circulating inside the roundabout

Traffic already circulating inside a roundabout has the right of way over entering vehicles.

Question 56: When may a driver legally pass a school bus that has stopped with red lights flashing on a divided highway?

• Only if the bus is on a side street
• Never; all lanes must stop
• Only if traveling in the opposite direction on the other side of the divider (Correct answer)
• When traveling at 15 mph or less

Correct answer: Only if traveling in the opposite direction on the other side of the divider

On a divided highway with a physical barrier, only vehicles on the same side as the bus must stop; oncoming traffic on the other side may proceed.

Question 57: A dealer's surety bond is typically written in favor of which entity?

• The State of California (Correct answer)
• The National Auto Dealers Association
• The surety company only
• The dealer's bank

Correct answer: The State of California

Dealer surety bonds are written in favor of the State of California, with the state acting as the obligee.

Question 58: A vehicle's title shows a 'salvage' brand. Before selling, the dealer must:

• Remove the brand through a state rebuilder inspection only
• Disclose the salvage brand to the buyer in writing before the sale (Correct answer)
• Apply for a clean title through the DMV before listing
• Sell the vehicle as-is with no additional disclosure beyond the title

Correct answer: Disclose the salvage brand to the buyer in writing before the sale

Dealers must disclose a salvage brand to the prospective buyer in writing; the branded title alone is insufficient without explicit pre-sale disclosure.

Question 59: A vehicle's brake system inspection is primarily the responsibility of which party before a dealer resells a used vehicle in California?

• The DMV
• The previous owner
• The buyer
• The dealer (Correct answer)

Correct answer: The dealer

California dealers are responsible for ensuring a vehicle meets safety standards, including brake condition, before offering it for resale.

Question 60: Under the FTC's Used Car Rule, the Buyers Guide must be retained by the dealer after the sale for a minimum of:

• 5 years
• 1 year (Correct answer)
• 6 months
• 2 years

Correct answer: 1 year

The FTC requires dealers to retain their copy of the Buyers Guide for at least one year after the date of sale.

Question 61: Which of the following best describes a 'nonrepairable vehicle' under California Vehicle Code § 431?

• A vehicle that is more than 15 years old and has significant cosmetic damage.
• Any vehicle that has previously been issued a salvage certificate.
• A vehicle deemed uneconomical to repair by an insurance company.
• A vehicle that has no value other than as a source for parts or scrap metal. (Correct answer)

Correct answer: A vehicle that has no value other than as a source for parts or scrap metal.

CVC § 431 defines a 'nonrepairable vehicle' as one that has no resale value except as a source of parts or scrap metal, such as a completely burned or stripped vehicle. This is distinct from a 'total loss salvage vehicle,' which is simply deemed uneconomical to repair.

Question 62: Sign text: 'NO TURN ON RED.' A driver at a red light wanting to turn right must:

• Wait for the green light before turning (Correct answer)
• Turn right after checking for traffic
• Turn right only if no pedestrians are present
• Flash headlights to indicate intent to turn

Correct answer: Wait for the green light before turning

A 'No Turn on Red' sign prohibits any turn during a red light; the driver must wait for green.

Question 63: A production line employed 305 workers in July. Thirty workers quit in August, while 11 new ones were hired. There were 23 new hires and 9 resignations in September. 17 new staff were employed in October. How many people were working there as of November 1st?

• 325
• 317 (Correct answer)
• 302
• 309

Correct answer: 317

Explanation: <br> Let's start with the number of workers at the end of July, which is given as 305.<br> In August, the number of workers changed by:<br> -30 (workers who quit) + 11 (new hires) = -19 <br> So at the end of August, there were 305 - 19 = 286 workers.<br> In September, the number of workers changed by:<br> 23 (new hires) - 9 (resignations) = 14 <br> So at the end of September, there were 286 + 14 = 300 workers.<br> In October, the number of workers changed by:<br> 17 (new hires) = 17 <br> So at the end of October, there were 300 + 17 = 317 workers. <br> <br> Therefore, as of November 1st, there were 317 workers employed on the production line.

Question 64: A 'cooling-off period' that allows a buyer to cancel a vehicle sale typically applies to which type of transaction in California?

• All new vehicle purchases
• Vehicle leases only
• All used vehicle purchases
• Vehicle sales conducted away from the dealer's lot (e.g., off-premises sales) (Correct answer)

Correct answer: Vehicle sales conducted away from the dealer's lot (e.g., off-premises sales)

California's 3-day right to cancel under the Home Solicitation Sales Act applies to sales made away from the seller's regular place of business, not typical dealership sales.

Question 65: A dealership customer needs to replace a lost California Certificate of Title. What is the standard DMV fee for an Application for Duplicate Title (Form REG 227)?

• $23 (Correct answer)
• $62
• $85
• $15

Correct answer: $23

According to the California DMV, the fee for a duplicate or paperless title is currently set at $23. This fee is required when the original title has been lost, stolen, mutilated, or is otherwise unavailable.

Question 66: A dealership advertises a vehicle online. After the vehicle is sold, how long does the dealer have to remove the advertisement?

• 5 business days
• 72 hours
• 24 hours
• 48 hours (Correct answer)

Correct answer: 48 hours

California regulations require a dealer to withdraw any advertisement of a specific vehicle within 48 hours after it has been sold or is no longer available for sale.

Question 67: What is the maximum amount a consumer can recover in California Small Claims Court for a vehicle-related dispute?

• $12,500
• $5,000
• $10,000 (Correct answer)
• $7,500

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 68: A road trip is 540 miles. You have already driven 215 miles. How many miles remain?

• 335 miles
• 305 miles
• 325 miles (Correct answer)
• 315 miles

Correct answer: 325 miles

540 − 215 = 325 miles remaining.

Question 69: Which form must a California dealer use when disclosing the actual mileage of a used vehicle to the buyer?

• REG 101
• REG 195
• REG 256
• REG 262 (Correct answer)

Correct answer: REG 262

REG 262 (Vehicle/Vessel Transfer and Reassignment Form) includes the odometer disclosure section required by federal and state law.

Question 70: Under the FTC Used Car Rule, dealers are required to display a Buyers Guide on used vehicles that includes:

• Whether the car is sold 'as is' or with a warranty (Correct answer)
• A list of prior owners
• The dealer's financing rates
• The vehicle's full service history

Correct answer: Whether the car is sold 'as is' or with a warranty

The FTC Buyers Guide must state whether the car is sold 'as is' or with a dealer warranty, and must describe any warranty coverage provided.

Question 71: What does X represent?(3 + 2x)/5 = 17

• 10
• 7
• 41 (Correct answer)
• 1

Correct answer: 41

To solve for X, first multiply both sides of the equation by 5: (3 + 2x) = 17 * 5, which simplifies to 3 + 2x = 85. Next, subtract 3 from both sides: 2x = 85 - 3, resulting in 2x = 82. Finally, divide both sides by 2: x = 82 / 2, which gives x = 41.

Question 72: Which of the following is a specifically prohibited use of special dealer license plates according to California regulations?

• Delivering a sold vehicle to the buyer's residence.
• Towing another vehicle from the dealer's inventory.
• On a service vehicle used to transport parts for the dealership. (Correct answer)
• A 3-day test drive by a prospective buyer.

Correct answer: On a service vehicle used to transport parts for the dealership.

California Vehicle Code §11715 outlines the permissible uses of special dealer plates. These plates cannot be used on work or service vehicles, such as a parts truck. They are permitted for moving vehicles in the dealer's inventory, including for test drives (up to 7 days), towing other inventory vehicles, and for delivering a vehicle to a buyer.

Question 73: A car's gas tank holds 16 gallons. The car gets 28 miles per gallon. How far can it travel on a full tank?

• 392 miles
• 464 miles
• 448 miles (Correct answer)
• 420 miles

Correct answer: 448 miles

16 × 28 = 448 miles on a full tank.

Question 74: Notice: 'Your vehicle registration expires on the last day of the month shown on your registration card. You may renew up to 90 days before expiration.' A registration card shows expiration in October. The earliest the owner may renew is:

• July of that year (Correct answer)
• January of that year
• September 1 of that year
• November 1 of that year

Correct answer: July of that year

90 days before the end of October is approximately July, the earliest allowable renewal date.

Question 75: A dealer who accepts a deposit on a vehicle and then sells it to another buyer without refunding the deposit may be liable for:

• Breach of contract and consumer fraud violations (Correct answer)
• A mandatory license downgrade
• Loss of manufacturer franchise rights only
• A minor administrative infraction only

Correct answer: Breach of contract and consumer fraud violations

Retaining a deposit while selling a vehicle to someone else constitutes breach of contract and may violate state consumer fraud statutes.

Question 76: Under California law, a dealer who sells a vehicle subject to an open federal safety recall without informing the buyer may be liable for:

• Nothing, as recalls are the manufacturer's responsibility
• Rescission of the sale and damages (Correct answer)
• Only the repair cost
• A $100 administrative fee

Correct answer: Rescission of the sale and damages

Selling a recalled vehicle without disclosure can expose a California dealer to sale rescission and civil damages under consumer protection law.

Question 77: A new resident moves to California and begins using their out-of-state vehicle for their commute. How many days do they have to register the vehicle with the California DMV?

• 20 days (Correct answer)
• 10 days
• 30 days
• 60 days

Correct answer: 20 days

A nonresident vehicle brought into California must be registered with the DMV within 20 days of the date it is first operated in the state.

Question 78: From a traffic ordinance: 'No person shall make a U-turn on any curve, hill, or when the driver cannot be seen by other drivers within 500 feet in either direction.' Which location is NOT mentioned as prohibited for U-turns?

• Where visibility is under 500 feet
• At a signalized intersection (Correct answer)
• On a curve
• On a hill

Correct answer: At a signalized intersection

The ordinance lists curves, hills, and low-visibility locations, but does not mention signalized intersections.

Question 79: A dealer's demonstration (demo) vehicle that has been driven by employees must be disclosed to buyers as:

• A used vehicle with prior mileage (Correct answer)
• A certified pre-owned vehicle
• A fleet vehicle
• A factory second

Correct answer: A used vehicle with prior mileage

Demo vehicles are classified as used vehicles regardless of model year, and their prior mileage must be disclosed on the Buyers Guide and odometer statement.

Question 80: A dealer sells a vehicle 'as-is.' Two days later the engine fails. The buyer demands repair under an implied warranty. The dealer's correct response is:

• Replace the vehicle
• Repair the engine at no cost
• Decline, because the as-is disclosure eliminates implied warranties (Correct answer)
• Offer a partial refund

Correct answer: Decline, because the as-is disclosure eliminates implied warranties

A proper as-is disclosure, when required by law to appear on the Buyers Guide, eliminates the dealer's implied warranty obligations.

Question 81: A California dealer who charges a buyer more than the advertised price for a vehicle is in violation of:

• The Robinson-Patman Act
• California Vehicle Code Section 11713.1(a) (Correct answer)
• The Magnuson-Moss Warranty Act
• The Federal Truth in Lending Act

Correct answer: California Vehicle Code Section 11713.1(a)

CVC 11713.1(a) prohibits a licensed dealer from selling a vehicle at a price higher than the advertised price.

Question 82: If a licensed salesperson moves to a new address, within how many days must they typically notify the DMV?

• 10 days
• 30 days (Correct answer)
• 60 days
• 90 days

Correct answer: 30 days

Most states require licensees to notify the DMV of address changes within 10 to 30 days.

Question 83: What is 'dealer reserve' (also called dealer markup or participation) in auto financing?

• The minimum down payment required by the lender
• A fee paid by the dealer to the DMV for each vehicle sold
• The difference between the buy rate offered by the lender and the higher rate charged to the customer (Correct answer)
• Money the dealer sets aside for warranty repairs

Correct answer: The difference between the buy rate offered by the lender and the higher rate charged to the customer

Dealer reserve is the additional profit a dealer earns by marking up the interest rate above the lender's buy rate; the difference is shared between the lender and the dealer.

Question 84: Which of the following fees is specifically associated with commercial vehicles weighing over 10,000 lbs. and is NOT applied to standard passenger cars?

• Transportation Improvement Fee
• Commercial Vehicle Registration Act (CVRA) Fee (Correct answer)
• Smog Abatement Fee
• Vehicle License Fee (VLF)

Correct answer: Commercial Vehicle Registration Act (CVRA) Fee

The Commercial Vehicle Registration Act (CVRA) imposes specific fees on vehicles weighing 10,001 lbs. or more. This fee is in addition to standard registration fees and is calculated based on the vehicle's declared gross or combined gross weight.

Question 85: A dealer must display the Buyers Guide on a used vehicle in which location?

• In the glove compartment
• Attached to the steering wheel
• On the side window or windshield (Correct answer)
• Hung from the rearview mirror

Correct answer: On the side window or windshield

Federal law requires the FTC Buyers Guide to be displayed prominently on the side window or windshield of each used vehicle offered for sale.

Question 86: Which document itemizes all fees, taxes, and the final amount financed in a vehicle sale?

• Title certificate
• Buyers Guide
• Retail installment sales contract (Correct answer)
• Credit application

Correct answer: Retail installment sales contract

The retail installment sales contract (RISC) details the purchase price, fees, taxes, trade-in value, and total amount financed.

Question 87: When transferring ownership of a 4-year-old gasoline-powered vehicle to a non-family member in California, what is the seller's responsibility regarding the smog certification?

• A smog certification is not required since the vehicle is only 4 years old.
• The buyer is responsible for obtaining the smog certification.
• The seller must provide a valid smog certification to the buyer. (Correct answer)
• The seller and buyer split the cost of the smog inspection.

Correct answer: The seller must provide a valid smog certification to the buyer.

When a gasoline-powered vehicle that is four or more model years old is sold, the seller is legally required to provide the buyer with a valid smog inspection certificate at the time of the sale.

Question 88: Find an answer that appropriately completes this statement.<br> New avenues of research, according to ____, are being ____.

• investigations, pursue
• Investigators, purseud
• None of these
• investigators, pursued (Correct answer)

Correct answer: investigators, pursued

The correct completion uses 'investigators' as the plural noun referring to the people conducting the research, and 'pursued' as the past participle verb. 'Pursued' correctly indicates that the new avenues of research are being followed or sought after. This choice ensures grammatical correctness and appropriate meaning within the sentence.

Question 89: A dealer must report a vehicle sale to the DMV for title transfer typically within how many days in most states?

• 5 days
• 90 days
• 60 days
• 10 to 30 days, depending on state law (Correct answer)

Correct answer: 10 to 30 days, depending on state law

Most states require dealers to submit title paperwork and fees to the DMV within 10 to 30 days of the sale date.

Question 90: A dealership sells a 7-year-old used vehicle "as-is" and provides all the necessary sales contract disclosures. However, the federally required Used Car Buyer's Guide was kept in the glove compartment and only shown to the customer after the contract was signed. Which statement is true regarding this situation?

• The dealer violated federal law by not prominently displaying the Buyer's Guide on the vehicle before the sale. (Correct answer)
• This is only a violation if the vehicle is less than 5 years old.
• The "as-is" sale is automatically voided and becomes a full warranty sale.
• This is permissible as long as the buyer receives the guide before leaving the lot.

Correct answer: The dealer violated federal law by not prominently displaying the Buyer's Guide on the vehicle before the sale.

The Federal Trade Commission's (FTC) Used Car Rule mandates that the Buyer's Guide be conspicuously displayed on the vehicle *before* it is offered for sale. Keeping it in the glove compartment does not meet this legal requirement, as it is not in plain view.

Question 91: Under California Vehicle Code, which vehicles are generally exempt from smog inspection requirements?

• Vehicles with fewer than 50,000 miles
• All hybrid vehicles
• Vehicles 1975 and older, diesel vehicles 1997 and older, and electric vehicles (Correct answer)
• All vehicles over 10 years old

Correct answer: Vehicles 1975 and older, diesel vehicles 1997 and older, and electric vehicles

California exempts vehicles manufactured in or before 1975, diesel vehicles 1997 and older, and zero-emission electric vehicles from smog inspections.

Question 92: Three alternative approaches exist for a guy to respond to an unexpected danger. Describe them.

• He may be paralyzed with fear, run away or fight.
• He may flee in panic, or fight back or stand still.
• He may be paralyzed with fear, or seized with panic, or as if by miracle, become possessed of the necessary courage, and face the danger. (Correct answer)
• He may be paralyzed with fear, seized with panic or act like an inferior animal.

Correct answer: He may be paralyzed with fear, or seized with panic, or as if by miracle, become possessed of the necessary courage, and face the danger.

This question asks to describe three alternative responses to unexpected danger. The correct answer explicitly lists these three distinct reactions: being paralyzed by fear (freezing), being seized with panic (fleeing irrationally), or miraculously finding the courage to confront the danger. This captures the spectrum of human responses from inaction to irrational flight to courageous confrontation, directly addressing the prompt.

Question 93: What happens to your registration fee if you move to a different county within the same state?

• You may owe a county fee difference if the new county charges more (Correct answer)
• You receive a full refund and pay the new county's rate
• You must pay a full new registration fee
• Fees are always the same statewide so nothing changes

Correct answer: You may owe a county fee difference if the new county charges more

If you move to a county with higher local fees, you may owe the difference when you update your registration address.

Question 94: Read this sign text: 'ROAD WORK AHEAD – FINES DOUBLED IN WORK ZONES WHEN WORKERS ARE PRESENT.' Based on this information, when are fines doubled?

• Only during daytime hours
• Only when workers are physically present (Correct answer)
• Only on weekdays
• At all times in the work zone

Correct answer: Only when workers are physically present

The sign specifies that doubled fines apply specifically when workers are present in the zone.

Question 95: Which of the following is a dealer typically required to maintain for DMV audit purposes?

• A record of every test drive taken
• A deal jacket containing all transaction documents for each vehicle sale (Correct answer)
• Monthly customer satisfaction surveys
• A video recording of every sale closing

Correct answer: A deal jacket containing all transaction documents for each vehicle sale

Dealers must maintain a deal jacket for each transaction, which includes the title, odometer disclosure, purchase agreement, and other required documents.

Question 96: A dealer's failure to provide a federally required Buyers Guide before the sale of a used vehicle can result in a civil penalty of up to how much per violation?

• $500
• $2,500
• $5,000
• $51,744 (Correct answer)

Correct answer: $51,744

FTC civil penalties for violations of the Used Car Rule can reach up to $51,744 per violation (adjusted periodically for inflation).

Question 97: 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?

• Dealer-installed options already on the vehicle
• A mandatory "market adjustment" fee
• The cost of a pre-installed vehicle theft deterrent system
• The dealer document processing charge (Correct answer)

Correct answer: The dealer document processing charge

California Vehicle Code § 11713.1(b) requires the advertised price of a vehicle to include all costs to the purchaser at the time of sale, except for specific government fees (like sales tax and registration), finance charges, and a dealer document processing charge. Any mandatory dealer-added items or markups must be included in the advertised price.

Question 98: Which of the following is NOT typically required to appear on a vehicle purchase contract?

• Vehicle identification number (VIN)
• Finance charge
• Selling price
• Dealer's profit margin (Correct answer)

Correct answer: Dealer's profit margin

Dealers are not required to disclose their profit margin on the purchase contract; VIN, selling price, and finance charges are required disclosures.

Question 99: A customer purchases a used vehicle for $15,000 and buys the optional 2-day contract cancellation agreement. They decide to cancel the contract on the second day. The dealer has a standard restocking fee of $300. How much must the dealer refund to the customer if the customer paid $250 for the cancellation option?

• The purchase price minus the $300 restocking fee.
• The purchase price minus the $250 option fee and the $300 restocking fee.
• The full purchase price, sales tax, registration fees, and the trade-in vehicle, but the dealer keeps the $250 option fee. (Correct answer)
• The full purchase price and all fees, including the $250 option fee.

Correct answer: The full purchase price, sales tax, registration fees, and the trade-in vehicle, but the dealer keeps the $250 option fee.

According to the California Car Buyer's Bill of Rights, if a buyer cancels the contract, the dealer must provide a full refund of the sales tax, registration fees, and any deposit or trade-in vehicle. The fee paid for the contract cancellation option itself is nonrefundable. While a dealer can charge a restocking fee, they must deduct the amount paid for the cancellation option from that fee. In this case, since the $250 option fee is less than the $300 restocking fee, the practical effect is that the dealer retains the $250 and the buyer is not charged an additional restocking amount.

Question 100: Under the FTC Used Car Rule, dealers must display a Buyers Guide on used vehicles. Where must this guide be placed?

• Inside the glove compartment
• On the vehicle's side window (Correct answer)
• Posted at the dealership entrance
• Attached to the steering wheel

Correct answer: On the vehicle's side window

The FTC Buyers Guide must be displayed on the side window of the used vehicle so it is visible from outside.

Question 101: A vehicle's odometer reads 42,000 miles but the title brand says 'Exceeds Mechanical Limits.' The dealer must:

• Sell the car only as-is with no further disclosure
• Report the vehicle to the DMV and refuse the sale
• Disclose the brand and its meaning to the buyer in writing (Correct answer)
• Replace the odometer before listing the vehicle

Correct answer: Disclose the brand and its meaning to the buyer in writing

Federal odometer law requires written disclosure when an odometer reading cannot be relied upon due to a mechanical limits brand.

Question 102: What is the maximum mileage tolerance allowed on an odometer reading before it is considered 'not actual mileage' under federal disclosure rules?

• 50 miles
• 1/2 of 1 percent (Correct answer)
• 5 miles
• 1 percent

Correct answer: 1/2 of 1 percent

Federal regulations allow an odometer reading tolerance of 1/2 of 1 percent; readings outside this range must be disclosed as not actual mileage.

Question 103: A dealer advertises '0% financing for 60 months' but only customers with excellent credit qualify. The ad must:

• Clearly disclose that the offer is subject to credit approval (Correct answer)
• Remove the offer to avoid deception
• Require no disclosure since it is a legitimate offer
• Only disclose this when asked by the customer

Correct answer: Clearly disclose that the offer is subject to credit approval

Credit-based financing offers must clearly disclose eligibility requirements so consumers are not misled into believing everyone qualifies.

Question 104: What information is NOT required to be disclosed on the FTC Buyers Guide for a used vehicle?

• The dealer's name and address
• Whether the vehicle is sold 'as-is'
• Whether the vehicle comes with a warranty
• The vehicle's service history (Correct answer)

Correct answer: The vehicle's service history

The FTC Buyers Guide requires warranty status and 'as-is' disclosure but does not mandate disclosure of the vehicle's prior service history.

Question 105: A client is registering a vehicle in California for the first time after moving from another state. Which DMV form is the primary application they must complete for this process?

• REG 101 (Application for Duplicate or Transfer of Title)
• REG 256 (Statement of Facts)
• REG 4008 (Declaration of Gross Vehicle Weight)
• REG 343 (Application for Title or Registration) (Correct answer)

Correct answer: REG 343 (Application for Title or Registration)

The REG 343 form is the standard application used for vehicles being registered for the first time in California, including nonresident vehicles brought into the state.

Question 106: Major websites have created a sophisticated tool known as a "supercookie" that can recreate user profiles even after people erase the ordinary cookies and that is impossible for computer users to recognize as a new, legal method of tracking users' online behavior. While several businesses have come under fire for selling customer information online, other websites that employ supercookies claimed that the tracking was unintentional and that they would stop using it. Following notification that they had been employing supercookies, some websites declared on Wednesday that they would look into the tactic right away. The Parliament has discussed ways to preserve consumer privacy because knowing a person's web browsing history might give advertising information about their interests, where they are located, and how much money they have.

• True
• None of the above
• False
• Cannot say (Correct answer)

Correct answer: Cannot say

The provided text discusses 'supercookies' and their implications for user privacy and online tracking. However, the question asks what CANNOT be conclusively concluded, and the options provided (A, B, C, D) are about a Jeep and a sedan. Since the text offers no information whatsoever about vehicles or traffic incidents, none of those conclusions can be drawn from the given information. Therefore, 'Cannot say' is the appropriate answer because the text is irrelevant to the options.

Question 107: What percentage of the 148 reams of paper that a department bought are left after 43 of them are used? Round your percentage answer to the nearest whole.

• 73%
• 71% (Correct answer)
• 72%
• 75%

Correct answer: 71%

Explanation: <br> To find the percentage of paper reams left after 43 of them are used, we first need to subtract the number of reams used from the total number of reams bought:<br> <br> 148 - 43 = 105 <br> So there are 105 reams of paper left.<br> To find the percentage of reams left, we can use the following formula:<br> percentage = (part/whole) x 100 <br> In this case, the "part" is the number of reams left (105), and the "whole" is the number of reams bought (148). So, the formula becomes:<br> percentage = (105/148) x 100 = 70.95% <br> Rounding to the nearest whole number, we get: <br> percentage = 71% <br> <br> Therefore, approximately 71% of the reams of paper that the department bought are left after 43 of them are used.

Question 108: Which of the following actions by a licensed vehicle salesperson is explicitly defined as unlawful conduct?

• Working for two different dealerships at the same time, provided they are under common controlling ownership.
• Lending their salesperson's license to a coworker who is waiting for their renewal to be processed. (Correct answer)
• Supervising other vehicle salespersons as a sales manager.
• Receiving a commission based on the profit of a vehicle sale.

Correct answer: Lending their salesperson's license to a coworker who is waiting for their renewal to be processed.

California Vehicle Code section 11819(a) makes it unlawful for a person to lend a salesperson's license to any other person or knowingly permit its use by another. A license is specific to the individual to whom it is issued.

Question 109: Who was Mary's second husband's killer?

• James Hepburn and Mary
• Lord Darnley
• James Hepburn and Mary
• The murder remains a mystery (Correct answer)

Correct answer: The murder remains a mystery

Explanation: <br> According to the book, Lord Darnley was killed in a strange manner. It also mentions that Mary Hepburn was James Hepburn's wife and that he was thought to be the murderer, but it makes no mention of who actually killed Lord Darnley.

Question 110: A customer signs a purchase contract. The dealer then discovers the trade-in vehicle has a lien the customer did not disclose. The dealer's most appropriate action is:

• Report the buyer to law enforcement immediately
• Rescind the contract immediately without notice
• Notify the buyer and renegotiate or require payoff before completion (Correct answer)
• Transfer title and absorb the lien cost

Correct answer: Notify the buyer and renegotiate or require payoff before completion

An undisclosed lien on a trade-in affects the deal's terms; the dealer should notify the buyer and either renegotiate or require the lien be paid off.

Question 111: Under California's Song-Beverly Consumer Warranty Act, what remedy is a buyer entitled to if their vehicle qualifies as a lemon?

• 50% reimbursement of repair costs
• A free extended warranty
• A $1,000 cash settlement
• Replacement or full refund minus a mileage offset (Correct answer)

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 112: Under California law, a dealer must provide a used vehicle buyer with a copy of the smog inspection certificate if the vehicle is how many model years old or newer?

• 2 years
• 6 years
• 4 years (Correct answer)
• 8 years

Correct answer: 4 years

California requires dealers to provide a smog certificate for used vehicles that are 4 model years old or newer at the time of sale.

Question 113: A licensed California vehicle dealer who does not exclusively sell motorcycles or all-terrain vehicles must file a surety bond with the DMV in what amount?

• $25,000
• $10,000
• $100,000
• $50,000 (Correct answer)

Correct answer: $50,000

California Vehicle Code §11710(b) requires that a retail vehicle dealer's bond be in the amount of $50,000. Dealers who exclusively sell motorcycles or all-terrain vehicles are required to have a bond of $10,000.

Question 114: A consumer purchases a used car from a dealership. Upon termination of their employment, the salesperson who sold the car fails to return a demonstrator vehicle to the dealer that was lawfully entitled to it. This action is:

• A reason for the DMV to refuse, suspend, or revoke the salesperson's license. (Correct answer)
• A civil matter strictly between the salesperson and the dealer.
• Permissible if the salesperson intends to purchase the vehicle.
• Only an issue if the vehicle is damaged while in the salesperson's possession.

Correct answer: A reason for the DMV to refuse, suspend, or revoke the salesperson's license.

California Vehicle Code section 11806(c) states that the DMV may refuse to issue or may suspend or revoke a salesperson's license if they have failed to surrender possession of, or failed to return, a vehicle to a dealer lawfully entitled thereto upon termination of employment.

Question 115: To effectively aid in the investigation, footwear impressions at crime scenes must be properly photographed. Since there is only a small variation in shoe sizes, the true-size impression cannot be accurately created if the images are not taken at a 90° angle to the impression. An expert must have accurately created the impression in order to compare it to the shoe of a real suspect in the future. <br> The information provided above CANNOT be used to conclusively conclude that

• The Jeep slipped on ice and slid into oncoming traffic
• The Jeep tried cutting off the sedan (Correct answer)
• The Jeep ran a red light
• The sedan ran a red light

Correct answer: The Jeep tried cutting off the sedan

The provided text discusses the importance of properly photographing footwear impressions at crime scenes for investigative purposes. It does not contain any information or details about a Jeep, a sedan, traffic incidents, or any specific events involving vehicles. Therefore, based solely on the given text, one cannot conclusively conclude anything about a Jeep trying to cut off a sedan or any other vehicle-related scenario.

Question 116: A tool room that was 9' x 15' was expanded to 11' x 20'. How much extra floor space was added, in square feet?

• 80 square feet
• 75 square feet
• 85 square feet (Correct answer)
• 70 square feet

Correct answer: 85 square feet

Explanation: <br> The original tool room had an area of: <br> <br> 9 feet x 15 feet = 135 square feet <br> The expanded tool room has an area of: <br> 11 feet x 20 feet = 220 square feet <br> To find out how much extra floor space was added, we can subtract the original area from the expanded area: <br> 220 square feet - 135 square feet = 85 square feet <br> <br> Therefore, 85 square feet of extra floor space was added to the tool room.

Question 117: A salesperson license applicant has a felony conviction from 8 years ago. What is the most likely outcome of their application?

• Automatic denial with no appeal
• They must reapply after 10 years
• The DMV reviews the conviction's nature and time elapsed before deciding (Correct answer)
• Automatic approval since 5 years have passed

Correct answer: The DMV reviews the conviction's nature and time elapsed before deciding

DMV evaluates felony convictions on a case-by-case basis, considering the crime's relevance to the license and how much time has passed.

Question 118: When advertising a monthly payment on a vehicle, a dealer MUST also disclose:

• The dealer's profit margin
• The vehicle's trade-in value
• The total number of payments and total amount financed (Correct answer)
• The vehicle's invoice price

Correct answer: The total number of payments and total amount financed

Truth in Lending Act (TILA) requires that when a payment amount is advertised, the total number of payments and total financed amount must also be clearly disclosed.

Question 119: Which record must a dealer retain that documents the cost of a vehicle to the dealership?

• Buyer's order
• Certificate of title
• Smog inspection certificate
• Invoice or bill of sale from the seller (Correct answer)

Correct answer: Invoice or bill of sale from the seller

The invoice or bill of sale from the seller documents the dealer's acquisition cost and must be kept as part of business records.

Question 120: Which federal agency has primary authority over deceptive automotive advertising practices?

• Federal Trade Commission (FTC) (Correct answer)
• Department of Transportation (DOT)
• National Highway Traffic Safety Administration (NHTSA)
• Consumer Financial Protection Bureau (CFPB)

Correct answer: Federal Trade Commission (FTC)

The FTC has primary authority to regulate deceptive advertising and unfair business practices, including those in the automotive industry.

Question 121: When you purchase a used vehicle from a private seller, who is responsible for paying the title transfer fee?

• The buyer (Correct answer)
• Both share it equally
• The seller
• The DMV waives it for private sales

Correct answer: The buyer

The buyer is responsible for paying the title transfer fee when purchasing a vehicle from a private seller.

Question 122: Which action is required when a traffic signal is completely dark (not functioning)?

• Treat it as a yield sign
• Proceed at normal speed since signals are not mandatory
• Follow the car ahead without stopping
• Treat it as a flashing red light and come to a complete stop (Correct answer)

Correct answer: Treat it as a flashing red light and come to a complete stop

A non-functioning traffic signal must be treated as a four-way stop; all drivers must come to a complete stop and yield appropriately.

Question 123: Under Regulation M, what must be disclosed in a vehicle lease agreement?

• The dealer's invoice price
• Gross capitalized cost, residual value, money factor, and total of payments (Correct answer)
• The manufacturer's suggested retail price only
• Only the monthly payment amount

Correct answer: Gross capitalized cost, residual value, money factor, and total of payments

Regulation M (Consumer Leasing Act) requires disclosure of all key lease terms including capitalized cost, residual value, money factor, and total payment obligations.

Question 124: Under the California Consumers Legal Remedies Act (CLRA), before filing a lawsuit for damages a consumer must first:

• Obtain a court order
• File a complaint with the DMV
• Send the defendant a 30-day written notice of the alleged violation (Correct answer)
• Exhaust all arbitration options

Correct answer: Send the defendant a 30-day written notice of the alleged violation

The CLRA requires consumers to provide the defendant with 30 days written notice of the alleged violation before filing a damages lawsuit, giving the defendant a chance to cure.

Question 125: A customer purchases a vehicle from a private party and fails to transfer the title within the legally mandated timeframe. If the transfer is completed 35 days after the purchase date, which penalty bracket will apply for the late transfer?

• 31 days to one year late (Correct answer)
• 11-30 days late
• 1-10 days late
• Over one year late

Correct answer: 31 days to one year late

The California DMV imposes escalating penalties for late title transfers. The fee for being 31 days to one year late is applicable in this scenario, which is significantly higher than the penalties for shorter delays.