MASTERY EXAM CAR SALES TEST
COLORADO ACTUAL EXAM 347
QUESTIONS WITH CORRECT VERIFIED
ANSWERS ALREADY GRADED A+
LATEST AND COMPLETE VERSION
"In advertisement motor vehicle, a dealer or salesperson may - CORRECT ANSWER=> Make
reference "dealer cost" or "invoice price""
"Which of the following steps are require to properly and legally repossess a motor vehicle -
CORRECT ANSWER=> Effect a lien creating a security interest"
"Which of the following motor vehicles may be sold on Sundays? - CORRECT ANSWER=> C)Motor
Homes"
"The Motor Vehicle Dealer Board is authorized and empowered to: - CORRECT ANSWER=> issue
or deny motor vehicle dealer and salesperson licenses"
"Dealers may be administratively fined by the Dealer Board up to what amount for each
separate offense? - CORRECT ANSWER=> shall not exceed 10,000 dollars for each separate
offense"
"New and used motor vehicle dealers, wholesalers and wholesale auction dealers are required
to have a surety bond in the amount of ? - CORRECT ANSWER=> $50,000 for Dealer/
Wholesalers"
"Motor vehicle salespersons are required to have a surety bond in the amount of? - CORRECT
ANSWER=> $15,000"
Page | 1
,"Selling ___ or more vehicles or offering for sale more than ___ vehicles at the same address or
telephone number in any one calendar year, shall be prima facie evidence that - CORRECT
ANSWER=> A person is engaged in the business of selling motor vehicles."
"The definition of a used motor vehicle dealer includes which of the following? - CORRECT
ANSWER=> "Used motor vehicle dealer" means any person who, for commission or with intent
to make a profit sells used cars."
"Wholesalers may: - CORRECT ANSWER=> make a profit or gain selling to dealers and
wholesalers"
"Three of the following are characteristics of an off-premise permit. Which one is not? -
CORRECT ANSWER=> the permit could be used for a permanent second location"
"All motor vehicle dealers and used motor vehicle dealers must be open - CORRECT ANSWER=> a.
a minimum of 12 hours per week Hours of operation posted and opened at least 3 days per
week for a continuous four hours per day between 8 AM and 9 PM."
"the license of a motor vehicle salesperson may be denied, revoked, or suspended on the
following grounds except: - CORRECT ANSWER=> advertising a salvaged vehicle that identifies
that vehicle as a salvage vehicle"
"The license of a motor vehicle salesperson may be denied, revoked, or suspended on the
following grounds except: - CORRECT ANSWER=> not having a valid Colorado drivers license"
"The license of a motor vehicle salesperson may be denied, revoked, or suspended on the
following grounds except - CORRECT ANSWER=> to engage as a licensee without having in force a
good and sufficient bond with corporate surety"
"A dealer, wholesaler or salesperson who is convicted of any felony or any criminal pursuant to
Article 3, 4 or 5 of Title 18, C.R.S. (felony or criminal misdemeanor) or like crime pursuant to
federal law or law of any other state has _____ days to give the Dealer Board written notice of
such conviction? - CORRECT ANSWER=> 30 days after such conviction"
"When a salesperson voluntarily leaves or is discharged from a dealership, the dealer must
immediately return that salesperson's _________ to the Dealer Board. - CORRECT ANSWER=>
motor vehicle dealer or used motor vehicle dealer who last employed the salesperson shall
confiscate and return such salesperson's license to the board"
Page | 2
,"A salesperson can change dealerships during the licensing year provided that a Change of
Employer Notification form is submitted to the Board. It is unlawful for such sales person to act
as a motor vehicle salesperson until a new _________ is procured. - CORRECT ANSWER=> It shall
be unlawful for such salesperson to act as a motor vehicle salesperson until a new license is
procured."
"A new motor vehicle has three of the following characteristics. Which one doesn't it have? -
CORRECT ANSWER=> motor vehicle that is titled"
"Which of the following would always indicate a motor vehicle is used? - CORRECT ANSWER=> a
vehicle that is titled"
"Since 1985, the Federal Trade Commission's Used Car Rule has required that dealers
prominently and conspicuously display the __________________ on every used car or light
truck offered for sale. This is also known as the "as is" sticker. - CORRECT ANSWER=> Buyers
Guide"
"Which of the following must be identified in advertising? - CORRECT ANSWER=> all of the above"
"The only items that can be added to an advertised price are: - CORRECT ANSWER=> none of the
above"
"A dealer may advertise in which of the following manners? - CORRECT ANSWER=> d. using a
color picture in the ad that is not the same color as the actual vehicle being advertised as long
as the disclosure, "vehicle colors may vary" is included"
"A dealer's advertising must contain the dealer's licensed name and/or the word(s): - CORRECT
ANSWER=> The dealer's name or the word "dealer" must be included in the advertisement or
both name and the word "dealer" if the name appears but does not clearly reflect that the
business is a dealer."
"The Colorado Consumer Protection Act declares bait and switch advertising to be a deceptive
trade practice. Bait and switch advertising would include which of the following? - CORRECT
ANSWER=> all of the above"
"Three of the following are required to be disclosed when a dealer is advertising a closed-end
credit sale of a motor vehicle with a down payment amount, payment amount, number of
Page | 3
, payments, period of repayment or amount of finance charge. Which one is not required? -
CORRECT ANSWER=> a. tax rate"
"A dealer has how many days to deliver or facilitate delivery of title from the date of sale? -
CORRECT ANSWER=> The title or MCO must be procured by the dealer or wholesaler upon the
sale and delivery of the vehicle and delivered or mailed to the purchaser or channel mortgage
company within thirty (30) days pursuant to 42-6-112, C.R.S."
"Which of the following is not proof of ownership of a motor vehicle for a Colorado dealer? -
CORRECT ANSWER=> a signed Monroney Label"
"Which one of the following statements is true regarding dealer demo plates? - CORRECT
ANSWER=> May be displayed on vehicles for demonstration drive purposes, during normal
business hours, when a dealership employee is in the vehicle with the prospective buyer.
May be displayed on vehicles operated by a prospective buyer for demonstration drives.
Demonstration drives by a prospective purchaser shall not exceed seven calendar days.2.12 Lost
or stolen dealer plates shall be reported within seventy-two (72) hours to the local law"
"Which of the following is true regarding dealer demo plates? - CORRECT ANSWER=> dealer
demo plates may be displayed only on vehicles owned by or consigned to the dealer or
wholesaler"
"Which of the following is true regarding depot plates? - CORRECT ANSWER=> A depot plate may
be used by the dealership to transport vehicles to and from the dealer's place of business or
storage for the purpose of completing work that involves repairing, painting, upholstering,
polishing or other similar types of work on the vehicle.
A depot plate may also be used for road testing the vehicle after repair. Movement of a vehicle
using a depot plate for any purpose other than those listed above shall constitute private use."
"A new or used motor vehicle dealer may legally do which of the following with a temporary
registration permit? - CORRECT ANSWER=> issue a permit for a demonstration drive by a
consumer"
"How many temporary permits may a dealer issue for each road worthy vehicle sold - CORRECT
ANSWER=> 1"
Page | 4
COLORADO ACTUAL EXAM 347
QUESTIONS WITH CORRECT VERIFIED
ANSWERS ALREADY GRADED A+
LATEST AND COMPLETE VERSION
"In advertisement motor vehicle, a dealer or salesperson may - CORRECT ANSWER=> Make
reference "dealer cost" or "invoice price""
"Which of the following steps are require to properly and legally repossess a motor vehicle -
CORRECT ANSWER=> Effect a lien creating a security interest"
"Which of the following motor vehicles may be sold on Sundays? - CORRECT ANSWER=> C)Motor
Homes"
"The Motor Vehicle Dealer Board is authorized and empowered to: - CORRECT ANSWER=> issue
or deny motor vehicle dealer and salesperson licenses"
"Dealers may be administratively fined by the Dealer Board up to what amount for each
separate offense? - CORRECT ANSWER=> shall not exceed 10,000 dollars for each separate
offense"
"New and used motor vehicle dealers, wholesalers and wholesale auction dealers are required
to have a surety bond in the amount of ? - CORRECT ANSWER=> $50,000 for Dealer/
Wholesalers"
"Motor vehicle salespersons are required to have a surety bond in the amount of? - CORRECT
ANSWER=> $15,000"
Page | 1
,"Selling ___ or more vehicles or offering for sale more than ___ vehicles at the same address or
telephone number in any one calendar year, shall be prima facie evidence that - CORRECT
ANSWER=> A person is engaged in the business of selling motor vehicles."
"The definition of a used motor vehicle dealer includes which of the following? - CORRECT
ANSWER=> "Used motor vehicle dealer" means any person who, for commission or with intent
to make a profit sells used cars."
"Wholesalers may: - CORRECT ANSWER=> make a profit or gain selling to dealers and
wholesalers"
"Three of the following are characteristics of an off-premise permit. Which one is not? -
CORRECT ANSWER=> the permit could be used for a permanent second location"
"All motor vehicle dealers and used motor vehicle dealers must be open - CORRECT ANSWER=> a.
a minimum of 12 hours per week Hours of operation posted and opened at least 3 days per
week for a continuous four hours per day between 8 AM and 9 PM."
"the license of a motor vehicle salesperson may be denied, revoked, or suspended on the
following grounds except: - CORRECT ANSWER=> advertising a salvaged vehicle that identifies
that vehicle as a salvage vehicle"
"The license of a motor vehicle salesperson may be denied, revoked, or suspended on the
following grounds except: - CORRECT ANSWER=> not having a valid Colorado drivers license"
"The license of a motor vehicle salesperson may be denied, revoked, or suspended on the
following grounds except - CORRECT ANSWER=> to engage as a licensee without having in force a
good and sufficient bond with corporate surety"
"A dealer, wholesaler or salesperson who is convicted of any felony or any criminal pursuant to
Article 3, 4 or 5 of Title 18, C.R.S. (felony or criminal misdemeanor) or like crime pursuant to
federal law or law of any other state has _____ days to give the Dealer Board written notice of
such conviction? - CORRECT ANSWER=> 30 days after such conviction"
"When a salesperson voluntarily leaves or is discharged from a dealership, the dealer must
immediately return that salesperson's _________ to the Dealer Board. - CORRECT ANSWER=>
motor vehicle dealer or used motor vehicle dealer who last employed the salesperson shall
confiscate and return such salesperson's license to the board"
Page | 2
,"A salesperson can change dealerships during the licensing year provided that a Change of
Employer Notification form is submitted to the Board. It is unlawful for such sales person to act
as a motor vehicle salesperson until a new _________ is procured. - CORRECT ANSWER=> It shall
be unlawful for such salesperson to act as a motor vehicle salesperson until a new license is
procured."
"A new motor vehicle has three of the following characteristics. Which one doesn't it have? -
CORRECT ANSWER=> motor vehicle that is titled"
"Which of the following would always indicate a motor vehicle is used? - CORRECT ANSWER=> a
vehicle that is titled"
"Since 1985, the Federal Trade Commission's Used Car Rule has required that dealers
prominently and conspicuously display the __________________ on every used car or light
truck offered for sale. This is also known as the "as is" sticker. - CORRECT ANSWER=> Buyers
Guide"
"Which of the following must be identified in advertising? - CORRECT ANSWER=> all of the above"
"The only items that can be added to an advertised price are: - CORRECT ANSWER=> none of the
above"
"A dealer may advertise in which of the following manners? - CORRECT ANSWER=> d. using a
color picture in the ad that is not the same color as the actual vehicle being advertised as long
as the disclosure, "vehicle colors may vary" is included"
"A dealer's advertising must contain the dealer's licensed name and/or the word(s): - CORRECT
ANSWER=> The dealer's name or the word "dealer" must be included in the advertisement or
both name and the word "dealer" if the name appears but does not clearly reflect that the
business is a dealer."
"The Colorado Consumer Protection Act declares bait and switch advertising to be a deceptive
trade practice. Bait and switch advertising would include which of the following? - CORRECT
ANSWER=> all of the above"
"Three of the following are required to be disclosed when a dealer is advertising a closed-end
credit sale of a motor vehicle with a down payment amount, payment amount, number of
Page | 3
, payments, period of repayment or amount of finance charge. Which one is not required? -
CORRECT ANSWER=> a. tax rate"
"A dealer has how many days to deliver or facilitate delivery of title from the date of sale? -
CORRECT ANSWER=> The title or MCO must be procured by the dealer or wholesaler upon the
sale and delivery of the vehicle and delivered or mailed to the purchaser or channel mortgage
company within thirty (30) days pursuant to 42-6-112, C.R.S."
"Which of the following is not proof of ownership of a motor vehicle for a Colorado dealer? -
CORRECT ANSWER=> a signed Monroney Label"
"Which one of the following statements is true regarding dealer demo plates? - CORRECT
ANSWER=> May be displayed on vehicles for demonstration drive purposes, during normal
business hours, when a dealership employee is in the vehicle with the prospective buyer.
May be displayed on vehicles operated by a prospective buyer for demonstration drives.
Demonstration drives by a prospective purchaser shall not exceed seven calendar days.2.12 Lost
or stolen dealer plates shall be reported within seventy-two (72) hours to the local law"
"Which of the following is true regarding dealer demo plates? - CORRECT ANSWER=> dealer
demo plates may be displayed only on vehicles owned by or consigned to the dealer or
wholesaler"
"Which of the following is true regarding depot plates? - CORRECT ANSWER=> A depot plate may
be used by the dealership to transport vehicles to and from the dealer's place of business or
storage for the purpose of completing work that involves repairing, painting, upholstering,
polishing or other similar types of work on the vehicle.
A depot plate may also be used for road testing the vehicle after repair. Movement of a vehicle
using a depot plate for any purpose other than those listed above shall constitute private use."
"A new or used motor vehicle dealer may legally do which of the following with a temporary
registration permit? - CORRECT ANSWER=> issue a permit for a demonstration drive by a
consumer"
"How many temporary permits may a dealer issue for each road worthy vehicle sold - CORRECT
ANSWER=> 1"
Page | 4
