STATE OF COLORADO SALES LICENSE TEST QUESTIONS AND
ANSWERS #3
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 a person who attempts to negotiate a sale or lease of a used
motor vehicle or powersports vehicle with the intent to make a profit or gain
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 is - 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
Colorado 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, Allow the required
, payment to default (become at least 10 days late), send or hand deliver a "right to cure"
letter to the debtor and allow the debtor 20 days to cure
An advertisement may include - correct answer licensed name with the word DEALER
Which of the following is a used vehicle? - correct answer 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 down
payment
~terms 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
Motor Vehicle salesmen are required to have a surety bond in the amount of $30k -
correct answer False, $15,000
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 Motor Vehicle salesperson may work for more than 1 dealership during one year -
correct answer TRUE
All Motor Vehicle dealers and dealers must post a clear legible sign on their place of
business if: - correct answer they will be open less than 40 hours per week
ANSWERS #3
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 a person who attempts to negotiate a sale or lease of a used
motor vehicle or powersports vehicle with the intent to make a profit or gain
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 is - 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
Colorado 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, Allow the required
, payment to default (become at least 10 days late), send or hand deliver a "right to cure"
letter to the debtor and allow the debtor 20 days to cure
An advertisement may include - correct answer licensed name with the word DEALER
Which of the following is a used vehicle? - correct answer 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 down
payment
~terms 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
Motor Vehicle salesmen are required to have a surety bond in the amount of $30k -
correct answer False, $15,000
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 Motor Vehicle salesperson may work for more than 1 dealership during one year -
correct answer TRUE
All Motor Vehicle dealers and dealers must post a clear legible sign on their place of
business if: - correct answer they will be open less than 40 hours per week
