State of Colorado Sales License Test Questions with Verified
Answers Graded A+
Three of the following types of motor vehicles are
exempt from the truth in mileage act. -
ANSWER -~Vehicles 10 years old or
older~Vehicles having a gross empty weight By obtaining an off-premise permit, dealers may
more than 10,000 lbs~Vehicles not self propelled sell motor vehicles at another location on Sunday
(Trailers) - ANSWER -FALSE - NO Sale of vehicle
should be done on Sundays
The definition of a used motor vehicle dealer or
used dealer includes which of the following? - Which of the following statements is true
ANSWER -a person who attempts to regarding dealer demo plates? - ANSWER -
negotiate a sale or lease of a used motor vehicle a demo drive cannot exceed 7 days
or powersports vehicle with the intent to make a
profit or gain
Colorado Lemon Law includes: -
ANSWER -defects that substantially impair
The Motor Vehicle Board is authorized and the market value of the vehicle
empowered to: - ANSWER -All Of The
Above
~Amend and repeal rules, regulations and
previsions Motor vehicle insurance is required: -
ANSWER -for all registered vehicles
intended for use on colorado roads
When advertising a specific number of motor
vehicles, that same number of vehicles must be
invoiced to the dealer - ANSWER -TRUE Which is true regarding in-transit plates? -
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
bait and switch is - ANSWER -ad that
attracts consumers with a low-priced product,
then tries to sell them a higher-priced product
Licensed dealers may sell which of the following
on Sundays? - ANSWER -The selling of
boat trailers and snowmobile are exempt
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 Which of the following steps are required to
business of selling or leasing motor vehicles - properly and legally repossess a motor vehicle? -
ANSWER -TRUE ANSWER -effect a lien creating a security
1/9
, State of Colorado Sales License Test Questions with Verified
Answers Graded A+
interest, Allow the required payment to default ~Annual percentage rate (interest rate of the
(become at least 10 days late), send or hand loan)
deliver a "right to cure" letter to the debtor and
allow the debtor 20 days to cure
which is NOT required when advertising a lease?
- ANSWER -disclosing the cost of lease vs
An advertisement may include - ANSWER - purchasing
licensed name with the word DEALER
Prominently and conspicuously display the
which of the following is a used vehicle? - ________? - ANSWER -FTC Buyer's Guide
ANSWER -any vehicle that has been
previously bought a demo vehicle with 1500
miles
A temp registration permit may be issued: -
ANSWER --for 60 days in a B2C sale-for 7
days in a B2B sale
Which of the following are deceptive trade
practices? - ANSWER -All of the above
Bait and switch
Motor Vehicle salesmen are required to have a
surety bond in the amount of $30k -
ANSWER -False, $15,000
How many temp permits may a dealer issue for
each roadworthy vehicle sold? - ANSWER -
1
An extension can only be issued but the DMV 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
Depot plates may be used during normal from the board - ANSWER -TRUE
business hours to transport a motor vehicle -
ANSWER -all of the above
All plates
A Motor Vehicle salesperson may work for more
than 1 dealership during one year -
ANSWER -TRUE
Three of the following are required when a dealer
is advertising a lease of a motor vehicle with a
payment amount - ANSWER -~Amount or
percentage of the down payment All Motor Vehicle dealers and dealers must post
~terms of repayment (car payment date) a clear legible sign on their place of business if: -
2/9
Answers Graded A+
Three of the following types of motor vehicles are
exempt from the truth in mileage act. -
ANSWER -~Vehicles 10 years old or
older~Vehicles having a gross empty weight By obtaining an off-premise permit, dealers may
more than 10,000 lbs~Vehicles not self propelled sell motor vehicles at another location on Sunday
(Trailers) - ANSWER -FALSE - NO Sale of vehicle
should be done on Sundays
The definition of a used motor vehicle dealer or
used dealer includes which of the following? - Which of the following statements is true
ANSWER -a person who attempts to regarding dealer demo plates? - ANSWER -
negotiate a sale or lease of a used motor vehicle a demo drive cannot exceed 7 days
or powersports vehicle with the intent to make a
profit or gain
Colorado Lemon Law includes: -
ANSWER -defects that substantially impair
The Motor Vehicle Board is authorized and the market value of the vehicle
empowered to: - ANSWER -All Of The
Above
~Amend and repeal rules, regulations and
previsions Motor vehicle insurance is required: -
ANSWER -for all registered vehicles
intended for use on colorado roads
When advertising a specific number of motor
vehicles, that same number of vehicles must be
invoiced to the dealer - ANSWER -TRUE Which is true regarding in-transit plates? -
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
bait and switch is - ANSWER -ad that
attracts consumers with a low-priced product,
then tries to sell them a higher-priced product
Licensed dealers may sell which of the following
on Sundays? - ANSWER -The selling of
boat trailers and snowmobile are exempt
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 Which of the following steps are required to
business of selling or leasing motor vehicles - properly and legally repossess a motor vehicle? -
ANSWER -TRUE ANSWER -effect a lien creating a security
1/9
, State of Colorado Sales License Test Questions with Verified
Answers Graded A+
interest, Allow the required payment to default ~Annual percentage rate (interest rate of the
(become at least 10 days late), send or hand loan)
deliver a "right to cure" letter to the debtor and
allow the debtor 20 days to cure
which is NOT required when advertising a lease?
- ANSWER -disclosing the cost of lease vs
An advertisement may include - ANSWER - purchasing
licensed name with the word DEALER
Prominently and conspicuously display the
which of the following is a used vehicle? - ________? - ANSWER -FTC Buyer's Guide
ANSWER -any vehicle that has been
previously bought a demo vehicle with 1500
miles
A temp registration permit may be issued: -
ANSWER --for 60 days in a B2C sale-for 7
days in a B2B sale
Which of the following are deceptive trade
practices? - ANSWER -All of the above
Bait and switch
Motor Vehicle salesmen are required to have a
surety bond in the amount of $30k -
ANSWER -False, $15,000
How many temp permits may a dealer issue for
each roadworthy vehicle sold? - ANSWER -
1
An extension can only be issued but the DMV 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
Depot plates may be used during normal from the board - ANSWER -TRUE
business hours to transport a motor vehicle -
ANSWER -all of the above
All plates
A Motor Vehicle salesperson may work for more
than 1 dealership during one year -
ANSWER -TRUE
Three of the following are required when a dealer
is advertising a lease of a motor vehicle with a
payment amount - ANSWER -~Amount or
percentage of the down payment All Motor Vehicle dealers and dealers must post
~terms of repayment (car payment date) a clear legible sign on their place of business if: -
2/9
