COLORADO CAR SALES MASTERY
EXAM NEWEST 2025/2026 ACTUAL
EXAM 230 QUESTIONS AND
CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY
GRADED A+
The license of a motor vehicle salesperson or power-sports salesperson may be denied,
revoked or suspended on any of the following grounds except: - ANSWERb) 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? - ANSWERd) All of the above
Colorado Lemon law covers: - ANSWERc)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? -
ANSWERd) tax rate
The motor vehicle dealer board is authorized and empowered to: - ANSWERD)all of the
above
Local law enforcement officers must be notified within ___ hours before or after the
repossession of a motor vehicle occurs: - ANSWERA)1 hours
All motor vehicle dealers and power-sports dealers must post a clear, legible sign on
their principal place of business if: - ANSWERB) they will be open less than 40 hours a
week
A dealer may issue a temporary permits for each roadworthy vehicle sold - ANSWERB)
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 - ANSWERa)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 -
ANSWERd)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? - ANSWERB)motor vehicles with out-of-state titles
The motor vehicle dealer board does not have among its members - ANSWERc)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 - ANSWER$1,000
Three of the following are characteristics of an off-premise permit. . Which one is not? -
ANSWERThe 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? - ANSWERB)
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 - ANSWERA)True
Dealers must either be self insured or have insurance for their vehicles -
ANSWERA)True
In transit plates may be used on motor vehicles - ANSWERD) 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 -
ANSWERImmediately 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 -
ANSWEREmploying a properly licensed salesperson
The only items that can be added to an advertised price are - ANSWERC) 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: -
ANSWERD)using point of sale literature in advertising
,A buyer agent may - ANSWERbe 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? -
ANSWERDelivering goods as promised
A new or used motor vehicle dealer may legally do which of the following with a
temporary permit? - ANSWERIssue a permit for a demonstration drive by a consumer
Re federal cash reporting rule requires dealers to file form 83000.... - ANSWER15 Days
A new motor vehicle has three of the following characteristics. Which one doesn't it
have? - ANSWERD) a title
A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how
many days to report conviction? - ANSWERA ) 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? -
ANSWERD) 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 ? - 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
A customer's trade- in vehicle on a financed deal may be sold - ANSWERD) only when
the financing has been approved
Wholesalers : - ANSWERC)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 - ANSWERFalse
The license of a motor vehicle salesperson or a powersports salesperson may be
denied, revoked or suspended on the following grounds - ANSWERD) all of the above
A dealer must take in the title in their own name before selling a car to retail customer -
ANSWERB) 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 - ANSWERB) False
, Records of vehicles transfers and odometer statements must be retained for: -
ANSWERC) 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 -
ANSWERB) any change in the hours of operation of the business when the business
continues full time (review)
Which of the following would indicate a motor vehicle is "used" - ANSWERA certificate
of title has been issued
A motor vehicle dealer is responsible for : - ANSWERD) all of the above
An advertisement would include - ANSWERD) all of the above
The license of a new or used dealer, wholesale auction dealer, or wholesaler may be
denied, suspended revoked or fined for the following - ANSWERD) all of the above
Which of the following is a deceptive trade practice? - ANSWERD) All of the above are
deceptive trade practices
Demonstration plates can be displayed on vehicles that are used by the dealership for
any commercial purpose - ANSWERtrue
A dealers advertising must contain the dealers licensed name and the words -
ANSWERC) dealer
Which of the following does not fit the definition of a motor vehicle dealer - ANSWERC)
someone who sells motor vehicles solely to wholesalers
Depot plates may be used during normal business hours to transport a motor vehicle -
ANSWERD ) all of the above
Licensed powersport dealers may not sell powersports on Sundays ( verify) -
ANSWERFalse
By definition an advertisement may include any commercial message on any computer
display or window, display which is delivered or made available to a customer or
prospective customer in any manner whatsoever - ANSWERTrue ( verify)
The motor Vehicle dealer board is authorized and empowered to - ANSWERD) all of the
above
The federal odometer law declares that it is unlawful to do any of the following except -
ANSWERC) to operate a motor vehicle on any street, with the intent to defraud,
knowing that the odometer is disconnected
EXAM NEWEST 2025/2026 ACTUAL
EXAM 230 QUESTIONS AND
CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY
GRADED A+
The license of a motor vehicle salesperson or power-sports salesperson may be denied,
revoked or suspended on any of the following grounds except: - ANSWERb) 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? - ANSWERd) All of the above
Colorado Lemon law covers: - ANSWERc)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? -
ANSWERd) tax rate
The motor vehicle dealer board is authorized and empowered to: - ANSWERD)all of the
above
Local law enforcement officers must be notified within ___ hours before or after the
repossession of a motor vehicle occurs: - ANSWERA)1 hours
All motor vehicle dealers and power-sports dealers must post a clear, legible sign on
their principal place of business if: - ANSWERB) they will be open less than 40 hours a
week
A dealer may issue a temporary permits for each roadworthy vehicle sold - ANSWERB)
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 - ANSWERa)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 -
ANSWERd)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? - ANSWERB)motor vehicles with out-of-state titles
The motor vehicle dealer board does not have among its members - ANSWERc)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 - ANSWER$1,000
Three of the following are characteristics of an off-premise permit. . Which one is not? -
ANSWERThe 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? - ANSWERB)
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 - ANSWERA)True
Dealers must either be self insured or have insurance for their vehicles -
ANSWERA)True
In transit plates may be used on motor vehicles - ANSWERD) 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 -
ANSWERImmediately 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 -
ANSWEREmploying a properly licensed salesperson
The only items that can be added to an advertised price are - ANSWERC) 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: -
ANSWERD)using point of sale literature in advertising
,A buyer agent may - ANSWERbe 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? -
ANSWERDelivering goods as promised
A new or used motor vehicle dealer may legally do which of the following with a
temporary permit? - ANSWERIssue a permit for a demonstration drive by a consumer
Re federal cash reporting rule requires dealers to file form 83000.... - ANSWER15 Days
A new motor vehicle has three of the following characteristics. Which one doesn't it
have? - ANSWERD) a title
A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how
many days to report conviction? - ANSWERA ) 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? -
ANSWERD) 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 ? - 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
A customer's trade- in vehicle on a financed deal may be sold - ANSWERD) only when
the financing has been approved
Wholesalers : - ANSWERC)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 - ANSWERFalse
The license of a motor vehicle salesperson or a powersports salesperson may be
denied, revoked or suspended on the following grounds - ANSWERD) all of the above
A dealer must take in the title in their own name before selling a car to retail customer -
ANSWERB) 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 - ANSWERB) False
, Records of vehicles transfers and odometer statements must be retained for: -
ANSWERC) 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 -
ANSWERB) any change in the hours of operation of the business when the business
continues full time (review)
Which of the following would indicate a motor vehicle is "used" - ANSWERA certificate
of title has been issued
A motor vehicle dealer is responsible for : - ANSWERD) all of the above
An advertisement would include - ANSWERD) all of the above
The license of a new or used dealer, wholesale auction dealer, or wholesaler may be
denied, suspended revoked or fined for the following - ANSWERD) all of the above
Which of the following is a deceptive trade practice? - ANSWERD) All of the above are
deceptive trade practices
Demonstration plates can be displayed on vehicles that are used by the dealership for
any commercial purpose - ANSWERtrue
A dealers advertising must contain the dealers licensed name and the words -
ANSWERC) dealer
Which of the following does not fit the definition of a motor vehicle dealer - ANSWERC)
someone who sells motor vehicles solely to wholesalers
Depot plates may be used during normal business hours to transport a motor vehicle -
ANSWERD ) all of the above
Licensed powersport dealers may not sell powersports on Sundays ( verify) -
ANSWERFalse
By definition an advertisement may include any commercial message on any computer
display or window, display which is delivered or made available to a customer or
prospective customer in any manner whatsoever - ANSWERTrue ( verify)
The motor Vehicle dealer board is authorized and empowered to - ANSWERD) all of the
above
The federal odometer law declares that it is unlawful to do any of the following except -
ANSWERC) to operate a motor vehicle on any street, with the intent to defraud,
knowing that the odometer is disconnected
