DMV Dealer-Specific Regulations 3

Question 1

A franchised new car dealer receives a vehicle from the manufacturer with a defect listed on a technical service bulletin (TSB). What is the dealer's obligation before selling the vehicle?

Accepted Answer

Perform the TSB repair before delivery

Answer

Dealers are generally required to perform outstanding TSB repairs and any open recalls before delivering a new vehicle to a customer.

Question 2

Which federal agency regulates the used car Buyers Guide requirement for dealers?

Accepted Answer

Federal Trade Commission (FTC)

Answer

The FTC's Used Car Rule mandates the Buyers Guide disclosure on all used vehicles sold by dealers.

Question 3

When a dealer accepts a vehicle as a trade-in, which document must the selling customer sign?

Accepted Answer

Odometer Disclosure Statement

Answer

Federal law requires the seller (trade-in customer) to sign an Odometer Disclosure Statement certifying the mileage at the time of transfer.

Question 4

A dealer's surety bond is primarily designed to protect:

Accepted Answer

Consumers and the state from financial harm caused by the dealer

Answer

A surety bond provides financial protection to consumers and the state if the dealer engages in fraud, fails to transfer titles, or otherwise violates dealer regulations.

Question 5

A dealer issues a 30-day temporary operating permit (TOP). After the TOP expires, what must have occurred for the vehicle to be legally driven?

Accepted Answer

The buyer must have received permanent registration and plates

Answer

A TOP is a temporary authority to operate while permanent registration is processed; once it expires, the vehicle must be permanently registered.

DMV - Representative Exam Practice Test

DMV - Representative Exam Practice Test

DMV Dealer-Specific Regulations 3