This issue is a bit confusing as there are two sides to this story - a sort of 'he said, she said' question. However, given my experience (and, most likely, yours too) with the DMV, I would side with the dealers in this fight. After all, the DMV is a maze of regulation and bureaucracy and, often times, personal feelings of the DMV employee who you are working with. So, here is another story where that government agency has decided to fine someone for a mistake which it made!
http://tinyurl.com/ycxo7x4
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California DMV Screws Over Husqvarna Dealerships Due to DMV Mistake
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