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Colorado Car Salesperson Mastery Exam Study Guide (100 Q&A)
Section 1: Colorado State-Specific Laws & Regulations
1. What is the primary state agency responsible for regulating vehicle dealers and
salespersons in Colorado?
A) Colorado Department of Revenue (CDOR)
B) Colorado Attorney General's Office
C) Colorado Motor Vehicle Dealer Board (MVDB)
D) Colorado Department of Regulatory Agencies (DORA)
2. A new salesperson's license in Colorado is valid for how long?
A) One year
B) Two years
C) Three years
D) Five years
3. In Colorado, what must be provided to a buyer before the sale is finalized if a used car is
being sold "as is"?
A) A 30-day warranty
B) A free oil change coupon
C) A mechanical inspection report
D) A clear, conspicuous "As Is - No Warranty" notice
4. What is the purpose of a "We Owe" form?
A) To calculate the sales tax
B) To document promises made by the dealer to be fulfilled after the sale
C) To list the previous owners of the vehicle
D) To apply for an title
,5. Colorado's Lemon Law primarily applies to:
A) All used vehicles
B) New vehicles that have recurring, unfixable defects
C) Vehicles purchased at auction
D) Motorcycles and RVs only
6. A vehicle's title in Colorado must be applied for by the dealer within how many days of
the sale?
A) 10 days
B) 30 days
C) 60 days
D) 90 days
7. What is the "Implied Warranty of Merchantability"?
A) A warranty that the car was never in an accident.
B) A promise that the dealer will buy the car back if the customer is unhappy.
C) An unspoken guarantee that a vehicle is fit for its ordinary purpose.
D) A federal law covering all used vehicles.
8. In Colorado, a dealer is required to perform a specific check on all used vehicles for sale.
This is known as:
A) An emissions test
B) A safety inspection
C) A title brand check (to identify salvage, flood, etc.)
D) A VIN verification
9. If a salesperson is convicted of a felony, what must they do?
A) Nothing, it does not affect their license.
B) Notify the Motor Vehicle Dealer Board within 30 days.
C) Wait 5 years before applying for a new license.
D) Only report it upon license renewal.
10. Advertising a vehicle at a specific price must include all mandatory charges except:
A) The dealer's preparation fee
B) Tax, title, and license fees
C) The destination charge
D) The undercoating charge
11. What document serves as proof of ownership and is required to transfer a vehicle to a
new owner?
A) Bill of Sale
B) Certificate of Title
, C) Vehicle Registration
D) Odometer Disclosure Statement
12. A "Y" Curber in Colorado is:
A) A licensed dealer who specializes in sports cars.
B) An unlicensed person who sells vehicles illegally.
C) A person who repairs curb damage on vehicles.
D) A type of vehicle auction.
13. The "Cooling-Off Rule" (a 3-day right to cancel) generally:
A) Does NOT apply to vehicle purchases from dealerships.
B) Applies to all vehicle purchases.
C) Applies only to used vehicles under $5,000.
D) Is a mandatory Colorado state law.
14. Before a salesperson can work for a dealer, the dealer must:
A) Pay the salesperson's licensing fee.
B) File a Salesperson Statement of Affiliation with the state.
C) Provide the salesperson with a company car.
D) Have the salesperson sign a non-compete agreement.
15. Colorado law requires dealers to disclose if a vehicle was previously:
A) Owned by a rental company.
B) Used as a demonstrator model.
C) Declared a total loss by an insurance company (a "salvage" title).
D) All of the above.
Section 2: Ethics & Professional Conduct
16. What is the most ethical action if a customer misunderstands a feature of the car?
A) Hope they don't notice until after the sale.
B) Clarify the feature's actual function honestly and completely.
C) Blame the manufacturer for poor design.
D) Downplay the misunderstanding.
17. A customer asks if a used SUV has ever been in an accident. The CarFax is clean, but
the salesperson knows it had a repaired fender bender. The ethical response is to:
A) Say "No, the CarFax is clean."
B) Disclose the known repair honestly.
C) Say "I'm not sure, let's not worry about it."
D) Change the subject to the SUV's towing capacity.