COLORADO CAR SALES MASTERY EXAM NEWEST 2025 ACTUAL EXAM 230
QUESTIONS AND CORRECT DETAILED ANSWERS [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: - 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)
, Which of the following would indicate a motor vehicle is "used" - CORRECT ANSWER -
A certificate of title has been issued
A motor vehicle dealer is responsible for : - CORRECT ANSWER - D) all of the above
An advertisement would include - CORRECT ANSWER - D) 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 - CORRECT ANSWER - D) all of
the above
Which of the following is a deceptive trade practice? - CORRECT ANSWER - D) 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 - CORRECT ANSWER - true
A dealers advertising must contain the dealers licensed name and the words -
CORRECT ANSWER - C) dealer
Which of the following does not fit the definition of a motor vehicle dealer - CORRECT
ANSWER - C) someone who sells motor vehicles solely to wholesalers
Depot plates may be used during normal business hours to transport a motor vehicle -
CORRECT ANSWER - D ) all of the above
Licensed powersport dealers may not sell powersports on Sundays ( verify) -
CORRECT ANSWER - False
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 - CORRECT ANSWER - True ( verify)
The motor Vehicle dealer board is authorized and empowered to - CORRECT
ANSWER - D) all of the above
The federal odometer law declares that it is unlawful to do any of the following except -
CORRECT ANSWER - C) to operate a motor vehicle on any street, with the intent to
defraud, knowing that the odometer is disconnected
Dealer demo plates may be used on motor vehicles - CORRECT ANSWER - D)
properly assigned in the name of the dealership
New and used motor vehicle dealers, powersports dealers, and wholesale auction
dealers are required to have a surety bond - CORRECT ANSWER - D) all of the above
QUESTIONS AND CORRECT DETAILED ANSWERS [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: - 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)
, Which of the following would indicate a motor vehicle is "used" - CORRECT ANSWER -
A certificate of title has been issued
A motor vehicle dealer is responsible for : - CORRECT ANSWER - D) all of the above
An advertisement would include - CORRECT ANSWER - D) 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 - CORRECT ANSWER - D) all of
the above
Which of the following is a deceptive trade practice? - CORRECT ANSWER - D) 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 - CORRECT ANSWER - true
A dealers advertising must contain the dealers licensed name and the words -
CORRECT ANSWER - C) dealer
Which of the following does not fit the definition of a motor vehicle dealer - CORRECT
ANSWER - C) someone who sells motor vehicles solely to wholesalers
Depot plates may be used during normal business hours to transport a motor vehicle -
CORRECT ANSWER - D ) all of the above
Licensed powersport dealers may not sell powersports on Sundays ( verify) -
CORRECT ANSWER - False
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 - CORRECT ANSWER - True ( verify)
The motor Vehicle dealer board is authorized and empowered to - CORRECT
ANSWER - D) all of the above
The federal odometer law declares that it is unlawful to do any of the following except -
CORRECT ANSWER - C) to operate a motor vehicle on any street, with the intent to
defraud, knowing that the odometer is disconnected
Dealer demo plates may be used on motor vehicles - CORRECT ANSWER - D)
properly assigned in the name of the dealership
New and used motor vehicle dealers, powersports dealers, and wholesale auction
dealers are required to have a surety bond - CORRECT ANSWER - D) all of the above
