CAR SALES TEST COLORADO
Questions and Answers Latest Versions
2025 Graded A+
Which of the following persons are required by federal law, to adhere
to the Truth in Mileage Act?
all the above
A customer's trade-in on a financed deal may be sold
only when the financing as been approved
(II)
(III)
(b)
(2)
Accepts a used vehicle as a trade-in on the purchase or lease of a
motor vehicle,
used motor vehicle, powersports vehicle, or used powersports vehicle
and sells
,or leases the vehicle that has been traded in before the purchaser or
lessee has
been approved for a consumer credit transaction as defined in section
5-1-301
(12) if the approval is a condition of the purchase or lease;
if a motor vehicle salesperson selling primarily vehicles 1,500 lbs or
more is found guilty of a violation of law by the Motor Vehicle Board
they may recieve:
A fine up to $10,000
that shall not exceed ten
thousand dollars for each separate offense by any licensee, or vacate
the fine imposed
by the judge or hearing officer; except that, for powersports vehicle
dealers who sell
primarily vehicles that weigh under one thousand five hundred
pounds, the fine for each
separate offense shall not exceed one thousand dollars; and
1) The amount of cash is more than $10,000 2) The business receives
the cash as:
1) The establishment receives the cash in the ordinary course of a
trade or business 2) The same agent or buyer provides the cash3) The
,business receives the cash in a single transaction or in related
transactions
Example: Dave bought a new car and sold his old one for $11,000.
The buyer paid Dave in cash. Since Dave is not in the trade or
business of selling cars, he would not be required to report the receipt
of cash exceeding $10,000 from the sale of the car.
Example: Jane operates a jewelry store in Puerto Rico and received
payment in cash on a sale of jewelry for $12,000. She will need to
report the transaction on a Form 8300. In general, a person engaged in
a
motor vehicle leasing companies and powersport vehicle leasing
companies are required by Colorado law to be licensed as a motor
vehicle dealers and powersports dealers
Answers- True
All manufacturers doing business in the state of Colorado,
irrespective of whether they maintain or have places of business
herein, must be licensed as such.
The sale of any new and unused motor vehicles, either directly or
indirectly in the state of Colorado shall constitute doing business in
the state by the manufacturer and shall subject such manufacturer to
the requirements of this article.
A new or used motor vehicle dealer may legally do which of the
following with a temporary registration permit?
Cannot find in study guides or online... educated guess.
, issue a permit upon the sale of a motor vehicle to another dealer?
Temporary Registration Permit is valid for up to sixty (60) days from
the date of sale/issuance
A Temporary Registration Permit is not renewable, but when
circumstances outlined in section
42-3-203(3)(d), C.R.S., are met, the Dealer may issue a second
Temporary Registration Permit
pursuant to the requirements in this rule.
Temporary Registration Permit is valid for up to sixty (60) days from
the date of sale/issuance
Which of the following must be conspicuously displayed at the
dealers principal place of business?
All the Above
(2) "Board" means the motor vehicle dealer board.
"Advertise" or "advertisement" means any commercial message in
any newspaper, magazine,
Questions and Answers Latest Versions
2025 Graded A+
Which of the following persons are required by federal law, to adhere
to the Truth in Mileage Act?
all the above
A customer's trade-in on a financed deal may be sold
only when the financing as been approved
(II)
(III)
(b)
(2)
Accepts a used vehicle as a trade-in on the purchase or lease of a
motor vehicle,
used motor vehicle, powersports vehicle, or used powersports vehicle
and sells
,or leases the vehicle that has been traded in before the purchaser or
lessee has
been approved for a consumer credit transaction as defined in section
5-1-301
(12) if the approval is a condition of the purchase or lease;
if a motor vehicle salesperson selling primarily vehicles 1,500 lbs or
more is found guilty of a violation of law by the Motor Vehicle Board
they may recieve:
A fine up to $10,000
that shall not exceed ten
thousand dollars for each separate offense by any licensee, or vacate
the fine imposed
by the judge or hearing officer; except that, for powersports vehicle
dealers who sell
primarily vehicles that weigh under one thousand five hundred
pounds, the fine for each
separate offense shall not exceed one thousand dollars; and
1) The amount of cash is more than $10,000 2) The business receives
the cash as:
1) The establishment receives the cash in the ordinary course of a
trade or business 2) The same agent or buyer provides the cash3) The
,business receives the cash in a single transaction or in related
transactions
Example: Dave bought a new car and sold his old one for $11,000.
The buyer paid Dave in cash. Since Dave is not in the trade or
business of selling cars, he would not be required to report the receipt
of cash exceeding $10,000 from the sale of the car.
Example: Jane operates a jewelry store in Puerto Rico and received
payment in cash on a sale of jewelry for $12,000. She will need to
report the transaction on a Form 8300. In general, a person engaged in
a
motor vehicle leasing companies and powersport vehicle leasing
companies are required by Colorado law to be licensed as a motor
vehicle dealers and powersports dealers
Answers- True
All manufacturers doing business in the state of Colorado,
irrespective of whether they maintain or have places of business
herein, must be licensed as such.
The sale of any new and unused motor vehicles, either directly or
indirectly in the state of Colorado shall constitute doing business in
the state by the manufacturer and shall subject such manufacturer to
the requirements of this article.
A new or used motor vehicle dealer may legally do which of the
following with a temporary registration permit?
Cannot find in study guides or online... educated guess.
, issue a permit upon the sale of a motor vehicle to another dealer?
Temporary Registration Permit is valid for up to sixty (60) days from
the date of sale/issuance
A Temporary Registration Permit is not renewable, but when
circumstances outlined in section
42-3-203(3)(d), C.R.S., are met, the Dealer may issue a second
Temporary Registration Permit
pursuant to the requirements in this rule.
Temporary Registration Permit is valid for up to sixty (60) days from
the date of sale/issuance
Which of the following must be conspicuously displayed at the
dealers principal place of business?
All the Above
(2) "Board" means the motor vehicle dealer board.
"Advertise" or "advertisement" means any commercial message in
any newspaper, magazine,
