Mastery Exam, Car Sales Test Colorado
UPDATED ACTUAL Exam Questions and
CORRECT Answers
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)
UPDATED ACTUAL Exam Questions and
CORRECT Answers
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)
