State of Colorado Motor Vehicle Dealer Board
Mastery Examination Questions and Answers
The executive director is hereby charged with the administration, enforcement, and
issuance or denial of the licensing of buyer agents, distributors, manufacturer
representatives, and motor vehicle manufacturers.
The Motor Vehicle Dealer Board is authorized and empowered to:
a. investigate any suspected or alleged violation by any motor vehicle salesperson
b. investigate any suspected or alleged violation by any motor vehicle dealer
c. order an administrative hearing be held if it believes there is probable cause that a
violation occurred
d. all of the above - ANSWER -D.
(f) (I) To investigate through the executive director, on its own motion or upon the
written and signed complaint of any person, any suspected or alleged violation by any
motor vehicle dealer, motor vehicle
salesperson, used motor vehicle dealer, wholesale motor vehicle auction dealer, or
wholesaler licensee of any of the terms and provisions of this part 1 or of any rule or
regulation promulgated by the board
under the authority conferred upon it in this section. The board shall order an
investigation of all written and signed complaints, shall have the authority to issue
subpoenas and to delegate the authority to issue subpoenas to the executive director,
and the executive director shall make an investigation of all such complaints transmitted
by the board pursuant to section 12-6-105.
if the board determines that there is probable cause to believe a violation of this article
has occurred, it may order that an administrative hearing be held pursuant to section
24-4-105, C.R.S.
https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2
0Vehicles%20laws.pdf
Dealers may be administratively fined by the Dealer Board up to what amount for
each separate offense? - ANSWER -(m) (I) (A) If a hearing is held before an
administrative law judge or a hearing officer designated by the
board from within the board's membership, after due notice and a hearing by such judge
or hearing
officer pursuant to section 24-4-105, C.R.S., to review the findings of law and fact and
the fairness of any
fine imposed and to uphold such fine, to impose an administrative fine upon its own
initiative, which
shall not exceed ten thousand dollars for each separate offense
https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2
0Vehicles%20laws.pdf
, New and used motor vehicle dealers, wholesalers and wholesale auction dealers are
required to have a surety bond in the amount of $ - ANSWER -$50,000 for
Dealer/Wholesaler
https://www.colorado.gov/pacific/enforcement/dealer-and-wholesaler-motor-vehicle-
powersports-auto-industry-division
Motor vehicle salespersons are required to have a surety bond in the amount of
$ - ANSWER -Surety Bond with FULL LEGAL NAME in the amount of $15,000. A
photocopy may be submitted.
https://www.colorado.gov/pacific/enforcement/salesperson-auto-industry-division
Selling ___ or more vehicles or offering for sale more than ___ vehicles at the same
address or telephone number in any one calendar year, shall be prima facie evidence
that
a person is engaged in the business of selling motor vehicles. - ANSWER -The sale or
lease of three or
more new or new and used motor vehicles or the offering for sale or lease of more than
three new or
new and used motor vehicles at the same address or telephone number in any one
calendar year shall
be prima facie evidence that a person is engaged in the business of selling or leasing
new or new and
used motor vehicles.
https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2
0Vehicles%20laws.pdf
The definition of a used motor vehicle dealer includes which of the following? -
ANSWER -(17) "Used motor vehicle dealer" means any person who, for commission or
with intent to make a profit
or gain of money or other thing of value, sells, exchanges, leases, or offers an interest
in used motor
vehicles, or attempts to negotiate a sale, exchange, or lease of used and new motor
vehicles or who is
engaged wholly or in part in the business of selling used motor vehicles, whether or not
such motor
vehicles are owned by such person.
https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2
0Vehicles%20laws.pdf
Wholesalers may:
a. make a profit or gain selling to dealers and wholesalers
, b. employ a motor vehicle salesperson
c. conduct business in their own personal name
d. hold both a wholesale license and a motor vehicle salesperson license at the same
time - ANSWER -A.
Regulation 12-6-102 (18)
No person may hold both a wholesaler license and a motor vehicle salesperson license
at the same time.
A wholesaler may not employ a motor vehicle salesperson.
For discussion of profit or gain, see Regulation 12-6-102 (13).
Wholesalers shall use a name other than their personal name on all business
documents for the purchase
and sale of motor vehicles to differentiate between a wholesaler and a Regulation 12-6-
104 (3)(a)
https://www.sos.state.co.us/CCR/GenerateRulePdf.do?ruleVersionId=2129&fileName=1
%20CCR%20205-1
Which of the following is not a requirement for motor vehicle dealers, used motor
vehicle dealers, or wholesalers?
a. report to the Dealer Board any transfer of 10% or more of ownership to one
individual
b. submit to the Dealer Board a written notice when a licensee changes the trade
name of the business
c. report to the Dealer Board when a licensee changes the site or location of the
principal place of business
d. submit to the Dealer Board a copy of a valid Colorado ID - ANSWER -D?
No licensee shall change the name or trade name of the business without submitting
written notice to
the Board, not less than ten days prior to the change.
Any transfer of ten percent or more of
the capital stock of any corporation holding a license under the provisions of this article
shall be
reported to the administrator not less than ten days prior to such transfer.
https://www.colorado.gov/pacific/sites/default/files/JANUARY%208%20MV%20REGS%
20unhighlited011215.pdf
Secure Verifiable Identification — A photocopy of an appropriate identification such as a
Colorado Driver License for the applicant (unless the applicant is a corporation or LLC )
https://www.colorado.gov/pacific/enforcement/dealer-and-wholesaler-motor-vehicle-
powersports-auto-industry-division
44-20-119. Notice of change of address or status. (1) The board, through the executive
Mastery Examination Questions and Answers
The executive director is hereby charged with the administration, enforcement, and
issuance or denial of the licensing of buyer agents, distributors, manufacturer
representatives, and motor vehicle manufacturers.
The Motor Vehicle Dealer Board is authorized and empowered to:
a. investigate any suspected or alleged violation by any motor vehicle salesperson
b. investigate any suspected or alleged violation by any motor vehicle dealer
c. order an administrative hearing be held if it believes there is probable cause that a
violation occurred
d. all of the above - ANSWER -D.
(f) (I) To investigate through the executive director, on its own motion or upon the
written and signed complaint of any person, any suspected or alleged violation by any
motor vehicle dealer, motor vehicle
salesperson, used motor vehicle dealer, wholesale motor vehicle auction dealer, or
wholesaler licensee of any of the terms and provisions of this part 1 or of any rule or
regulation promulgated by the board
under the authority conferred upon it in this section. The board shall order an
investigation of all written and signed complaints, shall have the authority to issue
subpoenas and to delegate the authority to issue subpoenas to the executive director,
and the executive director shall make an investigation of all such complaints transmitted
by the board pursuant to section 12-6-105.
if the board determines that there is probable cause to believe a violation of this article
has occurred, it may order that an administrative hearing be held pursuant to section
24-4-105, C.R.S.
https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2
0Vehicles%20laws.pdf
Dealers may be administratively fined by the Dealer Board up to what amount for
each separate offense? - ANSWER -(m) (I) (A) If a hearing is held before an
administrative law judge or a hearing officer designated by the
board from within the board's membership, after due notice and a hearing by such judge
or hearing
officer pursuant to section 24-4-105, C.R.S., to review the findings of law and fact and
the fairness of any
fine imposed and to uphold such fine, to impose an administrative fine upon its own
initiative, which
shall not exceed ten thousand dollars for each separate offense
https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2
0Vehicles%20laws.pdf
, New and used motor vehicle dealers, wholesalers and wholesale auction dealers are
required to have a surety bond in the amount of $ - ANSWER -$50,000 for
Dealer/Wholesaler
https://www.colorado.gov/pacific/enforcement/dealer-and-wholesaler-motor-vehicle-
powersports-auto-industry-division
Motor vehicle salespersons are required to have a surety bond in the amount of
$ - ANSWER -Surety Bond with FULL LEGAL NAME in the amount of $15,000. A
photocopy may be submitted.
https://www.colorado.gov/pacific/enforcement/salesperson-auto-industry-division
Selling ___ or more vehicles or offering for sale more than ___ vehicles at the same
address or telephone number in any one calendar year, shall be prima facie evidence
that
a person is engaged in the business of selling motor vehicles. - ANSWER -The sale or
lease of three or
more new or new and used motor vehicles or the offering for sale or lease of more than
three new or
new and used motor vehicles at the same address or telephone number in any one
calendar year shall
be prima facie evidence that a person is engaged in the business of selling or leasing
new or new and
used motor vehicles.
https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2
0Vehicles%20laws.pdf
The definition of a used motor vehicle dealer includes which of the following? -
ANSWER -(17) "Used motor vehicle dealer" means any person who, for commission or
with intent to make a profit
or gain of money or other thing of value, sells, exchanges, leases, or offers an interest
in used motor
vehicles, or attempts to negotiate a sale, exchange, or lease of used and new motor
vehicles or who is
engaged wholly or in part in the business of selling used motor vehicles, whether or not
such motor
vehicles are owned by such person.
https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2
0Vehicles%20laws.pdf
Wholesalers may:
a. make a profit or gain selling to dealers and wholesalers
, b. employ a motor vehicle salesperson
c. conduct business in their own personal name
d. hold both a wholesale license and a motor vehicle salesperson license at the same
time - ANSWER -A.
Regulation 12-6-102 (18)
No person may hold both a wholesaler license and a motor vehicle salesperson license
at the same time.
A wholesaler may not employ a motor vehicle salesperson.
For discussion of profit or gain, see Regulation 12-6-102 (13).
Wholesalers shall use a name other than their personal name on all business
documents for the purchase
and sale of motor vehicles to differentiate between a wholesaler and a Regulation 12-6-
104 (3)(a)
https://www.sos.state.co.us/CCR/GenerateRulePdf.do?ruleVersionId=2129&fileName=1
%20CCR%20205-1
Which of the following is not a requirement for motor vehicle dealers, used motor
vehicle dealers, or wholesalers?
a. report to the Dealer Board any transfer of 10% or more of ownership to one
individual
b. submit to the Dealer Board a written notice when a licensee changes the trade
name of the business
c. report to the Dealer Board when a licensee changes the site or location of the
principal place of business
d. submit to the Dealer Board a copy of a valid Colorado ID - ANSWER -D?
No licensee shall change the name or trade name of the business without submitting
written notice to
the Board, not less than ten days prior to the change.
Any transfer of ten percent or more of
the capital stock of any corporation holding a license under the provisions of this article
shall be
reported to the administrator not less than ten days prior to such transfer.
https://www.colorado.gov/pacific/sites/default/files/JANUARY%208%20MV%20REGS%
20unhighlited011215.pdf
Secure Verifiable Identification — A photocopy of an appropriate identification such as a
Colorado Driver License for the applicant (unless the applicant is a corporation or LLC )
https://www.colorado.gov/pacific/enforcement/dealer-and-wholesaler-motor-vehicle-
powersports-auto-industry-division
44-20-119. Notice of change of address or status. (1) The board, through the executive
