What items are removed from the dealership if the bond lapses or goes inactive?

The correct answer points to the importance of maintaining a valid bond and its direct implications on dealership operations. When a bond lapses or goes inactive, the dealership effectively loses its legal authority to conduct business, which includes selling vehicles. In this scenario, the items that are critical and immediately affected include the Dealer License and Title applications.

The Dealer License is fundamental for any dealership to legally operate, as it certifies that the dealership has met local and state requirements to sell vehicles. If the bond is not active, the dealership can no longer possess this license legally.

Title applications are essential for the legal transfer of vehicle ownership. If the bond is inactive, the ability to process these applications ceases, as the financial surety that the bond provides is necessary for processing titles. Therefore, the combination of losing the Dealer License and the inability to handle Title applications correctly reflects the serious repercussions of a lapsed bond.

Other options mention items that, while possibly relevant to dealership operations, do not directly result from the inactivity of the bond. For instance, plates, sales contracts, and customer records may still exist; their legality and handling depend more closely on the dealership's licensing status rather than the bond itself. Understanding this framework is key to grasping the significance of maintaining