1
State of Colorado Sales License ACTUAL EXAM
QUESTIONS WITH CORRECT & DETAILED ANSWERS
WITH RATIONALES. ALREADY GRADED A+.
Three of the following types of motor vehicles are exempt from the truth in
mileage act. - ...(ANSWERS)....~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? - ...(ANSWERS)....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: - ...(ANSWERS)....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 - ...(ANSWERS)....TRUE
bait and switch is - ...(ANSWERS)....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 -
...(ANSWERS)....TRUE
, 2
By obtaining an off-premise permit, dealers may sell motor vehicles at another
location on Sunday - ...(ANSWERS)....FALSE - NO Sale of vehicle should be done
on Sundays
Which of the following statements is true regarding dealer demo plates? -
...(ANSWERS)....a demo drive cannot exceed 7 days
Colorado Lemon Law includes: - ...(ANSWERS)....defects that substantially impair
the market value of the vehicle
Motor vehicle insurance is required: - ...(ANSWERS)....for all registered vehicles
intended for use on colorado roads
Which is true regarding in-transit plates? - ...(ANSWERS)....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 dealers may sell which of the following on Sundays? -
...(ANSWERS)....The selling of boat trailers and snowmobile are exempt
Which of the following steps are required to properly and legally repossess a
motor vehicle? - ...(ANSWERS)....effect 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
, 3
An advertisement may include - ...(ANSWERS)....licensed name with the word
DEALER
which of the following is a used vehicle? - ...(ANSWERS)....any vehicle that has
been previously bought a demo vehicle with 1500 miles
Which of the following are deceptive trade practices? - ...(ANSWERS)....All of the
above
Bait and switch
How many temp permits may a dealer issue for each roadworthy vehicle sold? -
...(ANSWERS)....1
An extension can only be issued but the DMV
Depot plates may be used during normal business hours to transport a motor
vehicle - ...(ANSWERS)....all 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 - ...(ANSWERS)....~Amount or percentage of the
down payment
~terms of repayment (car payment date)
~Annual percentage rate (interest rate of the loan)
State of Colorado Sales License ACTUAL EXAM
QUESTIONS WITH CORRECT & DETAILED ANSWERS
WITH RATIONALES. ALREADY GRADED A+.
Three of the following types of motor vehicles are exempt from the truth in
mileage act. - ...(ANSWERS)....~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? - ...(ANSWERS)....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: - ...(ANSWERS)....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 - ...(ANSWERS)....TRUE
bait and switch is - ...(ANSWERS)....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 -
...(ANSWERS)....TRUE
, 2
By obtaining an off-premise permit, dealers may sell motor vehicles at another
location on Sunday - ...(ANSWERS)....FALSE - NO Sale of vehicle should be done
on Sundays
Which of the following statements is true regarding dealer demo plates? -
...(ANSWERS)....a demo drive cannot exceed 7 days
Colorado Lemon Law includes: - ...(ANSWERS)....defects that substantially impair
the market value of the vehicle
Motor vehicle insurance is required: - ...(ANSWERS)....for all registered vehicles
intended for use on colorado roads
Which is true regarding in-transit plates? - ...(ANSWERS)....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 dealers may sell which of the following on Sundays? -
...(ANSWERS)....The selling of boat trailers and snowmobile are exempt
Which of the following steps are required to properly and legally repossess a
motor vehicle? - ...(ANSWERS)....effect 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
, 3
An advertisement may include - ...(ANSWERS)....licensed name with the word
DEALER
which of the following is a used vehicle? - ...(ANSWERS)....any vehicle that has
been previously bought a demo vehicle with 1500 miles
Which of the following are deceptive trade practices? - ...(ANSWERS)....All of the
above
Bait and switch
How many temp permits may a dealer issue for each roadworthy vehicle sold? -
...(ANSWERS)....1
An extension can only be issued but the DMV
Depot plates may be used during normal business hours to transport a motor
vehicle - ...(ANSWERS)....all 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 - ...(ANSWERS)....~Amount or percentage of the
down payment
~terms of repayment (car payment date)
~Annual percentage rate (interest rate of the loan)
