What happens if a wholesale dealer accidentally sells to a non-dealer?

When a wholesale dealer sells to a non-dealer, the transaction is considered invalid because wholesale dealers are specifically licensed to sell only to other licensed dealers. This restriction is in place to ensure that vehicles are sold through the appropriate channels and that all parties comply with pertinent laws and regulations.

If a wholesale dealer makes such a sale, it triggers the possibility of disciplinary action from the DMV, as this action is a violation of their licensing requirements. The DMV is responsible for enforcing these regulations and ensuring that dealers operate within the law to maintain order and legality within the automotive marketplace. Thus, the correct choice emphasizes both the invalidity of the transaction and the potential for consequences that could arise from the dealer’s actions.

In contrast, options that suggest the transaction might be valid or legal under certain conditions do not align with the legal framework governing wholesale dealer practices.