Practice question

What must a dealer do when issuing temporary tags for a vehicle titled out of state?

  1. Offer a discount on fees
  2. Verify the buyer's employment status
  3. Submit required fees to DMV
  4. Provide a warranty on the vehicle

Answer: C — Submit required fees to DMV

When a dealer issues temporary tags for a vehicle that is titled out of state, it is essential for them to submit the required fees to the DMV. This process ensures that the temporary tags are valid and that the transaction complies with state regulations. The fees collected often include taxes, registration fees, and other charges mandated by the Department of Motor Vehicles. By fulfilling this requirement, the dealer confirms that the vehicle can be driven legally while its title and registration are being processed. The other options don't align with the requirements for issuing temporary tags. Offering discounts on fees does not influence the legality of the temporary tags. Verifying a buyer's employment status is not standard procedure related to the issuance of temporary tags. Providing a warranty on the vehicle is also unrelated to the temporary registration process; warranties pertain more to the sale and condition of the vehicle rather than its legal status on the road.

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