STATE OF COLORADO SALES LICENSE FINAL PAPER
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔Depot plates may be used during normal business hours to transport a motor
vehicle - ✔✔All of the above
✔✔By definition an advertisement may include any commercial message on any
computer display or window, display which is delivered or made available to a customer
or prospective customer in any manner whatsoever - ✔✔True
✔✔The federal odometer law declares that it is unlawful to do any of the following
except - ✔✔to operate a motor vehicle on any street, with the intent to defraud, knowing
that the odometer is disconnected
✔✔Dealer demo plates may be used on motor vehicles - ✔✔properly assigned in the
name of the dealership
✔✔New and used motor vehicle dealers, powersports dealers, and wholesale auction
dealers are required to have a surety bond - ✔✔All of the above
✔✔Motor vehicle and powersport salespeople are required to have a surety bond in the
amount of : - ✔✔$15,000
✔✔Which of the following steps are require to properly and legally repossess a mother
vehicle - ✔✔Effect a lien creating a security interest
✔✔Which of the following motor vehicles may be sold on Sundays? - ✔✔Snowmobiles
✔✔Which of the following is considered a violation of the truth in mileage act? -
✔✔upon service, repair, or replacement, resetting the odometer to zero when the
odometer is incapable of registering the same mileage at the time of replacement
✔✔All motor vehicle dealers and powersports dealers must be open: - ✔✔A minimum of
12 hours per week
✔✔Full-use dealer plates can be displayed on all vehicles owned and offered for sale by
a dealer or wholesaler, except those that are used on tow vehicles or parts
delivery/pickup vehicles. - ✔✔FALSE
✔✔When a salesperson leaves a dealer, that dealer must return that salespersons
license to the Auto Industry Division. - ✔✔False
, ✔✔Which of the following is not true about members of the Motor Vehicle Dealer
board? - ✔✔public members must have been a motor vehicle dealer
✔✔Which of the following is true regarding depot plates? - ✔✔depot plates may be
used by a dealer to road test a vehicle after repair
✔✔Motor vehicle dealers, powersports dealers, used motor vehicle dealers, used
powersports dealers, or wholesalers are not required to report to the dealer board: -
✔✔any change in the hours of operation of the business when the business continues
full time
✔✔ 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? - ✔✔a person who attempts to negotiate a sale or lease of a used motor
vehicle or powersports vehicle with the intent to make a profit or gain
✔✔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 is - ✔✔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
✔✔Colorado 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
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔Depot plates may be used during normal business hours to transport a motor
vehicle - ✔✔All of the above
✔✔By definition an advertisement may include any commercial message on any
computer display or window, display which is delivered or made available to a customer
or prospective customer in any manner whatsoever - ✔✔True
✔✔The federal odometer law declares that it is unlawful to do any of the following
except - ✔✔to operate a motor vehicle on any street, with the intent to defraud, knowing
that the odometer is disconnected
✔✔Dealer demo plates may be used on motor vehicles - ✔✔properly assigned in the
name of the dealership
✔✔New and used motor vehicle dealers, powersports dealers, and wholesale auction
dealers are required to have a surety bond - ✔✔All of the above
✔✔Motor vehicle and powersport salespeople are required to have a surety bond in the
amount of : - ✔✔$15,000
✔✔Which of the following steps are require to properly and legally repossess a mother
vehicle - ✔✔Effect a lien creating a security interest
✔✔Which of the following motor vehicles may be sold on Sundays? - ✔✔Snowmobiles
✔✔Which of the following is considered a violation of the truth in mileage act? -
✔✔upon service, repair, or replacement, resetting the odometer to zero when the
odometer is incapable of registering the same mileage at the time of replacement
✔✔All motor vehicle dealers and powersports dealers must be open: - ✔✔A minimum of
12 hours per week
✔✔Full-use dealer plates can be displayed on all vehicles owned and offered for sale by
a dealer or wholesaler, except those that are used on tow vehicles or parts
delivery/pickup vehicles. - ✔✔FALSE
✔✔When a salesperson leaves a dealer, that dealer must return that salespersons
license to the Auto Industry Division. - ✔✔False
, ✔✔Which of the following is not true about members of the Motor Vehicle Dealer
board? - ✔✔public members must have been a motor vehicle dealer
✔✔Which of the following is true regarding depot plates? - ✔✔depot plates may be
used by a dealer to road test a vehicle after repair
✔✔Motor vehicle dealers, powersports dealers, used motor vehicle dealers, used
powersports dealers, or wholesalers are not required to report to the dealer board: -
✔✔any change in the hours of operation of the business when the business continues
full time
✔✔ 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? - ✔✔a person who attempts to negotiate a sale or lease of a used motor
vehicle or powersports vehicle with the intent to make a profit or gain
✔✔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 is - ✔✔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
✔✔Colorado 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
