STATE OF COLORADO SALES LICENSE TEST
WITH ALL CORRECT & VERIFIED ANSWERS
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
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
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
WITH ALL CORRECT & VERIFIED ANSWERS
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
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
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
