State of Colorado Sales License Exam Test with Correct and Verified Answers

State of Colorado Sales License Exam Test with Correct and Verified Answers "Which of the following statements is true regarding dealer demo plates? - Correct answer a demo drive cannot exceed 7 days" "Colorado Lemon Law includes: - Correct answer defects that substantially impair the market value of the vehicle" "Motor vehicle insurance is required: - Correct answer for all registered vehicles intended for use on colorado roads" "Which is true regarding in-transit plates? - Correct answer 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? - Correct answer The selling of boat trailers and snowmobile are exempt" "Which of the following steps are required to properly and legally repossess a motor vehicle? - Correct answer 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" "An advertisement may include - Correct answer licensed name with the word DEALER" "which of the following is a used vehicle? - Correct answer any vehicle that has been previously bought a demo vehicle with 1500 miles" "Which of the following are deceptive trade practices? - Correct answer All of the above Bait and switch" "How many temp permits may a dealer issue for each roadworthy vehicle sold? - Correct answer 1 An extension can only be issued but the DMV" "Depot plates may be used during normal business hours to transport a motor vehicle - Correct answer 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 - Correct answer ~Amount or percentage of the down payment ~terms of repayment (car payment date) ~Annual percentage rate (interest rate of the loan)" "which is NOT required when advertising a lease? - Correct answer disclosing the cost of lease vs purchasing" "Prominently and conspicuously display the ________? - Correct answer FTC Buyer's Guide" "A temp registration permit may be issued: - Correct answer -for 60 days in a B2C sale-for 7 days in a B2B sale" "Motor Vehicle salesmen are required to have a surety bond in the amount of $30k - Correct answer False, $15,000" "If a salesperson leaves a dealership during the licensing year and becomes employed at another dealership they must acquire a new license for the unexpired portion of their returned license from the board - Correct answer TRUE" "A Motor Vehicle salesperson may work for more than 1 dealership during one year - Correct answer TRUE" "All Motor Vehicle dealers and dealers must post a clear legible sign on their place of business if: - Correct answer they will be open less than 40 hours per week" "A Motor vehicle salesman can be personally liable for any proven claim or judgement in excess of their surety bond - Correct answer TRUE" Three of the following types of motor vehicles are exempt from the truth in mileage act. - Correct answer ~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? - 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" "The Motor Vehicle Board is authorized and empowered to: - Correct answer 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 - Correct answer TRUE" "bait and switch is - Correct answer 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 - Correct answer TRUE" "By obtaining an off-premise permit, dealers may sell motor vehicles at another location on Sunday - Correct answer FALSE - NO Sale of vehicle should be done on Sundays" "Licensed Motor vehicle dealers - Correct answer must be open for business at least three (3)days per week for a continuous period of time not less than four (4) hours per day between the hours of8 a.m. and 9 p.m." "The license of a new or used dealer/wholesale/auctioneer/ may be denied/suspended/revoked/fined for all the following except: - Correct answer attempting to negotiate the sale or lease of a Motor vehicle with intent to make profit or gain" "Federal odometer law declares it unlawful to do the following: - Correct answer operate Motor vehicle on any street with intent to defraud knowing the odometer is disconnected" "A dealer has how many days to facilitate delivery from the date of sale? - Correct answer 30 Days" "Which of the following is NOT proof of ownership for a Motor Vehicle for a CO dealer? - Correct answer a vehicle subject to a lien on the title" "a dealers ad must contain the dealers licensed name and the words - Correct answer Dealer" "federal cash reporting requires dealers to file form 8300 with IRS within how many days of receiving $10,000 cash? - Correct answer 15 days" "Wholesalers may? - Correct answer Sell to dealers and other wholesalers or Make a profit or gain selling to dealers and wholesalers" "The license of a Motor vehicle salesman may be revoked/suspended on the following grounds: - Correct answer Violating any of the terms and provisions" "The license of a Motor vehicle salesman may be revoked/suspended on all grounds EXCEPT: - Correct answer advertising a salvaged vehicle while identifying that vehicle as salvaged" "The advertised price of a Motor vehicle must include: - Correct answer dealer handling and preparation charges" "Which must remain in the window of a new motor vehicle until its sold to the ultimate purchaser? - Correct answer Moroney label" "A Motor vehicle dealer, wholesaler, or salesperson must give Dealer Board written notice of - Correct answer If hours of business are going to change" "Motor vehicles with demo plates may be loaned to charity organizations and celebrities - Correct answer False" "Which is a false statement regarding dealers and buyers - Correct answer A dealer must offer a warranty on all motor vehicles sold" "in addition to possible dealer bond sanctions, if a dealer/salesperson uses bait & switch it is a class 2 misdemeanor with 12 months maximum jailtime and $1,000 fine or both - Correct answer TRUE" "What is the highest fine per offense the dealer board may impose on dealers who sell vehicles less than 1500 lbs? - Correct answer $500" "The license of a Motor vehicle salesperson or PWSPT may be denied/revoked/suspended on any of the following grounds except - Correct answer improperly withholding/misappropriating/converting to ones own use any money belonging to customers or any persons received in employment as a salesperson" "Records of vehicle transfers and odometer statements must be kept for 5 years - Correct answer TRUE" "An advertisement would NOT include - Correct answer a salesperson's verbal statement of the MSRP" "A dealer is not responsible for taking written action to attempt to correct a misleading advertisement placed by a manufacturer if the advertisement contains the dealers name - Correct answer False" "Which is true of the Colorado Lemon Law? - Correct 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 or 1 year from date of delivery" "When advertising terms price conditions of sale of a car, dealers may use the term: - Correct answer "With approved credit"" "according to Colorado law motor vehicle leasing companies do not need a motor vehicle dealers license - Correct answer False" "The License of a motor vehicle salesperson may be denied revoked or suspended on the following grounds - Correct answer Unfitness of character breaking law false info etc." "An off-premise permit: - Correct answer Must be readily available for inspection at the sale" "Prima Facie is - Correct answer Evidence at face value" "According to Colorado law, which of the following must be licensed as a motor vehicle dealer and or powersports dealer? - Correct answer All of the above" "Colorado Lemon law covers: - Correct answer defects that substantially impair the market value of a vehicle" "A dealer may issue a temporary permits for each roadworthy vehicle sold - Correct answer FALSE" "The Colorado consumer protection act declares bait and switch advertising to be deceptive trade practice. Bait and switch advertising includes which of the following - Correct answer 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 motor vehicles with out-of-state titles" "The motor vehicle dealer board does not have among its members - Correct answer three employees from the enforcement division" "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 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 True" "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 motor vehicle salesperson or a powersports salesperson may be denied, revoked, or suspended on any of the following grounds except: - Correct answer using point of sale literature in advertising" "A new or used motor vehicle dealer may legally do which of the following with a temporary permit? - Correct answer issue a permit upon the sale of a motor vehicle to another dealer" "A new motor vehicle has three of the following characteristics. Which one doesn't it have? - Correct answer A title" "A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how many days to report conviction? - Correct answer 30 Days" "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" "Wholesalers: - Correct answer 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" "A dealer must take in the title in their own name before selling a car to a retail customer - Correct answer 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 False" "Which of the following is acceptable proof of ownership of a motor vehicle for a Colorado dealer? - Correct answer A vehicle subject to a lien on the tile" "Records of vehicles transfers and odometer statements must be retained for: - Correct answer 5 years" "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 all of the above" "An advertisement would include - Correct answer All of the above" "Which of the following is a deceptive trade practice? - Correct answer All of the above" "Demo plates can be displayed on vehicles that are used by the dealership for any commercial purpose - Correct answer True" "Which of the following does not fit the definition of a motor vehicle dealer - Correct answer someone who sells motor vehicles solely to wholesalers" "Depot plates may be used during normal business hours to transport a motor vehicle - Correct answer All of the above" "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" "The federal odometer law declares that it is unlawful to do any of the following except - Correct answer 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 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 All of the above" "Motor vehicle and powersport salespeople are required to have a surety bond in the amount of : - Correct answer $15,000" "Which of the following steps are require to properly and legally repossess a mother vehicle - Correct answer Effect a lien creating a security interest" "Which of the following motor vehicles may be sold on Sundays? - Correct answer Snowmobiles" "Which of the following is considered a violation of the truth in mileage act? - Correct 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" "All motor vehicle dealers and powersports dealers must be open: - Correct answer A minimum of 12 hours per week" "Full-use dealer plates can be displayed on all vehicles owned and offered for sale by a dealer or wholesaler, except those that are used on tow vehicles or parts delivery/pickup vehicles. - Correct answer FALSE" "When a salesperson leaves a dealer, that dealer must return that salespersons license to the Auto Industry Division. - Correct answer False" "Which of the following is not true about members of the Motor Vehicle Dealer board? - Correct answer public members must have been a motor vehicle dealer" "Which of the following is true regarding depot plates? - Correct answer depot plates may be used by a dealer to road test a vehicle after repair" "Motor vehicle dealers, powersports dealers, used motor vehicle dealers, used powersports dealers, or wholesalers are not required to report to the dealer board: - Correct answer any change in the hours of operation of the business when the business continues full time" "according to Colorado law which does NOT need to be licensed as a motor vehicle dealer? - Correct answer All of the above" "The Motor Vehicle Dealer Board does NOT have among its members: - Correct answer Three employees from the dept. of revenue" "A buyer agent - Correct answer is retained or hired by a consumer to assist/represent/act on behalf of such consumer in connection with the purchase of lease of a Motor vehicle" "Local law enforcement agencies must be notified within 4 hours after the repossession of a Motor Vehicle - Correct answer False 1 hour" "The license of a new or used dealer/Wholesaler may be denied/suspended /revoked /fined for the following - Correct answer Making a material misstatement in an application of license" "A customer's trade-in vehicle on a financed deal may be sold - Correct answer Only when the financing has been approved and the contract binding has been signed" "Which is NOT required when advertising a closed end credit sale? - Correct answer Tax Rate" "Which is not a deceptive trade practice? - Correct answer Disclosing to the purchaser in writing prior to the sale that a vehicle is a salvage" "The Motor Vehicle dealer board may decide how large a fine to impose on a dealer who sells vehicles 1500lbs, as long as it does not exceed $5,000 - Correct answer False $10,000" "The Motor Vehicle Dealer board is authorized and empowered to - Correct answer All of the above -propose fees -order hearing -investigate" "the following must be conspicuously displayed in the dealers place of business? - Correct answer all of the above -license of dealer -salesmen licenses -name of dealership license"