COLORADO CAR SALES MASTERY EXAM 2025 | 260
QUESTIONS AND CORRECT ANSWERS | ALREADY
GRADED A+||LATEST UPDATE
•
The license of a motor vehicle salesperson or power-sports salesperson may be denied,
revoked or suspended on any of the following grounds except: -CORRECT ANSWER b)
advertising a salvaged vehicle while identifying the vehicle as a salvage vehicle
According to colorado law, which of the following must be licensed as a motor vehicle
dealer and or powersports dealer? -CORRECT ANSWER d) All of the above
Colorado Lemon law covers: -CORRECT ANSWER c)defects that substantially impair
the market value of a vehicle
Three of the following are required to be disclosed in an advertisement when a dealer is
advertisement a closed end credit sale of a mother vehicle or powersports...except? -
CORRECT ANSWER d) tax rate
The motor vehicle dealer board is authorized and empowered to: -CORRECT ANSWER
D)all of the above
Local law enforcement officers must be notified within ___ hours before or after the
repossession of a motor vehicle occurs: -CORRECT ANSWER A)1 hours
All motor vehicle dealers and power-sports dealers must post a clear, legible sign on
their principal place of business if: -CORRECT ANSWER B) they will be open less than
40 hours a week
A dealer may issue a temporary permits for each roadworthy vehicle sold -CORRECT
ANSWER B) false (verify)
The motor vehicle dealer board may be decide how large a fine to impose on a dealer
who sells primarily vehicles that weigh 1,500 pounds or more so long as it does not
exceed 5k -CORRECT ANSWER a)True (verify)
The Colorado's consumer protection act declares bait and switch advertising to be
deceptive trade practice. Bait and switch advertising includes which of the following -
CORRECT ANSWER d)all of the above
Three of the following types of motor vehicles are exempt from the truth in mileage act.
Which one is not exempt? -CORRECT ANSWER B)motor vehicles with out-of-state
titles
,The motor vehicle dealer board does not have among its members -CORRECT
ANSWER c)three employees from the enforcement division
What is the highest fine per offense that the motor vehicle dealer board or an
administrative law judge may impose on a dealer , who sells primarily vehicles that
weigh less than 1,500 pounds -CORRECT ANSWER $1,000
Three of the following are characteristics of an off-premise permit. . Which one is not? -
CORRECT ANSWER The permit cannot exceed six days except for the national
western stock show, the colorado state fair, greely stampede
Which of the following is a true statement regarding dealers and buyers? -CORRECT
ANSWER B) a dealer shall clearly indicate on the costumer contract when a vehicle
sold "as is" and without a guarantee
When advertising a specific number of motor vehicles that same number of vehicles
must have been invoiced to the dealer -CORRECT ANSWER A)True
Dealers must either be self insured or have insurance for their vehicles -CORRECT
ANSWER A)True
In transit plates may be used on motor vehicles -CORRECT ANSWER D) consigned to
wholesale auction dealers for transport from point of purchase to point of storage
When a salesperson leaves a dealer, that dealer must do all of the following except -
CORRECT ANSWER Immediately employ a new salesperson, licensed or not
The license of a new or used dealer, wholesale auction dealer or wholesaler may be
denied suspended, revoked or fined for all of the following grounds except -CORRECT
ANSWER Employing a properly licensed salesperson
The only items that can be added to an advertised price are -CORRECT ANSWER C)
Dealer handling and preparation charges
The license of a motor vehicle salesperson or a powersports salesperson may be
denied, revoked, or suspended on any of the following grounds except: -CORRECT
ANSWER D)using point of sale literature in advertising
A buyer agent may -CORRECT ANSWER be retained or hired by a consumer to assist,
represent, or act on behalf of such
consumer in connection with the purchase or lease of a motor vehicle
Three of the following are deceptive trade practices. Which of the following is not? -
CORRECT ANSWER Delivering goods as promised
,A new or used motor vehicle dealer may legally do which of the following with a
temporary permit? -CORRECT ANSWER Issue a permit for a demonstration drive by a
consumer
Re federal cash reporting rule requires dealers to file form 83000.... -CORRECT
ANSWER 15 Days
A new motor vehicle has three of the following characteristics. Which one doesn't it
have? -CORRECT ANSWER D) a title
A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how
many days to report conviction? -CORRECT ANSWER A ) 30 Days
Three of the following are require when a dealer is advertising a lease of a a motor
vehicle or powersports vehicle with a payment amount which one is not required? -
CORRECT ANSWER D) disclosing the cost of leasing versus the cost of purchasing
The definition of a used mother vehicle dealer or used powersports dealer includes
which of the following ? -CORRECT ANSWER 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
A customer's trade- in vehicle on a financed deal may be sold -CORRECT ANSWER D)
only when the financing has been approved
Wholesalers : -CORRECT ANSWER C)must use a name other than their personal
name on all business documents
A dealer is required to have on file the licenses of each of their employed salespersons
but need not display them in their place of business -CORRECT ANSWER False
The license of a motor vehicle salesperson or a powersports salesperson may be
denied, revoked or suspended on the following grounds -CORRECT ANSWER D) all of
the above
A dealer must take in the title in their own name before selling a car to retail customer -
CORRECT ANSWER B) False
A salesperson can change dealerships during the licensing year provided that the
correct form and fee is submitted to the board such sales person may begin work as a
motor vehicle salespersons or powersports salesperson while awaiting a new license
from the board -CORRECT ANSWER B) False
Records of vehicles transfers and odometer statements must be retained for: -
CORRECT ANSWER C) 5 year
, Motor vehicle dealers, powersport dealers, used motor vehicle dealers, used
powersports dealers or wholesalers are not required to report to the dealer board -
CORRECT ANSWER B) any change in the hours of operation of the business when the
business continues full time (review)
Which of the following would indicate a motor vehicle is "used" -CORRECT ANSWER A
certificate of title has been issued
A motor vehicle dealer is responsible for : -CORRECT ANSWER D) all of the above
An advertisement would include -CORRECT ANSWER D) all of the above
The license of a new or used dealer, wholesale auction dealer, or wholesaler may be
denied, suspended revoked or fined for the following -CORRECT ANSWER D) all of the
above
Which of the following is a deceptive trade practice? -CORRECT ANSWER D) All of the
above are deceptive trade practices
Demonstration plates can be displayed on vehicles that are used by the dealership for
any commercial purpose -CORRECT ANSWER true
A dealers advertising must contain the dealers licensed name and the words -
CORRECT ANSWER C) dealer
Which of the following does not fit the definition of a motor vehicle dealer -CORRECT
ANSWER C) someone who sells motor vehicles solely to wholesalers
Depot plates may be used during normal business hours to transport a motor vehicle -
CORRECT ANSWER D ) all of the above
Licensed powersport dealers may not sell powersports on Sundays ( verify) -CORRECT
ANSWER False
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 -CORRECT ANSWER True ( verify)
The motor Vehicle dealer board is authorized and empowered to -CORRECT ANSWER
D) all of the above
The federal odometer law declares that it is unlawful to do any of the following except -
CORRECT ANSWER C) to operate a motor vehicle on any street, with the intent to
defraud, knowing that the odometer is disconnected
QUESTIONS AND CORRECT ANSWERS | ALREADY
GRADED A+||LATEST UPDATE
•
The license of a motor vehicle salesperson or power-sports salesperson may be denied,
revoked or suspended on any of the following grounds except: -CORRECT ANSWER b)
advertising a salvaged vehicle while identifying the vehicle as a salvage vehicle
According to colorado law, which of the following must be licensed as a motor vehicle
dealer and or powersports dealer? -CORRECT ANSWER d) All of the above
Colorado Lemon law covers: -CORRECT ANSWER c)defects that substantially impair
the market value of a vehicle
Three of the following are required to be disclosed in an advertisement when a dealer is
advertisement a closed end credit sale of a mother vehicle or powersports...except? -
CORRECT ANSWER d) tax rate
The motor vehicle dealer board is authorized and empowered to: -CORRECT ANSWER
D)all of the above
Local law enforcement officers must be notified within ___ hours before or after the
repossession of a motor vehicle occurs: -CORRECT ANSWER A)1 hours
All motor vehicle dealers and power-sports dealers must post a clear, legible sign on
their principal place of business if: -CORRECT ANSWER B) they will be open less than
40 hours a week
A dealer may issue a temporary permits for each roadworthy vehicle sold -CORRECT
ANSWER B) false (verify)
The motor vehicle dealer board may be decide how large a fine to impose on a dealer
who sells primarily vehicles that weigh 1,500 pounds or more so long as it does not
exceed 5k -CORRECT ANSWER a)True (verify)
The Colorado's consumer protection act declares bait and switch advertising to be
deceptive trade practice. Bait and switch advertising includes which of the following -
CORRECT ANSWER d)all of the above
Three of the following types of motor vehicles are exempt from the truth in mileage act.
Which one is not exempt? -CORRECT ANSWER B)motor vehicles with out-of-state
titles
,The motor vehicle dealer board does not have among its members -CORRECT
ANSWER c)three employees from the enforcement division
What is the highest fine per offense that the motor vehicle dealer board or an
administrative law judge may impose on a dealer , who sells primarily vehicles that
weigh less than 1,500 pounds -CORRECT ANSWER $1,000
Three of the following are characteristics of an off-premise permit. . Which one is not? -
CORRECT ANSWER The permit cannot exceed six days except for the national
western stock show, the colorado state fair, greely stampede
Which of the following is a true statement regarding dealers and buyers? -CORRECT
ANSWER B) a dealer shall clearly indicate on the costumer contract when a vehicle
sold "as is" and without a guarantee
When advertising a specific number of motor vehicles that same number of vehicles
must have been invoiced to the dealer -CORRECT ANSWER A)True
Dealers must either be self insured or have insurance for their vehicles -CORRECT
ANSWER A)True
In transit plates may be used on motor vehicles -CORRECT ANSWER D) consigned to
wholesale auction dealers for transport from point of purchase to point of storage
When a salesperson leaves a dealer, that dealer must do all of the following except -
CORRECT ANSWER Immediately employ a new salesperson, licensed or not
The license of a new or used dealer, wholesale auction dealer or wholesaler may be
denied suspended, revoked or fined for all of the following grounds except -CORRECT
ANSWER Employing a properly licensed salesperson
The only items that can be added to an advertised price are -CORRECT ANSWER C)
Dealer handling and preparation charges
The license of a motor vehicle salesperson or a powersports salesperson may be
denied, revoked, or suspended on any of the following grounds except: -CORRECT
ANSWER D)using point of sale literature in advertising
A buyer agent may -CORRECT ANSWER be retained or hired by a consumer to assist,
represent, or act on behalf of such
consumer in connection with the purchase or lease of a motor vehicle
Three of the following are deceptive trade practices. Which of the following is not? -
CORRECT ANSWER Delivering goods as promised
,A new or used motor vehicle dealer may legally do which of the following with a
temporary permit? -CORRECT ANSWER Issue a permit for a demonstration drive by a
consumer
Re federal cash reporting rule requires dealers to file form 83000.... -CORRECT
ANSWER 15 Days
A new motor vehicle has three of the following characteristics. Which one doesn't it
have? -CORRECT ANSWER D) a title
A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how
many days to report conviction? -CORRECT ANSWER A ) 30 Days
Three of the following are require when a dealer is advertising a lease of a a motor
vehicle or powersports vehicle with a payment amount which one is not required? -
CORRECT ANSWER D) disclosing the cost of leasing versus the cost of purchasing
The definition of a used mother vehicle dealer or used powersports dealer includes
which of the following ? -CORRECT ANSWER 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
A customer's trade- in vehicle on a financed deal may be sold -CORRECT ANSWER D)
only when the financing has been approved
Wholesalers : -CORRECT ANSWER C)must use a name other than their personal
name on all business documents
A dealer is required to have on file the licenses of each of their employed salespersons
but need not display them in their place of business -CORRECT ANSWER False
The license of a motor vehicle salesperson or a powersports salesperson may be
denied, revoked or suspended on the following grounds -CORRECT ANSWER D) all of
the above
A dealer must take in the title in their own name before selling a car to retail customer -
CORRECT ANSWER B) False
A salesperson can change dealerships during the licensing year provided that the
correct form and fee is submitted to the board such sales person may begin work as a
motor vehicle salespersons or powersports salesperson while awaiting a new license
from the board -CORRECT ANSWER B) False
Records of vehicles transfers and odometer statements must be retained for: -
CORRECT ANSWER C) 5 year
, Motor vehicle dealers, powersport dealers, used motor vehicle dealers, used
powersports dealers or wholesalers are not required to report to the dealer board -
CORRECT ANSWER B) any change in the hours of operation of the business when the
business continues full time (review)
Which of the following would indicate a motor vehicle is "used" -CORRECT ANSWER A
certificate of title has been issued
A motor vehicle dealer is responsible for : -CORRECT ANSWER D) all of the above
An advertisement would include -CORRECT ANSWER D) all of the above
The license of a new or used dealer, wholesale auction dealer, or wholesaler may be
denied, suspended revoked or fined for the following -CORRECT ANSWER D) all of the
above
Which of the following is a deceptive trade practice? -CORRECT ANSWER D) All of the
above are deceptive trade practices
Demonstration plates can be displayed on vehicles that are used by the dealership for
any commercial purpose -CORRECT ANSWER true
A dealers advertising must contain the dealers licensed name and the words -
CORRECT ANSWER C) dealer
Which of the following does not fit the definition of a motor vehicle dealer -CORRECT
ANSWER C) someone who sells motor vehicles solely to wholesalers
Depot plates may be used during normal business hours to transport a motor vehicle -
CORRECT ANSWER D ) all of the above
Licensed powersport dealers may not sell powersports on Sundays ( verify) -CORRECT
ANSWER False
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 -CORRECT ANSWER True ( verify)
The motor Vehicle dealer board is authorized and empowered to -CORRECT ANSWER
D) all of the above
The federal odometer law declares that it is unlawful to do any of the following except -
CORRECT ANSWER C) to operate a motor vehicle on any street, with the intent to
defraud, knowing that the odometer is disconnected
