MOTOR VEHICLE INDUSTRY LICENSE SALES MASTERY
EXAM / STATE OF COLORADO SALES LICENSE TEST 2024
PRACTICE QUESTIONS WITH VERIFIED ANSWERS
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)
The definition of a used motor vehicle dealer or used dealer includes which of the
following? - (correct answer) Any person who attempts to make profit lease or sale
of a used vehicle
The Motor Vehicle Board is authorized and empowered to: - (correct answer) 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 - (correct answer) TRUE
bait and switch - (correct answer) 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 - (correct answer)
TRUE
By obtaining an off-premise permit, dealers may sell motor vehicles at another location
on Sunday - (correct answer) False
NO Sale of vehicle should be done on Sundays
Which of the following statements is true regarding dealer demo plates? - (correct
answer) a demo drive cannot exceed 7 days
CO Lemon Law includes: - (correct answer) defects that substantially impair the
market value of the vehicle
Motor vehicle insurance is required: - (correct answer) for all registered vehicles
intended for use on colorado roads
,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
storage to point of sale
Licensed dealers may sell which of the following on Sundays? - (correct answer)
The selling of boat trailers and snowmobile are exempt
Which of the following steps are required to properly and legally repossess a motor
vehicle? - (correct answer) effect a lien creating a security interest
An advertisement may include - (correct answer) licensed name with the word
DEALER
which of the following is a used vehicle? - (correct answer) and any vehicle that has
been previously bought a demo vehicle with 1500 miles
Which of the following are deceptive trade practices? - (correct answer) All of the
above
Bait and switch
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
Depot plates may be used during normal business hours to transport a motor vehicle -
(correct answer) 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. - (correct answer) ~Amount or percentage of the
downpayment
~therms of repayment (car payment date)
~Annual percentage rate (interest rate of the loan)
which is NOT required when advertising a lease? - (correct answer) disclosing the
cost of lease vs purchasing
Prominently and conspicuously display the ________? - (correct answer) FTC
Buyer's Guide
A temp registration permit may be issued: - (correct answer) -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 - (correct
answer) 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 - (correct answer) True
A MV salesperson may work for more than 1 dealership during one year - (correct
answer) True
All MV dealers and dealers must post a clear legible sign on their place of biz if: -
(correct answer) 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 - (correct answer) True
Licensed MV dealers may - (correct answer) 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 of
8 a.m. and 9 p.m.
The license of a new or used dealer/wholesale/auctioner/ may be
denied/suspended/revoked/fined for all the following except: - (correct answer)
attempting to negotiate the sale or lease of a MV with intent to make profit or gain
Federal odometer law declares it unlawful to do the following: - (correct answer)
operate MV on any street with intent to defraud knowing the odometer is disconnected
A dealer has how many days to facilitate delivery from the date of sale? - (correct
answer) 30 days
Which of the following is NOT proof of ownership for a MV for a CO dealer? - (correct
answer) a vehicle subject to a lien on the title
a dealers ad must contain the dealers licensed name and the words - (correct
answer) Dealer
fed cash reporting requires dealers to file form 8300 with IRS within how many days of
receiving $10k cash? - (correct answer) 15 days
Wholesalers may? - (correct answer) Sell to dealers and other wholesalers
The license of a MV salsesman may be revoked/suspended on the following grounds: -
(correct answer) Violating any of the terms and provisions
EXAM / STATE OF COLORADO SALES LICENSE TEST 2024
PRACTICE QUESTIONS WITH VERIFIED ANSWERS
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)
The definition of a used motor vehicle dealer or used dealer includes which of the
following? - (correct answer) Any person who attempts to make profit lease or sale
of a used vehicle
The Motor Vehicle Board is authorized and empowered to: - (correct answer) 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 - (correct answer) TRUE
bait and switch - (correct answer) 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 - (correct answer)
TRUE
By obtaining an off-premise permit, dealers may sell motor vehicles at another location
on Sunday - (correct answer) False
NO Sale of vehicle should be done on Sundays
Which of the following statements is true regarding dealer demo plates? - (correct
answer) a demo drive cannot exceed 7 days
CO Lemon Law includes: - (correct answer) defects that substantially impair the
market value of the vehicle
Motor vehicle insurance is required: - (correct answer) for all registered vehicles
intended for use on colorado roads
,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
storage to point of sale
Licensed dealers may sell which of the following on Sundays? - (correct answer)
The selling of boat trailers and snowmobile are exempt
Which of the following steps are required to properly and legally repossess a motor
vehicle? - (correct answer) effect a lien creating a security interest
An advertisement may include - (correct answer) licensed name with the word
DEALER
which of the following is a used vehicle? - (correct answer) and any vehicle that has
been previously bought a demo vehicle with 1500 miles
Which of the following are deceptive trade practices? - (correct answer) All of the
above
Bait and switch
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
Depot plates may be used during normal business hours to transport a motor vehicle -
(correct answer) 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. - (correct answer) ~Amount or percentage of the
downpayment
~therms of repayment (car payment date)
~Annual percentage rate (interest rate of the loan)
which is NOT required when advertising a lease? - (correct answer) disclosing the
cost of lease vs purchasing
Prominently and conspicuously display the ________? - (correct answer) FTC
Buyer's Guide
A temp registration permit may be issued: - (correct answer) -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 - (correct
answer) 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 - (correct answer) True
A MV salesperson may work for more than 1 dealership during one year - (correct
answer) True
All MV dealers and dealers must post a clear legible sign on their place of biz if: -
(correct answer) 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 - (correct answer) True
Licensed MV dealers may - (correct answer) 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 of
8 a.m. and 9 p.m.
The license of a new or used dealer/wholesale/auctioner/ may be
denied/suspended/revoked/fined for all the following except: - (correct answer)
attempting to negotiate the sale or lease of a MV with intent to make profit or gain
Federal odometer law declares it unlawful to do the following: - (correct answer)
operate MV on any street with intent to defraud knowing the odometer is disconnected
A dealer has how many days to facilitate delivery from the date of sale? - (correct
answer) 30 days
Which of the following is NOT proof of ownership for a MV for a CO dealer? - (correct
answer) a vehicle subject to a lien on the title
a dealers ad must contain the dealers licensed name and the words - (correct
answer) Dealer
fed cash reporting requires dealers to file form 8300 with IRS within how many days of
receiving $10k cash? - (correct answer) 15 days
Wholesalers may? - (correct answer) Sell to dealers and other wholesalers
The license of a MV salsesman may be revoked/suspended on the following grounds: -
(correct answer) Violating any of the terms and provisions
