DMV - Representative Unlawful Acts and Conduct Questions and Answers

Question 1

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:

Accepted Answer

An unlawful act and grounds for license suspension or revocation.

Answer

Standard industry practice for private sales.

Answer

Permissible if the salesperson reimburses the dealership for the forms.

Answer

A minor infraction resulting only in a formal warning.

Question 2

A customer complains to the DMV that a dealer refused to sell them a vehicle at the advertised price. Which of the following scenarios represents an unlawful act by the dealer?

Accepted Answer

The dealer refused to sell at the advertised price unless the customer also purchased an extended service contract.

Answer

The advertisement clearly stated the price was valid only for a 24-hour sale that ended the previous day.

Answer

The dealer refused to sell at the advertised price because the customer had poor credit and could not secure financing.

Answer

The advertisement for a specific vehicle included its VIN, and the vehicle was sold just before the customer arrived.

Question 3

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

Accepted Answer

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

Answer

Working for two different dealerships at the same time, provided they are under common controlling ownership.

Answer

Receiving a commission based on the profit of a vehicle sale.

Answer

Supervising other vehicle salespersons as a sales manager.

Question 4

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?

Accepted Answer

3 business days

Answer

24 hours

Answer

10 business days

Answer

30 calendar days

Question 5

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

Accepted Answer

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

Answer

Requiring the dealer to participate in an advertising campaign at the dealer's expense.

Answer

Forcing the dealer to accept delivery of vehicles that the dealer has not voluntarily ordered.

Answer

Threatening to cancel a franchise agreement if the dealer does not agree to prejudicial terms.

Question 6

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:

Accepted Answer

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

Answer

A civil matter strictly between the salesperson and the dealer.

Answer

Permissible if the salesperson intends to purchase the vehicle.

Answer

Only an issue if the vehicle is damaged while in the salesperson's possession.