State of Colorado Sales License Test with Answers
1. Three of the following types of motor vehicles are exempt from the truth in
mileage act.: ~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?: 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:: 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: TRUE
5. bait and switch is: ad that attracts consumers with a low-priced product, then
tries to sell them a higher-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-
: TRUE
7. By obtaining an off-premise permit, dealers may sell motor vehicles at
another location on Sunday: FALSE - NO Sale of vehicle should be done on
Sundays
8. Which of the following statements is true regarding dealer demo plates?: a
demo drive cannot exceed 7 days
9. Colorado Lemon Law includes:: defects that substantially impair the market
value of the vehicle
10. Motor vehicle insurance is required:: for all registered vehicles intended for
use on colorado roads
11. Which is true regarding in-transit plates?: 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
12. Licensed dealers may sell which of the following on Sundays?: 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?: effect 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: licensed name with the word DEALER
15. which of the following is a used vehicle?: any vehicle that has been previously
bought a demo vehicle with 1500 miles
16. Which of the following are deceptive trade practices?: All of the above
Bait and switch
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, State of Colorado Sales License Test with Answers
17. How many temp permits may a dealer issue for each roadworthy vehicle
sold?: 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: 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: ~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?: disclosing the cost of lease
vs purchasing
21. Prominently and conspicuously display the ?: FTC Buyer's Guide
22. A temp registration permit may be issued:: -for 60 days in a B2C sale-for 7
days in a B2B sale
23. Motor Vehicle salesmen are required to have a surety bond in the amount
of $30k: False, $15,000
24. 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: TRUE
25. A Motor Vehicle salesperson may work for more than 1 dealership during
one year: TRUE
26. All Motor Vehicle dealers and dealers must post a clear legible sign on their
place of business if:: they will be open less than 40 hours per week
27. A Motor vehicle salesman can be personally liable for any proven claim or
judgement in excess of their surety bond: TRUE
28. Licensed Motor vehicle dealers: must be open for business at least three
(3)days per week for a continuous period of time
not less than four (4) hours per day between the hours of8 a.m. and 9 p.m.
29. The license of a new or used dealer/wholesale/auctioneer/ may be de-
nied/suspended/revoked/fined for all the following except:: attempting to nego-
tiate the sale or lease of a Motor vehicle with intent to make profit or gain
30. Federal odometer law declares it unlawful to do the following:: operate Mo-
tor vehicle on any street with intent to defraud knowing the odometer is disconnected
31. A dealer has how many days to facilitate delivery from the date of sale?: 30
Days
32. Which of the following is NOT proof of ownership for a Motor Vehicle for a
CO dealer?: a vehicle subject to a lien on the title
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1. Three of the following types of motor vehicles are exempt from the truth in
mileage act.: ~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?: 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:: 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: TRUE
5. bait and switch is: ad that attracts consumers with a low-priced product, then
tries to sell them a higher-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-
: TRUE
7. By obtaining an off-premise permit, dealers may sell motor vehicles at
another location on Sunday: FALSE - NO Sale of vehicle should be done on
Sundays
8. Which of the following statements is true regarding dealer demo plates?: a
demo drive cannot exceed 7 days
9. Colorado Lemon Law includes:: defects that substantially impair the market
value of the vehicle
10. Motor vehicle insurance is required:: for all registered vehicles intended for
use on colorado roads
11. Which is true regarding in-transit plates?: 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
12. Licensed dealers may sell which of the following on Sundays?: 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?: effect 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: licensed name with the word DEALER
15. which of the following is a used vehicle?: any vehicle that has been previously
bought a demo vehicle with 1500 miles
16. Which of the following are deceptive trade practices?: All of the above
Bait and switch
1/7
, State of Colorado Sales License Test with Answers
17. How many temp permits may a dealer issue for each roadworthy vehicle
sold?: 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: 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: ~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?: disclosing the cost of lease
vs purchasing
21. Prominently and conspicuously display the ?: FTC Buyer's Guide
22. A temp registration permit may be issued:: -for 60 days in a B2C sale-for 7
days in a B2B sale
23. Motor Vehicle salesmen are required to have a surety bond in the amount
of $30k: False, $15,000
24. 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: TRUE
25. A Motor Vehicle salesperson may work for more than 1 dealership during
one year: TRUE
26. All Motor Vehicle dealers and dealers must post a clear legible sign on their
place of business if:: they will be open less than 40 hours per week
27. A Motor vehicle salesman can be personally liable for any proven claim or
judgement in excess of their surety bond: TRUE
28. Licensed Motor vehicle dealers: must be open for business at least three
(3)days per week for a continuous period of time
not less than four (4) hours per day between the hours of8 a.m. and 9 p.m.
29. The license of a new or used dealer/wholesale/auctioneer/ may be de-
nied/suspended/revoked/fined for all the following except:: attempting to nego-
tiate the sale or lease of a Motor vehicle with intent to make profit or gain
30. Federal odometer law declares it unlawful to do the following:: operate Mo-
tor vehicle on any street with intent to defraud knowing the odometer is disconnected
31. A dealer has how many days to facilitate delivery from the date of sale?: 30
Days
32. Which of the following is NOT proof of ownership for a Motor Vehicle for a
CO dealer?: a vehicle subject to a lien on the title
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