Sales License Exam Questions With Correct Answers.
Colorado Motor Vehicle Industry Laws - accurate answers-
To view the source material, go to
http://www.lexisnexis.com/hottopics/colorado/ - accurate answers-
12-6-101. Legislative declaration - accurate answers-
(1) The general assembly hereby declares that: - accurate answers-
(a) The sale and distribution of motor vehicles affects the public interest and a
significant factor of inducement in making a sale of a motor vehicle is the trust
and confidence of the purchaser in the retail dealer from whom the purchase
is made and the expectancy that such dealer will remain in business to
provide service for the motor vehicle purchased; - accurate answers-
(b) Proper motor vehicle service is important to highway safety and the
manufacturers and distributors of motor vehicles have an obligation to the
public not to terminate or refuse to continue their franchise agreements with
retail dealers unless the manufacturer or distributor has first established good
cause for termination or noncontinuance of any such agreement, to the end
that there shall be no diminution of locally available service; - accurate
answers-
(c) The licensing and supervision of motor vehicle dealers by the motor
vehicle dealer board are necessary for the protection of consumers and
therefore the sale of motor vehicles by unlicensed dealers or salespersons, or
by licensed dealers or salespersons who have demonstrated unfitness, should
be prevented; - accurate answers-
(d) Consumer education concerning the rules and regulations of the motor
vehicle industry, the considerations when purchasing a motor vehicle, and the
role, functions, and actions of the motor vehicle dealer board are necessary for
the protection of the public and for maintaining the trust and confidence of
the public in the motor vehicle dealer board; and - accurate answers-
,(e) Subject to the United States constitution and the Colorado constitution,
this article applies to each sales, service, and parts agreement in effect,
regardless of when the agreement was adopted. - accurate answers-
12-6-102. Definitions. - accurate answers-
As used in this part 1 and in part 5 of this article, unless the context or section
12-6-502 otherwise requires: - accurate answers-
(1) (Deleted by amendment, L. 92, p. 1841, § 2, effective July 1, 1992.) -
accurate answers-
(1.5) "Advertisement" means any commercial message in any newspaper,
magazine, leaflet, flyer, or catalog, on radio, television, or a public address
system, in direct mail literature or other printed material, on any interior or
exterior sign or display, in any window display, on a computer display, or in
any point-of-transaction literature or price tag that is delivered or made
available to a customer or prospective customer in any manner whatsoever;
except that such term does not include materials required to be displayed by
federal or state law. - accurate answers-
(2) "Board" means the motor vehicle dealer board. - accurate answers-
(2.4) "Business incidental thereto" means a business owned by the motor
vehicle dealer or used motor vehicle dealer related to the sale of motor
vehicles, including, without limitation, motor vehicle part sales, motor vehicle
repair, motor vehicle recycling, motor vehicle security interest assignment,
and motor vehicle towing. - accurate answers-
(2.5) (a) (I) "Buyer agent" means any person required to be licensed pursuant
to this part 1 who is retained or hired by a consumer for a fee or other thing of
value to assist, represent, or act on behalf of such consumer in connection
with the purchase or lease of a motor vehicle. - accurate answers-
(II) "Consumer", as used in this subsection (2.5), means a purchaser or lessee
of a motor vehicle, which vehicle is primarily used for business, personal,
family, or household purposes. "Consumer" does not include a purchaser of
motor vehicles who purchases said motor vehicles primarily for resale. -
accurate answers-
,(b) (I) "Buyer agent" does not include a person whose business includes the
purchase of motor vehicles primarily for resale or lease; except that nothing in
this subsection (2.5) shall be construed to prohibit a buyer agent from
assisting a consumer regarding the disposal of a trade-in motor vehicle that is
incident to the purchase or lease of a vehicle if the buyer agent does not
advertise the sale of, or sell, such vehicle to the general public, directs
interested dealers and wholesalers to communicate their offers directly to the
consumer or to the consumer via the buyer agent, does not handle or transfer
titles or funds between the consumer and the purchaser, receives no
compensation from a dealer or wholesaler purchasing a consumer's vehicle,
and identifies himself or herself as a buyer agent to dealers and wholesalers
interested in the consumer's vehicle. - accurate answers-
(II) A "buyer agent" licensed pursuant to this part 1 shall not be employed by
or receive a fee from a person whose business includes the purchase of motor
vehicles primarily for resale or lease, a motor vehicle manufacturer, a motor
vehicle dealer, or a used motor vehicle dealer. - accurate answers-
(3) "Coerce" means to compel or attempt to compel by threatening,
retaliating, economic force, or by not performing or complying with any terms
or provisions of the franchise or agreement; except that recommendation,
exposition, persuasion, urging, or argument shall not be deemed to constitute
coercion. - accurate answers-
(4) "Community" means a franchisee's area of responsibility as set out in the
franchise. - accurate answers-
(4.5) (a) "Custom trailer" means any motor vehicle which is not driven or
propelled by its own power and is designed to be attached to, become a part
of, or be drawn by a motor vehicle and which is uniquely designed and
manufactured for a specific purpose or customer. - accurate answers-
(b) "Custom trailer" does not include manufactured housing, farm tractors,
and other machines and tools used in the production, harvest, and care of
farm products. - accurate answers-
, (5) "Distributor" means a person, resident or nonresident, who, in whole or in
part, sells or distributes new motor vehicles to motor vehicle dealers or who
maintains distributor representatives. - accurate answers-
(6) and (7) (Deleted by amendment, L. 2003, p. 1300, § 1, effective April 22,
2003.) - accurate answers-
(7.5) "Executive director" means the executive director of the department of
revenue charged with the administration, enforcement, and issuance or denial
of the licensing of buyer agents, distributors, manufacturer representatives,
and manufacturers. - accurate answers-
(8) and (9) (Deleted by amendment, L. 2003, p. 1300, § 1, effective April 22,
2003.) - accurate answers-
(9.5) "Fire truck" means a vehicle intended for use in the extermination of
fires, with features that may include, but shall not be limited to, a fire pump, a
water tank, an aerial ladder, an elevated platform, or any combination thereof.
- accurate answers-
(9.7) "Franchise" means the authority to sell or service and repair motor
vehicles of a designated line-make granted through a sales, service, and parts
agreement with a manufacturer, distributor, or manufacturer representative. -
accurate answers-
(10) "Good faith" means the duty of each party to any franchise and all
officers, employees, or agents thereof to act in a fair and equitable manner
toward each other so as to guarantee the one party freedom from coercion,
intimidation, or threats of coercion or intimidation from the other party.
Recommendation, endorsement, exposition, persuasion, urging, or argument
shall not be deemed to constitute a lack of good faith. - accurate answers-
(10.5) "Line-make" means a group or series of motor vehicles that have the
same brand identification or brand name, based upon the manufacturer's
trademark, trade name, or logo. - accurate answers-
(11) "Manufacturer" means any person, firm, association, corporation, or
trust, resident or nonresident, who manufactures or assembles new and
Colorado Motor Vehicle Industry Laws - accurate answers-
To view the source material, go to
http://www.lexisnexis.com/hottopics/colorado/ - accurate answers-
12-6-101. Legislative declaration - accurate answers-
(1) The general assembly hereby declares that: - accurate answers-
(a) The sale and distribution of motor vehicles affects the public interest and a
significant factor of inducement in making a sale of a motor vehicle is the trust
and confidence of the purchaser in the retail dealer from whom the purchase
is made and the expectancy that such dealer will remain in business to
provide service for the motor vehicle purchased; - accurate answers-
(b) Proper motor vehicle service is important to highway safety and the
manufacturers and distributors of motor vehicles have an obligation to the
public not to terminate or refuse to continue their franchise agreements with
retail dealers unless the manufacturer or distributor has first established good
cause for termination or noncontinuance of any such agreement, to the end
that there shall be no diminution of locally available service; - accurate
answers-
(c) The licensing and supervision of motor vehicle dealers by the motor
vehicle dealer board are necessary for the protection of consumers and
therefore the sale of motor vehicles by unlicensed dealers or salespersons, or
by licensed dealers or salespersons who have demonstrated unfitness, should
be prevented; - accurate answers-
(d) Consumer education concerning the rules and regulations of the motor
vehicle industry, the considerations when purchasing a motor vehicle, and the
role, functions, and actions of the motor vehicle dealer board are necessary for
the protection of the public and for maintaining the trust and confidence of
the public in the motor vehicle dealer board; and - accurate answers-
,(e) Subject to the United States constitution and the Colorado constitution,
this article applies to each sales, service, and parts agreement in effect,
regardless of when the agreement was adopted. - accurate answers-
12-6-102. Definitions. - accurate answers-
As used in this part 1 and in part 5 of this article, unless the context or section
12-6-502 otherwise requires: - accurate answers-
(1) (Deleted by amendment, L. 92, p. 1841, § 2, effective July 1, 1992.) -
accurate answers-
(1.5) "Advertisement" means any commercial message in any newspaper,
magazine, leaflet, flyer, or catalog, on radio, television, or a public address
system, in direct mail literature or other printed material, on any interior or
exterior sign or display, in any window display, on a computer display, or in
any point-of-transaction literature or price tag that is delivered or made
available to a customer or prospective customer in any manner whatsoever;
except that such term does not include materials required to be displayed by
federal or state law. - accurate answers-
(2) "Board" means the motor vehicle dealer board. - accurate answers-
(2.4) "Business incidental thereto" means a business owned by the motor
vehicle dealer or used motor vehicle dealer related to the sale of motor
vehicles, including, without limitation, motor vehicle part sales, motor vehicle
repair, motor vehicle recycling, motor vehicle security interest assignment,
and motor vehicle towing. - accurate answers-
(2.5) (a) (I) "Buyer agent" means any person required to be licensed pursuant
to this part 1 who is retained or hired by a consumer for a fee or other thing of
value to assist, represent, or act on behalf of such consumer in connection
with the purchase or lease of a motor vehicle. - accurate answers-
(II) "Consumer", as used in this subsection (2.5), means a purchaser or lessee
of a motor vehicle, which vehicle is primarily used for business, personal,
family, or household purposes. "Consumer" does not include a purchaser of
motor vehicles who purchases said motor vehicles primarily for resale. -
accurate answers-
,(b) (I) "Buyer agent" does not include a person whose business includes the
purchase of motor vehicles primarily for resale or lease; except that nothing in
this subsection (2.5) shall be construed to prohibit a buyer agent from
assisting a consumer regarding the disposal of a trade-in motor vehicle that is
incident to the purchase or lease of a vehicle if the buyer agent does not
advertise the sale of, or sell, such vehicle to the general public, directs
interested dealers and wholesalers to communicate their offers directly to the
consumer or to the consumer via the buyer agent, does not handle or transfer
titles or funds between the consumer and the purchaser, receives no
compensation from a dealer or wholesaler purchasing a consumer's vehicle,
and identifies himself or herself as a buyer agent to dealers and wholesalers
interested in the consumer's vehicle. - accurate answers-
(II) A "buyer agent" licensed pursuant to this part 1 shall not be employed by
or receive a fee from a person whose business includes the purchase of motor
vehicles primarily for resale or lease, a motor vehicle manufacturer, a motor
vehicle dealer, or a used motor vehicle dealer. - accurate answers-
(3) "Coerce" means to compel or attempt to compel by threatening,
retaliating, economic force, or by not performing or complying with any terms
or provisions of the franchise or agreement; except that recommendation,
exposition, persuasion, urging, or argument shall not be deemed to constitute
coercion. - accurate answers-
(4) "Community" means a franchisee's area of responsibility as set out in the
franchise. - accurate answers-
(4.5) (a) "Custom trailer" means any motor vehicle which is not driven or
propelled by its own power and is designed to be attached to, become a part
of, or be drawn by a motor vehicle and which is uniquely designed and
manufactured for a specific purpose or customer. - accurate answers-
(b) "Custom trailer" does not include manufactured housing, farm tractors,
and other machines and tools used in the production, harvest, and care of
farm products. - accurate answers-
, (5) "Distributor" means a person, resident or nonresident, who, in whole or in
part, sells or distributes new motor vehicles to motor vehicle dealers or who
maintains distributor representatives. - accurate answers-
(6) and (7) (Deleted by amendment, L. 2003, p. 1300, § 1, effective April 22,
2003.) - accurate answers-
(7.5) "Executive director" means the executive director of the department of
revenue charged with the administration, enforcement, and issuance or denial
of the licensing of buyer agents, distributors, manufacturer representatives,
and manufacturers. - accurate answers-
(8) and (9) (Deleted by amendment, L. 2003, p. 1300, § 1, effective April 22,
2003.) - accurate answers-
(9.5) "Fire truck" means a vehicle intended for use in the extermination of
fires, with features that may include, but shall not be limited to, a fire pump, a
water tank, an aerial ladder, an elevated platform, or any combination thereof.
- accurate answers-
(9.7) "Franchise" means the authority to sell or service and repair motor
vehicles of a designated line-make granted through a sales, service, and parts
agreement with a manufacturer, distributor, or manufacturer representative. -
accurate answers-
(10) "Good faith" means the duty of each party to any franchise and all
officers, employees, or agents thereof to act in a fair and equitable manner
toward each other so as to guarantee the one party freedom from coercion,
intimidation, or threats of coercion or intimidation from the other party.
Recommendation, endorsement, exposition, persuasion, urging, or argument
shall not be deemed to constitute a lack of good faith. - accurate answers-
(10.5) "Line-make" means a group or series of motor vehicles that have the
same brand identification or brand name, based upon the manufacturer's
trademark, trade name, or logo. - accurate answers-
(11) "Manufacturer" means any person, firm, association, corporation, or
trust, resident or nonresident, who manufactures or assembles new and
