What must be verified regarding the use of dealer demo plates?

The correct answer emphasizes the importance of ensuring that dealer demo plates are properly assigned to the dealership. This verification is crucial because demo plates are intended to be used by specific dealerships for the purpose of showcasing vehicles to potential buyers and offering test drives. If the plates are not assigned correctly, it can lead to regulatory issues, improper use, or misunderstandings about who is authorized to use those plates.

By ensuring proper assignment, the dealership can maintain compliance with local regulations governing the use of demo plates, as these rules may vary by state or region. This practice also helps in tracking and managing the vehicles associated with the dealership, promoting accountability and responsible usage. The other options do not address the fundamental requirement of proper assignment, which is essential for the legitimate operation of dealer demo plates.