Mastery Exam, Car Sales Test Colorado Exam
| 250+ Questions and Verified Answers |
Rated A+ | 2025/2026 Guide
A new or used motor vehicle dealer may legally do which of the following
with a temporary registration permit?
- Correct Answer - issue a permit for a demonstration drive by a
consumer
How many temporary permits may a dealer issue for each road worthy
vehicle sold
- Correct Answer - 1
Records of vehicle transfers and odometer statements must be retained
for ____years.
- Correct Answer - 5
The odometer law declares all of the following except:
- Correct Answer - it is unlawful to replace an odometer under any
circumstance
Three of the following types of motor vehicles are exempt from the Truth
in Mileage Act. Which one is not exempt?
,- Correct Answer - motor vehicles with out-of-state titles
The federal cash reporting rule requires dealers to file federal form 8300
with the Internal Revenue Service when they receive more than $10,000
cash in a single transaction. How many days does a dealer have to file
this form?
- Correct Answer - 15 days
Which of the following is a false statement regarding dealers and
buyers?
- Correct Answer - a dealer must offer a warranty on all motor vehicles
sold
Three of the following are deceptive trade practices. Which one of the
following is not?
- Correct Answer - the dealer discloses in the advertisement all known
material information
three of the following are deceptive trade practices. Which one of the
following is not? - Correct Answer - delivering good as promised
A customer's trade-in vehicle on a financed deal may be sold:
- Correct Answer - only when the financing has been approved
,Colorado's Lemon Law covers:
- Correct Answer - Colorado's Lemon Law covers only new self-
propelled vehicles, including pickups and vans.
Motor homes and motorcycles are excluded from the Lemon Law.
Which of the following is true about Colorado's Lemon Law?
- Correct Answer - all of the above
Local law enforcement offices must be notified within _______ hour(s)
before or after the repossession of a motor vehicle occurs.
- Correct Answer - 1 hour before
Which of the following may motor vehicle dealers sell on a Sunday?
- Correct Answer - no vehicles may be sold on a Sunday
the definition of used motor vehicle dealer or used power sports
- Correct Answer - a person who attempts to negotiate a sale or lease of
a of a used MV or PWSP vehicle for profit
when advertising a specific number of motor vehicles, that
- Correct Answer - True
, selling , Leasing , exchanging, renting with option to purchase
- Correct Answer - True
By obtaining an off premise permit, dealers may sell motor vehicle at
- Correct Answer - False
Which of the following statements is true regarding dealer demo
- Correct Answer - a demo drive cannot exceed 7 days
CO lemon law includes - Correct Answer - Defects that substantially
impair the market value of the vehicle
motor vehicle insurance is required
- Correct Answer - for all registered vehicles intended for use on
Colorado roads
which is true regarding in-transit plates?
- Correct Answer - in-transit plates may be used to transport vehicles
from point of purchase to point of storage or from point of storage to
point of sale
licensed power sport dealers may sell which of the following on Sunday
- Correct Answer - A powersport vehicle
| 250+ Questions and Verified Answers |
Rated A+ | 2025/2026 Guide
A new or used motor vehicle dealer may legally do which of the following
with a temporary registration permit?
- Correct Answer - issue a permit for a demonstration drive by a
consumer
How many temporary permits may a dealer issue for each road worthy
vehicle sold
- Correct Answer - 1
Records of vehicle transfers and odometer statements must be retained
for ____years.
- Correct Answer - 5
The odometer law declares all of the following except:
- Correct Answer - it is unlawful to replace an odometer under any
circumstance
Three of the following types of motor vehicles are exempt from the Truth
in Mileage Act. Which one is not exempt?
,- Correct Answer - motor vehicles with out-of-state titles
The federal cash reporting rule requires dealers to file federal form 8300
with the Internal Revenue Service when they receive more than $10,000
cash in a single transaction. How many days does a dealer have to file
this form?
- Correct Answer - 15 days
Which of the following is a false statement regarding dealers and
buyers?
- Correct Answer - a dealer must offer a warranty on all motor vehicles
sold
Three of the following are deceptive trade practices. Which one of the
following is not?
- Correct Answer - the dealer discloses in the advertisement all known
material information
three of the following are deceptive trade practices. Which one of the
following is not? - Correct Answer - delivering good as promised
A customer's trade-in vehicle on a financed deal may be sold:
- Correct Answer - only when the financing has been approved
,Colorado's Lemon Law covers:
- Correct Answer - Colorado's Lemon Law covers only new self-
propelled vehicles, including pickups and vans.
Motor homes and motorcycles are excluded from the Lemon Law.
Which of the following is true about Colorado's Lemon Law?
- Correct Answer - all of the above
Local law enforcement offices must be notified within _______ hour(s)
before or after the repossession of a motor vehicle occurs.
- Correct Answer - 1 hour before
Which of the following may motor vehicle dealers sell on a Sunday?
- Correct Answer - no vehicles may be sold on a Sunday
the definition of used motor vehicle dealer or used power sports
- Correct Answer - a person who attempts to negotiate a sale or lease of
a of a used MV or PWSP vehicle for profit
when advertising a specific number of motor vehicles, that
- Correct Answer - True
, selling , Leasing , exchanging, renting with option to purchase
- Correct Answer - True
By obtaining an off premise permit, dealers may sell motor vehicle at
- Correct Answer - False
Which of the following statements is true regarding dealer demo
- Correct Answer - a demo drive cannot exceed 7 days
CO lemon law includes - Correct Answer - Defects that substantially
impair the market value of the vehicle
motor vehicle insurance is required
- Correct Answer - for all registered vehicles intended for use on
Colorado roads
which is true regarding in-transit plates?
- Correct Answer - in-transit plates may be used to transport vehicles
from point of purchase to point of storage or from point of storage to
point of sale
licensed power sport dealers may sell which of the following on Sunday
- Correct Answer - A powersport vehicle
