Quiz #17 – Handling, Completion, and Disposition of Departmental Forms

Hint

Do not submit voided Wholesale Report of Sale (REG 396) forms to the department. Complete a Statement of Facts (REG 256) stating the circumstances of the error (void) and keep it and the voided copy with your records for a minimum of four years.

Hint

Dealers and lessor-retailers must report sales of vehicles sold to other California dealers, out-of-state dealers, auto auctions, dismantlers, steel mills, and scrap metal processors on a Wholesale Report of Sale (REG 396).

Hint

Dealers may now choose to create original electronic business records if the electronic record is:

– Created in a non-alterable format that allows the document to be readily accessible and retrievable

– Legible, complete, and accurate

– Stored with access control and physical security measures to protect the records from unauthorized access, viewing, or alteration

Hint

The Automobile Sales and Finance Act separately requires dealers to retain documents related to vehicle sales for at least seven years or the duration of the contract, whichever is greater. (California Civil Code section 2984.5.)