STATE OF COLORADO SALES LICENSE
TEST
Questions and Answers
1. Three of the following types of motor vehicles are exempt from
the truth in mileage act.: ~Vehicles 10 years old or older~Vehicles having a gross
empty weight more than 10,000 lbs~Vehicles not self propelled (Trailers)
2. The definition of a used motor vehicle dealer or used dealer
includes which of the following?: 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
3. The Motor Vehicle Board is authorized and empowered to:: All Of The
Above
~Amend and repeal rules, regulations and previsions
4. When advertising a specific number of motor vehicles, that same
number of vehicles must be invoiced to the dealer: TRUE
5. bait and switch is: ad that attracts consumers with a low-priced product, then tries to sell
them a high- er-priced product
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,6. 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: TRUE
7. By obtaining an off-premise permit, dealers may sell motor
vehicles at anoth- er location on Sunday: FALSE - NO Sale of vehicle should be done
on Sundays
8. Which of the following statements is true regarding dealer demo
plates?: a demo drive cannot exceed 7 days
9. Colorado Lemon Law includes:: defects that substantially impair the market value of the
vehicle
10. Motor vehicle insurance is required:: for all registered vehicles intended
for use on colorado roads
11. Which is true regarding in-transit plates?: 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
12. Licensed dealers may sell which of the following on Sundays?:
The selling of boat trailers and snowmobile are exempt
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, 13. Which of the following steps are required to properly and
legally repossess a motor vehicle?: 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
14. An advertisement may include: licensed name with the word DEALER
15. which of the following is a used vehicle?: any vehicle that has been
previously bought a demo vehicle with 1500 miles
16. Which of the following are deceptive trade practices?:
All of the above Bait and switch
17. How many temp permits may a dealer issue for each
roadworthy vehicle sold?: 1
An extension can only be issued but the DMV
18. Depot plates may be used during normal business hours to
transport a motor vehicle: all of the above
All plates
19. Three of the following are required when a dealer is
advertising a lease of a motor vehicle with a payment amount: ~Amount or
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TEST
Questions and Answers
1. Three of the following types of motor vehicles are exempt from
the truth in mileage act.: ~Vehicles 10 years old or older~Vehicles having a gross
empty weight more than 10,000 lbs~Vehicles not self propelled (Trailers)
2. The definition of a used motor vehicle dealer or used dealer
includes which of the following?: 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
3. The Motor Vehicle Board is authorized and empowered to:: All Of The
Above
~Amend and repeal rules, regulations and previsions
4. When advertising a specific number of motor vehicles, that same
number of vehicles must be invoiced to the dealer: TRUE
5. bait and switch is: ad that attracts consumers with a low-priced product, then tries to sell
them a high- er-priced product
1/
16
,6. 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: TRUE
7. By obtaining an off-premise permit, dealers may sell motor
vehicles at anoth- er location on Sunday: FALSE - NO Sale of vehicle should be done
on Sundays
8. Which of the following statements is true regarding dealer demo
plates?: a demo drive cannot exceed 7 days
9. Colorado Lemon Law includes:: defects that substantially impair the market value of the
vehicle
10. Motor vehicle insurance is required:: for all registered vehicles intended
for use on colorado roads
11. Which is true regarding in-transit plates?: 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
12. Licensed dealers may sell which of the following on Sundays?:
The selling of boat trailers and snowmobile are exempt
2/
16
, 13. Which of the following steps are required to properly and
legally repossess a motor vehicle?: 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
14. An advertisement may include: licensed name with the word DEALER
15. which of the following is a used vehicle?: any vehicle that has been
previously bought a demo vehicle with 1500 miles
16. Which of the following are deceptive trade practices?:
All of the above Bait and switch
17. How many temp permits may a dealer issue for each
roadworthy vehicle sold?: 1
An extension can only be issued but the DMV
18. Depot plates may be used during normal business hours to
transport a motor vehicle: all of the above
All plates
19. Three of the following are required when a dealer is
advertising a lease of a motor vehicle with a payment amount: ~Amount or
3/
16
