Motor Vehicle Industry License Questions and Answers Rated A

Motor Vehicle Industry License Questions and Answers Rated A Three of the following types of motor vehicles are exempt from the truth in mileage act. ~Vehicles 10 years old or older ~Vehicles having a gross empty weight more than 10,000 lbs ~Vehicles not self propelled (Trailers) The definition of a used motor vehicle dealer or used dealer includes which of the following? Any person who attempts to make profit lease or sale of a used vehicle The Motor Vehicle Board is authorized and empowered to: All Of The Above ~Amend and repeal rules, regulations and previsions When advertising a specific number of motor vehicles, that same number of vehicles must be invoiced to the dealer TRUE bait and switch 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 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 TRUE By obtaining an off-premise permit, dealers may sell motor vehicles at another location on Sunday False NO Sale of vehicle should be done on Sundays Which of the following statements is true regarding dealer demo plates? a demo drive cannot exceed 7 days CO 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 legally repossess a motor vehicle? effect a lien creating a security interest An advertisement may include licensed name with the word DEALER which of the following is a used vehicle? and 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 roadworthy vehicle sold? 1 An extension can only be issued but the DMV Depot plates may be used during normal business hours to transport a motor vehicle all of the above All plates Three of the following are required when a dealer is advertising a lease of a motor vehicle with a payment amount. ~Amount or percentage of the downpayment ~therms of repayment (car payment date) ~Annual percentage rate (interest rate of the loan) which is NOT required when advertising a lease? disclosing the cost of lease vs purchasing Prominently and conspicuously display the ________? FTC Buyer's Guide A temp registration permit may be issued: -for 60 days in a B2C sale -for 7 days in a B2B sale MV salesmen are required to have a surety bond in the amount of $30k TRUE If a salesperson leaves a dealership during the licensing year and becomes employed at another dealership they must acquire a new license for the unexpired portion of their returned license from the board True A MV salesperson may work for more than 1 dealership during one year True All MV dealers and dealers must post a clear legible sign on their place of biz if: they will be open less than 40 hours per week A MV salesman can be personally liable for any proven claim or judgement in excess of their surety bond True Licensed MV dealers may must be open for business at least three (3) days per week for a continuous period of time not less than four (4) hours per day between the hours of 8 a.m. and 9 p.m. The license of a new or used dealer/wholesale/auctioner/ may be denied/suspended/revoked/fined for all the following except: attempting to negotiate the sale or lease of a MV with intent to make profit or gain Federal odometer law declares it unlawful to do the following: operate MV on any street with intent to defraud knowing the odometer is disconnected A dealer has how many days to facilitate delivery from the date of sale? 30 days Which of the following is NOT proof of ownership for a MV for a CO dealer? a vehicle subject to a lien on the title a dealers ad must contain the dealers licensed name and the words Dealer fed cash reporting requires dealers to file form 8300 with IRS within how many days of receiving $10k cash? 15 days Wholesalers may? Sell to dealers and other wholesalers The license of a MV salsesman may be revoked/suspended on the following grounds: Violating any of the terms and provisions The license of a MV salesman may be revoked/suspended on all grounds EXCEPT: advertising a salvaged vehicle while identifying that vehicle as salvaged The ad price of a MV must include: dealer handling and prep charges Which must remain in the window of a new motor vehicle until its sold to the ultimate purchaser? Monroney label A MV dealer, wholesaler, or salesperson must give Dealer Board written notice of If hours of business are going to change MVs with demo plates may be loaned to charity orgs and celebrities False Which is a false statement regarding dealers and buyers A dealer must offer a warranty on all motor vehicles sold in addition to possible dealer bond sanctions, if a dealer/salesperson uses bait & switch it is a class 2 misdemeanor with 12 mo max jailtime and $1k fine or both True What is the highest fine per offense the dealer board may impose on dealers who sell vehicles less than 1500 lbs? $1000 The license of a MV salesperson or PWSPT may be denie/revoked/suspended on any of the following grounds except improperly withholding/misappropriating/converting to ones own use any money belonging to customers or any persons received in employment as a salesperson according to CO law which does NOT need to be licensed as a motor vehicle dealer? All of the above need to be The Motor Vehicle Dealer Board does NOT have among its members: Three employees from the dept. of revenue A buyer agent be retained or hired by a consumer to assist/represent/act on behalf of such consumer in connection with the purchase of lease of a MV Local law enforcement agencies must be notified within 4 hours after the repossession of a MV False The license of a new or used dealer/WholeSaler may be denied/suspended /revoked /fined for the following Making a material misstatement in an application of license A customer's trade-in vehicle on a financed deal may be sold Only when the financing has been approved and the contract binding has been signed Which is NOT required when advertising a closed end credit sale? Tax Rate Which is not a deceptive trade practice? Disclosing to the purchaser in writing prior to the sale that a vehicle is a salvage The MV dealer board may decide how large a fine to impose on a dealer who sells vehicles 1500lbs, as long as it does not exceed $5k False 10k The MVD board is authorized and empowered to All of the above -propose fees -order hearing -investigate the following must be conspicuously displayed in the dealers place of business? all of the above -license of dealer -salemens licenses -name of dealership license Records of vehicle transfers and odometer statements must be kept for 5 years True An ad would NOT include a salesperson's verbal statement of the MSRP A dealer is not responsible for taking written action to attempt to correct a misleading ad placed by a monufacturerr if the ad contains the dealers name False Which is true of the CO Lemon Law? a "reasonable number of attempts" ...been out of service 30 cumulative days during the warranty or 1 year When advertising terms price conditions of sale of a car, dealers may use the term: "Wish approved credit" according to co law motor vehicle leasing companies do not need a motor vehicle dealers license FALSE The License of a motor vehicle salesperson may be denied revoked or suspended on the following grounds Unfitness of character breaking law false info etc Three of the following are characteristics of an off-premise permit Must be submitted before the event CLOSED SUNDAYS Can't exceed 20 days Prima Facie Evidence at face value