STATE OF COLORADO SALES LICENSE EXAM 2025/2026
QUESTIONS WITH ANSWERS GRADED A+
✔✔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 down payment
~terms 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
✔✔Motor Vehicle salesmen are required to have a surety bond in the amount of $30k -
✔✔False, $15,000
✔✔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 Motor Vehicle salesperson may work for more than 1 dealership during one year -
✔✔TRUE
✔✔All Motor Vehicle dealers and dealers must post a clear legible sign on their place of
business if: - ✔✔they will be open less than 40 hours per week
✔✔A Motor vehicle salesman can be personally liable for any proven claim or
judgement in excess of their surety bond - ✔✔TRUE
✔✔Licensed Motor vehicle dealers - ✔✔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 of8 a.m. and 9 p.m.
✔✔The license of a new or used dealer/wholesale/auctioneer/ may be
denied/suspended/revoked/fined for all the following except: - ✔✔attempting to
negotiate the sale or lease of a Motor vehicle with intent to make profit or gain
✔✔Federal odometer law declares it unlawful to do the following: - ✔✔operate Motor
vehicle 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 Motor Vehicle 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
✔✔federal cash reporting requires dealers to file form 8300 with IRS within how many
days of receiving $10,000 cash? - ✔✔15 days
✔✔Wholesalers may? - ✔✔Sell to dealers and other wholesalers
or
Make a profit or gain selling to dealers and wholesalers
✔✔The license of a Motor vehicle salesman may be revoked/suspended on the
following grounds: - ✔✔Violating any of the terms and provisions
✔✔The license of a Motor vehicle salesman may be revoked/suspended on all grounds
EXCEPT: - ✔✔advertising a salvaged vehicle while identifying that vehicle as salvaged
✔✔The advertised price of a Motor vehicle must include: - ✔✔dealer handling and
preparation charges
✔✔Which must remain in the window of a new motor vehicle until its sold to the ultimate
purchaser? - ✔✔Moroney label
✔✔A Motor vehicle dealer, wholesaler, or salesperson must give Dealer Board written
notice of - ✔✔If hours of business are going to change
✔✔Motor vehicles with demo plates may be loaned to charity organizations 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 months maximum jailtime and $1,000 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? - ✔✔$500
QUESTIONS WITH ANSWERS GRADED A+
✔✔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 down payment
~terms 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
✔✔Motor Vehicle salesmen are required to have a surety bond in the amount of $30k -
✔✔False, $15,000
✔✔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 Motor Vehicle salesperson may work for more than 1 dealership during one year -
✔✔TRUE
✔✔All Motor Vehicle dealers and dealers must post a clear legible sign on their place of
business if: - ✔✔they will be open less than 40 hours per week
✔✔A Motor vehicle salesman can be personally liable for any proven claim or
judgement in excess of their surety bond - ✔✔TRUE
✔✔Licensed Motor vehicle dealers - ✔✔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 of8 a.m. and 9 p.m.
✔✔The license of a new or used dealer/wholesale/auctioneer/ may be
denied/suspended/revoked/fined for all the following except: - ✔✔attempting to
negotiate the sale or lease of a Motor vehicle with intent to make profit or gain
✔✔Federal odometer law declares it unlawful to do the following: - ✔✔operate Motor
vehicle 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 Motor Vehicle 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
✔✔federal cash reporting requires dealers to file form 8300 with IRS within how many
days of receiving $10,000 cash? - ✔✔15 days
✔✔Wholesalers may? - ✔✔Sell to dealers and other wholesalers
or
Make a profit or gain selling to dealers and wholesalers
✔✔The license of a Motor vehicle salesman may be revoked/suspended on the
following grounds: - ✔✔Violating any of the terms and provisions
✔✔The license of a Motor vehicle salesman may be revoked/suspended on all grounds
EXCEPT: - ✔✔advertising a salvaged vehicle while identifying that vehicle as salvaged
✔✔The advertised price of a Motor vehicle must include: - ✔✔dealer handling and
preparation charges
✔✔Which must remain in the window of a new motor vehicle until its sold to the ultimate
purchaser? - ✔✔Moroney label
✔✔A Motor vehicle dealer, wholesaler, or salesperson must give Dealer Board written
notice of - ✔✔If hours of business are going to change
✔✔Motor vehicles with demo plates may be loaned to charity organizations 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 months maximum jailtime and $1,000 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? - ✔✔$500
