COLORADO SALES TEST QUESTIONS AND ANSWERS
2025 #11
The definition of a used motor vehicle dealer or used powersports 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
Motor vehicles may be sold on Sunday (s) - correct answer False
Selling, leasing, exchanging, renting with option to purchase, offering, or negotiating an
exchange of interest in three (3) or more motor vehicles or three (3) or more
powersports vehicles in any one calendar year, shall be prima facie evidence that a
person is engaged in the business of selling or leasing motor vehicles or powersports
vehicles - correct answer False
Colorado's Lemon Law covers - correct answer new self-propelled vehicles, including
pickups and vans
All motor vehicle dealers and powersports dealers must be open to inspection (of books
and records) by the motor vehicle board and its agents - correct answer Monday
through Friday from 9 A.M. to 5 P.M
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
What is the highest fine per offense that the Motor Vehicle Dealer Board or an
Administrative Law Judge may impose on a dealer, who sells primarily vehicles that
weigh 1,500 pounds or more? - correct answer $10,000
Licensed powersport dealers may not sell powersports on Sunday(s) - correct answer
False
The Motor Vehicle Dealer Board is authorized and empowered to - correct answer -
Issue licenses to and regulate wholsalers - impose a fine of up to $20,000 for each
separate offense - act as an enforcement arm in licensing and regulation
By definition, an advertisement may include any commercial message on any computer
display or window display which is delivered or made available to a customer or
prospective customer in any manner whatsoever - correct answer False
Which of the following is true about Colorado's Lemon Law? - correct answer 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
, The license of a wholesale auction dealer or wholesaler may be denied, suspended,
revoked or fined for the following - correct answer Attempting to negotiate the sale,
lease, or exchange of an interest in motor vehicles to persons other than new or used
dealers, wholesalers, or wholesale auction dealers
The license of a motor vehicle salesperson or a powersports salesperson may be
denied. Revoked, or suspended on any of the following grounds except - correct answer
using point of sale literature in advertising
Three of the following are deceptive trade practices. Which one of the following is not? -
correct answer delivering goods as promised
New and used motor vehicle dealers, powersports dealers, wholesalers and wholesale
auction dealers are required to have a surety bond in the amount of - correct answer
$50,000
The license of a new or used dealer, wholesale auction dealer, or wholesaler may be
denied. Suspended, revoked or fined for all of the following grounds except - correct
answer employing a properly licensed salesperson
Which of the following persons are required, by federal law, to adhere to the Truth in
Mileage Act? - correct answer - new and used motor vehicle dealers - motor vehicle
lessors - motor vehicle auctioneers
The Buyer's Guide, or "as is" sticker may be removed from a vehicle for a test drive, but
must be returned as soon as the test is over - correct answer True
A customer's trade-in vehicle on a financed deal - correct answer may be sold as soon
as the title has been signed over to the dealer
Wholesalers - correct answer shall maintain written records of all business transactions
involving the sale, exchange, or offer of any interest in a motor vehicle
A salesperson can change dealerships during the licensing year provided that the
correct form and fee is submitted to the Board. Such salesperson may begin work as a
motor vehicle salesperson or powersports salesperson while awaiting a new license
from the Board - correct answer False
A temporary registration permit may be issued - correct answer both B & C are correct -
for up to 60 days upon the sale of a motor vehicle to another dealer - to a consumer by
a dealer for up to 60 days
The license of a motor vehicle salesperson or powersports salesperson may be denied,
revoked, or suspended on any of the following grounds except - correct answer
engaging in business without having a bond in force
2025 #11
The definition of a used motor vehicle dealer or used powersports 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
Motor vehicles may be sold on Sunday (s) - correct answer False
Selling, leasing, exchanging, renting with option to purchase, offering, or negotiating an
exchange of interest in three (3) or more motor vehicles or three (3) or more
powersports vehicles in any one calendar year, shall be prima facie evidence that a
person is engaged in the business of selling or leasing motor vehicles or powersports
vehicles - correct answer False
Colorado's Lemon Law covers - correct answer new self-propelled vehicles, including
pickups and vans
All motor vehicle dealers and powersports dealers must be open to inspection (of books
and records) by the motor vehicle board and its agents - correct answer Monday
through Friday from 9 A.M. to 5 P.M
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
What is the highest fine per offense that the Motor Vehicle Dealer Board or an
Administrative Law Judge may impose on a dealer, who sells primarily vehicles that
weigh 1,500 pounds or more? - correct answer $10,000
Licensed powersport dealers may not sell powersports on Sunday(s) - correct answer
False
The Motor Vehicle Dealer Board is authorized and empowered to - correct answer -
Issue licenses to and regulate wholsalers - impose a fine of up to $20,000 for each
separate offense - act as an enforcement arm in licensing and regulation
By definition, an advertisement may include any commercial message on any computer
display or window display which is delivered or made available to a customer or
prospective customer in any manner whatsoever - correct answer False
Which of the following is true about Colorado's Lemon Law? - correct answer 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
, The license of a wholesale auction dealer or wholesaler may be denied, suspended,
revoked or fined for the following - correct answer Attempting to negotiate the sale,
lease, or exchange of an interest in motor vehicles to persons other than new or used
dealers, wholesalers, or wholesale auction dealers
The license of a motor vehicle salesperson or a powersports salesperson may be
denied. Revoked, or suspended on any of the following grounds except - correct answer
using point of sale literature in advertising
Three of the following are deceptive trade practices. Which one of the following is not? -
correct answer delivering goods as promised
New and used motor vehicle dealers, powersports dealers, wholesalers and wholesale
auction dealers are required to have a surety bond in the amount of - correct answer
$50,000
The license of a new or used dealer, wholesale auction dealer, or wholesaler may be
denied. Suspended, revoked or fined for all of the following grounds except - correct
answer employing a properly licensed salesperson
Which of the following persons are required, by federal law, to adhere to the Truth in
Mileage Act? - correct answer - new and used motor vehicle dealers - motor vehicle
lessors - motor vehicle auctioneers
The Buyer's Guide, or "as is" sticker may be removed from a vehicle for a test drive, but
must be returned as soon as the test is over - correct answer True
A customer's trade-in vehicle on a financed deal - correct answer may be sold as soon
as the title has been signed over to the dealer
Wholesalers - correct answer shall maintain written records of all business transactions
involving the sale, exchange, or offer of any interest in a motor vehicle
A salesperson can change dealerships during the licensing year provided that the
correct form and fee is submitted to the Board. Such salesperson may begin work as a
motor vehicle salesperson or powersports salesperson while awaiting a new license
from the Board - correct answer False
A temporary registration permit may be issued - correct answer both B & C are correct -
for up to 60 days upon the sale of a motor vehicle to another dealer - to a consumer by
a dealer for up to 60 days
The license of a motor vehicle salesperson or powersports salesperson may be denied,
revoked, or suspended on any of the following grounds except - correct answer
engaging in business without having a bond in force
