STATE OF COLORADO SALES LICENSE EXAMINATION SCRIPT
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔The IRS definition of cash does not include: - ✔✔Personal checks
✔✔The IRS cash reporting rule, enacted to prevent citizens from hiding unreported
income, requires dealerships to complete and file IRS form 8300 when cash receipts
exceed the following dollar amount: - ✔✔$10,000
✔✔Violation of the IRS cash reporting rule can result in which of the following personal
penalties to the salespersons: - ✔✔-a severe fine
-a criminal felony charge
-jail time if convicted
✔✔What does the anti-structuring provision of the IRS cash reporting rule prohibit? -
✔✔Advising customers on how to get around the rule
✔✔In financing a vehicle on an installment sales contract, the APR stands for: -
✔✔Annual percentage rate
✔✔Finance charges must be stated in: - ✔✔Annual percentage rate
✔✔Full disclosure of credit terms must be made: - ✔✔Before a sale is consummated.
✔✔The following is required to be disclosed under regulation Z (truth in lending) of the
consumer credit protection act: - ✔✔-amount financed
-late fees and APR
-schedule of payments
✔✔If a financing company denies a loan application, it must: - ✔✔Provide the applicant
with a written statement explaining the reason of denial within 30 days
✔✔When can an inquiry be made of a credit reporting bureau? - ✔✔When the customer
signs a credit application
✔✔Under the truth in lending act, the following must be disclosed to the customer: -
✔✔-total number of payments
-late payment penalty
-annual percentage rate
✔✔When discussing a customers loan application, the following cannot be asked: -
✔✔"Are you married?"
, ✔✔The federal trade commission used car rule which sets out the warranty provisions
of a sale is known as: - ✔✔The buyers guide window sticker rule
✔✔When should the buyers guide be placed on a vehicle: - ✔✔Before it is offered for
sale
✔✔A buyers guide must be placed on: - ✔✔-demonstrators available for sale
-used trucks under 16,000 lbs GVW
-consignment vehicles
✔✔Where should the buyers guide be placed? - ✔✔Attached to the vehicle in a
conspicuous place so both sides can be seen
✔✔What does the federal trade commission used car rule say about dealers offering
vehicles for sale at public auctions? - ✔✔A guide must be on the vehicle if the auction is
open to the public
✔✔Under the federal trade commission used car rule, a vehicle can be sold "as is": -
✔✔And the service contract box in the buyers guide checked
✔✔What is the penalty for violating the federal trade commission used car rule? - ✔✔Up
to $16,000 per violation
✔✔"Full" and "Limited" are terms given to: - ✔✔Warranties.
✔✔According to a be federal trade commission used car rule, the following is
considered unfair and deceptive practice? - ✔✔Representing that a used automobile is
sold with a warranty when it is not
✔✔As described in the federal trade commission used car rule, dealers must display
conspicuously on each used car a: - ✔✔Buyers guide
✔✔According to the federal trade commission used car rule, the buyers guide should be
displayed on: - ✔✔-demonstrator or inventory vehicles
-consignment vehicles
✔✔True/false- a dealer must make a copy of the written warranty available for the
customer to read prior to the sale - ✔✔True
✔✔True/false- a dealer can sell a vehicle "as is" or without a warranty in VA - ✔✔True
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔The IRS definition of cash does not include: - ✔✔Personal checks
✔✔The IRS cash reporting rule, enacted to prevent citizens from hiding unreported
income, requires dealerships to complete and file IRS form 8300 when cash receipts
exceed the following dollar amount: - ✔✔$10,000
✔✔Violation of the IRS cash reporting rule can result in which of the following personal
penalties to the salespersons: - ✔✔-a severe fine
-a criminal felony charge
-jail time if convicted
✔✔What does the anti-structuring provision of the IRS cash reporting rule prohibit? -
✔✔Advising customers on how to get around the rule
✔✔In financing a vehicle on an installment sales contract, the APR stands for: -
✔✔Annual percentage rate
✔✔Finance charges must be stated in: - ✔✔Annual percentage rate
✔✔Full disclosure of credit terms must be made: - ✔✔Before a sale is consummated.
✔✔The following is required to be disclosed under regulation Z (truth in lending) of the
consumer credit protection act: - ✔✔-amount financed
-late fees and APR
-schedule of payments
✔✔If a financing company denies a loan application, it must: - ✔✔Provide the applicant
with a written statement explaining the reason of denial within 30 days
✔✔When can an inquiry be made of a credit reporting bureau? - ✔✔When the customer
signs a credit application
✔✔Under the truth in lending act, the following must be disclosed to the customer: -
✔✔-total number of payments
-late payment penalty
-annual percentage rate
✔✔When discussing a customers loan application, the following cannot be asked: -
✔✔"Are you married?"
, ✔✔The federal trade commission used car rule which sets out the warranty provisions
of a sale is known as: - ✔✔The buyers guide window sticker rule
✔✔When should the buyers guide be placed on a vehicle: - ✔✔Before it is offered for
sale
✔✔A buyers guide must be placed on: - ✔✔-demonstrators available for sale
-used trucks under 16,000 lbs GVW
-consignment vehicles
✔✔Where should the buyers guide be placed? - ✔✔Attached to the vehicle in a
conspicuous place so both sides can be seen
✔✔What does the federal trade commission used car rule say about dealers offering
vehicles for sale at public auctions? - ✔✔A guide must be on the vehicle if the auction is
open to the public
✔✔Under the federal trade commission used car rule, a vehicle can be sold "as is": -
✔✔And the service contract box in the buyers guide checked
✔✔What is the penalty for violating the federal trade commission used car rule? - ✔✔Up
to $16,000 per violation
✔✔"Full" and "Limited" are terms given to: - ✔✔Warranties.
✔✔According to a be federal trade commission used car rule, the following is
considered unfair and deceptive practice? - ✔✔Representing that a used automobile is
sold with a warranty when it is not
✔✔As described in the federal trade commission used car rule, dealers must display
conspicuously on each used car a: - ✔✔Buyers guide
✔✔According to the federal trade commission used car rule, the buyers guide should be
displayed on: - ✔✔-demonstrator or inventory vehicles
-consignment vehicles
✔✔True/false- a dealer must make a copy of the written warranty available for the
customer to read prior to the sale - ✔✔True
✔✔True/false- a dealer can sell a vehicle "as is" or without a warranty in VA - ✔✔True
