COLORADO MOTOR VEHICLE INDUSTRY
1 1 1
1SALES
LICENSE EXAM 2026/2027 UPDATED
1 1 1
(1)1The1general1assembly1hereby1declares1that:1
(a) The1sale1and1distribution1of1motor1vehicles1affects1the1public1interest1and1a1significant1fact
or1of1inducement1in1making1a1sale1of1a1motor1vehicle1is1the1trust1and1confidence1of1the1purchaser1i
n1the1retail1dealer1from1whom1the1purchase1is1made1and1the1expectancy1that1such1dealer1will1remai
n1in1business1to1provide1service1for1the1motor1vehicle1purchased;1
(b) Proper1motor1vehicle1service1is1important1to1highway1safety1and1the1manufacturers1and1dis
tributors1of1motor1vehicles1have1an1obligation1to1the1public1not1to1terminate1or1refuse1to1continue1t
heir1franchise1agreements1with1retail1dealers1unless1the1manufacturer1or1distributor1has1first1establi
shed1good1cause1for1termination1or1noncontinuance1of1any1such1agreement,1to1the1end1that1there1sh
all1be1no1diminution1of1locally1available1service;1
(c) The1licensing1and1supervision1of1motor1vehicle1dealers1by1the1motor1vehicle1dealer1board1a
re1necessary1for1the1protection1of1consumers1and1therefore1the1sale1of1motor1vehicles1by1unlicense
d1dealers1or1salespersons,1or1by1licensed1dealers1or1salespersons1who1have1demonstrated1unfitness,
1should1be1prevented;1
(d) Consumer1education1concerning1the1rules1and1regulations1of1the1motor1vehicle1industry,1th
e1considerations1when1purchasing1a1motor1vehicle,1and1the1role,1functions,1and1actions1of1the1moto
r1vehicle1dealer1board1are1necessary1for1the1protection1of1the1public1and1for1maintaining1the1trust1a
nd1confidence1of1the1public1in1the1motor1vehicle1dealer1board;1and1–1
Page111of1210
,(e) Subject1to1the1United1States1constitution1and1the1Colorado1constitution,1this1article1applies1
to1each1sales,1service,1and1parts1agreement1in1effect,1regardless1of1when1the1agreement1was1adopte
d.1
112-6-102.1Definitions.1
As1used1in1this1part111and1in1part151of1this1article,1unless1the1context1or1section112-6-
5021otherwise1requires:1
(1) (Deleted1by1amendment,1L.192,1p.11841,1§12,1effective1July11,11992.)1–1
(1.5)1"Advertisement"1means1any1commercial1message1in1any1newspaper,1magazine,1leaflet,1flyer,1
or1catalog,1on1radio,1television,1or1a1public1address1system,1in1direct1mail1literature1or1other1printed
1material,1on1any1interior1or1exterior1sign1or1display,1in1any1window1display,1on1a1computer1display,
1or1in1any1point-of-
transaction1literature1or1price1tag1that1is1delivered1or1made1available1to1a1customer1or1prospective1c
ustomer1in1any1manner1whatsoever;1except1that1such1term1does1not1include1materials1required1to1b
e1displayed1by1federal1or1state1law.1-1
(2) "Board"1means1the1motor1vehicle1dealer1board.1
(2.4) "Business1incidental1thereto"1means1a1business1owned1by1the1motor1vehicle1dealer
1or1used1motor1vehicle1dealer1related1to1the1sale1of1motor1vehicles,1including,1without1limi
tation,1motor1vehicle1part1sales,1motor1vehicle1repair,1motor1vehicle1recycling,1motor1vehi
cle1security1interest1assignment,1and1motor1vehicle1towing.1
(2.5) (a)1(I)1"Buyer1agent"1means1any1person1required1to1be1licensed1pursuant1to1this1par
t111who1is1retained1or1hired1by1a1consumer1for1a1fee1or1other1thing1of1value1to1assist,1repres
ent,1or1act1on1behalf1of1such1consumer1in1connection1with1the1purchase1or1lease1of1a1motor
1vehicle.1-1
Page121of1210
,(II)1"Consumer",1as1used1in1this1subsection1(2.5),1means1a1purchaser1or1lessee1of1a1motor1vehicle,1
which1vehicle1is1primarily1used1for1business,1personal,1family,1or1household1purposes.1"Consumer
"1does1not1include1a1purchaser1of1motor1vehicles1who1purchases1said1motor1vehicles1primarily1for1r
esale.1
(b)1(I)1"Buyer1agent"1does1not1include1a1person1whose1business1includes1the1purchase1of1motor1veh
icles1primarily1for1resale1or1lease;1except1that1nothing1in1this1subsection1(2.5)1shall1be1construed1to1
prohibit1a1buyer1agent1from1assisting1a1consumer1regarding1the1disposal1of1a1trade-
in1motor1vehicle1that1is1incident1to1the1purchase1or1lease1of1a1vehicle1if1the1buyer1agent1does1not1ad
vertise1the1sale1of,1or1sell,1such1vehicle1to1the1general1public,1directs1interested1dealers1and1wholesa
lers1to1communicate1their1offers1directly1to1the1consumer1or1to1the1consumer1via1the1buyer1agent,1d
oes1not1handle1or1transfer1titles1or1funds1between1the1consumer1and1the1purchaser,1receives1no1com
pensation1from1a1dealer1or1wholesaler1purchasing1a1consumer's1vehicle,1and1identifies1himself1or1h
erself1as1a1buyer1agent1to1dealers1and1wholesalers1interested1in1the1consumer's1vehicle.1
(II)1A1"buyer1agent"1licensed1pursuant1to1this1part111shall1not1be1employed1by1or1receive1a1fee1from1
a1person1whose1business1includes1the1purchase1of1motor1vehicles1primarily1for1resale1or1lease,1a1m
otor1vehicle1manufacturer,1a1motor1vehicle1dealer,1or1a1used1motor1vehicle1dealer.1-1
(3) "Coerce"1means1to1compel1or1attempt1to1compel1by1threatening,1retaliating,1economic1force,1or
1 by1not1performing1or1complying1with1any1terms1or1provisions1of1the1franchise1or1agreement;1e
xcept1that1recommendation,1exposition,1persuasion,1urging,1or1argument1shall1not1be1deemed1t
o1constitute1coercion.1
(4) "Community"1means1a1franchisee's1area1of1responsibility1as1set1out1in1the1franchise.1-1
(4.5)1(a)1"Custom1trailer"1means1any1motor1vehicle1which1is1not1driven1or1propelled1by1its1own1p
ower1and1is1designed1to1be1attached1to,1become1a1part1of,1or1be1drawn1by1a1motor1vehicle1and1whi
ch1is1uniquely1designed1and1manufactured1for1a1specific1purpose1or1customer.1–1
(b)1"Custom1trailer"1does1not1include1manufactured1housing,1farm1tractors,1and1other1machines1
and1tools1used1in1the1production,1harvest,1and1care1of1farm1products.1-1
Page131of1210
, (5) "Distributor"1means1a1person,1resident1or1nonresident,1who,1in1whole1or1in1part,1sells1or1dist
ributes1new1motor1vehicles1to1motor1vehicle1dealers1or1who1maintains1distributor1represent
atives.1
(6) and1(7)1(Deleted1by1amendment,1L.12003,1p.11300,1§11,1effective1April122,12003.)1-1
(7.5)1"Executive1director"1means1the1executive1director1of1the1department1of1revenue1charged1with
1the1administration,1enforcement,1and1issuance1or1denial1of1the1licensing1of1buyer1agents,1distribut
ors,1manufacturer1representatives,1and1manufacturers.1
(8)1and1(9)1(Deleted1by1amendment,1L.12003,1p.11300,1§11,1effective1April122,12003.)1-1
(9.5)1"Fire1truck"1means1a1vehicle1intended1for1use1in1the1extermination1of1fires,1with1features1that1
may1include,1but1shall1not1be1limited1to,1a1fire1pump,1a1water1tank,1an1aerial1ladder,1an1elevated1plat
form,1or1any1combination1thereof.1
(9.7)1"Franchise"1means1the1authority1to1sell1or1service1and1repair1motor1vehicles1of1a1designated1li
ne-
make1granted1through1a1sales,1service,1and1parts1agreement1with1a1manufacturer,1distributor,1or1ma
nufacturer1representative.1
(10) "Good1faith"1means1the1duty1of1each1party1to1any1franchise1and1all1officers,1employees,1or1
agents1thereof1to1act1in1a1fair1and1equitable1manner1toward1each1other1so1as1to1guarantee1the1one1pa
rty1freedom1from1coercion,1intimidation,1or1threats1of1coercion1or1intimidation1from1the1other1part
y.1Recommendation,1endorsement,1exposition,1persuasion,1urging,1or1argument1shall1not1be1deeme
d1to1constitute1a1lack1of1good1faith.1
(10.5)1"Line-
make"1means1a1group1or1series1of1motor1vehicles1that1have1the1same1brand1identification1or1brand1
name,1based1upon1the1manufacturer's1trademark,1trade1name,1or1logo.1-1
Page141of1210
1 1 1
1SALES
LICENSE EXAM 2026/2027 UPDATED
1 1 1
(1)1The1general1assembly1hereby1declares1that:1
(a) The1sale1and1distribution1of1motor1vehicles1affects1the1public1interest1and1a1significant1fact
or1of1inducement1in1making1a1sale1of1a1motor1vehicle1is1the1trust1and1confidence1of1the1purchaser1i
n1the1retail1dealer1from1whom1the1purchase1is1made1and1the1expectancy1that1such1dealer1will1remai
n1in1business1to1provide1service1for1the1motor1vehicle1purchased;1
(b) Proper1motor1vehicle1service1is1important1to1highway1safety1and1the1manufacturers1and1dis
tributors1of1motor1vehicles1have1an1obligation1to1the1public1not1to1terminate1or1refuse1to1continue1t
heir1franchise1agreements1with1retail1dealers1unless1the1manufacturer1or1distributor1has1first1establi
shed1good1cause1for1termination1or1noncontinuance1of1any1such1agreement,1to1the1end1that1there1sh
all1be1no1diminution1of1locally1available1service;1
(c) The1licensing1and1supervision1of1motor1vehicle1dealers1by1the1motor1vehicle1dealer1board1a
re1necessary1for1the1protection1of1consumers1and1therefore1the1sale1of1motor1vehicles1by1unlicense
d1dealers1or1salespersons,1or1by1licensed1dealers1or1salespersons1who1have1demonstrated1unfitness,
1should1be1prevented;1
(d) Consumer1education1concerning1the1rules1and1regulations1of1the1motor1vehicle1industry,1th
e1considerations1when1purchasing1a1motor1vehicle,1and1the1role,1functions,1and1actions1of1the1moto
r1vehicle1dealer1board1are1necessary1for1the1protection1of1the1public1and1for1maintaining1the1trust1a
nd1confidence1of1the1public1in1the1motor1vehicle1dealer1board;1and1–1
Page111of1210
,(e) Subject1to1the1United1States1constitution1and1the1Colorado1constitution,1this1article1applies1
to1each1sales,1service,1and1parts1agreement1in1effect,1regardless1of1when1the1agreement1was1adopte
d.1
112-6-102.1Definitions.1
As1used1in1this1part111and1in1part151of1this1article,1unless1the1context1or1section112-6-
5021otherwise1requires:1
(1) (Deleted1by1amendment,1L.192,1p.11841,1§12,1effective1July11,11992.)1–1
(1.5)1"Advertisement"1means1any1commercial1message1in1any1newspaper,1magazine,1leaflet,1flyer,1
or1catalog,1on1radio,1television,1or1a1public1address1system,1in1direct1mail1literature1or1other1printed
1material,1on1any1interior1or1exterior1sign1or1display,1in1any1window1display,1on1a1computer1display,
1or1in1any1point-of-
transaction1literature1or1price1tag1that1is1delivered1or1made1available1to1a1customer1or1prospective1c
ustomer1in1any1manner1whatsoever;1except1that1such1term1does1not1include1materials1required1to1b
e1displayed1by1federal1or1state1law.1-1
(2) "Board"1means1the1motor1vehicle1dealer1board.1
(2.4) "Business1incidental1thereto"1means1a1business1owned1by1the1motor1vehicle1dealer
1or1used1motor1vehicle1dealer1related1to1the1sale1of1motor1vehicles,1including,1without1limi
tation,1motor1vehicle1part1sales,1motor1vehicle1repair,1motor1vehicle1recycling,1motor1vehi
cle1security1interest1assignment,1and1motor1vehicle1towing.1
(2.5) (a)1(I)1"Buyer1agent"1means1any1person1required1to1be1licensed1pursuant1to1this1par
t111who1is1retained1or1hired1by1a1consumer1for1a1fee1or1other1thing1of1value1to1assist,1repres
ent,1or1act1on1behalf1of1such1consumer1in1connection1with1the1purchase1or1lease1of1a1motor
1vehicle.1-1
Page121of1210
,(II)1"Consumer",1as1used1in1this1subsection1(2.5),1means1a1purchaser1or1lessee1of1a1motor1vehicle,1
which1vehicle1is1primarily1used1for1business,1personal,1family,1or1household1purposes.1"Consumer
"1does1not1include1a1purchaser1of1motor1vehicles1who1purchases1said1motor1vehicles1primarily1for1r
esale.1
(b)1(I)1"Buyer1agent"1does1not1include1a1person1whose1business1includes1the1purchase1of1motor1veh
icles1primarily1for1resale1or1lease;1except1that1nothing1in1this1subsection1(2.5)1shall1be1construed1to1
prohibit1a1buyer1agent1from1assisting1a1consumer1regarding1the1disposal1of1a1trade-
in1motor1vehicle1that1is1incident1to1the1purchase1or1lease1of1a1vehicle1if1the1buyer1agent1does1not1ad
vertise1the1sale1of,1or1sell,1such1vehicle1to1the1general1public,1directs1interested1dealers1and1wholesa
lers1to1communicate1their1offers1directly1to1the1consumer1or1to1the1consumer1via1the1buyer1agent,1d
oes1not1handle1or1transfer1titles1or1funds1between1the1consumer1and1the1purchaser,1receives1no1com
pensation1from1a1dealer1or1wholesaler1purchasing1a1consumer's1vehicle,1and1identifies1himself1or1h
erself1as1a1buyer1agent1to1dealers1and1wholesalers1interested1in1the1consumer's1vehicle.1
(II)1A1"buyer1agent"1licensed1pursuant1to1this1part111shall1not1be1employed1by1or1receive1a1fee1from1
a1person1whose1business1includes1the1purchase1of1motor1vehicles1primarily1for1resale1or1lease,1a1m
otor1vehicle1manufacturer,1a1motor1vehicle1dealer,1or1a1used1motor1vehicle1dealer.1-1
(3) "Coerce"1means1to1compel1or1attempt1to1compel1by1threatening,1retaliating,1economic1force,1or
1 by1not1performing1or1complying1with1any1terms1or1provisions1of1the1franchise1or1agreement;1e
xcept1that1recommendation,1exposition,1persuasion,1urging,1or1argument1shall1not1be1deemed1t
o1constitute1coercion.1
(4) "Community"1means1a1franchisee's1area1of1responsibility1as1set1out1in1the1franchise.1-1
(4.5)1(a)1"Custom1trailer"1means1any1motor1vehicle1which1is1not1driven1or1propelled1by1its1own1p
ower1and1is1designed1to1be1attached1to,1become1a1part1of,1or1be1drawn1by1a1motor1vehicle1and1whi
ch1is1uniquely1designed1and1manufactured1for1a1specific1purpose1or1customer.1–1
(b)1"Custom1trailer"1does1not1include1manufactured1housing,1farm1tractors,1and1other1machines1
and1tools1used1in1the1production,1harvest,1and1care1of1farm1products.1-1
Page131of1210
, (5) "Distributor"1means1a1person,1resident1or1nonresident,1who,1in1whole1or1in1part,1sells1or1dist
ributes1new1motor1vehicles1to1motor1vehicle1dealers1or1who1maintains1distributor1represent
atives.1
(6) and1(7)1(Deleted1by1amendment,1L.12003,1p.11300,1§11,1effective1April122,12003.)1-1
(7.5)1"Executive1director"1means1the1executive1director1of1the1department1of1revenue1charged1with
1the1administration,1enforcement,1and1issuance1or1denial1of1the1licensing1of1buyer1agents,1distribut
ors,1manufacturer1representatives,1and1manufacturers.1
(8)1and1(9)1(Deleted1by1amendment,1L.12003,1p.11300,1§11,1effective1April122,12003.)1-1
(9.5)1"Fire1truck"1means1a1vehicle1intended1for1use1in1the1extermination1of1fires,1with1features1that1
may1include,1but1shall1not1be1limited1to,1a1fire1pump,1a1water1tank,1an1aerial1ladder,1an1elevated1plat
form,1or1any1combination1thereof.1
(9.7)1"Franchise"1means1the1authority1to1sell1or1service1and1repair1motor1vehicles1of1a1designated1li
ne-
make1granted1through1a1sales,1service,1and1parts1agreement1with1a1manufacturer,1distributor,1or1ma
nufacturer1representative.1
(10) "Good1faith"1means1the1duty1of1each1party1to1any1franchise1and1all1officers,1employees,1or1
agents1thereof1to1act1in1a1fair1and1equitable1manner1toward1each1other1so1as1to1guarantee1the1one1pa
rty1freedom1from1coercion,1intimidation,1or1threats1of1coercion1or1intimidation1from1the1other1part
y.1Recommendation,1endorsement,1exposition,1persuasion,1urging,1or1argument1shall1not1be1deeme
d1to1constitute1a1lack1of1good1faith.1
(10.5)1"Line-
make"1means1a1group1or1series1of1motor1vehicles1that1have1the1same1brand1identification1or1brand1
name,1based1upon1the1manufacturer's1trademark,1trade1name,1or1logo.1-1
Page141of1210
