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motor vehicle industry license, Sales
Mastery Exam ( set of questions 1),
State of Colorado Sales License Test
Questions and Answers Latest 2026
Three of the following types of motor vehicles are
exempt from the truth in mileage act. Ans: ~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? Ans: Any person
who attempts to make profit lease or sale of a used
vehicle
The Motor Vehicle Board is authorized and empowered
to: Ans: 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 Ans: TRUE
© 2025 All rights reserved
, 2 | Page
bait and switch Ans: 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 Ans: TRUE
By obtaining an off-premise permit, dealers may sell
motor vehicles at another location on Sunday Ans: False
NO Sale of vehicle should be done on Sundays
Which of the following statements is true regarding
dealer demo plates? 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
Which is true regarding in-transit plates? Ans: 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? Ans: The selling of boat trailers and
snowmobile are exempt
© 2025 All rights reserved
, 3 | Page
Which of the following steps are required to properly and
legally repossess a motor vehicle? Ans: effect a lien
creating a security interest
An advertisement may include Ans: licensed name with
the word DEALER
which of the following is a used vehicle? Ans: and any
vehicle that has been previously bought a demo vehicle
with 1500 miles
Which of the following are deceptive trade practices?
Ans: All of the above
Bait and switch
How many temp permits may a dealer issue for each
roadworthy vehicle sold? Ans: 1
An extension can only be issued but the DMV
Depot plates may be used during normal business hours
to transport a motor vehicle Ans: all of the above
All plates
Three of the following are required when a dealer is
advertising a lease of a motor vehicle with a payment
amount. Ans: ~Amount or percentage of the
downpayment
~therms of repayment (car payment date)
© 2025 All rights reserved
, 4 | Page
~Annual percentage rate (interest rate of the loan)
which is NOT required when advertising a lease? Ans:
disclosing the cost of lease vs purchasing
Prominently and conspicuously display the ________?
Ans: FTC Buyer's Guide
A temp registration permit may be issued: Ans: -for 60
days in a B2C sale
-for 7 days in a B2B sale
MV salesmen are required to have a surety bond in the
amount of $30k Ans: TRUE
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 from the board Ans: True
A MV salesperson may work for more than 1 dealership
during one year Ans: True
All MV dealers and dealers must post a clear legible sign
on their place of biz if: Ans: they will be open less than
40 hours per week
A MV salesman can be personally liable for any proven
claim or judgement in excess of their surety bond Ans:
True
© 2025 All rights reserved
motor vehicle industry license, Sales
Mastery Exam ( set of questions 1),
State of Colorado Sales License Test
Questions and Answers Latest 2026
Three of the following types of motor vehicles are
exempt from the truth in mileage act. Ans: ~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? Ans: Any person
who attempts to make profit lease or sale of a used
vehicle
The Motor Vehicle Board is authorized and empowered
to: Ans: 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 Ans: TRUE
© 2025 All rights reserved
, 2 | Page
bait and switch Ans: 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 Ans: TRUE
By obtaining an off-premise permit, dealers may sell
motor vehicles at another location on Sunday Ans: False
NO Sale of vehicle should be done on Sundays
Which of the following statements is true regarding
dealer demo plates? 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
Which is true regarding in-transit plates? Ans: 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? Ans: The selling of boat trailers and
snowmobile are exempt
© 2025 All rights reserved
, 3 | Page
Which of the following steps are required to properly and
legally repossess a motor vehicle? Ans: effect a lien
creating a security interest
An advertisement may include Ans: licensed name with
the word DEALER
which of the following is a used vehicle? Ans: and any
vehicle that has been previously bought a demo vehicle
with 1500 miles
Which of the following are deceptive trade practices?
Ans: All of the above
Bait and switch
How many temp permits may a dealer issue for each
roadworthy vehicle sold? Ans: 1
An extension can only be issued but the DMV
Depot plates may be used during normal business hours
to transport a motor vehicle Ans: all of the above
All plates
Three of the following are required when a dealer is
advertising a lease of a motor vehicle with a payment
amount. Ans: ~Amount or percentage of the
downpayment
~therms of repayment (car payment date)
© 2025 All rights reserved
, 4 | Page
~Annual percentage rate (interest rate of the loan)
which is NOT required when advertising a lease? Ans:
disclosing the cost of lease vs purchasing
Prominently and conspicuously display the ________?
Ans: FTC Buyer's Guide
A temp registration permit may be issued: Ans: -for 60
days in a B2C sale
-for 7 days in a B2B sale
MV salesmen are required to have a surety bond in the
amount of $30k Ans: TRUE
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 from the board Ans: True
A MV salesperson may work for more than 1 dealership
during one year Ans: True
All MV dealers and dealers must post a clear legible sign
on their place of biz if: Ans: they will be open less than
40 hours per week
A MV salesman can be personally liable for any proven
claim or judgement in excess of their surety bond Ans:
True
© 2025 All rights reserved
