Colorado Car Sales Mastery Exam Prep Document
2026/2027 | Motor Vehicle Salesperson Licensing, Dealer
Regulations & Consumer Protection | 50 Verified Questions
with Detailed Rationales
The license of a motor vehicle salesperson or power-sports salesperson may be denied,
revoked or suspended on any of the following grounds except: -ANSWER-b) advertising
a salvaged vehicle while identifying the vehicle as a salvage vehicle
According to colorado law, which of the following must be licensed as a motor vehicle
dealer and or powersports dealer? -ANSWER-d) All of the above
Colorado Lemon law covers: -ANSWER-c)defects that substantially impair the market
value of a vehicle
Three of the following are required to be disclosed in an advertisement when a dealer is
advertisement a closed end credit sale of a mother vehicle or powersports...except? -
ANSWER-d) tax rate
The motor vehicle dealer board is authorized and empowered to: -ANSWER-D)all of the
above
Local law enforcement officers must be notified within ___ hours before or after the
repossession of a motor vehicle occurs: -ANSWER-A)1 hours
All motor vehicle dealers and power-sports dealers must post a clear, legible sign on
their principal place of business if: -ANSWER-B) they will be open less than 40 hours a
week
A dealer may issue a temporary permits for each roadworthy vehicle sold -ANSWER-B)
false (verify)
,The motor vehicle dealer board may be decide how large a fine to impose on a dealer
who sells primarily vehicles that weigh 1,500 pounds or more so long as it does not
exceed 5k -ANSWER-a)True (verify)
The Colorado's consumer protection act declares bait and switch advertising to be
deceptive trade practice. Bait and switch advertising includes which of the following -
ANSWER-d)all of the above
Three of the following types of motor vehicles are exempt from the truth in mileage act.
Which one is not exempt? -ANSWER-B)motor vehicles with out-of-state titles
The motor vehicle dealer board does not have among its members -ANSWER-c)three
employees from the enforcement division
What is the highest fine per offense that the motor vehicle dealer board or an
administrative law judge may impose on a dealer , who sells primarily vehicles that
weigh less than 1,500 pounds -ANSWER-$1,000
Three of the following are characteristics of an off-premise permit. . Which one is not? -
ANSWER-The permit cannot exceed six days except for the national western stock
show, the colorado state fair, greely stampede
Which of the following is a true statement regarding dealers and buyers? -ANSWER-B) a
dealer shall clearly indicate on the costumer contract when a vehicle sold "as is" and
without a guarantee
When advertising a specific number of motor vehicles that same number of vehicles
must have been invoiced to the dealer -ANSWER-A)True
Dealers must either be self insured or have insurance for their vehicles -ANSWER-
A)True
In transit plates may be used on motor vehicles -ANSWER-D) consigned to wholesale
auction dealers for transport from point of purchase to point of storage
When a salesperson leaves a dealer, that dealer must do all of the following except -
ANSWER-Immediately employ a new salesperson, licensed or not
The license of a new or used dealer, wholesale auction dealer or wholesaler may be
denied suspended, revoked or fined for all of the following grounds except -ANSWER-
Employing a properly licensed salesperson
The only items that can be added to an advertised price are -ANSWER-C) Dealer
handling and preparation charges
The license of a motor vehicle salesperson or a powersports salesperson may be
denied, revoked, or suspended on any of the following grounds except: -ANSWER-
D)using point of sale literature in advertising
A buyer agent may -ANSWER-be retained or hired by a consumer to assist, represent, or
act on behalf of such
consumer in connection with the purchase or lease of a motor vehicle
Three of the following are deceptive trade practices. Which of the following is not? -
ANSWER-Delivering goods as promised
A new or used motor vehicle dealer may legally do which of the following with a
temporary permit? -ANSWER-Issue a permit for a demonstration drive by a consumer
Re federal cash reporting rule requires dealers to file form 83000.... -ANSWER-15 Days
A new motor vehicle has three of the following characteristics. Which one doesn't it
have? -ANSWER-D) a title
,A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how
many days to report conviction? -ANSWER-A ) 30 Days
Three of the following are require when a dealer is advertising a lease of a a motor
vehicle or powersports vehicle with a payment amount which one is not required? -
ANSWER-D) disclosing the cost of leasing versus the cost of purchasing
The definition of a used mother vehicle dealer or used powersports dealer includes
which of the following ? -ANSWER-A person who attempts to negotiate a sale or lease of
a used motor vehicle or powersports vehicle with the intent to make a profit or gain
A customer's trade- in vehicle on a financed deal may be sold -ANSWER-D) only when
the financing has been approved
Wholesalers : -ANSWER-C)must use a name other than their personal name on all
business documents
A dealer is required to have on file the licenses of each of their employed salespersons
but need not display them in their place of business -ANSWER-False
The license of a motor vehicle salesperson or a powersports salesperson may be
denied, revoked or suspended on the following grounds -ANSWER-D) all of the above
A dealer must take in the title in their own name before selling a car to retail customer -
ANSWER-B) False
A salesperson can change dealerships during the licensing year provided that the
correct form and fee is submitted to the board such sales person may begin work as a
motor vehicle salespersons or powersports salesperson while awaiting a new license
from the board -ANSWER-B) False
Records of vehicles transfers and odometer statements must be retained for: -ANSWER-
C) 5 year
Motor vehicle dealers, powersport dealers, used motor vehicle dealers, used
powersports dealers or wholesalers are not required to report to the dealer board -
ANSWER-B) any change in the hours of operation of the business when the business
continues full time (review)
Which of the following would indicate a motor vehicle is "used" -ANSWER-A certificate of
title has been issued
A motor vehicle dealer is responsible for : -ANSWER-D) all of the above
An advertisement would include -ANSWER-D) all of the above
The license of a new or used dealer, wholesale auction dealer, or wholesaler may be
denied, suspended revoked or fined for the following -ANSWER-D) all of the above
Which of the following is a deceptive trade practice? -ANSWER-D) All of the above are
deceptive trade practices
Demonstration plates can be displayed on vehicles that are used by the dealership for
any commercial purpose -ANSWER-true
A dealers advertising must contain the dealers licensed name and the words -ANSWER-
C) dealer
Which of the following does not fit the definition of a motor vehicle dealer -ANSWER-C)
someone who sells motor vehicles solely to wholesalers
Depot plates may be used during normal business hours to transport a motor vehicle -
ANSWER-D ) all of the above
Licensed powersport dealers may not sell powersports on Sundays ( verify) -ANSWER-
False
, By definition an advertisement may include any commercial message on any computer
display or window, display which is delivered or made available to a customer or
prospective customer in any manner whatsoever -ANSWER-True ( verify)
The motor Vehicle dealer board is authorized and empowered to -ANSWER-D) all of the
above
The federal odometer law declares that it is unlawful to do any of the following except -
ANSWER-C) to operate a motor vehicle on any street, with the intent to defraud,
knowing that the odometer is disconnected
Dealer demo plates may be used on motor vehicles -ANSWER-D) properly assigned in
the name of the dealership
New and used motor vehicle dealers, powersports dealers, and wholesale auction
dealers are required to have a surety bond -ANSWER-D) all of the above
Motor vehicle and powersport salespeople are required to have a surety bond in the
amount of : -ANSWER-15k$
The buyers guide or "as is" sticker must be -ANSWER-Provided to a customer in another
language than English
In advertisement motor vehicle, a dealer or salesperson may -ANSWER-Make reference
"dealer cost" or "invoice price"
Which of the following steps are require to properly and legally repossess a motor
vehicle -ANSWER-Effect a lien creating a security interest
Which of the following motor vehicles may be sold on Sundays? -ANSWER-C)Motor
Homes
The Motor Vehicle Dealer Board is authorized and empowered to: -ANSWER-issue or
deny motor vehicle dealer and salesperson licenses
Dealers may be administratively fined by the Dealer Board up to what amount for each
separate offense? -ANSWER-shall not exceed 10,000 dollars for each separate offense
New and used motor vehicle dealers, wholesalers and wholesale auction dealers are
required to have a surety bond in the amount of ? -ANSWER-$50,000 for Dealer/
Wholesalers
Motor vehicle salespersons are required to have a surety bond in the amount of? -
ANSWER-$15,000
Selling ___ or more vehicles or offering for sale more than ___ vehicles at the same
address or telephone number in any one calendar year, shall be prima facie evidence
that -ANSWER-A person is engaged in the business of selling motor vehicles.
The definition of a used motor vehicle dealer includes which of the following? -ANSWER-
"Used motor vehicle dealer" means any person who, for commission or with intent to
make a profit sells used cars.
Wholesalers may: -ANSWER-make a profit or gain selling to dealers and wholesalers
Three of the following are characteristics of an off-premise permit. Which one is not? -
ANSWER-the permit could be used for a permanent second location
All motor vehicle dealers and used motor vehicle dealers must be open -ANSWER-a. a
minimum of 12 hours per week Hours of operation posted and opened at least 3 days
per week for a continuous four hours per day between 8 AM and 9 PM.
the license of a motor vehicle salesperson may be denied, revoked, or suspended on
the following grounds except: -ANSWER-advertising a salvaged vehicle that identifies
that vehicle as a salvage vehicle
2026/2027 | Motor Vehicle Salesperson Licensing, Dealer
Regulations & Consumer Protection | 50 Verified Questions
with Detailed Rationales
The license of a motor vehicle salesperson or power-sports salesperson may be denied,
revoked or suspended on any of the following grounds except: -ANSWER-b) advertising
a salvaged vehicle while identifying the vehicle as a salvage vehicle
According to colorado law, which of the following must be licensed as a motor vehicle
dealer and or powersports dealer? -ANSWER-d) All of the above
Colorado Lemon law covers: -ANSWER-c)defects that substantially impair the market
value of a vehicle
Three of the following are required to be disclosed in an advertisement when a dealer is
advertisement a closed end credit sale of a mother vehicle or powersports...except? -
ANSWER-d) tax rate
The motor vehicle dealer board is authorized and empowered to: -ANSWER-D)all of the
above
Local law enforcement officers must be notified within ___ hours before or after the
repossession of a motor vehicle occurs: -ANSWER-A)1 hours
All motor vehicle dealers and power-sports dealers must post a clear, legible sign on
their principal place of business if: -ANSWER-B) they will be open less than 40 hours a
week
A dealer may issue a temporary permits for each roadworthy vehicle sold -ANSWER-B)
false (verify)
,The motor vehicle dealer board may be decide how large a fine to impose on a dealer
who sells primarily vehicles that weigh 1,500 pounds or more so long as it does not
exceed 5k -ANSWER-a)True (verify)
The Colorado's consumer protection act declares bait and switch advertising to be
deceptive trade practice. Bait and switch advertising includes which of the following -
ANSWER-d)all of the above
Three of the following types of motor vehicles are exempt from the truth in mileage act.
Which one is not exempt? -ANSWER-B)motor vehicles with out-of-state titles
The motor vehicle dealer board does not have among its members -ANSWER-c)three
employees from the enforcement division
What is the highest fine per offense that the motor vehicle dealer board or an
administrative law judge may impose on a dealer , who sells primarily vehicles that
weigh less than 1,500 pounds -ANSWER-$1,000
Three of the following are characteristics of an off-premise permit. . Which one is not? -
ANSWER-The permit cannot exceed six days except for the national western stock
show, the colorado state fair, greely stampede
Which of the following is a true statement regarding dealers and buyers? -ANSWER-B) a
dealer shall clearly indicate on the costumer contract when a vehicle sold "as is" and
without a guarantee
When advertising a specific number of motor vehicles that same number of vehicles
must have been invoiced to the dealer -ANSWER-A)True
Dealers must either be self insured or have insurance for their vehicles -ANSWER-
A)True
In transit plates may be used on motor vehicles -ANSWER-D) consigned to wholesale
auction dealers for transport from point of purchase to point of storage
When a salesperson leaves a dealer, that dealer must do all of the following except -
ANSWER-Immediately employ a new salesperson, licensed or not
The license of a new or used dealer, wholesale auction dealer or wholesaler may be
denied suspended, revoked or fined for all of the following grounds except -ANSWER-
Employing a properly licensed salesperson
The only items that can be added to an advertised price are -ANSWER-C) Dealer
handling and preparation charges
The license of a motor vehicle salesperson or a powersports salesperson may be
denied, revoked, or suspended on any of the following grounds except: -ANSWER-
D)using point of sale literature in advertising
A buyer agent may -ANSWER-be retained or hired by a consumer to assist, represent, or
act on behalf of such
consumer in connection with the purchase or lease of a motor vehicle
Three of the following are deceptive trade practices. Which of the following is not? -
ANSWER-Delivering goods as promised
A new or used motor vehicle dealer may legally do which of the following with a
temporary permit? -ANSWER-Issue a permit for a demonstration drive by a consumer
Re federal cash reporting rule requires dealers to file form 83000.... -ANSWER-15 Days
A new motor vehicle has three of the following characteristics. Which one doesn't it
have? -ANSWER-D) a title
,A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how
many days to report conviction? -ANSWER-A ) 30 Days
Three of the following are require when a dealer is advertising a lease of a a motor
vehicle or powersports vehicle with a payment amount which one is not required? -
ANSWER-D) disclosing the cost of leasing versus the cost of purchasing
The definition of a used mother vehicle dealer or used powersports dealer includes
which of the following ? -ANSWER-A person who attempts to negotiate a sale or lease of
a used motor vehicle or powersports vehicle with the intent to make a profit or gain
A customer's trade- in vehicle on a financed deal may be sold -ANSWER-D) only when
the financing has been approved
Wholesalers : -ANSWER-C)must use a name other than their personal name on all
business documents
A dealer is required to have on file the licenses of each of their employed salespersons
but need not display them in their place of business -ANSWER-False
The license of a motor vehicle salesperson or a powersports salesperson may be
denied, revoked or suspended on the following grounds -ANSWER-D) all of the above
A dealer must take in the title in their own name before selling a car to retail customer -
ANSWER-B) False
A salesperson can change dealerships during the licensing year provided that the
correct form and fee is submitted to the board such sales person may begin work as a
motor vehicle salespersons or powersports salesperson while awaiting a new license
from the board -ANSWER-B) False
Records of vehicles transfers and odometer statements must be retained for: -ANSWER-
C) 5 year
Motor vehicle dealers, powersport dealers, used motor vehicle dealers, used
powersports dealers or wholesalers are not required to report to the dealer board -
ANSWER-B) any change in the hours of operation of the business when the business
continues full time (review)
Which of the following would indicate a motor vehicle is "used" -ANSWER-A certificate of
title has been issued
A motor vehicle dealer is responsible for : -ANSWER-D) all of the above
An advertisement would include -ANSWER-D) all of the above
The license of a new or used dealer, wholesale auction dealer, or wholesaler may be
denied, suspended revoked or fined for the following -ANSWER-D) all of the above
Which of the following is a deceptive trade practice? -ANSWER-D) All of the above are
deceptive trade practices
Demonstration plates can be displayed on vehicles that are used by the dealership for
any commercial purpose -ANSWER-true
A dealers advertising must contain the dealers licensed name and the words -ANSWER-
C) dealer
Which of the following does not fit the definition of a motor vehicle dealer -ANSWER-C)
someone who sells motor vehicles solely to wholesalers
Depot plates may be used during normal business hours to transport a motor vehicle -
ANSWER-D ) all of the above
Licensed powersport dealers may not sell powersports on Sundays ( verify) -ANSWER-
False
, By definition an advertisement may include any commercial message on any computer
display or window, display which is delivered or made available to a customer or
prospective customer in any manner whatsoever -ANSWER-True ( verify)
The motor Vehicle dealer board is authorized and empowered to -ANSWER-D) all of the
above
The federal odometer law declares that it is unlawful to do any of the following except -
ANSWER-C) to operate a motor vehicle on any street, with the intent to defraud,
knowing that the odometer is disconnected
Dealer demo plates may be used on motor vehicles -ANSWER-D) properly assigned in
the name of the dealership
New and used motor vehicle dealers, powersports dealers, and wholesale auction
dealers are required to have a surety bond -ANSWER-D) all of the above
Motor vehicle and powersport salespeople are required to have a surety bond in the
amount of : -ANSWER-15k$
The buyers guide or "as is" sticker must be -ANSWER-Provided to a customer in another
language than English
In advertisement motor vehicle, a dealer or salesperson may -ANSWER-Make reference
"dealer cost" or "invoice price"
Which of the following steps are require to properly and legally repossess a motor
vehicle -ANSWER-Effect a lien creating a security interest
Which of the following motor vehicles may be sold on Sundays? -ANSWER-C)Motor
Homes
The Motor Vehicle Dealer Board is authorized and empowered to: -ANSWER-issue or
deny motor vehicle dealer and salesperson licenses
Dealers may be administratively fined by the Dealer Board up to what amount for each
separate offense? -ANSWER-shall not exceed 10,000 dollars for each separate offense
New and used motor vehicle dealers, wholesalers and wholesale auction dealers are
required to have a surety bond in the amount of ? -ANSWER-$50,000 for Dealer/
Wholesalers
Motor vehicle salespersons are required to have a surety bond in the amount of? -
ANSWER-$15,000
Selling ___ or more vehicles or offering for sale more than ___ vehicles at the same
address or telephone number in any one calendar year, shall be prima facie evidence
that -ANSWER-A person is engaged in the business of selling motor vehicles.
The definition of a used motor vehicle dealer includes which of the following? -ANSWER-
"Used motor vehicle dealer" means any person who, for commission or with intent to
make a profit sells used cars.
Wholesalers may: -ANSWER-make a profit or gain selling to dealers and wholesalers
Three of the following are characteristics of an off-premise permit. Which one is not? -
ANSWER-the permit could be used for a permanent second location
All motor vehicle dealers and used motor vehicle dealers must be open -ANSWER-a. a
minimum of 12 hours per week Hours of operation posted and opened at least 3 days
per week for a continuous four hours per day between 8 AM and 9 PM.
the license of a motor vehicle salesperson may be denied, revoked, or suspended on
the following grounds except: -ANSWER-advertising a salvaged vehicle that identifies
that vehicle as a salvage vehicle
