Mastery Exam, Car Sales Test Colorado Questions with Correct Answers 2025

Mastery Exam, Car Sales Test Colorado
Questions with Correct Answers 2025
TheVlicenseVofVaVmotorVvehicleVsalespersonVorVpower-
sportsVsalespersonVmayVbeVdenied,VrevokedVorVsuspendedVonVanyVofVtheVfollowingVgroundsVexcept:V-
VCORRECTVANSWERV-

b)VadvertisingVaVsalvagedVvehicleVwhileVidentifyingVtheVvehicleVasVaVsalvageVvehicle

AccordingVtoVcoloradoVlaw,VwhichVofVtheVfollowingVmustVbeVlicensedVasVaVmotorVvehicleVdealerVandVorVp
owersportsVdealer?V-VCORRECTVANSWERV-d)VAllVofVtheVabove

ColoradoVLemonVlawVcovers:V-VCORRECTVANSWERV-
c)defectsVthatVsubstantiallyVimpairVtheVmarketVvalueVofVaVvehicle

ThreeVofVtheVfollowingVareVrequiredVtoVbeVdisclosedVinVanVadvertisementVwhenVaVdealerVisVadvertisementV
aVclosedVendVcreditVsaleVofVaVmotherVvehicleVorVpowersports...except?V-VCORRECTVANSWERV-
d)VtaxVrate

TheVmotorVvehicleVdealerVboardVisVauthorizedVandVempoweredVto:V-VCORRECTVANSWERV-
D)allVofVtheVabove

LocalVlawVenforcementVofficersVmustVbeVnotifiedVwithinV___VhoursVbeforeVorVafterVtheVrepossessionVofVaV
motorVvehicleVoccurs:V-VCORRECTVANSWERV-A)1Vhours

AllVmotorVvehicleVdealersVandVpower-
sportsVdealersVmustVpostVaVclear,VlegibleVsignVonVtheirVprincipalVplaceVofVbusinessVif:V-
VCORRECTVANSWERV-B)VtheyVwillVbeVopenVlessVthanV40VhoursVaVweek




AVdealerVmayVissueVaVtemporaryVpermitsVforVeachVroadworthyVvehicleVsoldV-VCORRECTVANSWERV-
B)VfalseV(verify)

TheVmotorVvehicleVdealerVboardVmayVbeVdecideVhowVlargeVaVfineVtoVimposeVonVaVdealerVwhoVsellsVprimar
ilyVvehiclesVthatVweighV1,500VpoundsVorVmoreVsoVlongVasVitVdoesVnotVexceedV5kV-
VCORRECTVANSWERV-a)TrueV(verify)




TheVColorado'sVconsumerVprotectionVactVdeclaresVbaitVandVswitchVadvertisingVtoVbeVdeceptiveVtradeVpract
ice.VBaitVandVswitchVadvertisingVincludesVwhichVofVtheVfollowingV-VCORRECTVANSWERV-
d)allVofVtheVabove

ThreeVofVtheVfollowingVtypesVofVmotorVvehiclesVareVexemptVfromVtheVtruthVinVmileageVact.VWhichVoneVisV
notVexempt?V-VCORRECTVANSWERV-B)motorVvehiclesVwithVout-of-stateVtitles

TheVmotorVvehicleVdealerVboardVdoesVnotVhaveVamongVitsVmembersV-VCORRECTVANSWERV-
c)threeVemployeesVfromVtheVenforcementVdivision

WhatVisVtheVhighestVfineVperVoffenseVthatVtheVmotorVvehicleVdealerVboardVorVanVadministrativeVlawVjudgeV
mayVimposeVonVaVdealerV,VwhoVsellsVprimarilyVvehiclesVthatVweighVlessVthanV1,500VpoundsV-

,CORRECTVANSWERV-$1,000
V




ThreeVofVtheVfollowingVareVcharacteristicsVofVanVoff-premiseVpermit.V.VWhichVoneVisVnot?V-
VCORRECTVANSWERV-

TheVpermitVcannotVexceedVsixVdaysVexceptVforVtheVnationalVwesternVstockVshow,VtheVcoloradoVstateVfair,V
greelyVstampede

WhichVofVtheVfollowingVisVaVtrueVstatementVregardingVdealersVandVbuyers?V-VCORRECTVANSWERV-
B)VaVdealerVshallVclearlyVindicateVonVtheVcostumerVcontractVwhenVaVvehicleVsoldV"asVis"VandVwithoutVaVgu
arantee

WhenVadvertisingVaVspecificVnumberVofVmotorVvehiclesVthatVsameVnumberVofVvehiclesVmustVhaveVbeenVin
voicedVtoVtheVdealerV-VCORRECTVANSWERV-A)True

DealersVmustVeitherVbeVselfVinsuredVorVhaveVinsuranceVforVtheirVvehiclesV-VCORRECTVANSWERV-
A)True

InVtransitVplatesVmayVbeVusedVonVmotorVvehiclesV-VCORRECTVANSWERV-
D)VconsignedVtoVwholesaleVauctionVdealersVforVtransportVfromVpointVofVpurchaseVtoVpointVofVstorage

WhenVaVsalespersonVleavesVaVdealer,VthatVdealerVmustVdoVallVofVtheVfollowingVexceptV-
VCORRECTVANSWERV-ImmediatelyVemployVaVnewVsalesperson,VlicensedVorVnot



TheVlicenseVofVaVnewVorVusedVdealer,VwholesaleVauctionVdealerVorVwholesalerVmayVbeVdeniedVsuspended,V
revokedVorVfinedVforVallVofVtheVfollowingVgroundsVexceptV-VCORRECTVANSWERV-
EmployingVaVproperlyVlicensedVsalesperson

TheVonlyVitemsVthatVcanVbeVaddedVtoVanVadvertisedVpriceVareV-VCORRECTVANSWERV-
C)VDealerVhandlingVandVpreparationVcharges

TheVlicenseVofVaVmotorVvehicleVsalespersonVorVaVpowersportsVsalespersonVmayVbeVdenied,Vrevoked,VorVsu
spendedVonVanyVofVtheVfollowingVgroundsVexcept:V-VCORRECTVANSWERV-
D)usingVpointVofVsaleVliteratureVinVadvertising

AVbuyerVagentVmayV-VCORRECTVANSWERV-
beVretainedVorVhiredVbyVaVconsumerVtoVassist,Vrepresent,VorVactVonVbehalfVofVsuch
consumerVinVconnectionVwithVtheVpurchaseVorVleaseVofVaVmotorVvehicle

ThreeVofVtheVfollowingVareVdeceptiveVtradeVpractices.VWhichVofVtheVfollowingVisVnot?V-
VCORRECTVANSWERV-DeliveringVgoodsVasVpromised




AVnewVorVusedVmotorVvehicleVdealerVmayVlegallyVdoVwhichVofVtheVfollowingVwithVaVtemporaryVpermit?V-
VCORRECTVANSWERV-IssueVaVpermitVforVaVdemonstrationVdriveVbyVaVconsumer




ReVfederalVcashVreportingVruleVrequiresVdealersVtoVfileVformV83000....V-VCORRECTVANSWERV-15VDays

AVnewVmotorVvehicleVhasVthreeVofVtheVfollowingVcharacteristics.VWhichVoneVdoesn'tVitVhave?V-
VCORRECTVANSWERV-D)VaVtitle




AVdealerVwholesalerVorVsalespersonsVconvictedVofVanyVfelonyVorVanyVcrime..VHasVhowVmanyVdaysVtoVrep
ortVconviction?V-VCORRECTVANSWERV-AV)V30VDays

,ThreeVofVtheVfollowingVareVrequireVwhenVaVdealerVisVadvertisingVaVleaseVofVaVaVmotorVvehicleVorVpowersp
ortsVvehicleVwithVaVpaymentVamountVwhichVoneVisVnotVrequired?V-VCORRECTVANSWERV-
D)VdisclosingVtheVcostVofVleasingVversusVtheVcostVofVpurchasing

TheVdefinitionVofVaVusedVmotherVvehicleVdealerVorVusedVpowersportsVdealerVincludesVwhichVofVtheVfollow
ingV?V-VCORRECTVANSWERV-
AVpersonVwhoVattemptsVtoVnegotiateVaVsaleVorVleaseVofVaVusedVmotorVvehicleVorVpowersportsVvehicleVwith
VtheVintentVtoVmakeVaVprofitVorVgain




AVcustomer'sVtrade-VinVvehicleVonVaVfinancedVdealVmayVbeVsoldV-VCORRECTVANSWERV-
D)VonlyVwhenVtheVfinancingVhasVbeenVapproved

WholesalersV:V-VCORRECTVANSWERV-
C)mustVuseVaVnameVotherVthanVtheirVpersonalVnameVonVallVbusinessVdocuments

AVdealerVisVrequiredVtoVhaveVonVfileVtheVlicensesVofVeachVofVtheirVemployedVsalespersonsVbutVneedVnotVdi
splayVthemVinVtheirVplaceVofVbusinessV-VCORRECTVANSWERV-False

TheVlicenseVofVaVmotorVvehicleVsalespersonVorVaVpowersportsVsalespersonVmayVbeVdenied,VrevokedVorVsus
pendedVonVtheVfollowingVgroundsV-VCORRECTVANSWERV-D)VallVofVtheVabove

AVdealerVmustVtakeVinVtheVtitleVinVtheirVownVnameVbeforeVsellingVaVcarVtoVretailVcustomerV-
VCORRECTVANSWERV-B)VFalse




AVsalespersonVcanVchangeVdealershipsVduringVtheVlicensingVyearVprovidedVthatVtheVcorrectVformVandVfeeVi
sVsubmittedVtoVtheVboardVsuchVsalesVpersonVmayVbeginVworkVasVaVmotorVvehicleVsalespersonsVorVpowersp
ortsVsalespersonVwhileVawaitingVaVnewVlicenseVfromVtheVboardV-VCORRECTVANSWERV-B)VFalse

RecordsVofVvehiclesVtransfersVandVodometerVstatementsVmustVbeVretainedVfor:V-VCORRECTVANSWERV-
C)V5Vyear

MotorVvehicleVdealers,VpowersportVdealers,VusedVmotorVvehicleVdealers,VusedVpowersportsVdealersVorVwh
olesalersVareVnotVrequiredVtoVreportVtoVtheVdealerVboardV-VCORRECTVANSWERV-
B)VanyVchangeVinVtheVhoursVofVoperationVofVtheVbusinessVwhenVtheVbusinessVcontinuesVfullVtimeV(review)

WhichVofVtheVfollowingVwouldVindicateVaVmotorVvehicleVisV"used"V-VCORRECTVANSWERV-
AVcertificateVofVtitleVhasVbeenVissued

AVmotorVvehicleVdealerVisVresponsibleVforV:V-VCORRECTVANSWERV-D)VallVofVtheVabove

AnVadvertisementVwouldVincludeV-VCORRECTVANSWERV-D)VallVofVtheVabove

TheVlicenseVofVaVnewVorVusedVdealer,VwholesaleVauctionVdealer,VorVwholesalerVmayVbeVdenied,Vsuspended
VrevokedVorVfinedVforVtheVfollowingV-VCORRECTVANSWERV-D)VallVofVtheVabove




WhichVofVtheVfollowingVisVaVdeceptiveVtradeVpractice?V-VCORRECTVANSWERV-
D)VAllVofVtheVaboveVareVdeceptiveVtradeVpractices

DemonstrationVplatesVcanVbeVdisplayedVonVvehiclesVthatVareVusedVbyVtheVdealershipVforVanyVcommercialV
purposeV-VCORRECTVANSWERV-true

, AVdealersVadvertisingVmustVcontainVtheVdealersVlicensedVnameVandVtheVwordsV-VCORRECTVANSWERV-
C)Vdealer

WhichVofVtheVfollowingVdoesVnotVfitVtheVdefinitionVofVaVmotorVvehicleVdealerV-VCORRECTVANSWERV-
C)VsomeoneVwhoVsellsVmotorVvehiclesVsolelyVtoVwholesalers

DepotVplatesVmayVbeVusedVduringVnormalVbusinessVhoursVtoVtransportVaVmotorVvehicleV-
VCORRECTVANSWERV-DV)VallVofVtheVabove




LicensedVpowersportVdealersVmayVnotVsellVpowersportsVonVSundaysV(Vverify)V-VCORRECTVANSWERV-
False

ByVdefinitionVanVadvertisementVmayVincludeVanyVcommercialVmessageVonVanyVcomputerVdisplayVorVwind
ow,VdisplayVwhichVisVdeliveredVorVmadeVavailableVtoVaVcustomerVorVprospectiveVcustomerVinVanyVmanner
VwhatsoeverV-VCORRECTVANSWERV-TrueV(Vverify)




TheVmotorVVehicleVdealerVboardVisVauthorizedVandVempoweredVtoV-VCORRECTVANSWERV-
D)VallVofVtheVabove

TheVfederalVodometerVlawVdeclaresVthatVitVisVunlawfulVtoVdoVanyVofVtheVfollowingVexceptV-
VCORRECTVANSWERV-

C)VtoVoperateVaVmotorVvehicleVonVanyVstreet,VwithVtheVintentVtoVdefraud,VknowingVthatVtheVodometerVisVdi
sconnected

DealerVdemoVplatesVmayVbeVusedVonVmotorVvehiclesV-VCORRECTVANSWERV-
D)VproperlyVassignedVinVtheVnameVofVtheVdealership

NewVandVusedVmotorVvehicleVdealers,VpowersportsVdealers,VandVwholesaleVauctionVdealersVareVrequiredVt
oVhaveVaVsuretyVbondV-VCORRECTVANSWERV-D)VallVofVtheVabove

MotorVvehicleVandVpowersportVsalespeopleVareVrequiredVtoVhaveVaVsuretyVbondVinVtheVamountVofV:V-
VCORRECTVANSWERV-15k$




TheVbuyersVguideVorV"asVis"VstickerVmustVbeV-VCORRECTVANSWERV-
ProvidedVtoVaVcustomerVinVanotherVlanguageVthanVEnglish

InVadvertisementVmotorVvehicle,VaVdealerVorVsalespersonVmayV-VCORRECTVANSWERV-
MakeVreferenceV"dealerVcost"VorV"invoiceVprice"

WhichVofVtheVfollowingVstepsVareVrequireVtoVproperlyVandVlegallyVrepossessVaVmotorVvehicleV-
VCORRECTVANSWERV-EffectVaVlienVcreatingVaVsecurityVinterest




WhichVofVtheVfollowingVmotorVvehiclesVmayVbeVsoldVonVSundays?V-VCORRECTVANSWERV-
C)MotorVHomes

TheVMotorVVehicleVDealerVBoardVisVauthorizedVandVempoweredVto:V-VCORRECTVANSWERV-
issueVorVdenyVmotorVvehicleVdealerVandVsalespersonVlicenses

DealersVmayVbeVadministrativelyVfinedVbyVtheVDealerVBoardVupVtoVwhatVamountVforVeachVseparateVoffens
e?V-VCORRECTVANSWERV-shallVnotVexceedV10,000VdollarsVforVeachVseparateVoffense