MOTOR VEHICLE INDUSTRY LICENSE EXAM QUESTIONS
AND ANSWERS #5
Three of the following types of motor vehicles are exempt from the truth in mileage act. -
correct answer ~Vehicles 10 years old or older
~Vehicles having a gross empty weight more than 10,000 lbs
~Vehicles not self propelled (Trailers)
The definition of a used motor vehicle dealer or used dealer includes which of the
following? - correct answer Any person who attempts to make profit lease or sale of a
used vehicle
The Motor Vehicle Board is authorized and empowered to: - correct answer All Of The
Above
~Amend and repeal rules, regulations and previsions
When advertising a specific number of motor vehicles, that same number of vehicles
must be invoiced to the dealer - correct answer TRUE
Bait and switch - correct answer ad that attracts consumers with a low-priced product,
then tries to sell them a higher-priced product
Selling, Leasing, Trade-In, with option to purchase, offering or negotiating and
exchange of interest in 3+ vehicles in any 1 year is prima facie evidence that a person is
engaged in the business of selling or leasing motor vehicles - correct answer TRUE
By obtaining an off-premise permit, dealers may sell motor vehicles at another location
on Sunday - correct answer False
NO Sale of vehicle should be done on Sundays
Which of the following statements is true regarding dealer demo plates? - correct
answer a demo drive cannot exceed 7 days
CO Lemon Law includes: - correct answer defects that substantially impair the market
value of the vehicle
Motor vehicle insurance is required: - correct answer for all registered vehicles intended
for use on colorado roads
Which is true regarding in-transit plates? - correct answer in-transit plates may be used
to transport vehicles from point of purchase to point of storage or from point of storage
to point of sale
, Licensed dealers may sell which of the following on Sundays? - correct answer The
selling of boat trailers and snowmobile are exempt
Which of the following steps are required to properly and legally repossess a motor
vehicle? - correct answer effect a lien creating a security interest
An advertisement may include - correct answer licensed name with the word DEALER
Which of the following is a used vehicle? - correct answer and any vehicle that has been
previously bought a demo vehicle with 1500 miles
Which of the following are deceptive trade practices? - correct answer All of the above
Bait and switch
How many temp permits may a dealer issue for each roadworthy vehicle sold? - correct
answer 1
An extension can only be issued but the DMV
Depot plates may be used during normal business hours to transport a motor vehicle -
correct answer all of the above
All plates
Three of the following are required when a dealer is advertising a lease of a motor
vehicle with a payment amount. - correct answer ~Amount or percentage of the
downpayment
~therms of repayment (car payment date)
~Annual percentage rate (interest rate of the loan)
Which is NOT required when advertising a lease? - correct answer disclosing the cost of
lease vs purchasing
Prominently and conspicuously display the ________? - correct answer FTC Buyer's
Guide
A temp registration permit may be issued: - correct answer -for 60 days in a B2C sale
-for 7 days in a B2B sale
MV salesmen are required to have a surety bond in the amount of $30k - correct answer
TRUE
If a salesperson leaves a dealership during the licensing year and becomes employed
at another dealership they must acquire a new license for the unexpired portion of their
returned license from the board - correct answer True
A MV salesperson may work for more than 1 dealership during one year - correct
answer True
AND ANSWERS #5
Three of the following types of motor vehicles are exempt from the truth in mileage act. -
correct answer ~Vehicles 10 years old or older
~Vehicles having a gross empty weight more than 10,000 lbs
~Vehicles not self propelled (Trailers)
The definition of a used motor vehicle dealer or used dealer includes which of the
following? - correct answer Any person who attempts to make profit lease or sale of a
used vehicle
The Motor Vehicle Board is authorized and empowered to: - correct answer All Of The
Above
~Amend and repeal rules, regulations and previsions
When advertising a specific number of motor vehicles, that same number of vehicles
must be invoiced to the dealer - correct answer TRUE
Bait and switch - correct answer ad that attracts consumers with a low-priced product,
then tries to sell them a higher-priced product
Selling, Leasing, Trade-In, with option to purchase, offering or negotiating and
exchange of interest in 3+ vehicles in any 1 year is prima facie evidence that a person is
engaged in the business of selling or leasing motor vehicles - correct answer TRUE
By obtaining an off-premise permit, dealers may sell motor vehicles at another location
on Sunday - correct answer False
NO Sale of vehicle should be done on Sundays
Which of the following statements is true regarding dealer demo plates? - correct
answer a demo drive cannot exceed 7 days
CO Lemon Law includes: - correct answer defects that substantially impair the market
value of the vehicle
Motor vehicle insurance is required: - correct answer for all registered vehicles intended
for use on colorado roads
Which is true regarding in-transit plates? - correct answer in-transit plates may be used
to transport vehicles from point of purchase to point of storage or from point of storage
to point of sale
, Licensed dealers may sell which of the following on Sundays? - correct answer The
selling of boat trailers and snowmobile are exempt
Which of the following steps are required to properly and legally repossess a motor
vehicle? - correct answer effect a lien creating a security interest
An advertisement may include - correct answer licensed name with the word DEALER
Which of the following is a used vehicle? - correct answer and any vehicle that has been
previously bought a demo vehicle with 1500 miles
Which of the following are deceptive trade practices? - correct answer All of the above
Bait and switch
How many temp permits may a dealer issue for each roadworthy vehicle sold? - correct
answer 1
An extension can only be issued but the DMV
Depot plates may be used during normal business hours to transport a motor vehicle -
correct answer all of the above
All plates
Three of the following are required when a dealer is advertising a lease of a motor
vehicle with a payment amount. - correct answer ~Amount or percentage of the
downpayment
~therms of repayment (car payment date)
~Annual percentage rate (interest rate of the loan)
Which is NOT required when advertising a lease? - correct answer disclosing the cost of
lease vs purchasing
Prominently and conspicuously display the ________? - correct answer FTC Buyer's
Guide
A temp registration permit may be issued: - correct answer -for 60 days in a B2C sale
-for 7 days in a B2B sale
MV salesmen are required to have a surety bond in the amount of $30k - correct answer
TRUE
If a salesperson leaves a dealership during the licensing year and becomes employed
at another dealership they must acquire a new license for the unexpired portion of their
returned license from the board - correct answer True
A MV salesperson may work for more than 1 dealership during one year - correct
answer True
