Mastery Exam, Car Sales Test Colorado ( set of 237
questions ) with 100% Correct Verified Answers
The license of a motor vehicle salesperson or power-sports salesperson may be denied, revoked
or suspended on any of the following grounds except: - ANSWER b) advertising a salvaged
vehicle while identifying the vehicle as a salvage vehicle
According to colorado law, which of the following must be licensed as a motor vehicle dealer
and or powersports dealer? - ANSWER d) All of the above
Colorado Lemon law covers: - ANSWER c)defects that substantially impair the market value of a
vehicle
Three of the following are required to be disclosed in an advertisement when a dealer is
advertisement a closed end credit sale of a mother vehicle or powersports...except? - ANSWER
d) tax rate
The motor vehicle dealer board is authorized and empowered to: - ANSWER D)all of the above
Local law enforcement officers must be notified within ___ hours before or after the
repossession of a motor vehicle occurs: - ANSWER A)1 hours
All motor vehicle dealers and power-sports dealers must post a clear, legible sign on their
principal place of business if: - ANSWER B) they will be open less than 40 hours a week
A dealer may issue a temporary permits for each roadworthy vehicle sold - ANSWER B) false
(verify)
The motor vehicle dealer board may be decide how large a fine to impose on a dealer who sells
primarily vehicles that weigh 1,500 pounds or more so long as it does not exceed 5k - ANSWER
a)True (verify)
,The Colorado's consumer protection act declares bait and switch advertising to be deceptive
trade practice. Bait and switch advertising includes which of the following - ANSWER d)all of the
above
Three of the following types of motor vehicles are exempt from the truth in mileage act. Which
one is not exempt? - ANSWER B)motor vehicles with out-of-state titles
The motor vehicle dealer board does not have among its members - ANSWER c)three
employees from the enforcement division
What is the highest fine per offense that the motor vehicle dealer board or an administrative
law judge may impose on a dealer , who sells primarily vehicles that weigh less than 1,500
pounds - ANSWER $1,000
Three of the following are characteristics of an off-premise permit. . Which one is not? -
ANSWER The permit cannot exceed six days except for the national western stock show, the
colorado state fair, greely stampede
Which of the following is a true statement regarding dealers and buyers? - ANSWER B) a dealer
shall clearly indicate on the costumer contract when a vehicle sold "as is" and without a
guarantee
When advertising a specific number of motor vehicles that same number of vehicles must have
been invoiced to the dealer - ANSWER A)True
Dealers must either be self insured or have insurance for their vehicles - ANSWER A)True
In transit plates may be used on motor vehicles - ANSWER D) consigned to wholesale auction
dealers for transport from point of purchase to point of storage
,When a salesperson leaves a dealer, that dealer must do all of the following except - ANSWER
Immediately employ a new salesperson, licensed or not
The license of a new or used dealer, wholesale auction dealer or wholesaler may be denied
suspended, revoked or fined for all of the following grounds except - ANSWER Employing a
properly licensed salesperson
The only items that can be added to an advertised price are - ANSWER C) Dealer handling and
preparation charges
The license of a motor vehicle salesperson or a powersports salesperson may be denied,
revoked, or suspended on any of the following grounds except: - ANSWER D)using point of sale
literature in advertising
A buyer agent may - ANSWER be retained or hired by a consumer to assist, represent, or act on
behalf of such
consumer in connection with the purchase or lease of a motor vehicle
Three of the following are deceptive trade practices. Which of the following is not? - ANSWER
Delivering goods as promised
A new or used motor vehicle dealer may legally do which of the following with a temporary
permit? - ANSWER Issue a permit for a demonstration drive by a consumer
Re federal cash reporting rule requires dealers to file form 83000.... - ANSWER 15 Days
A new motor vehicle has three of the following characteristics. Which one doesn't it have? -
ANSWER D) a title
A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how many days
to report conviction? - ANSWER A ) 30 Days
, Three of the following are require when a dealer is advertising a lease of a a motor vehicle or
powersports vehicle with a payment amount which one is not required? - ANSWER D) disclosing
the cost of leasing versus the cost of purchasing
The definition of a used mother vehicle dealer or used powersports dealer includes which of
the following ? - 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
A customer's trade- in vehicle on a financed deal may be sold - ANSWER D) only when the
financing has been approved
Wholesalers : - ANSWER C)must use a name other than their personal name on all business
documents
A dealer is required to have on file the licenses of each of their employed salespersons but need
not display them in their place of business - ANSWER False
The license of a motor vehicle salesperson or a powersports salesperson may be denied,
revoked or suspended on the following grounds - ANSWER D) all of the above
A dealer must take in the title in their own name before selling a car to retail customer -
ANSWER B) False
A salesperson can change dealerships during the licensing year provided that the correct form
and fee is submitted to the board such sales person may begin work as a motor vehicle
salespersons or powersports salesperson while awaiting a new license from the board -
ANSWER B) False
Records of vehicles transfers and odometer statements must be retained for: - ANSWER C) 5
year
questions ) with 100% Correct Verified Answers
The license of a motor vehicle salesperson or power-sports salesperson may be denied, revoked
or suspended on any of the following grounds except: - ANSWER b) advertising a salvaged
vehicle while identifying the vehicle as a salvage vehicle
According to colorado law, which of the following must be licensed as a motor vehicle dealer
and or powersports dealer? - ANSWER d) All of the above
Colorado Lemon law covers: - ANSWER c)defects that substantially impair the market value of a
vehicle
Three of the following are required to be disclosed in an advertisement when a dealer is
advertisement a closed end credit sale of a mother vehicle or powersports...except? - ANSWER
d) tax rate
The motor vehicle dealer board is authorized and empowered to: - ANSWER D)all of the above
Local law enforcement officers must be notified within ___ hours before or after the
repossession of a motor vehicle occurs: - ANSWER A)1 hours
All motor vehicle dealers and power-sports dealers must post a clear, legible sign on their
principal place of business if: - ANSWER B) they will be open less than 40 hours a week
A dealer may issue a temporary permits for each roadworthy vehicle sold - ANSWER B) false
(verify)
The motor vehicle dealer board may be decide how large a fine to impose on a dealer who sells
primarily vehicles that weigh 1,500 pounds or more so long as it does not exceed 5k - ANSWER
a)True (verify)
,The Colorado's consumer protection act declares bait and switch advertising to be deceptive
trade practice. Bait and switch advertising includes which of the following - ANSWER d)all of the
above
Three of the following types of motor vehicles are exempt from the truth in mileage act. Which
one is not exempt? - ANSWER B)motor vehicles with out-of-state titles
The motor vehicle dealer board does not have among its members - ANSWER c)three
employees from the enforcement division
What is the highest fine per offense that the motor vehicle dealer board or an administrative
law judge may impose on a dealer , who sells primarily vehicles that weigh less than 1,500
pounds - ANSWER $1,000
Three of the following are characteristics of an off-premise permit. . Which one is not? -
ANSWER The permit cannot exceed six days except for the national western stock show, the
colorado state fair, greely stampede
Which of the following is a true statement regarding dealers and buyers? - ANSWER B) a dealer
shall clearly indicate on the costumer contract when a vehicle sold "as is" and without a
guarantee
When advertising a specific number of motor vehicles that same number of vehicles must have
been invoiced to the dealer - ANSWER A)True
Dealers must either be self insured or have insurance for their vehicles - ANSWER A)True
In transit plates may be used on motor vehicles - ANSWER D) consigned to wholesale auction
dealers for transport from point of purchase to point of storage
,When a salesperson leaves a dealer, that dealer must do all of the following except - ANSWER
Immediately employ a new salesperson, licensed or not
The license of a new or used dealer, wholesale auction dealer or wholesaler may be denied
suspended, revoked or fined for all of the following grounds except - ANSWER Employing a
properly licensed salesperson
The only items that can be added to an advertised price are - ANSWER C) Dealer handling and
preparation charges
The license of a motor vehicle salesperson or a powersports salesperson may be denied,
revoked, or suspended on any of the following grounds except: - ANSWER D)using point of sale
literature in advertising
A buyer agent may - ANSWER be retained or hired by a consumer to assist, represent, or act on
behalf of such
consumer in connection with the purchase or lease of a motor vehicle
Three of the following are deceptive trade practices. Which of the following is not? - ANSWER
Delivering goods as promised
A new or used motor vehicle dealer may legally do which of the following with a temporary
permit? - ANSWER Issue a permit for a demonstration drive by a consumer
Re federal cash reporting rule requires dealers to file form 83000.... - ANSWER 15 Days
A new motor vehicle has three of the following characteristics. Which one doesn't it have? -
ANSWER D) a title
A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how many days
to report conviction? - ANSWER A ) 30 Days
, Three of the following are require when a dealer is advertising a lease of a a motor vehicle or
powersports vehicle with a payment amount which one is not required? - ANSWER D) disclosing
the cost of leasing versus the cost of purchasing
The definition of a used mother vehicle dealer or used powersports dealer includes which of
the following ? - 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
A customer's trade- in vehicle on a financed deal may be sold - ANSWER D) only when the
financing has been approved
Wholesalers : - ANSWER C)must use a name other than their personal name on all business
documents
A dealer is required to have on file the licenses of each of their employed salespersons but need
not display them in their place of business - ANSWER False
The license of a motor vehicle salesperson or a powersports salesperson may be denied,
revoked or suspended on the following grounds - ANSWER D) all of the above
A dealer must take in the title in their own name before selling a car to retail customer -
ANSWER B) False
A salesperson can change dealerships during the licensing year provided that the correct form
and fee is submitted to the board such sales person may begin work as a motor vehicle
salespersons or powersports salesperson while awaiting a new license from the board -
ANSWER B) False
Records of vehicles transfers and odometer statements must be retained for: - ANSWER C) 5
year
