COLORADO SALES TEST
QUESTIONS & ANSWERS(GRADED
A+)
The definition of a used motor vehicle dealer or used powersports dealer includes
which of the following? - ANSWERa 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) - ANSWERFalse
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 - ANSWERFalse
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 -
ANSWERemploying a properly licensed salesperson
Which of the following persons are required, by federal law, to adhere to the Truth in
Mileage Act? - 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 - ANSWERTrue
Colorado's Lemon Law covers - ANSWERnew 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 - ANSWERMonday
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 - ANSWERFalse
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? - ANSWER$10,000
, Licensed powersport dealers may not sell powersports on Sunday(s) -
ANSWERFalse
The Motor Vehicle Dealer Board is authorized and empowered to - 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 - ANSWERFalse
Which of the following is true about Colorado's Lemon Law? - ANSWERa
"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 - ANSWERAttempting 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 -
ANSWERusing point of sale literature in advertising
Three of the following are deceptive trade practices. Which one of the following is
not? - ANSWERdelivering 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 -
ANSWER$50,000
A customer's trade-in vehicle on a financed deal - ANSWERmay be sold as soon as
the title has been signed over to the dealer
Wholesalers - ANSWERshall 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 - ANSWERFalse
A temporary registration permit may be issued - ANSWERboth 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 -
ANSWERengaging in business without having a bond in force
QUESTIONS & ANSWERS(GRADED
A+)
The definition of a used motor vehicle dealer or used powersports dealer includes
which of the following? - ANSWERa 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) - ANSWERFalse
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 - ANSWERFalse
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 -
ANSWERemploying a properly licensed salesperson
Which of the following persons are required, by federal law, to adhere to the Truth in
Mileage Act? - 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 - ANSWERTrue
Colorado's Lemon Law covers - ANSWERnew 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 - ANSWERMonday
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 - ANSWERFalse
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? - ANSWER$10,000
, Licensed powersport dealers may not sell powersports on Sunday(s) -
ANSWERFalse
The Motor Vehicle Dealer Board is authorized and empowered to - 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 - ANSWERFalse
Which of the following is true about Colorado's Lemon Law? - ANSWERa
"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 - ANSWERAttempting 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 -
ANSWERusing point of sale literature in advertising
Three of the following are deceptive trade practices. Which one of the following is
not? - ANSWERdelivering 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 -
ANSWER$50,000
A customer's trade-in vehicle on a financed deal - ANSWERmay be sold as soon as
the title has been signed over to the dealer
Wholesalers - ANSWERshall 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 - ANSWERFalse
A temporary registration permit may be issued - ANSWERboth 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 -
ANSWERengaging in business without having a bond in force
