DMV - Representative Advertising and Sales Practices Questions and Answers

Question 1

A California vehicle dealer's newspaper advertisement lists a specific SUV for $25,000. According to the California Vehicle Code, which of the following costs can be legally excluded from this advertised price?

Accepted Answer

The dealer document processing charge

Answer

California Vehicle Code § 11713.1(b) requires the advertised price of a vehicle to include all costs to the purchaser at the time of sale, except for specific government fees (like sales tax and registration), finance charges, and a dealer document processing charge. Any mandatory dealer-added items or markups must be included in the advertised price.

Question 2

A dealership advertises a "Certified Pre-Owned" vehicle. However, they fail to provide the buyer with a copy of the required inspection report before the sale. Which of the following is also a prohibited reason for advertising a vehicle as "certified" in California?

Accepted Answer

The vehicle's title is branded as a "Lemon Law Buyback"

Answer

According to the Car Buyer's Bill of Rights, a dealer is prohibited from advertising a vehicle as "certified" if the vehicle was reacquired by the manufacturer or dealer under a state or federal warranty law (i.e., "lemon law"). Other prohibitions include having a branded title (salvage, junk, flood), frame damage, or an inaccurate odometer reading.

Question 3

A customer comes into a dealership interested in a sedan they saw advertised for a very low price. The salesperson immediately informs them that the advertised car was "just sold," but then aggressively steers them toward a much more expensive model. This sales tactic is an example of:

Accepted Answer

Bait and switch

Answer

This scenario describes "bait and switch" advertising, which is illegal. It occurs when a dealer advertises a vehicle at a specific price with no intention of selling it, in order to lure customers in and then pressure them into buying a different, typically more expensive, vehicle.

Question 4

Which of the following is a mandatory requirement for any advertisement that lists a specific vehicle for sale?

Accepted Answer

The vehicle's license number or VIN

Answer

California Vehicle Code § 11713.1(a) requires that an advertisement for a specific vehicle must identify that vehicle by its model, model-year, and either its license number or its Vehicle Identification Number (VIN). This ensures that the advertised vehicle is clearly identifiable.

Question 5

A dealership's advertisement includes the phrase "FREE flat-screen TV with every car purchase!" This type of advertising is:

Accepted Answer

Prohibited, as it's a gift contingent on purchasing a vehicle

Answer

California Vehicle Code § 11713.1(h) explicitly prohibits advertising free merchandise, gifts, or services that are contingent on the purchase of a vehicle. The offer must be available to everyone, not just those who complete a purchase.

DMV - Representative Exam Practice Test

DMV - Representative Exam Practice Test

DMV - Representative Advertising and Sales Practices Questions and Answers