MOTOR VEHICLE INDUSTRY EXAM WITH VERIFIED
ANSWERS #8
Three of the follow types of motor vehicles are exempt from the truth in mileage Act.
Which one is NOT exempt? - correct answer B. Motor vehicles with out of state titles
Three of the following are required when a dealer is advertising lease of a motor vehicle
or power sports vehicle with a payment amount. Which one is NOT required? - correct
answer B. Disclosing the cost of leasing versus the cost of purchasing
The motor vehicle board is authorized and empowered to: - correct answer D. All of the
above
Motor vehicles may be sold on Sundays? (52)
(True or False) - correct answer False
Motor vehicle board may decide how large a fine to impose on a dealer who sells
primarily vehicle that weigh 1500 pounds or more so long as it does not exceed $5,000
(True or False) - correct answer False
The motor vehicle board does NOT have among its members (pg.6) - correct answer C.
Three employees from the enforcement division
Colorado's lemon law covers - correct answer B. New self-propelled vehicles, including
pickups and vans
The federal trade commission's used car rule has required the dealers prominently and
conspicuously display the "_____" on every used motor vehicle or light truck offered for
sales. This is also known as the "as is" sticker. - correct answer Buyer's guide
Incoming and outgoing mileage disclosures must be retained for 5 years - correct
answer True
Dealer should ensure that their reposessor are bonded through the state attorney
general's office. Dealers employing and unbonded reposessor: (pg. 83) - correct answer
C. May become liable for the actions of the reposessor
Which of the following is true about Colorado's lemon law: (pg.86) - correct answer C. A
''reasonable number of attempts" to repair applies when the motor vehicle has been out
of service for repairs a cumulative total of 30 or more business days during the warranty
term or 1 year from date of delivery
Wholesalers may: (pg.6) - correct answer A. Make a profit or gain selling to wholesalers
and dealer
, Which of the following is an acceptable proof of ownership of a motor vehicle for a
Colorado dealer? (pg.61) - correct answer B. A used vehicle with a properly assigned
out of state title to the licensed dealer
An advertisement would include: (pg.1) - correct answer D. All of the above
A buyer agent may: (pg.1) - correct answer B. Be retained or hired by a consumer to
assist, represent or act on behalf of such consumer in conjunction with the purchase or
lease of a motor vehicle/power sports
When advertising the sale of a specific motor vehicle, if no statement has been made
concerning a specific time limit of the advertised price, such vehicle shall be sold at the
advertised price for a period of five days following the last date the ad was published
(pg.36) - correct answer True
A dealer may issue 3 temporary permits for each roadworthy vehicle sold (pg.73) -
correct answer False
The license of a new or used dealer, wholesale auction dealer, or wholesaler may be
denied, suspended, revoked, or fined for the following: - correct answer D. All of the
above
If an advertisement for a closed-end credit sale contains the down payment amount,
payment amount, number of payments, and period of repayment, the annual
percentage rate does NOT need to be disclosed. - correct answer False
Which of the following is true regarding depot plates? (pg.71) - correct answer C. Depot
plates may be used by a dealer to road test a vehicle after repair during normal
business hours
Motor vehicle insurance is required: - correct answer D. All of the above
A motor vehicle dealer or salesperson may advertise: (pg.37) - correct answer C.
Salvage vehicles, so long as they are specifically identified as "salvage"
Which of the following is a requirement for motor vehicle dealers, power sports, dealers
used motor vehicles, used power sports dealers, or wholesalers? (pg.6 ,10, 34) - correct
answer D. All of the above
Which of the following would indicate motor vehicle is used? - correct answer C. A
certificate of title has been issued
If a motor vehicle salesperson selling primarily vehicles less than 1500 lbs. Is found
guilty of a violation of law by the motor vehicle dealer board, they may receive: (pg.19) -
correct answer B.A letter of reprimand submitted as part of the licensee's record with
the board
ANSWERS #8
Three of the follow types of motor vehicles are exempt from the truth in mileage Act.
Which one is NOT exempt? - correct answer B. Motor vehicles with out of state titles
Three of the following are required when a dealer is advertising lease of a motor vehicle
or power sports vehicle with a payment amount. Which one is NOT required? - correct
answer B. Disclosing the cost of leasing versus the cost of purchasing
The motor vehicle board is authorized and empowered to: - correct answer D. All of the
above
Motor vehicles may be sold on Sundays? (52)
(True or False) - correct answer False
Motor vehicle board may decide how large a fine to impose on a dealer who sells
primarily vehicle that weigh 1500 pounds or more so long as it does not exceed $5,000
(True or False) - correct answer False
The motor vehicle board does NOT have among its members (pg.6) - correct answer C.
Three employees from the enforcement division
Colorado's lemon law covers - correct answer B. New self-propelled vehicles, including
pickups and vans
The federal trade commission's used car rule has required the dealers prominently and
conspicuously display the "_____" on every used motor vehicle or light truck offered for
sales. This is also known as the "as is" sticker. - correct answer Buyer's guide
Incoming and outgoing mileage disclosures must be retained for 5 years - correct
answer True
Dealer should ensure that their reposessor are bonded through the state attorney
general's office. Dealers employing and unbonded reposessor: (pg. 83) - correct answer
C. May become liable for the actions of the reposessor
Which of the following is true about Colorado's lemon law: (pg.86) - correct answer C. A
''reasonable number of attempts" to repair applies when the motor vehicle has been out
of service for repairs a cumulative total of 30 or more business days during the warranty
term or 1 year from date of delivery
Wholesalers may: (pg.6) - correct answer A. Make a profit or gain selling to wholesalers
and dealer
, Which of the following is an acceptable proof of ownership of a motor vehicle for a
Colorado dealer? (pg.61) - correct answer B. A used vehicle with a properly assigned
out of state title to the licensed dealer
An advertisement would include: (pg.1) - correct answer D. All of the above
A buyer agent may: (pg.1) - correct answer B. Be retained or hired by a consumer to
assist, represent or act on behalf of such consumer in conjunction with the purchase or
lease of a motor vehicle/power sports
When advertising the sale of a specific motor vehicle, if no statement has been made
concerning a specific time limit of the advertised price, such vehicle shall be sold at the
advertised price for a period of five days following the last date the ad was published
(pg.36) - correct answer True
A dealer may issue 3 temporary permits for each roadworthy vehicle sold (pg.73) -
correct answer False
The license of a new or used dealer, wholesale auction dealer, or wholesaler may be
denied, suspended, revoked, or fined for the following: - correct answer D. All of the
above
If an advertisement for a closed-end credit sale contains the down payment amount,
payment amount, number of payments, and period of repayment, the annual
percentage rate does NOT need to be disclosed. - correct answer False
Which of the following is true regarding depot plates? (pg.71) - correct answer C. Depot
plates may be used by a dealer to road test a vehicle after repair during normal
business hours
Motor vehicle insurance is required: - correct answer D. All of the above
A motor vehicle dealer or salesperson may advertise: (pg.37) - correct answer C.
Salvage vehicles, so long as they are specifically identified as "salvage"
Which of the following is a requirement for motor vehicle dealers, power sports, dealers
used motor vehicles, used power sports dealers, or wholesalers? (pg.6 ,10, 34) - correct
answer D. All of the above
Which of the following would indicate motor vehicle is used? - correct answer C. A
certificate of title has been issued
If a motor vehicle salesperson selling primarily vehicles less than 1500 lbs. Is found
guilty of a violation of law by the motor vehicle dealer board, they may receive: (pg.19) -
correct answer B.A letter of reprimand submitted as part of the licensee's record with
the board
