State of Colorado Sales License EXAM STUDY
GUIDE 2026 COMPLETE QUESTIONS WITH CORRECT
DETAILED ANSWERS || 100% GUARANTEED PASS
<RECENT VERSION>
1. 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)
2. The definition of a used motor vehicle dealer or used dealer includes which
of the following? - 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
3. The Motor Vehicle Board is authorized and empowered to: - ANSWER ✔
All Of The Above
~Amend and repeal rules, regulations and previsions
4. When advertising a specific number of motor vehicles, that same number of
vehicles must be invoiced to the dealer - ANSWER ✔ TRUE
5. bait and switch is - ANSWER ✔ ad that attracts consumers with a low-
priced product, then tries to sell them a higher-priced product
,6. 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 -
ANSWER ✔ TRUE
7. By obtaining an off-premise permit, dealers may sell motor vehicles at
another location on Sunday - ANSWER ✔ FALSE - NO Sale of vehicle
should be done on Sundays
8. Which of the following statements is true regarding dealer demo plates? -
ANSWER ✔ a demo drive cannot exceed 7 days
9. Colorado Lemon Law includes: - ANSWER ✔ defects that substantially
impair the market value of the vehicle
10.Motor vehicle insurance is required: - ANSWER ✔ for all registered
vehicles intended for use on colorado roads
11.By obtaining an off person permit , dealer may sell motor vehicle at another
location on a sunday - ANSWER ✔ -FALSE -no sale of vehicle should be
done on Sunday
12.Which of the following is a false statement regarding dealer and buyers -
ANSWER ✔ A dealer must offer a warranty on all motor vehicle sold
,13.Three of the following type of motor vehicle are exempt from the true mill
age act with one is not - ANSWER ✔ Motor vehicle with out-of -out of state
title
14.In addition to possible dealer board sanctions, if a dealer or salesperson is
found using bait & switch advertising, the criminal penalty is a class 2
misdemeanor and a maximum twelve months in jail $1,000 fine, or both. -
ANSWER ✔ TRUE
15.Which of the following is not proof of ownership of a motor vehicle for a
Colorado dealer? - ANSWER ✔ A vehicle subject to a lien on the tile
16.A motor vehicle salesperson may work for more than one dealership during
one license year. - ANSWER ✔ TRUE
17.Which of the following is true about the Colorado lemon law? - ANSWER
✔ "A reasonable number of attempts" to repair applied when the motor
vehicle has been out of service for repairs a cumulative total of 30 or more
business days during the warranty term of 1 year from date of delivery
18.A customer's trade-in vehicle on a financed deal may be sold. - ANSWER ✔
Only when the financing has been approved and the contract binding has
been signed
19.Which of the following motor vehicles may be sold on Sundays? -
ANSWER ✔ Snowmobiles
, 20.The Federal odometer law declares that it is unlawful to do any of the
following except. - ANSWER ✔ To operate a motor vehicle on any street,
with the intent to defraud, knowing that the odometer is disconnected
21.Motor vehicle dealers, powersports dealers, used motor vehicle dealers, used
powersports dealers, or wholesalers are required to report to the Dealer
Board: - ANSWER ✔ Any change in the hours of operation of the business
when the business continues full time.
22.A dealer may issue 3 temporary permits for each roadworthy vehicle sold. -
ANSWER ✔ True
23.Motor vehicle and powersport salespeople are required to have a surety bond
in the amount of : - ANSWER ✔ $15,000
24.Which of the following steps are require to properly and legally repossess a
mother vehicle - ANSWER ✔ Effect a lien creating a security interest
25.Which of the following motor vehicles may be sold on Sundays? -
ANSWER ✔ Snowmobiles
26.Which of the following is considered a violation of the truth in mileage act?
- ANSWER ✔ upon service, repair, or replacement, resetting the odometer
to zero when the odometer is incapable of registering the same mileage at
the time of replacement
GUIDE 2026 COMPLETE QUESTIONS WITH CORRECT
DETAILED ANSWERS || 100% GUARANTEED PASS
<RECENT VERSION>
1. 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)
2. The definition of a used motor vehicle dealer or used dealer includes which
of the following? - 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
3. The Motor Vehicle Board is authorized and empowered to: - ANSWER ✔
All Of The Above
~Amend and repeal rules, regulations and previsions
4. When advertising a specific number of motor vehicles, that same number of
vehicles must be invoiced to the dealer - ANSWER ✔ TRUE
5. bait and switch is - ANSWER ✔ ad that attracts consumers with a low-
priced product, then tries to sell them a higher-priced product
,6. 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 -
ANSWER ✔ TRUE
7. By obtaining an off-premise permit, dealers may sell motor vehicles at
another location on Sunday - ANSWER ✔ FALSE - NO Sale of vehicle
should be done on Sundays
8. Which of the following statements is true regarding dealer demo plates? -
ANSWER ✔ a demo drive cannot exceed 7 days
9. Colorado Lemon Law includes: - ANSWER ✔ defects that substantially
impair the market value of the vehicle
10.Motor vehicle insurance is required: - ANSWER ✔ for all registered
vehicles intended for use on colorado roads
11.By obtaining an off person permit , dealer may sell motor vehicle at another
location on a sunday - ANSWER ✔ -FALSE -no sale of vehicle should be
done on Sunday
12.Which of the following is a false statement regarding dealer and buyers -
ANSWER ✔ A dealer must offer a warranty on all motor vehicle sold
,13.Three of the following type of motor vehicle are exempt from the true mill
age act with one is not - ANSWER ✔ Motor vehicle with out-of -out of state
title
14.In addition to possible dealer board sanctions, if a dealer or salesperson is
found using bait & switch advertising, the criminal penalty is a class 2
misdemeanor and a maximum twelve months in jail $1,000 fine, or both. -
ANSWER ✔ TRUE
15.Which of the following is not proof of ownership of a motor vehicle for a
Colorado dealer? - ANSWER ✔ A vehicle subject to a lien on the tile
16.A motor vehicle salesperson may work for more than one dealership during
one license year. - ANSWER ✔ TRUE
17.Which of the following is true about the Colorado lemon law? - ANSWER
✔ "A reasonable number of attempts" to repair applied when the motor
vehicle has been out of service for repairs a cumulative total of 30 or more
business days during the warranty term of 1 year from date of delivery
18.A customer's trade-in vehicle on a financed deal may be sold. - ANSWER ✔
Only when the financing has been approved and the contract binding has
been signed
19.Which of the following motor vehicles may be sold on Sundays? -
ANSWER ✔ Snowmobiles
, 20.The Federal odometer law declares that it is unlawful to do any of the
following except. - ANSWER ✔ To operate a motor vehicle on any street,
with the intent to defraud, knowing that the odometer is disconnected
21.Motor vehicle dealers, powersports dealers, used motor vehicle dealers, used
powersports dealers, or wholesalers are required to report to the Dealer
Board: - ANSWER ✔ Any change in the hours of operation of the business
when the business continues full time.
22.A dealer may issue 3 temporary permits for each roadworthy vehicle sold. -
ANSWER ✔ True
23.Motor vehicle and powersport salespeople are required to have a surety bond
in the amount of : - ANSWER ✔ $15,000
24.Which of the following steps are require to properly and legally repossess a
mother vehicle - ANSWER ✔ Effect a lien creating a security interest
25.Which of the following motor vehicles may be sold on Sundays? -
ANSWER ✔ Snowmobiles
26.Which of the following is considered a violation of the truth in mileage act?
- ANSWER ✔ upon service, repair, or replacement, resetting the odometer
to zero when the odometer is incapable of registering the same mileage at
the time of replacement
