COLORADO QUESTIONS WITH
VERIFIED ANSWERS. A+ GRADE
2025/2026.
The license of a motor vehicle salesperson or power-sports salesperson may be denied, revoked
or suspended on any of the following grounds except: - ANS b) advertising a salvaged vehicle
while identifying the vehicle as a salvage vehicle
According to colorado law, which of the following must be licensed as a motor vehicle dealer
and or powersports dealer? - ANS d) All of the above
Colorado Lemon law covers: - ANS c)defects that substantially impair the market value of a
vehicle
Three of the following are required to be disclosed in an advertisement when a dealer is
advertisement a closed end credit sale of a mother vehicle or powersports...except? - ANS d)
tax rate
The motor vehicle dealer board is authorized and empowered to: - ANS D)all of the above
Local law enforcement officers must be notified within ___ hours before or after the
repossession of a motor vehicle occurs: - ANS A)1 hours
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,All motor vehicle dealers and power-sports dealers must post a clear, legible sign on their
principal place of business if: - ANS B) they will be open less than 40 hours a week
A dealer may issue a temporary permits for each roadworthy vehicle sold - ANS B) false
(verify)
The motor vehicle dealer board may be decide how large a fine to impose on a dealer who sells
primarily vehicles that weigh 1,500 pounds or more so long as it does not exceed 5k -
ANS a)True (verify)
The Colorado's consumer protection act declares bait and switch advertising to be deceptive
trade practice. Bait and switch advertising includes which of the following - ANS d)all of the
above
Three of the following types of motor vehicles are exempt from the truth in mileage act. Which
one is not exempt? - ANS B)motor vehicles with out-of-state titles
The motor vehicle dealer board does not have among its members - ANS c)three employees
from the enforcement division
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 less than 1,500
pounds - ANS $1,000
Three of the following are characteristics of an off-premise permit. . Which one is not? -
ANS The permit cannot exceed six days except for the national western stock show, the
colorado state fair, greely stampede
Which of the following is a true statement regarding dealers and buyers? - ANS B) a dealer
shall clearly indicate on the costumer contract when a vehicle sold "as is" and without a
guarantee
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,When advertising a specific number of motor vehicles that same number of vehicles must have
been invoiced to the dealer - ANS A)True
Dealers must either be self insured or have insurance for their vehicles - ANS A)True
In transit plates may be used on motor vehicles - ANS D) consigned to wholesale auction
dealers for transport from point of purchase to point of storage
When a salesperson leaves a dealer, that dealer must do all of the following except -
ANS Immediately employ a new salesperson, licensed or not
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 - ANS Employing a
properly licensed salesperson
The only items that can be added to an advertised price are - ANS C) Dealer handling and
preparation charges
The license of a motor vehicle salesperson or a powersports salesperson may be denied,
revoked, or suspended on any of the following grounds except: - ANS D)using point of sale
literature in advertising
A buyer agent may - ANS be retained or hired by a consumer to assist, represent, or act on
behalf of such
consumer in connection with the purchase or lease of a motor vehicle
Three of the following are deceptive trade practices. Which of the following is not? -
ANS Delivering goods as promised
A new or used motor vehicle dealer may legally do which of the following with a temporary
permit? - ANS Issue a permit for a demonstration drive by a consumer
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Re federal cash reporting rule requires dealers to file form 83000.... - ANS 15 Days
A new motor vehicle has three of the following characteristics. Which one doesn't it have? -
ANS D) a title
A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how many days
to report conviction? - ANS A ) 30 Days
Three of the following are require when a dealer is advertising a lease of a a motor vehicle or
powersports vehicle with a payment amount which one is not required? - ANS D) disclosing
the cost of leasing versus the cost of purchasing
The definition of a used mother vehicle dealer or used powersports dealer includes which of
the following ? - ANS 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
A customer's trade- in vehicle on a financed deal may be sold - ANS D) only when the
financing has been approved
Wholesalers : - ANS C)must use a name other than their personal name on all business
documents
A dealer is required to have on file the licenses of each of their employed salespersons but need
not display them in their place of business - ANS False
The license of a motor vehicle salesperson or a powersports salesperson may be denied,
revoked or suspended on the following grounds - ANS D) all of the above
A dealer must take in the title in their own name before selling a car to retail customer -
ANS B) False
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED