COLORADO CAR SALES MASTERY EXAM 2026 UPDATE
QUESTIONS AND CORRECT VERIFIED ANSWERS ALREADY
GRADED A+ (BRAND NEW VISION)
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. - ANS-Buyers Guide
Which of the following must be identified in advertising? - ANS-all of the above
The only items that can be added to an advertised price are: - ANS-none of the above
A dealer may advertise in which of the following manners? - ANS-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): - ANS-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? - ANS-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
payments, period of repayment or amount of finance charge. Which one is not required? - ANS-
a. tax rate
,A dealer has how many days to deliver or facilitate delivery of title from the date of sale? - ANS-
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? -
ANS-a signed Monroney Label
Which one of the following statements is true regarding dealer demo plates? - ANS-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? - ANS-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? - ANS-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? - ANS-issue a permit for a demonstration drive by a consumer
,How many temporary permits may a dealer issue for each road worthy vehicle sold - ANS-1
Records of vehicle transfers and odometer statements must be retained for ____years. - ANS-5
The odometer law declares all of the following except: - ANS-it is unlawful to replace an
odometer under any circumstance
Three of the following types of motor vehicles are exempt from the Truth in Mileage Act. Which
one is not exempt? - ANS-motor vehicles with out-of-state titles
The federal cash reporting rule requires dealers to file federal form 8300 with the Internal
Revenue Service when they receive more than $10,000 cash in a single transaction. How many
days does a dealer have to file this form? - ANS-15 days
Which of the following is a false statement regarding dealers and buyers? - ANS-a dealer must
offer a warranty on all motor vehicles sold
Three of the following are deceptive trade practices. Which one of the following is not? - ANS-
the dealer discloses in the advertisement all known material information
three of the following are deceptive trade practices. Which one of the following is not? - ANS-
delivering good as promised
A customer's trade-in vehicle on a financed deal may be sold: - ANS-only when the financing
has been approved
Colorado's Lemon Law covers: - ANS-Colorado's Lemon Law covers only new self-propelled
vehicles, including pickups and vans.
, Motor homes and motorcycles are excluded from the Lemon Law.
Which of the following is true about Colorado's Lemon Law? - ANS-all of the above
Local law enforcement offices must be notified within _______ hour(s) before or after the
repossession of a motor vehicle occurs. - ANS-1 hour before
Which of the following may motor vehicle dealers sell on a Sunday? - ANS-no vehicles may be
sold on a Sunday
the definition of used motor vehicle dealer or used power sports - ANS-a person who attempts
to negotiate a sale or lease of a of a used MV or PWSP vehicle for profit
when advertising a specific number of motor vehicles, that - ANS-True
selling , Leasing , exchanging, renting with option to purchase - ANS-True
By obtaining an off premise permit, dealers may sell motor vehicle at - ANS-False
Which of the following statements is true regarding dealer demo - ANS-a demo drive cannot
exceed 7 days
CO lemon law includes - ANS-Defects that substantially impair the market value of the vehicle
motor vehicle insurance is required - ANS-for all registered vehicles intended for use on
Colorado roads
QUESTIONS AND CORRECT VERIFIED ANSWERS ALREADY
GRADED A+ (BRAND NEW VISION)
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. - ANS-Buyers Guide
Which of the following must be identified in advertising? - ANS-all of the above
The only items that can be added to an advertised price are: - ANS-none of the above
A dealer may advertise in which of the following manners? - ANS-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): - ANS-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? - ANS-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
payments, period of repayment or amount of finance charge. Which one is not required? - ANS-
a. tax rate
,A dealer has how many days to deliver or facilitate delivery of title from the date of sale? - ANS-
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? -
ANS-a signed Monroney Label
Which one of the following statements is true regarding dealer demo plates? - ANS-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? - ANS-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? - ANS-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? - ANS-issue a permit for a demonstration drive by a consumer
,How many temporary permits may a dealer issue for each road worthy vehicle sold - ANS-1
Records of vehicle transfers and odometer statements must be retained for ____years. - ANS-5
The odometer law declares all of the following except: - ANS-it is unlawful to replace an
odometer under any circumstance
Three of the following types of motor vehicles are exempt from the Truth in Mileage Act. Which
one is not exempt? - ANS-motor vehicles with out-of-state titles
The federal cash reporting rule requires dealers to file federal form 8300 with the Internal
Revenue Service when they receive more than $10,000 cash in a single transaction. How many
days does a dealer have to file this form? - ANS-15 days
Which of the following is a false statement regarding dealers and buyers? - ANS-a dealer must
offer a warranty on all motor vehicles sold
Three of the following are deceptive trade practices. Which one of the following is not? - ANS-
the dealer discloses in the advertisement all known material information
three of the following are deceptive trade practices. Which one of the following is not? - ANS-
delivering good as promised
A customer's trade-in vehicle on a financed deal may be sold: - ANS-only when the financing
has been approved
Colorado's Lemon Law covers: - ANS-Colorado's Lemon Law covers only new self-propelled
vehicles, including pickups and vans.
, Motor homes and motorcycles are excluded from the Lemon Law.
Which of the following is true about Colorado's Lemon Law? - ANS-all of the above
Local law enforcement offices must be notified within _______ hour(s) before or after the
repossession of a motor vehicle occurs. - ANS-1 hour before
Which of the following may motor vehicle dealers sell on a Sunday? - ANS-no vehicles may be
sold on a Sunday
the definition of used motor vehicle dealer or used power sports - ANS-a person who attempts
to negotiate a sale or lease of a of a used MV or PWSP vehicle for profit
when advertising a specific number of motor vehicles, that - ANS-True
selling , Leasing , exchanging, renting with option to purchase - ANS-True
By obtaining an off premise permit, dealers may sell motor vehicle at - ANS-False
Which of the following statements is true regarding dealer demo - ANS-a demo drive cannot
exceed 7 days
CO lemon law includes - ANS-Defects that substantially impair the market value of the vehicle
motor vehicle insurance is required - ANS-for all registered vehicles intended for use on
Colorado roads
