Dealer-Specific Regulations 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 Dealer-Specific Regulations flashcards as text
A dealer who sells a vehicle with a rolled-back odometer can be prosecuted under which federal law?
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.
A dealer must report a vehicle sale to the DMV for title transfer typically within how many days in most states?
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.
Which type of dealer license allows the holder to buy and sell vehicles only between licensed dealers, not to the general public?
Answer: Wholesale dealer license
A wholesale dealer license restricts sales to other licensed dealers only; selling retail to consumers requires a separate retail dealer license.
A dealer who accepts a deposit on a vehicle and then sells it to another buyer without refunding the deposit may be liable for:
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.
Under the FTC's Used Car Rule, the Buyers Guide must be retained by the dealer after the sale for a minimum of:
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.
A dealer's demonstration (demo) vehicle that has been driven by employees must be disclosed to buyers as:
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.
Which entity typically investigates consumer complaints against a licensed motor vehicle dealer at the state level?
Answer: The state's DMV or Motor Vehicle Dealer Licensing Board
State DMV offices or dedicated dealer licensing boards are the primary agencies that investigate and discipline licensed motor vehicle dealers.