DMV Salesperson Licensing Requirements 3 — Questions and Answers
Question 1: How does a salesperson license differ from a dealer license?
- A salesperson license allows the holder to own and operate a dealership
- A salesperson license only permits the individual to sell vehicles on behalf of a licensed dealer (Correct answer)
- A salesperson license has no continuing education requirement
- A salesperson license covers wholesale transactions as well as retail
Correct answer: A salesperson license only permits the individual to sell vehicles on behalf of a licensed dealer
A salesperson license authorizes the individual to sell vehicles as an employee or agent of a licensed dealer, not independently.
Question 2: An auto salesperson wants to sell vehicles at a second dealership on weekends. What must they do first?
- Notify their primary employer only
- Obtain a separate license for each dealership
- Update their license to reflect both employers, if state law requires it (Correct answer)
- No action is required as the license covers any dealership
Correct answer: Update their license to reflect both employers, if state law requires it
Many states require salespersons to report all employing dealers to the DMV, and the license may need to reflect each employer.
Question 3: What happens to a salesperson license when the salesperson leaves their employer dealership?
- It automatically transfers to the new employer
- It is immediately revoked
- It becomes inactive until they are employed by another licensed dealer (Correct answer)
- It remains fully valid for 90 days regardless of employment
Correct answer: It becomes inactive until they are employed by another licensed dealer
In most states, a salesperson license becomes inactive upon leaving a dealer and must be reactivated with a new employing dealer.
Question 4: Which of the following is NOT typically a requirement to obtain a salesperson license?
- Passing a written examination
- Completing a pre-licensing education course
- Owning a personal vehicle (Correct answer)
- Paying the required license fee
Correct answer: Owning a personal vehicle
Owning a personal vehicle is not a requirement for obtaining a vehicle salesperson license.
Question 5: A salesperson sells a vehicle and misrepresents the odometer reading to the buyer. Which law is most directly violated?
- The dealer licensing statute only
- The federal Odometer Act and state fraud statutes (Correct answer)
- The vehicle title transfer code only
- The consumer financing regulations only
Correct answer: The federal Odometer Act and state fraud statutes
Odometer fraud violates the federal Odometer Act as well as state consumer protection and fraud laws.
Question 6: A licensed salesperson is caught operating a curbstoner ring selling vehicles out of parking lots. What is the likely consequence?
- A written warning for the first offense
- Revocation of their license and possible criminal charges (Correct answer)
- A fine of $50 only
- Mandatory retraining within 90 days
Correct answer: Revocation of their license and possible criminal charges
Participating in curbstoning is illegal and a serious violation that typically results in license revocation and can lead to criminal prosecution.
Question 7: For continuing education renewal, topics commonly required for vehicle salespersons include which of the following?
- Vehicle mechanical repair techniques
- Consumer protection laws and ethical sales practices (Correct answer)
- Auto body painting and restoration
- Commercial driver licensing rules
Correct answer: Consumer protection laws and ethical sales practices
Continuing education for salespersons typically covers consumer protection, ethics, and updates to relevant laws and regulations.
DMV Salesperson Licensing Requirements 3
How does a salesperson license differ from a dealer license?