Dealer-Specific Regulations Flashcards
7 cards from real DMV practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Dealer-Specific Regulations flashcards as text
A dealer issues a spot delivery (yo-yo sale) and later calls the buyer back saying financing fell through. What is the dealer legally required to do if the buyer cannot obtain alternate financing?
Answer: Return the buyer's down payment and trade-in in the same condition
If a spot delivery unwinds, the dealer must return all consideration provided by the buyer, including the down payment and trade-in vehicle, in substantially the same condition.
A salvage vehicle that has been repaired and passes inspection may be retitled in most states as a:
Answer: Rebuilt or reconstructed title vehicle
A repaired salvage vehicle typically receives a 'rebuilt' or 'reconstructed' brand on its title, permanently disclosing its salvage history.
Under the Americans with Disabilities Act (ADA), a dealer's showroom and facilities must:
Answer: Be accessible to customers with disabilities
The ADA requires that dealer facilities open to the public must be physically accessible to people with disabilities, including parking, entrances, and restrooms.
A dealer who operates a service department must comply with environmental regulations regarding the disposal of which waste product?
Answer: Used motor oil and hazardous fluids
Used motor oil, antifreeze, brake fluid, and other automotive fluids are regulated hazardous waste that must be disposed of through approved channels under EPA rules.
When a dealer processes a title transfer for a vehicle with an existing lien, what must occur before the new title can be issued to the buyer?
Answer: The existing lien must be satisfied and a lien release obtained
An existing lien must be paid off and a lien release document obtained before a clear title can be issued to the new buyer.
A dealer who sells a vehicle subject to a manufacturer recall without notifying the buyer could face liability under which principle?
Answer: Failure to disclose a known material defect
Selling a vehicle with a known open recall without disclosure can constitute failure to disclose a material defect, exposing the dealer to liability.
A dealer must prominently post which document in a visible location within the dealership to comply with most state licensing requirements?
Answer: The dealer's motor vehicle dealer license
Most states require that the dealer's license be prominently displayed in a visible location at the licensed business address.