California Code of Regulations
Title 13 - Motor Vehicles
Division 1 - Department of Motor Vehicles
Chapter 1 - Department of Motor Vehicles
Article 4.2 - Vehicle Dealers
Section 268.04 - Dealer Examination Requirements

Universal Citation: 13 CA Code of Regs 268.04

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) All applicants for a vehicle dealer license subject to Vehicle Code Section 11704.5 shall be required to pass a written dealer examination provided and administered by the department with a minimum score of 70%.

(1) When a firm, corporation, association, limited liability company, or a partnership submits a dealer license application which is subject to Vehicle Code Section 11704.5, at least one person who is part of the ownership structure and who is required to submit a Personal History Statement, and who will have primary responsibility for managing the day to day dealership business which is reliant on the subject matter knowledge contained in the dealer examination shall be required to pass the dealer examination as described by Vehicle Code Section 11704.5(a) and this article.

(2) At least one person who has passed the dealer examination required by Vehicle Code Section 11704.5(a) and Section 268.04(a)(1) of these regulations must continuously be part of the ownership structure of all firms, corporations, associations, limited liability companies, or partnerships which are issued vehicle dealer licenses subject to Vehicle Code Section 11704.5.

(b) The dealer examination shall cover the subjects specified in Vehicle Code Section 11704.5(a), and the following subjects:

(1) Warranties
(A) Lemon Law

(B) Service Agreements

(2) Federal Buyers Guide Requirements

(3) Stolen Vehicle Prevention
(A) Indicia Verification

(4) Vehicle History Disclosure Requirements

(5) Basic Dealer Licensing Requirements
(A) Forms

(B) Fees

(C) Bond Requirements

(D) License and Sign Posting Requirements

(E) License Renewal Requirements

(F) Automatic Cancellations per Section 11721, Vehicle Code

(6) DMV Enforcement Actions
(A) Administrative

(B) Criminal

(C) Civil

(c) All applicants shall be required to present a current California driver license (DL) or California identification card (ID) issued by the department as personal identification prior to being allowed to take the dealer examination.

(1) If the personal identifying information on the California DL or ID presented by the applicant does not match the personal identifying information contained on the applicant's dealer educational program completion certificate, the applicant will not be allowed to take the dealer examination.

(d) Any applicant who fails the examination administered by the department will not be eligible to retake the examination for at least one week.

1. New section filed 3-31-98; operative 3-31-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 14).
2. Amendment of subsection (a)(2), repealer of subsection (c), subsection relettering, and amendment of NOTE filed 5-14-2001; operative 6-13-2001 (Register 2001, No. 20).

Note: Authority cited: Section 1651, Vehicle Code. Reference: Sections 236, 386, 470 and 11704.5, Vehicle Code.

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