DMV Dealer-Specific Regulations 2

Question 1

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

Accepted Answer

On the side window or windshield

Answer

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 2

Which document must a dealer provide to the buyer at the time of a used vehicle sale that discloses warranty coverage?

Accepted Answer

Buyers Guide (FTC sticker)

Answer

The FTC Buyers Guide is the required document disclosing whether the vehicle is sold 'As Is' or with a warranty.

Question 3

A dealer who sells a vehicle 'As Is' is legally stating that:

Accepted Answer

The buyer assumes all repair costs after the sale

Answer

An 'As Is' sale means the buyer accepts the vehicle in its current condition and the dealer bears no responsibility for repairs after the sale.

Question 4

Under most state DMV regulations, a dealer's license must be renewed:

Accepted Answer

Annually or biennially as required by the state

Answer

Most states require dealer licenses to be renewed annually or biennially, with the exact schedule varying by state.

Question 5

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

Accepted Answer

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

Answer

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

DMV - Representative Exam Practice Test