DMV Dealer-Specific Regulations 4

Question 1

A dealer who sells a vehicle with a rolled-back odometer can be prosecuted under which federal law?

Accepted Answer

The Federal Odometer Act (Truth in Mileage Act)

Answer

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.

Question 2

A dealer must report a vehicle sale to the DMV for title transfer typically within how many days in most states?

Accepted Answer

10 to 30 days, depending on state law

Answer

Most states require dealers to submit title paperwork and fees to the DMV within 10 to 30 days of the sale date.

Question 3

Which type of dealer license allows the holder to buy and sell vehicles only between licensed dealers, not to the general public?

Accepted Answer

Wholesale dealer license

Answer

A wholesale dealer license restricts sales to other licensed dealers only; selling retail to consumers requires a separate retail dealer license.

Question 4

A dealer who accepts a deposit on a vehicle and then sells it to another buyer without refunding the deposit may be liable for:

Accepted Answer

Breach of contract and consumer fraud violations

Answer

Retaining a deposit while selling a vehicle to someone else constitutes breach of contract and may violate state consumer fraud statutes.

Question 5

Under the FTC's Used Car Rule, the Buyers Guide must be retained by the dealer after the sale for a minimum of:

Accepted Answer

1 year

Answer

The FTC requires dealers to retain their copy of the Buyers Guide for at least one year after the date of sale.

DMV - Representative Exam Practice Test