Section 11704.5 Of Article 1. Issuance Of Licenses And Certificates To Manufacturers, Transporters, And Dealers From California Vehicle Code >> Division 5. >> Chapter 4. >> Article 1.
11704.5
. (a) Except as provided in subdivision (e), every person
who applies for a dealer's license pursuant to Section 11701 for the
purpose of transacting sales of used vehicles on a retail or
wholesale basis only shall be required to take and successfully
complete a written examination prepared and administered by the
department before a license may be issued. The examination shall
include, but need not be limited to, all of the following laws and
subjects:
(1) Division 12 (commencing with Section 24000), relating to
equipment of vehicles.
(2) Advertising.
(3) Odometers.
(4) Vehicle licensing and registration.
(5) Branch locations.
(6) Offsite sales.
(7) Unlawful dealer activities.
(8) Handling, completion, and disposition of departmental forms.
(b) Prior to the first taking of an examination under subdivision
(a), every applicant shall successfully complete a preliminary
educational program of not less than four hours. The program shall
address, but not be limited to, all of the following topics:
(1) Chapter 2B (commencing with Section 2981) of Title 14 of Part
4 of Division 3 of the Civil Code, relating to motor vehicle sales
finance.
(2) Motor vehicle financing.
(3) Truth in lending.
(4) Sales and use taxes.
(5) Division 12 (commencing with Section 24000), relating to
equipment of vehicles.
(6) Advertising.
(7) Odometers.
(8) Vehicle licensing and registration.
(9) Branch locations.
(10) Offsite sales.
(11) Unlawful dealer activities.
(12) Air pollution control requirements.
(13) Regulations of the Bureau of Automotive Repair.
(14) Handling, completion, and disposition of departmental forms.
(c) (1) Except as provided in paragraph (2) or (3), every dealer
who is required to complete a written examination and an educational
program pursuant to subdivisions (a) and (b) and who is thereafter
issued a dealer's license shall successfully complete, every two
years after issuance of that license, an educational program of not
less than four hours that offers instruction in the subjects listed
under subdivision (a) and the topics listed under subdivision (b), in
order to maintain or renew that license.
(2) A dealer is not required to complete the educational program
set forth in paragraph (1) if the educational program is completed by
a managerial employee employed by the dealer.
(3) Paragraph (1) does not apply to dealers who sell vehicles on a
wholesale basis only and who, in a one-year period, deal with less
than 50 vehicles that are subject to registration.
(d) Instruction described in subdivisions (b) and (c) may be
provided by generally accredited educational institutions, private
vocational schools, and educational programs and seminars offered by
professional societies, organizations, trade associations, and other
educational and technical programs that meet the requirements of this
section or by the department.
(e) This section does not apply to any of the following:
(1) An applicant for a new vehicle dealer's license or any
employee of that dealer.
(2) A person who holds a valid license as an automobile
dismantler, an employee of that dismantler, or an applicant for an
automobile dismantler's license.
(3) An applicant for a motorcycle only dealer's license or any
employee of that dealer.
(4) An applicant for a trailer only dealer's license or any
employee of that dealer.
(5) An applicant for an all-terrain only dealer's license or any
employee of that dealer.