STATE OF COLORADO SALES
LICENSE TEST CORRECT 100%
Three of the following types of motor vehicles are exempt from the truth in mileage act. -
ANSWER~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? - ANSWERa 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: - ANSWERAll 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 - ANSWERTRUE
bait and switch is - ANSWERad 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 - ANSWERTRUE
By obtaining an off-premise permit, dealers may sell motor vehicles at another location
on Sunday - ANSWERFALSE - NO Sale of vehicle should be done on Sundays
Which of the following statements is true regarding dealer demo plates? - ANSWERa
demo drive cannot exceed 7 days
Colorado Lemon Law includes: - ANSWERdefects that substantially impair the market
value of the vehicle
Motor vehicle insurance is required: - ANSWERfor all registered vehicles intended for
use on colorado roads
Which is true regarding in-transit plates? - ANSWERin-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 dealers may sell which of the following on Sundays? - ANSWERThe selling of
boat trailers and snowmobile are exempt
, Which of the following steps are required to properly and legally repossess a motor
vehicle? - ANSWEReffect a lien creating a security interest, Allow the required payment
to default (become at least 10 days late), send or hand deliver a "right to cure" letter to
the debtor and allow the debtor 20 days to cure
An advertisement may include - ANSWERlicensed name with the word DEALER
which of the following is a used vehicle? - ANSWERany vehicle that has been
previously bought a demo vehicle with 1500 miles
Which of the following are deceptive trade practices? - ANSWERAll of the above
Bait and switch
How many temp permits may a dealer issue for each roadworthy vehicle sold? -
ANSWER1
An extension can only be issued but the DMV
Depot plates may be used during normal business hours to transport a motor vehicle -
ANSWERall of the above
All plates
Three of the following are required when a dealer is advertising a lease of a motor
vehicle with a payment amount - ANSWER~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? - ANSWERdisclosing the cost of lease
vs purchasing
Prominently and conspicuously display the ________? - ANSWERFTC Buyer's Guide
A temp registration permit may be issued: - ANSWER-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 -
ANSWERFalse, $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 - ANSWERTRUE
A Motor Vehicle salesperson may work for more than 1 dealership during one year -
ANSWERTRUE
LICENSE TEST CORRECT 100%
Three of the following types of motor vehicles are exempt from the truth in mileage act. -
ANSWER~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? - ANSWERa 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: - ANSWERAll 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 - ANSWERTRUE
bait and switch is - ANSWERad 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 - ANSWERTRUE
By obtaining an off-premise permit, dealers may sell motor vehicles at another location
on Sunday - ANSWERFALSE - NO Sale of vehicle should be done on Sundays
Which of the following statements is true regarding dealer demo plates? - ANSWERa
demo drive cannot exceed 7 days
Colorado Lemon Law includes: - ANSWERdefects that substantially impair the market
value of the vehicle
Motor vehicle insurance is required: - ANSWERfor all registered vehicles intended for
use on colorado roads
Which is true regarding in-transit plates? - ANSWERin-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 dealers may sell which of the following on Sundays? - ANSWERThe selling of
boat trailers and snowmobile are exempt
, Which of the following steps are required to properly and legally repossess a motor
vehicle? - ANSWEReffect a lien creating a security interest, Allow the required payment
to default (become at least 10 days late), send or hand deliver a "right to cure" letter to
the debtor and allow the debtor 20 days to cure
An advertisement may include - ANSWERlicensed name with the word DEALER
which of the following is a used vehicle? - ANSWERany vehicle that has been
previously bought a demo vehicle with 1500 miles
Which of the following are deceptive trade practices? - ANSWERAll of the above
Bait and switch
How many temp permits may a dealer issue for each roadworthy vehicle sold? -
ANSWER1
An extension can only be issued but the DMV
Depot plates may be used during normal business hours to transport a motor vehicle -
ANSWERall of the above
All plates
Three of the following are required when a dealer is advertising a lease of a motor
vehicle with a payment amount - ANSWER~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? - ANSWERdisclosing the cost of lease
vs purchasing
Prominently and conspicuously display the ________? - ANSWERFTC Buyer's Guide
A temp registration permit may be issued: - ANSWER-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 -
ANSWERFalse, $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 - ANSWERTRUE
A Motor Vehicle salesperson may work for more than 1 dealership during one year -
ANSWERTRUE
