Bonds and Business Records Flashcards
7 cards from real DMV practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Bonds and Business Records flashcards as text
What is the primary purpose of a surety bond required for DMV-licensed dealers?
Answer: To guarantee financial protection to consumers and the state against dealer misconduct
A surety bond protects consumers and the state by ensuring the dealer fulfills legal and financial obligations.
How long must a California dealer retain odometer disclosure statements?
Answer: 5 years
California dealers are required to keep odometer disclosure statements for five years from the date of the transaction.
A dealer's surety bond is typically written in favor of which entity?
Answer: The State of California
Dealer surety bonds are written in favor of the State of California, with the state acting as the obligee.
When a dealer's surety bond is canceled, how much advance notice must typically be given to the DMV?
Answer: 30 days
Surety companies must provide at least 30 days advance written notice to the DMV before canceling a dealer's bond.
Which record must a dealer retain that documents the cost of a vehicle to the dealership?
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.
A surety bond claim against a dealer is most likely to be filed by which party?
Answer: A consumer who suffered financial loss due to the dealer's illegal acts
Consumers who suffer financial harm from a dealer's fraudulent or unlawful conduct may file a claim against the dealer's surety bond.
What document must be part of a dealer's business records to show a vehicle was legally acquired at auction?
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.