COLORADO MASTERY EXAM -CAR SALES TEST| LATEST 2027-
2028 Q&A EXAM | ALL QUESTIONS AND ANSWERS PLUS
DETAILED RATIONALES | COMPLETE STUDYGUIDE|
GUARANTEED PASS | DOWNLOAD INSTANT PDF 2027-2028
1. Who holds the legal authority to issue, suspend, or revoke motor vehicle salesperson
licenses in the state of Colorado?
A. The Colorado Department of Revenue Executive Director
B. The Colorado Motor Vehicle Dealer Board
C. The Colorado State Patrol Cybercrime Division
D. The County Clerk and Recorder Office
Answer: B
The Colorado Motor Vehicle Dealer Board is statutorily authorized under Colorado Revised
Statutes to regulate motor vehicle sales, including the authority to license, deny, suspend, or
revoke licenses of dealers and salespersons.
2. A licensed salesperson changes employment from Dealership A to Dealership B. What
action must be taken regarding the salesperson's license before engaging in sales activity at
the new location?
A. The salesperson can continue selling immediately if the license has at least 6 months
remaining before expiration
B. The license must be transferred to the new dealership and registered with the Board before
selling
C. The salesperson must re-take the Colorado Mastery Exam and apply for an entirely new
license number
D. The salesperson must notify the County Clerk within 30 days of starting at the new
dealership
Answer: B
A licensed motor vehicle salesperson cannot legally perform sales activities at a new
dealership until their license is formally transferred and registered under the new employing
dealership with the Colorado Motor Vehicle Dealer Board.
3. What is the maximum statutory period for which a temporary motor vehicle salesperson
license may be issued while a full application is processed in Colorado?
A. 30 days
B. 90 days
,C. 120 days
D. 180 days
Answer: C
Under Colorado law, a temporary salesperson license may be granted for a period not to
exceed 120 days pending the completion of background checks and final application
processing by the Board.
4. A consumer purchases a used motor vehicle from a licensed Colorado dealer "as-is."
Which statement accurately reflects the legal implications of this agreement?
A. The dealer is completely relieved of all implied and express warranties, though statutory
safety compliance remains required
B. The consumer retains a mandatory 3-day statutory right of rescission to return the vehicle
for any reason
C. The "as-is" clause is legally void in Colorado unless accompanied by a written 30-day
powertrain warranty
D. The dealer remains liable for all hidden mechanical defects discovered within 60 days of
purchase
Answer: A
An "as-is" disclaims implied warranties under Colorado law, placing responsibility for future
mechanical repairs on the buyer, provided the vehicle meets basic statutory safety
requirements at the time of sale.
5. Under Colorado law, what constitutes an illegal "off-site" motor vehicle sales event?
A. Selling a vehicle at a private residence away from the licensed dealership location without
an off-site permit
B. Displaying vehicles at an auto show where non-sales personnel distribute promotional
brochures
C. Negotiating purchase financing terms via telephone or secure internet communications
D. Delivering a sold vehicle to a customer’s workplace upon written request
Answer: A
Dealers and salespersons are strictly prohibited from negotiating or closing vehicle sales at
locations other than their licensed principal place of business unless a specific off-site sales
permit has been granted by the Board.
6. A customer agrees to purchase a vehicle, signs all contract documents, and leaves a
$1,000 earnest money deposit. If the buyer cancels the contract before taking physical
delivery, what is the dealer's legal obligation regarding the deposit?
, A. The deposit must be refunded in full unless the contract contains a clear, agreed-upon
liquidated damages provision
B. The dealer automatically forfeits 50% of the deposit to the Colorado Motor Vehicle Board
C. The dealer is legally allowed to keep 100% of the deposit as an administrative fee in all
circumstances
D. The deposit must be transferred immediately to the state treasurer as unclaimed property
Answer: A
Deposits are considered buyer funds held in trust and must be returned in full upon contract
cancellation prior to delivery, unless a legally compliant written agreement specifies
allowable, actual, or liquidated damages.
7. How long must a licensed Colorado motor vehicle dealer retain complete transaction
records, including purchase orders, bill of sale documents, and truth-in-mileage
statements?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Answer: B
Colorado Motor Vehicle Dealer Board regulations mandate that dealers maintain complete
sales, inventory, and transaction records at their principal place of business for a minimum of
3 years.
8. Which disclosure is strictly required on all written motor vehicle sales contracts in
Colorado prior to execution by the buyer?
A. A written itemization of all single-fee charges, dealer handling charges, and finance terms
B. A statutory notice guaranteeing that all used vehicles include a 30-day buyback option
C. A signature line affirming that the customer was offered an extended service contract at
wholesale price
D. A notarized statement verifying the salesperson's criminal history background check
Answer: A
Colorado regulations mandate full disclosure of all fees, including itemized dealer fees,
handling charges, and finance terms, ensuring transparency before the buyer signs the
agreement.
9. What action must a dealer take if a used motor vehicle fails a mandatory emissions test
prior to delivery to a buyer residing in an emissions-compliant county?
, A. The sale must not be completed until the vehicle passes emissions, or the buyer agrees to an
explicitly detailed written disclosure
B. The dealer may sell the vehicle provided the buyer signs a waiver promising to fix the system
within 90 days
C. The dealer can issue a temporary tag and require the buyer to pay for all necessary repair
costs
D. The sale is automatically converted into a long-term lease agreement under state statute
Answer: A
In designated Colorado emissions program areas, a dealer cannot sell or deliver a vehicle
without ensuring it passes emissions testing, unless specific, limited statutory disclosures and
agreements apply.
10. When advertising a vehicle price in print or electronic media, what mandatory rule
must Colorado motor vehicle dealers follow regarding dealer handling and document fees?
A. The advertised price must be the total price for which the vehicle will be sold, excluding only
taxes and governmental fees
B. Dealer fees may be completely omitted from advertisements as long as they are posted in
the showroom
C. The advertised price must include a standard 10% cash discount that applies to all
prospective buyers
D. Advertised prices apply only to customers who present a physical copy of the advertisement
at the dealership
Answer: A
Colorado advertising regulations require that any advertised vehicle price include all
mandatory dealer fees, handling fees, and preparation charges, excluding only state/local
sales taxes and official registration fees.
11. A licensed salesperson intentionally misrepresents a vehicle's previous history by telling
a customer it was a "single-owner personal vehicle" when it was actually part of a rental
fleet. What legal violation has occurred?
A. Unfair trade practice and grounds for salesperson license suspension or revocation
B. Minor administrative error subject only to an internal dealership verbal warning
C. Allowable sales puffery commonly accepted in automotive retail sales
D. Statutory misdemeanor punishable exclusively by a mandatory 10-day community service
sentence
Answer: A
2028 Q&A EXAM | ALL QUESTIONS AND ANSWERS PLUS
DETAILED RATIONALES | COMPLETE STUDYGUIDE|
GUARANTEED PASS | DOWNLOAD INSTANT PDF 2027-2028
1. Who holds the legal authority to issue, suspend, or revoke motor vehicle salesperson
licenses in the state of Colorado?
A. The Colorado Department of Revenue Executive Director
B. The Colorado Motor Vehicle Dealer Board
C. The Colorado State Patrol Cybercrime Division
D. The County Clerk and Recorder Office
Answer: B
The Colorado Motor Vehicle Dealer Board is statutorily authorized under Colorado Revised
Statutes to regulate motor vehicle sales, including the authority to license, deny, suspend, or
revoke licenses of dealers and salespersons.
2. A licensed salesperson changes employment from Dealership A to Dealership B. What
action must be taken regarding the salesperson's license before engaging in sales activity at
the new location?
A. The salesperson can continue selling immediately if the license has at least 6 months
remaining before expiration
B. The license must be transferred to the new dealership and registered with the Board before
selling
C. The salesperson must re-take the Colorado Mastery Exam and apply for an entirely new
license number
D. The salesperson must notify the County Clerk within 30 days of starting at the new
dealership
Answer: B
A licensed motor vehicle salesperson cannot legally perform sales activities at a new
dealership until their license is formally transferred and registered under the new employing
dealership with the Colorado Motor Vehicle Dealer Board.
3. What is the maximum statutory period for which a temporary motor vehicle salesperson
license may be issued while a full application is processed in Colorado?
A. 30 days
B. 90 days
,C. 120 days
D. 180 days
Answer: C
Under Colorado law, a temporary salesperson license may be granted for a period not to
exceed 120 days pending the completion of background checks and final application
processing by the Board.
4. A consumer purchases a used motor vehicle from a licensed Colorado dealer "as-is."
Which statement accurately reflects the legal implications of this agreement?
A. The dealer is completely relieved of all implied and express warranties, though statutory
safety compliance remains required
B. The consumer retains a mandatory 3-day statutory right of rescission to return the vehicle
for any reason
C. The "as-is" clause is legally void in Colorado unless accompanied by a written 30-day
powertrain warranty
D. The dealer remains liable for all hidden mechanical defects discovered within 60 days of
purchase
Answer: A
An "as-is" disclaims implied warranties under Colorado law, placing responsibility for future
mechanical repairs on the buyer, provided the vehicle meets basic statutory safety
requirements at the time of sale.
5. Under Colorado law, what constitutes an illegal "off-site" motor vehicle sales event?
A. Selling a vehicle at a private residence away from the licensed dealership location without
an off-site permit
B. Displaying vehicles at an auto show where non-sales personnel distribute promotional
brochures
C. Negotiating purchase financing terms via telephone or secure internet communications
D. Delivering a sold vehicle to a customer’s workplace upon written request
Answer: A
Dealers and salespersons are strictly prohibited from negotiating or closing vehicle sales at
locations other than their licensed principal place of business unless a specific off-site sales
permit has been granted by the Board.
6. A customer agrees to purchase a vehicle, signs all contract documents, and leaves a
$1,000 earnest money deposit. If the buyer cancels the contract before taking physical
delivery, what is the dealer's legal obligation regarding the deposit?
, A. The deposit must be refunded in full unless the contract contains a clear, agreed-upon
liquidated damages provision
B. The dealer automatically forfeits 50% of the deposit to the Colorado Motor Vehicle Board
C. The dealer is legally allowed to keep 100% of the deposit as an administrative fee in all
circumstances
D. The deposit must be transferred immediately to the state treasurer as unclaimed property
Answer: A
Deposits are considered buyer funds held in trust and must be returned in full upon contract
cancellation prior to delivery, unless a legally compliant written agreement specifies
allowable, actual, or liquidated damages.
7. How long must a licensed Colorado motor vehicle dealer retain complete transaction
records, including purchase orders, bill of sale documents, and truth-in-mileage
statements?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Answer: B
Colorado Motor Vehicle Dealer Board regulations mandate that dealers maintain complete
sales, inventory, and transaction records at their principal place of business for a minimum of
3 years.
8. Which disclosure is strictly required on all written motor vehicle sales contracts in
Colorado prior to execution by the buyer?
A. A written itemization of all single-fee charges, dealer handling charges, and finance terms
B. A statutory notice guaranteeing that all used vehicles include a 30-day buyback option
C. A signature line affirming that the customer was offered an extended service contract at
wholesale price
D. A notarized statement verifying the salesperson's criminal history background check
Answer: A
Colorado regulations mandate full disclosure of all fees, including itemized dealer fees,
handling charges, and finance terms, ensuring transparency before the buyer signs the
agreement.
9. What action must a dealer take if a used motor vehicle fails a mandatory emissions test
prior to delivery to a buyer residing in an emissions-compliant county?
, A. The sale must not be completed until the vehicle passes emissions, or the buyer agrees to an
explicitly detailed written disclosure
B. The dealer may sell the vehicle provided the buyer signs a waiver promising to fix the system
within 90 days
C. The dealer can issue a temporary tag and require the buyer to pay for all necessary repair
costs
D. The sale is automatically converted into a long-term lease agreement under state statute
Answer: A
In designated Colorado emissions program areas, a dealer cannot sell or deliver a vehicle
without ensuring it passes emissions testing, unless specific, limited statutory disclosures and
agreements apply.
10. When advertising a vehicle price in print or electronic media, what mandatory rule
must Colorado motor vehicle dealers follow regarding dealer handling and document fees?
A. The advertised price must be the total price for which the vehicle will be sold, excluding only
taxes and governmental fees
B. Dealer fees may be completely omitted from advertisements as long as they are posted in
the showroom
C. The advertised price must include a standard 10% cash discount that applies to all
prospective buyers
D. Advertised prices apply only to customers who present a physical copy of the advertisement
at the dealership
Answer: A
Colorado advertising regulations require that any advertised vehicle price include all
mandatory dealer fees, handling fees, and preparation charges, excluding only state/local
sales taxes and official registration fees.
11. A licensed salesperson intentionally misrepresents a vehicle's previous history by telling
a customer it was a "single-owner personal vehicle" when it was actually part of a rental
fleet. What legal violation has occurred?
A. Unfair trade practice and grounds for salesperson license suspension or revocation
B. Minor administrative error subject only to an internal dealership verbal warning
C. Allowable sales puffery commonly accepted in automotive retail sales
D. Statutory misdemeanor punishable exclusively by a mandatory 10-day community service
sentence
Answer: A
