COLORADO SALES TEST GUIDE Exam
Questions and Answers
1. 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)
2. 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
3. The Motor Vehicle Board is authorized and empowered to Correct
Answer: Correct Answer: 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 Correct Answer:
TRUE
5. bait and switch is Correct Answer: ad that attracts consumers with a low-priced product,
then tries to sell them a high- er-priced product
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 Correct Answer: TRUE
7. By obtaining an off-premise permit, dealers may sell motor
vehicles at anoth- er location on Sunday Correct Answer: FALSE - NO Sale of vehicle
should be done on Sundays
8. Which of the following statements is true regarding dealer demo
plates? Correct Answer: a demo drive cannot exceed 7 days
9. Colorado Lemon Law includes Correct Answer: Correct Answer: defects that
substantially impair the market value of the vehicle
10. Motor vehicle insurance is required Correct Answer: Correct Answer: for
all registered vehicles intended for use on colorado roads
11. 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
,COLORADO SALES TEST GUIDE Exam
Questions and Answers
storage to point of sale
12. Licensed dealers may sell which of the following on Sundays?
Correct Answer: The selling of boat trailers and snowmobile are exempt
13. Which of the following steps are required to properly and
legally repossess a motor vehicle? Correct Answer: ettect 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 Correct Answer: licensed name with the
word DEALER
15. which of the following is a used vehicle? Correct Answer: any vehicle that
has been previously bought a demo vehicle with 1500 miles
,COLORADO SALES TEST GUIDE Exam
Questions and Answers
16. Which of the following are deceptive trade practices? Correct Answer:
All of the aboveBait and switch
17. 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
18. Depot plates may be used during normal business hours to
transport a motor vehicle Correct Answer: 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 Correct Answer:
~Amount or percentage of the down payment~terms of repayment (car payment
date)~Annual percentage rate (interest rate of the loan)
20. which is NOT required when advertising a lease? Correct Answer:
disclosing the cost of lease vs purchasing
21. Prominently and
conspicuously display the ? Correct Answer: -for 60 days
in a B2C sale-for 7 days in a B2B sale
22. Motor Vehicle salesmen are required to have a surety bond
in the amount of $30k Correct Answer: False, $15,000
23. If a salesperson leaves a dealership during the licensing year
and becomes employed at another dealership they must acquire a
new license for the unex- pired portion of their returned license from
the board Correct Answer: TRUE
24. A Motor Vehicle salesperson may work for more than 1
dealership during one year Correct Answer: TRUE
25. All Motor Vehicle dealers and dealers must post a clear legible
sign on their place of business if Correct Answer: Correct Answer: they will be open
less than 40 hours per week
26. A Motor vehicle salesman can be personally liable for any
proven claim or judgement in excess of their surety bond Correct
Answer: TRUE
27. Licensed Motor vehicle dealers Correct Answer: must be open for business at
Questions and Answers
1. 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)
2. 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
3. The Motor Vehicle Board is authorized and empowered to Correct
Answer: Correct Answer: 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 Correct Answer:
TRUE
5. bait and switch is Correct Answer: ad that attracts consumers with a low-priced product,
then tries to sell them a high- er-priced product
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 Correct Answer: TRUE
7. By obtaining an off-premise permit, dealers may sell motor
vehicles at anoth- er location on Sunday Correct Answer: FALSE - NO Sale of vehicle
should be done on Sundays
8. Which of the following statements is true regarding dealer demo
plates? Correct Answer: a demo drive cannot exceed 7 days
9. Colorado Lemon Law includes Correct Answer: Correct Answer: defects that
substantially impair the market value of the vehicle
10. Motor vehicle insurance is required Correct Answer: Correct Answer: for
all registered vehicles intended for use on colorado roads
11. 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
,COLORADO SALES TEST GUIDE Exam
Questions and Answers
storage to point of sale
12. Licensed dealers may sell which of the following on Sundays?
Correct Answer: The selling of boat trailers and snowmobile are exempt
13. Which of the following steps are required to properly and
legally repossess a motor vehicle? Correct Answer: ettect 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 Correct Answer: licensed name with the
word DEALER
15. which of the following is a used vehicle? Correct Answer: any vehicle that
has been previously bought a demo vehicle with 1500 miles
,COLORADO SALES TEST GUIDE Exam
Questions and Answers
16. Which of the following are deceptive trade practices? Correct Answer:
All of the aboveBait and switch
17. 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
18. Depot plates may be used during normal business hours to
transport a motor vehicle Correct Answer: 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 Correct Answer:
~Amount or percentage of the down payment~terms of repayment (car payment
date)~Annual percentage rate (interest rate of the loan)
20. which is NOT required when advertising a lease? Correct Answer:
disclosing the cost of lease vs purchasing
21. Prominently and
conspicuously display the ? Correct Answer: -for 60 days
in a B2C sale-for 7 days in a B2B sale
22. Motor Vehicle salesmen are required to have a surety bond
in the amount of $30k Correct Answer: False, $15,000
23. If a salesperson leaves a dealership during the licensing year
and becomes employed at another dealership they must acquire a
new license for the unex- pired portion of their returned license from
the board Correct Answer: TRUE
24. A Motor Vehicle salesperson may work for more than 1
dealership during one year Correct Answer: TRUE
25. All Motor Vehicle dealers and dealers must post a clear legible
sign on their place of business if Correct Answer: Correct Answer: they will be open
less than 40 hours per week
26. A Motor vehicle salesman can be personally liable for any
proven claim or judgement in excess of their surety bond Correct
Answer: TRUE
27. Licensed Motor vehicle dealers Correct Answer: must be open for business at
