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MASTERY EXAM, CAR SALES TEST
COLORADOM 2025 BRAND NEW ACTUAL EXAM
WITH ANSWERS.
The license of a motor vehicle salesperson or powersport may be
denied, revoked, or suspended on any of the following grounds
except: - correct answer -using point of sale literature in
advertising
Full use dealer plates can be displayed on all vehicles owned and
offered for sale by dealer or wholesaler, except those that are
used on tow vehicles or parts delivery/pickup vehicles - correct
answer -
The license of a dealer may be denied, revoked, or suspended on
any of the following grounds except: - correct answer -employing
a properly licensed sales person
The motor vehicle dealer board is authorized and empowered to -
correct answer -all the above
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It is unlawful for a motor vehicle salesperson to: - correct answer -
begin acting as a salesperson while awaiting a new license from
the board
The definition of a used motor vehicle dealer or used powersports
dealer includes which of the following - correct answer -A person
who attempts to negoitiate a sale or lease of a used motor vehicle
or powersports vehicle woth the intent to make a profit or gain
The federal cash reporting rule required dealers to file federal
form 8300 with the internal revenue service when they recieve
more than $10,000 cash in a single transaction. How many days
does a dealer have to file the form. - correct answer -15 days
Motor Vehicles may be sold on Sundays - correct answer -
Hen a salesperson leaves a dealer, that dealer must return that
salesperson's license to the Auto Industry Division - correct
answer -True
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Which of the following would indicate a motor vehicle is used -
correct answer -Someone who sells motor vehicles solely to
wholesalers
Which of the following is true regarding in-transit plates - correct
answer -in-transit plates may be used for point of purchase to the
point of storage, or from the point of storage to the point of sale
Dealer In-Transit License Plates: 1. May be displayed on vehicles
that: a. Are for intra-state and inter-state transport of vehicles
offered for sale, consigned to be sold, or owned by a dealer. B.
Are being operated from point of purchase to the point of storage,
or from the point of storage to the point of sale. C. Are for
demonstration purposes only when a dealership employee is in
the vehicle with the prospective buyer. D. Are in a safe
roadworthy condition. 2. Dealer In-Transit license plates may not
be displayed on vehicles that: 76 Auto Industry Division Study
Guide- Miscellaneous Statutes & Regulations a. Are being
operated by prospective buyers without a dealership employee
being present in the vehicle while being operated, or; b. Have
been sold, leased, or rented, or; c. Are dealer or dealership
employees' personal vehicles, or; d. Are loaned or donated by the
dealership, or; e. Are being pulled, hauled or are otherwise
considered cargo, or; f. Are tow vehicles or parts pickup/delivery
vehicles.
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According to colorado law, which of the following does not need to
be a licenses as a motor vehicle dealer and/or powersports
dealer? - correct answer -a buyers agent
Licensed salespersons cannot obtain a buyer agent license
because they receive compensation from a dealer. Buyer agents
are strictly prohibited from being employed or receiving any fee
from a dealer.
A dealer must take the title in their own name before selling a car
to a retail customer - correct answer -Unsure... False
A "used motor vehicle" is defined as any motor vehicle which has
been sold, bargained, exchanged, given away, or the title thereto
transferred from the person who first took title thereto from the
manufacturer or importer, dealer or agent of the manufacturer or
importer, or so used as to have become what is commonly known
as a "secondhand motor vehicle"." In the event of transfer on the
certificate of origin, from the original franchised dealer to any
other dealer or individual other than a franchised dealer of the
same make of vehicle, the vehicle shall be considered a "used"
motor vehicle, and must be titled in the new owner's name.
Vehicles with more Than Fifteen Hundred (1500) miles of
demonstration use shall be considered used' vehicles. Such
"demonstrators" and other motor vehicles 3 Auto Industry Division
Study Guide- Motor Vehicle Regulations which have been used
by a dealer prior to their sale shall be titled in the dealer's name
MASTERY EXAM, CAR SALES TEST
COLORADOM 2025 BRAND NEW ACTUAL EXAM
WITH ANSWERS.
The license of a motor vehicle salesperson or powersport may be
denied, revoked, or suspended on any of the following grounds
except: - correct answer -using point of sale literature in
advertising
Full use dealer plates can be displayed on all vehicles owned and
offered for sale by dealer or wholesaler, except those that are
used on tow vehicles or parts delivery/pickup vehicles - correct
answer -
The license of a dealer may be denied, revoked, or suspended on
any of the following grounds except: - correct answer -employing
a properly licensed sales person
The motor vehicle dealer board is authorized and empowered to -
correct answer -all the above
, Page | 2
It is unlawful for a motor vehicle salesperson to: - correct answer -
begin acting as a salesperson while awaiting a new license from
the board
The definition of a used motor vehicle dealer or used powersports
dealer includes which of the following - correct answer -A person
who attempts to negoitiate a sale or lease of a used motor vehicle
or powersports vehicle woth the intent to make a profit or gain
The federal cash reporting rule required dealers to file federal
form 8300 with the internal revenue service when they recieve
more than $10,000 cash in a single transaction. How many days
does a dealer have to file the form. - correct answer -15 days
Motor Vehicles may be sold on Sundays - correct answer -
Hen a salesperson leaves a dealer, that dealer must return that
salesperson's license to the Auto Industry Division - correct
answer -True
, Page | 3
Which of the following would indicate a motor vehicle is used -
correct answer -Someone who sells motor vehicles solely to
wholesalers
Which of the following is true regarding in-transit plates - correct
answer -in-transit plates may be used for point of purchase to the
point of storage, or from the point of storage to the point of sale
Dealer In-Transit License Plates: 1. May be displayed on vehicles
that: a. Are for intra-state and inter-state transport of vehicles
offered for sale, consigned to be sold, or owned by a dealer. B.
Are being operated from point of purchase to the point of storage,
or from the point of storage to the point of sale. C. Are for
demonstration purposes only when a dealership employee is in
the vehicle with the prospective buyer. D. Are in a safe
roadworthy condition. 2. Dealer In-Transit license plates may not
be displayed on vehicles that: 76 Auto Industry Division Study
Guide- Miscellaneous Statutes & Regulations a. Are being
operated by prospective buyers without a dealership employee
being present in the vehicle while being operated, or; b. Have
been sold, leased, or rented, or; c. Are dealer or dealership
employees' personal vehicles, or; d. Are loaned or donated by the
dealership, or; e. Are being pulled, hauled or are otherwise
considered cargo, or; f. Are tow vehicles or parts pickup/delivery
vehicles.
, Page | 4
According to colorado law, which of the following does not need to
be a licenses as a motor vehicle dealer and/or powersports
dealer? - correct answer -a buyers agent
Licensed salespersons cannot obtain a buyer agent license
because they receive compensation from a dealer. Buyer agents
are strictly prohibited from being employed or receiving any fee
from a dealer.
A dealer must take the title in their own name before selling a car
to a retail customer - correct answer -Unsure... False
A "used motor vehicle" is defined as any motor vehicle which has
been sold, bargained, exchanged, given away, or the title thereto
transferred from the person who first took title thereto from the
manufacturer or importer, dealer or agent of the manufacturer or
importer, or so used as to have become what is commonly known
as a "secondhand motor vehicle"." In the event of transfer on the
certificate of origin, from the original franchised dealer to any
other dealer or individual other than a franchised dealer of the
same make of vehicle, the vehicle shall be considered a "used"
motor vehicle, and must be titled in the new owner's name.
Vehicles with more Than Fifteen Hundred (1500) miles of
demonstration use shall be considered used' vehicles. Such
"demonstrators" and other motor vehicles 3 Auto Industry Division
Study Guide- Motor Vehicle Regulations which have been used
by a dealer prior to their sale shall be titled in the dealer's name
