MASTERY EXAM CAR SALES TEST
COLORADO FINAL PAPER 2026
COMPLETE SOLUTIONS AND CORRECT
ANSWERS GRADED A+
⩥ an off premises permit: Answer: Right Answer- must be readily
available for inspection at the sale
motor vehicle dealer may sell motor vehicles at special sales events,
shows, or other organized
events, including, for example, at the National Western Stock Show, the
Colorado State Fair, the
Greeley Stampede, or the Denver Auto Show. In order to sell motor
vehicles at a location away
from the dealership, a motor vehicle dealer must apply for the
appropriate off-premise permit.
A motor vehicle dealer must not engage in any sales activity at an off-
premise location until the
board approves the appropriate off-premise permit.
The board recognizes two classes of off-premise permit based upon
specific sales-related
conditions and restrictions. These are:
Class One --- a Limited Sales Activity Off-premise Permit. The
following conditions and
,restrictions apply to this permit:
Licensed salespersons or owners authorized to sell must be present at the
off-
premise location at all times when the public is present; and,
Licensed salespersons or owners authorized to sell may negotiate the
terms of a
sale at the off-premise location; and,
4
3)
b.1)
2)
Auto Industry DivisionStudy Guide- Motor Vehicle Regulations
The parties shall not execute sales-related documents at the off-premise
location, but must return to the dealership to execute any sales-related
documents.
Class Two --- a Full Sales Activity Off-premise Permit. The following
conditions and
restrictions apply to this permit:
Licensed salespersons or owners authorized to sell must be present at the
off-
premise location at all times when the public is present; and,
Licensed salespersons or owners authorized to sell may negotiate the
terms of a
,sale at the off-premise location; and,
3) The parties may execute sales documents at the off-premise location.
4. The board issues an off-premise permit for a restri
⩥ Which of the following persons are required by federal law, to adhere
to the Truth in Mileage Act? Answer: all the above
⩥ A customer's trade-in on a financed deal may be sold Answer: 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: Answer: 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
⩥ Answer: 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.
COLORADO FINAL PAPER 2026
COMPLETE SOLUTIONS AND CORRECT
ANSWERS GRADED A+
⩥ an off premises permit: Answer: Right Answer- must be readily
available for inspection at the sale
motor vehicle dealer may sell motor vehicles at special sales events,
shows, or other organized
events, including, for example, at the National Western Stock Show, the
Colorado State Fair, the
Greeley Stampede, or the Denver Auto Show. In order to sell motor
vehicles at a location away
from the dealership, a motor vehicle dealer must apply for the
appropriate off-premise permit.
A motor vehicle dealer must not engage in any sales activity at an off-
premise location until the
board approves the appropriate off-premise permit.
The board recognizes two classes of off-premise permit based upon
specific sales-related
conditions and restrictions. These are:
Class One --- a Limited Sales Activity Off-premise Permit. The
following conditions and
,restrictions apply to this permit:
Licensed salespersons or owners authorized to sell must be present at the
off-
premise location at all times when the public is present; and,
Licensed salespersons or owners authorized to sell may negotiate the
terms of a
sale at the off-premise location; and,
4
3)
b.1)
2)
Auto Industry DivisionStudy Guide- Motor Vehicle Regulations
The parties shall not execute sales-related documents at the off-premise
location, but must return to the dealership to execute any sales-related
documents.
Class Two --- a Full Sales Activity Off-premise Permit. The following
conditions and
restrictions apply to this permit:
Licensed salespersons or owners authorized to sell must be present at the
off-
premise location at all times when the public is present; and,
Licensed salespersons or owners authorized to sell may negotiate the
terms of a
,sale at the off-premise location; and,
3) The parties may execute sales documents at the off-premise location.
4. The board issues an off-premise permit for a restri
⩥ Which of the following persons are required by federal law, to adhere
to the Truth in Mileage Act? Answer: all the above
⩥ A customer's trade-in on a financed deal may be sold Answer: 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: Answer: 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
⩥ Answer: 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.
