STATE OF COLORADO SALES LICENSE 2025/2026
QUESTIONS WITH ANSWERS GRADED A+
✔✔When can a customer cancel their contract without a penalty? - ✔✔When a vehicle
cannot be delivered within 15 days of the listed delivery date
✔✔What happens if a customer doesn't have license plates? - ✔✔The dealership must
provide a temporary license plate or permanent plate (with fees)
✔✔When is the model year disclosure NOT required - ✔✔if the vehicle has been made
by a second stage manufacturer
✔✔How long do you have to wait to take the sales exam after a failing score? - ✔✔One
day
✔✔What do you do if your sales license is denied? - ✔✔appeal to the Division of
Hearing and Appeals
✔✔What must you do when advertising cars for sale and for lease? - ✔✔clearly identify
which cars are available for lease and which cars are available for sale
✔✔Where can you find standards for vehicle equipment? - ✔✔- Trans 305 of the
Wisconsin Administrative Code
- Chapter 347 of Wisconsin statutes
✔✔Where should material history be disclosed? - ✔✔The Wisconsin Buyers Guide
under "other" in the "vehicle history" section
✔✔What do you do when it's impossible to reset the mileage on a new or replace
odometer? - ✔✔- set mileage to zero
- put a sticker on the window that states the mileage on the vehicle before the
replacement
- disclose that it's not the "actual mileage"
✔✔Motor Vehicle Purchase Contract - ✔✔- shows that the customer is offering to
purchase a vehicle
- legally binding for both parties after the sale is made
✔✔How long does a dealership have to approve a customer's offer until it is voided? -
✔✔2 hours
✔✔What must be returned when voiding a purchase contract? - ✔✔- any down
payments or deposits
- titles for any trade ins brought in by the customers
, ✔✔Can you sell a vehicle with a pending purchase offer to another customer? - ✔✔no
✔✔When can a dealership charge a customer an additional service fee? - ✔✔-
completing any federally required inspection
- when providing a title and registration electronically
✔✔When does the law allow (under certain conditions) for the dealer to adjust the
contracted purchase price of an order-out new vehicle? - ✔✔when the manufacturer
price changes
✔✔What must be completed in order to adjust the price of a vehicle? - ✔✔The price
protection section on a purchase contract
✔✔Do manufacturers have consistent practices on price protection? - ✔✔no
✔✔When can the dealership increase the price of a vehicle? - ✔✔- foreign vehicles that
are re-evaluated to the US dollar
- increase of federal or state taxes on a vehicle
✔✔Bushing - ✔✔an illegal practice when the dealership raises the price of a vehicle
after a purchase contract has been signed
✔✔"Cooling Period" - ✔✔a three day period when a customer can cancel the purchase
of a vehicle IF it is purchased away from the licensed dealership
✔✔Are contracts signed by a person under 18 years of age binding? - ✔✔No, and they
can be cancelled without a penalty
✔✔What must you do before you negotiate a contract with a minor? - ✔✔A notarized
signature in the "Consent to Purchase" section of the Application for Title and
Registration.
✔✔Pre-Lease Agreement - ✔✔an agreement to enter into a lease of a vehicle that will
be delivered to the customer at a later time
✔✔What must you do to make a pre-lease agreement binding? - ✔✔- provide customer
with lease term disclosures
- get signatures from the dealer and the customer
- provide a copy of the contract to the customer
- no blank lines (unless the vehicle isn't there at the time of signing)
✔✔When can a dealer cancel a pre lease agreement? - ✔✔- if the customer's credit is
unapproved
QUESTIONS WITH ANSWERS GRADED A+
✔✔When can a customer cancel their contract without a penalty? - ✔✔When a vehicle
cannot be delivered within 15 days of the listed delivery date
✔✔What happens if a customer doesn't have license plates? - ✔✔The dealership must
provide a temporary license plate or permanent plate (with fees)
✔✔When is the model year disclosure NOT required - ✔✔if the vehicle has been made
by a second stage manufacturer
✔✔How long do you have to wait to take the sales exam after a failing score? - ✔✔One
day
✔✔What do you do if your sales license is denied? - ✔✔appeal to the Division of
Hearing and Appeals
✔✔What must you do when advertising cars for sale and for lease? - ✔✔clearly identify
which cars are available for lease and which cars are available for sale
✔✔Where can you find standards for vehicle equipment? - ✔✔- Trans 305 of the
Wisconsin Administrative Code
- Chapter 347 of Wisconsin statutes
✔✔Where should material history be disclosed? - ✔✔The Wisconsin Buyers Guide
under "other" in the "vehicle history" section
✔✔What do you do when it's impossible to reset the mileage on a new or replace
odometer? - ✔✔- set mileage to zero
- put a sticker on the window that states the mileage on the vehicle before the
replacement
- disclose that it's not the "actual mileage"
✔✔Motor Vehicle Purchase Contract - ✔✔- shows that the customer is offering to
purchase a vehicle
- legally binding for both parties after the sale is made
✔✔How long does a dealership have to approve a customer's offer until it is voided? -
✔✔2 hours
✔✔What must be returned when voiding a purchase contract? - ✔✔- any down
payments or deposits
- titles for any trade ins brought in by the customers
, ✔✔Can you sell a vehicle with a pending purchase offer to another customer? - ✔✔no
✔✔When can a dealership charge a customer an additional service fee? - ✔✔-
completing any federally required inspection
- when providing a title and registration electronically
✔✔When does the law allow (under certain conditions) for the dealer to adjust the
contracted purchase price of an order-out new vehicle? - ✔✔when the manufacturer
price changes
✔✔What must be completed in order to adjust the price of a vehicle? - ✔✔The price
protection section on a purchase contract
✔✔Do manufacturers have consistent practices on price protection? - ✔✔no
✔✔When can the dealership increase the price of a vehicle? - ✔✔- foreign vehicles that
are re-evaluated to the US dollar
- increase of federal or state taxes on a vehicle
✔✔Bushing - ✔✔an illegal practice when the dealership raises the price of a vehicle
after a purchase contract has been signed
✔✔"Cooling Period" - ✔✔a three day period when a customer can cancel the purchase
of a vehicle IF it is purchased away from the licensed dealership
✔✔Are contracts signed by a person under 18 years of age binding? - ✔✔No, and they
can be cancelled without a penalty
✔✔What must you do before you negotiate a contract with a minor? - ✔✔A notarized
signature in the "Consent to Purchase" section of the Application for Title and
Registration.
✔✔Pre-Lease Agreement - ✔✔an agreement to enter into a lease of a vehicle that will
be delivered to the customer at a later time
✔✔What must you do to make a pre-lease agreement binding? - ✔✔- provide customer
with lease term disclosures
- get signatures from the dealer and the customer
- provide a copy of the contract to the customer
- no blank lines (unless the vehicle isn't there at the time of signing)
✔✔When can a dealer cancel a pre lease agreement? - ✔✔- if the customer's credit is
unapproved
