State of Colorado Sales License Test
questions with correct 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
questions with correct 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
