STATE OF COLORADO SALES LICENSE TEST
| COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
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Updated 2026 Questions and Answers
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, bait and switch is ad that attracts consumers with a low-priced product, then tries to sell them a higher-
priced product
Selling, Leasing, Trade-In, with option to purchase, offering or TRUE
negotiating and exchange of interest in 3+ vehicles in any 1
year is prima facie evidence that a person is engaged in the
business of selling or leasing motor vehicles
By obtaining an off-premise permit, dealers may sell motor FALSE - NO Sale of vehicle should be done on Sundays
vehicles at another location on Sunday
Which of the following statements is true regarding dealer a demo drive cannot exceed 7 days
demo plates?
Colorado Lemon Law includes: defects that substantially impair the market value of the vehicle
Motor vehicle insurance is required: for all registered vehicles intended for use on colorado roads
Which is true regarding in-transit plates? in-transit plates may be used to transport vehicles from point of purchase to point of
storage or from point of storage to point of sale
Licensed dealers may sell which of the following on Sundays? The selling of boat trailers and snowmobile are exempt
Which of the following steps are required to properly and effect a lien creating a security interest, Allow the required payment to default (become
legally repossess a motor vehicle? at least 10 days late), send or hand deliver a "right to cure" letter to the debtor and allow
the debtor 20 days to cure
An advertisement may include licensed name with the word DEALER
which of the following is a used vehicle? any vehicle that has been previously bought a demo vehicle with 1500 miles
Which of the following are deceptive trade practices? All of the above
Bait and switch
How many temp permits may a dealer issue for each 1
roadworthy vehicle sold? An extension can only be issued but the DMV
| COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
, bait and switch is ad that attracts consumers with a low-priced product, then tries to sell them a higher-
priced product
Selling, Leasing, Trade-In, with option to purchase, offering or TRUE
negotiating and exchange of interest in 3+ vehicles in any 1
year is prima facie evidence that a person is engaged in the
business of selling or leasing motor vehicles
By obtaining an off-premise permit, dealers may sell motor FALSE - NO Sale of vehicle should be done on Sundays
vehicles at another location on Sunday
Which of the following statements is true regarding dealer a demo drive cannot exceed 7 days
demo plates?
Colorado Lemon Law includes: defects that substantially impair the market value of the vehicle
Motor vehicle insurance is required: for all registered vehicles intended for use on colorado roads
Which is true regarding in-transit plates? in-transit plates may be used to transport vehicles from point of purchase to point of
storage or from point of storage to point of sale
Licensed dealers may sell which of the following on Sundays? The selling of boat trailers and snowmobile are exempt
Which of the following steps are required to properly and effect a lien creating a security interest, Allow the required payment to default (become
legally repossess a motor vehicle? at least 10 days late), send or hand deliver a "right to cure" letter to the debtor and allow
the debtor 20 days to cure
An advertisement may include licensed name with the word DEALER
which of the following is a used vehicle? any vehicle that has been previously bought a demo vehicle with 1500 miles
Which of the following are deceptive trade practices? All of the above
Bait and switch
How many temp permits may a dealer issue for each 1
roadworthy vehicle sold? An extension can only be issued but the DMV
