COLORADO CAR SALES MASTERY EXAM 250 Questions with ANSWER Key
and Rationales
SECTION 1: LICENSING REQUIREMENTS & DEALER BOARD AUTHORITY (Questions 1-
62)
Question 1
Which of the following individuals must obtain a Colorado motor vehicle salesperson
license?
A. A vehicle owner who occasionally sells their own car
B. A dealer employee who negotiates sales on behalf of the dealer
C. A customer who finances a vehicle through a bank
D. A mechanic who performs repairs only
ANSWER: B
Rationale: Any person who engages in negotiations or sales activities for a dealer must
hold a salesperson license. This includes anyone who discusses price, shows vehicles, or
completes paperwork for a dealership. Private individuals selling their own cars are
exempt, as are mechanics and customers.
Question 2
,The license of a motor vehicle salesperson may be denied, revoked, or suspended on all of
the following grounds EXCEPT:
A. Making a material misstatement on the application
B. Advertising a salvaged vehicle while identifying it as salvage
C. Failing to notify the Board of a change of address
D. Not having a valid Colorado driver's license
ANSWER: B
Rationale: Properly identifying a salvaged vehicle as "salvage" is actually a legal
requirement, not grounds for discipline. The other options—misstatements, failing to
update address, and lacking a valid driver's license—are all legitimate grounds for license
action.
Question 3
How many questions are on the Colorado Motor Vehicle Salesperson Mastery
Examination?
A. 50
B. 60
C. 75
D. 100
ANSWER: B
Rationale: According to the Auto Industry Division, the Mastery Exam consists of 60
questions. You must complete it within 90 minutes.
Question 4
What is the required passing score for the Mastery Exam?
,A. 70%
B. 75%
C. 80%
D. 85%
ANSWER: D
Rationale: The numerical percentage that will constitute a passing score on the
examination, as determined from the ratio of questions correctly ANSWERed to questions
asked, shall be 85%.
Question 5
How much time is allotted to complete the Mastery Exam?
A. 60 minutes
B. 75 minutes
C. 90 minutes
D. 120 minutes
ANSWER: C
Rationale: Applicants have a maximum of 90 minutes to complete the examination. The
exam will "time-out" at the end of the allowed time.
Question 6
How many times in a calendar day may an applicant take the examination?
A. Once
B. Twice
C. Three times
D. Unlimited
, ANSWER: B
Rationale: The number of times in a calendar day that an applicant may take the
examination before being timed out prior to attempting the examination again shall be two
(2).
Question 7
What is the surety bond amount required for a motor vehicle dealer?
A. $15,000
B. $25,000
C. $50,000
D. $100,000
ANSWER: C
Rationale: Dealers are required to have a $50,000 surety bond to protect consumers from
misconduct or fraudulent business practices.
Question 8
What is the surety bond amount required for individual motor vehicle salespersons?
A. $5,000
B. $10,000
C. $15,000
D. $25,000
ANSWER: C
Rationale: Individual salespersons must obtain a $15,000 surety bond. This bond protects
customers from misconduct or fraudulent business practices by the salesperson.
and Rationales
SECTION 1: LICENSING REQUIREMENTS & DEALER BOARD AUTHORITY (Questions 1-
62)
Question 1
Which of the following individuals must obtain a Colorado motor vehicle salesperson
license?
A. A vehicle owner who occasionally sells their own car
B. A dealer employee who negotiates sales on behalf of the dealer
C. A customer who finances a vehicle through a bank
D. A mechanic who performs repairs only
ANSWER: B
Rationale: Any person who engages in negotiations or sales activities for a dealer must
hold a salesperson license. This includes anyone who discusses price, shows vehicles, or
completes paperwork for a dealership. Private individuals selling their own cars are
exempt, as are mechanics and customers.
Question 2
,The license of a motor vehicle salesperson may be denied, revoked, or suspended on all of
the following grounds EXCEPT:
A. Making a material misstatement on the application
B. Advertising a salvaged vehicle while identifying it as salvage
C. Failing to notify the Board of a change of address
D. Not having a valid Colorado driver's license
ANSWER: B
Rationale: Properly identifying a salvaged vehicle as "salvage" is actually a legal
requirement, not grounds for discipline. The other options—misstatements, failing to
update address, and lacking a valid driver's license—are all legitimate grounds for license
action.
Question 3
How many questions are on the Colorado Motor Vehicle Salesperson Mastery
Examination?
A. 50
B. 60
C. 75
D. 100
ANSWER: B
Rationale: According to the Auto Industry Division, the Mastery Exam consists of 60
questions. You must complete it within 90 minutes.
Question 4
What is the required passing score for the Mastery Exam?
,A. 70%
B. 75%
C. 80%
D. 85%
ANSWER: D
Rationale: The numerical percentage that will constitute a passing score on the
examination, as determined from the ratio of questions correctly ANSWERed to questions
asked, shall be 85%.
Question 5
How much time is allotted to complete the Mastery Exam?
A. 60 minutes
B. 75 minutes
C. 90 minutes
D. 120 minutes
ANSWER: C
Rationale: Applicants have a maximum of 90 minutes to complete the examination. The
exam will "time-out" at the end of the allowed time.
Question 6
How many times in a calendar day may an applicant take the examination?
A. Once
B. Twice
C. Three times
D. Unlimited
, ANSWER: B
Rationale: The number of times in a calendar day that an applicant may take the
examination before being timed out prior to attempting the examination again shall be two
(2).
Question 7
What is the surety bond amount required for a motor vehicle dealer?
A. $15,000
B. $25,000
C. $50,000
D. $100,000
ANSWER: C
Rationale: Dealers are required to have a $50,000 surety bond to protect consumers from
misconduct or fraudulent business practices.
Question 8
What is the surety bond amount required for individual motor vehicle salespersons?
A. $5,000
B. $10,000
C. $15,000
D. $25,000
ANSWER: C
Rationale: Individual salespersons must obtain a $15,000 surety bond. This bond protects
customers from misconduct or fraudulent business practices by the salesperson.
