CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS UPDATED 2024, Exams of Business Accounting

Download CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS UPDATED 2024 and more Exams Business Accounting in PDF only on Docsity! CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 The License of a motor vehicle salesperson or a power sports salesperson may be denied revoked, or suspended on any of the following grounds except: correct answers Advertising a salvage vehicle while identifying the vehicle as a salvage vehicle The advertise price of a motor vehicle must include: correct answers Answer- Finance Charge Advertisement of rate of finance charge. If an advertisement states a rate of finance charge, it shall state the rate as an "annual percentage rate," using that term. If the annual percentage rate may be increased after consummation, the advertisement shall state that fact. If an advertisement is for credit not secured by a dwelling, the advertisement shall not state any other rate, except that a simple annual rate or periodic rate that is applied to an unpaid balance may be stated in conjunction with, but not more conspicuously than, the annual percentage rate. If an advertisement is for credit secured by a dwelling, the advertisement shall not state any other rate, except that a simple annual rate that is applied to an unpaid balance may be stated in conjunction with, but not more conspicuously than, the annual percentage rate. Advertisement of terms that require additional disclosures - Triggering terms. If any of the following terms is set forth in an advertisement, the advertisement shall meet the requirements of paragraph (d)(2) of this section: (i) The amount or percentage of any downpayment. (ii) The number of payments or period of repayment. (iii) The amount of any payment. (iv) The amount of any finance charge. Which of the following is a true statement regarding dealers and buyers correct answers a dealer shall clearly indicate on the customer contract when a vehicle is sold "as-is and without a garantee Which of the following is not proof of ownership of a motor vehicle for a Colorado dealer correct answers Answer- A vehicle subject to lien on the title 2.0 Proof of Ownership Requirements a. A used vehicle with a Colorado title: 2.1 All Colorado dealers or wholesalers must maintain the following evidence of ownership for each vehicle in their possession: 61 Auto Industry DivisionStudy Guide- Miscellaneous Statutes & Regulations 2. Odometer disclosure if required. A used vehicle with an out-of-state title: CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 Odometer disclosure if required; and, Colorado Dealer's Out-of-State Vehicle Information Disclosure; and, Colorado verification of Vehicle Identification Number. A new vehicle assigned by MCO to a dealer or wholesaler: MCO assigned or reassigned to a franchised dealer or wholesaler; and, Odometer disclosure if required. MCO reassigned to the franchised dealer or wholesaler; and, Odometer disclosure if required; and, Verification of vehicle identification number. 1. A Colorado title assigned to the dealer, wholesaler, or chain of ownership evidenced by the Colorado Dealer's Bill(s) of Sale for a Motor Vehicle; and, 1. The out-of-state title assigned to the dealer, wholesaler, or out-of-state title with proper chain of ownership; and, 3. No dealer or wholesaler shall hold a MCO unless that dealer or wholesaler is franchised to sell that specific make of vehicle as indicated on the MCO. d. A new vehicle assigned or re-assigned with its MCO from an out-of-state franchised dealer or wholesaler to a franchised Colorado dealer or wholesaler: 4. No dealer or wholesaler shall hold a MCO unless that dealer or wholesaler is franchised to sell that specific make of vehicle as indicated on the MCO. e. If a title or an MCO has been surrendered by the dealer or wholesaler to a bank or financing organization or any other person as collateral under a Floor Plan agreement, the dealer or wholesaler must have in its possession evidence ac A buyers agent may: correct answers Right answer- retained or hired by a consumer for a fee or other thing of value to assist, represent, or act on behalf of the consumer in connection with the purchase or lease of a motor vehicle / powersport vehicle. Wrong Answers---------- -intentionally enter into a financial agreement with a motor vehicle salesperson for the buyer's agent benefit -be employed by a dealer or salesperson -coerce a motor vehicle dealer into providing installment financing with specified financial institution Found in---------------------------------------- "Buyer agent" means any person required to be licensed pursuant to this part 1 who is retained or hired by a consumer for a fee or other thing of value to assist, represent, or act on behalf of the consumer in connection with the purchase or lease of a motor vehicle. CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 if a motor vehicle salesperson selling primarily vehicles 1,500 lbs or more is found guilty of a violation of law by the Motor Vehicle Board they may recieve: correct answers A fine up to $10,000 that shall not exceed ten thousand dollars for each separate offense by any licensee, or vacate the fine imposed by the judge or hearing officer; except that, for powersports vehicle dealers who sell primarily vehicles that weigh under one thousand five hundred pounds, the fine for each separate offense shall not exceed one thousand dollars; and correct answers 1) The amount of cash is more than $10,000 2) The business receives the cash as: 1) The establishment receives the cash in the ordinary course of a trade or business 2) The same agent or buyer provides the cash3) The business receives the cash in a single transaction or in related transactions Example: Dave bought a new car and sold his old one for $11,000. The buyer paid Dave in cash. Since Dave is not in the trade or business of selling cars, he would not be required to report the receipt of cash exceeding $10,000 from the sale of the car. Example: Jane operates a jewelry store in Puerto Rico and received payment in cash on a sale of jewelry for $12,000. She will need to report the transaction on a Form 8300. In general, a person engaged in a motor vehicle leasing companies and powersport vehicle leasing companies are required by Colorado law to be licensed as a motor vehicle dealers and powersports dealers correct answers Answer- True All manufacturers doing business in the state of Colorado, irrespective of whether they maintain or have places of business herein, must be licensed as such. The sale of any new and unused motor vehicles, either directly or indirectly in the state of Colorado shall constitute doing business in the state by the manufacturer and shall subject such manufacturer to the requirements of this article. A new or used motor vehicle dealer may legally do which of the following with a temporary registration permit? correct answers Cannot find in study guides or online... educated guess. issue a permit upon the sale of a motor vehicle to another dealer? Temporary Registration Permit is valid for up to sixty (60) days from the date of sale/issuance correct answers A Temporary Registration Permit is not renewable, but when circumstances outlined in section 42-3-203(3)(d), C.R.S., are met, the Dealer may issue a second Temporary Registration Permit pursuant to the requirements in this rule. CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 correct answers Temporary Registration Permit is valid for up to sixty (60) days from the date of sale/issuance Which of the following must be conspicuously displayed at the dealers principal place of business? correct answers All the Above correct answers (2) "Board" means the motor vehicle dealer board. "Advertise" or "advertisement" means any commercial message in any newspaper, magazine, leaflet, flyer, or catalog, on radio, television, or a public address system, in direct mail literature or other printed material, on any interior or exterior sign or display, in any window display, on a computer display, or in any point-of-transaction literature or price tag that is delivered or made available to a customer or prospective customer in any manner; except that the term does not include materials required to be displayed by federal or state law When advertising a specific trade-in amount or range of amounts, a dealer or salesperson must disclose the M.S.R.P, sales price, or capitalized cost of the vehicle from which the trade-in will be deducted. correct answers True? correct answers Motor vehicle dealer" means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, leases, exchanges, rents with option to purchase, offers, or attempts to negotiate a sale, lease, or exchange of an interest in new or new and used motor vehicles or who is engaged wholly or in part in the business of selling or leasing new or new and used motor vehicles, whether or not the motor vehicles are owned by the person. The sale or lease of three or more new or new and used motor vehicles or the offering for sale or lease of more than three new or new and used motor vehicles at the same address or telephone number in any one calendar year is prima facie evidence that a person is engaged in the business of selling or leasing new or new and used motor vehicles. "Motor vehicle dealer" includes an owner of real property who allows more than three new or new and used motor vehicles to be offered for sale or lease on the property during one calendar year unless said property is leased to a licensed motor vehicle dealer. "Motor vehicle dealer" does not include: A motor vehicle dealer and powersport dealers must be open: correct answers A minimum of 12 hours per day ll motor vehicle dealers and all used motor vehicle dealers must be open for business at least three (3) days per week for a continuous period of time not less than four (4) hours per day between the hours of 8 a.m. and 9 p.m. correct answers ny dealership open less than forty (40) hours a week must post a clear and legible sign on its place of CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 business indicating the days and hours that it is open for business. In addition such dealerships shall notify the Board in writing of any subsequent change in such periods of time. a dealer, wholesaler, OR SALES PERSON WHO IS CONVICTED OF ANY FELONY OR ANY CRIME PURSUANT TO FERDERAL LAW OR THE LAW OF ANTY OTHER STATE HAS 30 DAYS TO GIVE THE DELER BOARD WRITTEN NOTIFICATION OF SUCH A CONVICTION. correct answers A salesperson who is convicted of or pled nolo contendere or a plea in a deferred judgment and sentenced to any felony or any crime pursuant to article 3, 4, or 5 of title 18, C.R.S., or like crime pursuant to federal law or the law of any other state, must give the board written notice of such conviction within thirty days after such conviction. correct answers A dealer may issue a second temporary registration number plate in accordance with this subsection (3) if the dealer: (I) Has issued a temporary plate to the owner when selling the motor vehicle to the owner; (II) Has not delivered or facilitated the delivery of the certificate of title to the purchaser or the holder of a chattel mortgage as required in section 42-6-112 or 42- 6-119 (3) within sixty days after the motor vehicle was purchased; and (III) Has taken every reasonable action necessary to deliver or facilitate the delivery of the certificate of title. Which of the following is an example of a used motor vehicle correct answers Right Answer- A lease vehicle "Used motor vehicle" means every self-propelled motor vehicle having a gross weight of less than sixteen thousand pounds that has been sold, bargained for, exchanged, given away, leased, loaned, or driven as a "company executive car" or the title to which has been transferred from the person who first acquired it from the manufacturer or importer and it is so used as to have become what is commonly known as "secondhand" within the ordinary meaning thereof. A previously untitled motor vehicle that has been driven by the dealer for more than one thousand five hundred miles, excluding mileage incurred in the transit of the motor vehicle from the manufacturer to the dealer or from another dealer to the dealer, shall be considered a "used motor vehicle". This shall not apply to any automobile manufactured before January 1, 1942. (9) "Used motor vehicle dealer" means any licensed motor vehicle dealer, used motor vehicle dealer, or wholesaler as defined by section 12-6- 102. correct answers It is unlawful for any person to advertise for sale, to sell, to use, or to install or to have installed any device which causes an odometer to register any mileage other than the true mileage driven. For purposes of this section, the true mileage driven is that mileage driven by the vehicle as registered by the odometer within the manufacturer's designed tolerance. (2) It is unlawful for any person or the person's agent to disconnect, reset, or alter the odometer of any motor vehicle with the intent to change the number of miles indicated thereon. (3) It is unlawful for any person, with the intent to defraud, to operate a motor vehicle on any street or highway knowing that the odometer of such vehicle is disconnected or nonfunctional. (4) Nothing in this CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 Miscellaneous Statutes & Regulations a. Are being operated by prospective buyers without a dealership employee being present in the vehicle while being operated, or; b. Have been sold, leased, or rented, or; c. Are dealer or dealership employees' personal vehicles, or; d. Are loaned or donated by the dealership, or; e. Are being pulled, hauled or are otherwise considered cargo, or; f. Are tow vehicles or parts pickup/delivery vehicles. correct answers "Advertise" or "advertisement" means any commercial message in any newspaper, magazine, leaflet, flyer, or catalog, on radio, television, or a public address system, in direct mail literature or other printed material, on any interior or exterior sign or display, in any window display, on a computer display, or in any point-of-transaction literature or price tag that is delivered or made available to a customer or prospective customer in any manner; except that the term does not include materials required to be displayed by federal or state law correct answers "Motor vehicle dealer" means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, leases, exchanges, rents with option to purchase, offers, or attempts to negotiate a sale, lease, or exchange of an interest in new or new and used motor vehicles or who is engaged wholly or in part in the business of selling or leasing new or new and used motor vehicles, whether or not the motor vehicles are owned by the person. The sale or lease of three or more new or new and used motor vehicles or the offering for sale or lease of more than three new or new and used motor vehicles at the same address or telephone number in any one calendar year is prima facie evidence that a person is engaged in the business of selling or leasing new or new and used motor vehicles. "Motor vehicle dealer" includes an owner of real property who allows more than three new or new and used motor vehicles to be offered for sale or lease on the property during one calendar year unless said property is leased to a licensed motor vehicle dealer. "Motor vehicle dealer" does not include: (a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court; (b) Public officers while performing their official duties; (c) Employees of a motor vehicle dealer when engaged in the specific performance of their duties as employees; (d) A wholesaler or anyone selling motor vehicles solely to wholesalers; (e) Any person engaged in the selling of a fire truck; or (f) A motor vehicle auctioneer. correct answers "Motor vehicle salesperson" means a natural person who, for a salary, commission, or compensation of any kind, is employed either directly or indirectly, regularly or occasionally, by a motor vehicle dealer or used motor vehicle dealer to sell, lease, purchase, or exchange or to negotiate for the sale, lease, purchase, or exchange of motor vehicles. correct answers "Used motor vehicle dealer" means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, exchanges, leases, or offers an interest in used motor vehicles, or attempts to negotiate a sale, exchange, or lease of used motor vehicles, or who is engaged wholly or in part in the business of selling used motor vehicles, whether or not the motor vehicles are owned by the person. The sale of three or more used motor vehicles or the offering for sale of more than three used motor vehicles at the same address or 7 Auto Industry Division Study Guide- Motor Vehicle Statutes telephone number in CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 any one calendar year is prima facie evidence that a person is engaged in the business of selling used motor vehicles. "Used motor vehicle dealer" includes an owner of real property who allows more than three used motor vehicles to be offered for sale on the property during one calendar year unless said property is leased to a licensed used motor vehicle dealer. "Used motor vehicle dealer" does not include: (a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court; (b) Public officers while performing their official duties; (c) Employees of a used motor vehicle dealer when engaged in the specific performance of their duties as employees; (d) A wholesaler or anyone selling motor vehicles solely to wholesalers; (e) Mortgagees or secured parties as to sales in any one year of not more than twelve motor vehicles constituting collateral on a mortgage or security agreement, if the mortgagees or secured parties do not realize for their own account any money in excess of the outstanding balance secured by the mortgage or security agreement, plus costs of collection; (f) A person who only sells or exchanges no mor The motor vehicle dealer board is authorized and empowered to: correct answers All the above The board is authorized and empowered: (a) To promulgate, amend, and repeal rules reasonably necessary to implement this part 1, including the administration, enforcement, issuance, and denial of licenses to motor vehicle dealers, motor vehicle salespersons, used motor vehicle dealers, wholesale motor vehicle auction dealers, and wholesalers, and the laws of the state of Colorado; (a.5) To delegate to the board's executive secretary, employed pursuant to section 12- 6-105 (2)(b), the authority to execute all actions within the power of the board, carry out the directives of the board, and make recommendations to the board on all matters within the authority of the board; (a.7) To issue through the department of revenue a temporary license to any person applying for any license issued by the board. The temporary license shall permit the applicant to operate for a period not to exceed one hundred twenty days while the board is completing its investigation and determination of all facts relative to the qualifications of the applicant for such license. A temporary license is terminated when the applicant's license is issued or denied. (b)&(c) (Deleted by amendment, L. 92, p. 1842, § 4, effective July 1, 1992.) (d) (I) To issue through the department of revenue and, for reasonable cause shown or upon satisfactory proof of the unfitness of the applicant under standards established and set forth in this part 1, to refuse to issue to any applicant any license the board is authorized to issue by this part 1; 9 Auto Industry Division Study Guide- Motor Vehicle Statutes (II) To permit the executive director or the director to issue licenses pursuant to rules adopted by the board pursuant to subsection (3)(a) of this section; (e) (I) After due notice and a hearing, to review the findings of an administrative law j correct answers The board and the executive director shall prescribe the form of the license to be issued by the executive director and shall imprint on each license the seal of their offices. The executive director shall mail the license to the business address where the motor vehicle salesperson is licensed. Each motor vehicle salesperson shall keep a copy of the license at the salesperson's place of employment for inspection by employers, consumers, the director, the executive director, or the board. Each motor vehicle dealer, manufacturer, distributor, CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 wholesaler, manufacturer representative, wholesale motor vehicle auction dealer, or used motor vehicle dealer shall display conspicuously each person's license at the place of business for which the license was issued New and used motor vehicle dealers, powersports dealer, wholesalers and wholesale auction dealers are required to have a surety bond correct answers Answer- in the amount of $50,000 Bond of licensee (1) Before any motor vehicle dealer's, wholesaler's, wholesale motor vehicle auction dealer's, or used motor vehicle dealer's license shall be issued by the board through the executive director to any applicant therefor, the said applicant shall procure and file with the board evidence of a savings account, deposit, or certificate of deposit meeting the requirements of section 11-35- 101, C.R.S., or a good and sufficient bond with corporate surety thereon duly licensed to do business within the state, approved as to form by the attorney general of the state, and conditioned that said applicant shall not practice fraud, make any fraudulent representation, or violate any of the provisions of this part 1 that are designated by the board by rule in the conduct of the business for which such applicant is licensed. A motor vehicle dealer or used motor vehicle dealer shall not be required to furnish an additional bond, savings account, deposit, or certificate of deposit under this section if such dealer furnishes a bond, savings account, deposit, or certificate of deposit under section 12-6-512. (2) (a) The purpose of the bond procured by the applicant pursuant to subsection (1) of this section and section 12-6- 112.2 (1) is to provide for the reimbursement for any loss or damage suffered by any retail consumer caused by violation of this part 1 by a motor vehicle dealer, used motor vehicle dealer, wholesale motor vehicle auction dealer, or wholesaler. For a wholesale transaction, the bond is available to each party to the transaction; except that, if a retail consumer is involved, such consumer shall have priority to recover from the bond. The amount of the bond shall be fifty thousand dollars for a motor vehicle dealer applicant, used motor vehicle dealer applicant, wholesa correct answers Motor vehicle salesperson's bond (1) Before any motor vehicle salesperson's license is issued by the board through the executive director to any applicant therefor, the applicant shall procure and file with the board evidence of a savings account, deposit, or certificate of deposit meeting the requirements of section 11- 35-101, C.R.S., or a good and sufficient bond in the amount of fifteen thousand dollars Which of the following is a requirement for a motor vehicle dealers, powersport dealer, used motor vehicle dealers, used powersport dealers, or wholesaler? correct answers For sure its To submit to the dealer board a written notice a licensee changed the trade name of the business, but it is also to report when a licensee The board, through the executive director, shall not issue a motor vehicle dealer's license or used motor vehicle dealer's license to any applicant therefor who has no principal place of business as is defined in this part 1. Should the motor vehicle dealer or used motor vehicle dealer change the CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 week for the purpose of selling, bartering, or exchanging or offering for sale, barter, or exchange any boat, boat trailer, snowmobile, or snowmobile trailer. correct answers A "used motor vehicle" is defined as any motor vehicle which has been sold, bargained, exchanged, given away, or the title thereto transferred from the person who first took title thereto from the manufacturer or importer, dealer or agent of the manufacturer or importer, or so used as to have become what is commonly known as a "secondhand motor vehicle"." In the event of transfer on the certificate of origin, from the original franchised dealer to any other dealer or individual other than a franchised dealer of the same make of vehicle, the vehicle shall be considered a "used" motor vehicle, and must be titled in the new owner's name. Vehicles with more Than Fifteen Hundred (1500) miles of demonstration use shall be considered used' vehicles. Such "demonstrators" and other motor vehicles 3 Auto Industry Division Study Guide- Motor Vehicle Regulations which have been used by a dealer prior to their sale shall be titled in the dealer's name and sold as "used" motor vehicles. All vehicles which do not qualify as "new" motor vehicles shall be deemed to be "used" motor vehicles for the purpose of administration of this Act. correct answers As used in this regulation, a "motor vehicle dealer" means either a licensed motor vehicle dealer or licensed used motor vehicle dealer. 2. A motor vehicle dealer may sell motor vehicles at special sales events, shows, or other organized events, including, for example, at the National Western Stock Show, the Colorado State Fair, the Greeley Stampede, or the Denver Auto Show. In order to sell motor vehicles at a location away from the dealership, a motor vehicle dealer must apply for the appropriate off-premise permit. A motor vehicle dealer must not engage in any sales activity at an off-premise location until the board approves the appropriate off-premise permit. 3. The board recognizes two classes of off-premise permit based upon specific sales-related conditions and restrictions. These are: a. Class One --- a Limited Sales Activity Off-premise Permit. The following conditions and restrictions apply to this permit: 1) Licensed salespersons or owners authorized to sell must be present at the offpremise location at all times when the public is present; and, 2) Licensed salespersons or owners authorized to sell may negotiate the terms of a sale at the off-premise location; and, 4 Auto Industry Division Study Guide- Motor Vehicle Regulations 3) The parties shall not execute sales- related documents at the off-premise location, but must return to the dealership to execute any sales-related documents. b. Class Two --- a Full Sales Activity Off-premise Permit. The following conditions and restrictions apply to this permit: 1) Licensed salespersons or owners authorized to sell must be present at the offpremise location at all times when the public is present; and, 2) Licensed salespersons or owners authorized to sell may negotiate the terms of a sale at the off- premise location; and, 3) The parties may execute sales documents correct answers No person may hold both a wholesaler license and a motor vehicle salesperson license at the same time. A wholesaler may not employ a motor vehicle salesperson. For discussion of profit or gain, see Regulation 12-6-102 (13). Wholesalers shall use a name other than their personal name on all business documents for the purchase and sale of motor vehicles to differentiate between a wholesaler and a private party. CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 A dealer's advertising must contain the dealer's licensed name /or the words correct answers An applicant for a license issued by the board must complete and submit the appropriate application form. The board shall reject for filing any application that is defective in any one or more of the following ways: a) the application is not accompanied by a remittance in the full amount of the fee for the specific license; and, b) the application does not include a copy of the required bond in the correct amount. The board may reject for filing any application that does not completely satisfy the requirements of the application form and its instructions. 2. An applicant whose license application has been accepted for filing must respond to every request for additional information within the time allowed and in the manner required by the requestor. 3. An applicant must include with an application the full name of, date of birth of, current residence address for, and other required identifying information related to each natural person who possesses one or more of the following characteristics: a. an ownership, financial, or equity interest in the applicant; or, b. an ability to control the applicant or to exercise significant financial or operational influence over the applicant. 8 Auto Industry Division Study Guide- Motor Vehicle Regulations An applicant that is subject to the reporting requirements of the "Securities Exchange Act of 1934," as amended, 15 U.S.C. § 78a et seq., need not include the identifying information in this paragraph 3 for any stockholder. 4. All information submitted to the board, by application for license or otherwise, shall be given fully, faithfully, truthfully and fairly. The failure of an applicant or licensee to so inform the board shall be grounds for suspension, revocation or denial of the license. 5. The board may deny a license for any one of or any combination of the following reaso correct answers Dealers, wholesalers, wholesale auction dealers, officers, directors or stockholders of corporations owning five per-cent or more, licensed as such, who are convicted of or pled nolo contendere or a plea in a deferred judgment and sentence to any felony or any crime pursuant to Article 3, 4, or 5 of Title 18, C.R.S., or like crime pursuant to federal law or the law of any other state, shall provide to the board written notice of such conviction within thirty days after receiving such conviction. The licensee shall provide complete information including copies of such conviction and pre-sentence reports within thirty days of the conviction correct answers Prior to the signing of the Contract, the Seller shall produce a written document disclosing all known Material Particulars. Both the Seller and Buyer must sign the document. The document is deemed to be part of the Contract. A signed copy of the Contract and the disclosure document shall be provided to the Buyer at the time of sale. The Seller shall retain a copy of the Contract and the disclosure document. C. "AS IS" STATEMENT A statement by the Seller to the Buyer that a vehicle is sold "as-is" does not relieve the Seller of the disclosure obligations imposed by this regulation, nor does it relieve the Seller of any other disclosure obligations otherwise required by state or federal law. An "as-is" statement solely disclaims implied warranties under provisions of the "Colorado Uniform Commercial Code," Title 4, C.R.S correct answers All motor vehicle dealers and all used motor vehicle dealers must be open for business at least three (3) days per week for a continuous period of time not less than four (4) hours per day between the hours of 8 a.m. and 9 p.m. Any dealership open less than forty (40) hours a week must post a clear and legible sign on its place of business indicating the days and CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 hours that it is open for business. In addition such dealerships shall notify the Board in writing of any subsequent change in such periods of time. Any dealership which will not be open for business for a period of at least two (2) weeks must post a clear and legible sign on its place of business indicating this fact as well as notifying the Board in writing of such fact. correct answers Salespersons who change employment during their license year shall notify the Auto Industry Division, on the form prescribed by the Board, of the identity of the new employer prior to commencing employment at the new dealership. 2. Upon the submission of the notification, acknowledged by the new employing dealer, the salesperson may begin working as a salesperson at the new employing dealership. 3. After receipt of notification, the Auto Industry Division shall issue a new license to the salesperson for the remainder of the license term. 4. Any salesperson who fails to provide timely notification may be subject to disciplinary action. correct answers "Powersports vehicle dealer" means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, leases, exchanges, rents with option to purchase, offers, or attempts to negotiate a sale, lease, or exchange of an interest in new or new 4 Auto Industry Division Study Guide- Powersports Statutes and used powersports vehicles or who is engaged wholly or in part in the business of selling or leasing new or new and used powersports vehicles, whether or not the powersports vehicles are owned by such person. The sale or lease of ten or more new or new and used powersports vehicles or the offering for sale or lease of more than ten new or new and used powersports vehicles at the same address or telephone number in any one calendar year shall be prima facie evidence that a person is engaged in the business of selling or leasing new or new and used powersports vehicles. "Powersports vehicle dealer" includes an owner of real property who allows more than ten new or new and used powersports vehicles to be offered for sale or lease on such property during one calendar year unless said property is leased to a licensed powersports vehicle dealer. "Powersports vehicle dealer" does not include: (a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court; (b) Public officers while performing their official duties; (c) Employees of persons enumerated in the definition of "powersports vehicle dealer" when engaged in the specific performance of their duties as such employees; (d) A wholesaler or anyone selling powersports vehicles solely to wholesalers; or (e) A wholesale motor vehicle auctioneer correct answers Material Particulars include but are not limited to any of the following: 1. Year and make of the powersports vehicle, and, if known to the Seller, the historical mileage or hours of operation of the vehicle. 2. Complete replacement of the engine, drivetrain, or chassis. 3. Repair or replacement of skis or tracks. 4. The powersports vehicle is a "Salvage vehicle" as that term is defined in the Colorado "Certificate of Title Act," part 1 of article 6 of title 42, C.R.S. 5. The powersports vehicle has sustained damage, whether repaired or not repaired, of the following types: a. Frame or unibody damage of any grade or type; or b. Flood, fire or hail damage; or c. Accident or collision damage. 6. The powersports vehicle has been modified in a way that impacts warranty coverage. 7. The powersports vehicle had been declared a "total loss" by an insurance company. 8. The powersports vehicle had been stolen. 9. The powersports vehicle had been used as a police vehicle, vehicle for hire, rental vehicle, or a loaner or courtesy CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 Division Study Guide- Federal Statutes & Regulations 32705 - Disclosure requirements on transfer of motor vehicles (a) (1) Disclosure Requirements. —Under regulations prescribed by the Secretary of Transportation that include the way in which information is disclosed and retained under this section, a person transferring ownership of a motor vehicle shall give the transferee the following written disclosure: (A) Disclosure of the cumulative mileage registered on the odometer. (B) Disclosure that the actual mileage is unknown, if the transferor knows that the odometer reading is different from the number of miles the vehicle has actually traveled. (2) A person transferring ownership of a motor vehicle may not violate a regulation prescribed under this section or give a false statement to the transferee in making the disclosure required by such a regulation. (3) A person acquiring a motor vehicle for resale may not accept a written disclosure under this section unless it is complete. (4) (A) This subsection shall apply to all transfers correct answers All the above - Right Answer Wrong answers Dealers and distributors of motor vehicles who are required by this part to execute an odometer disclosure statement shall retain for five years a photostat, carbon or other facsimile copy of each odometer mileage statement which they issue and receive. They shall retain all odometer disclosure statements at their primary place of business in an order that is appropriate to business requirements and that permits systematic retrieval. (b) Lessors shall retain, for five years following the date they transfer ownership of the leased vehicle, each odometer disclosure statement which they receive from a lessee. They shall retain all odometer disclosure statements at their primary place of business in an order that is appropriate to business requirements and that permits systematic retrieval. (c) Dealers and distributors of motor vehicles who are granted a power of attorney by their transferor pursuant to § 580.13, or by their transferee pursuant to § 580.14, shall retain for five years a photostat, carbon, or other facsimile copy of each power of attorney that they receive. They shall retain all powers of attorney at their primary place of business in an order that is appropriate to business requirements and that permits systematic retrieval. correct answers All the above - Right Answer Wrong answers Notwithstanding the requirements of §§ 580.5 and 580.7: (a) A transferor or a lessee of any of the following motor vehicles need not disclose the vehicle's odometer mileage: (1) A vehicle having a Gross Vehicle Weight Rating, as defined in § 571.3 of this title, of more than 16,000 pounds; (2) A vehicle that is not self-propelled; (3) A vehicle that was manufactured in a model year beginning at least ten years before January 1 of the calendar year in which the transfer occurs; or Example to paragraph (a)(3): For vehicle transfers occurring during calendar year 1998, model year 1988 or older vehicles are exempt. (4) A vehicle sold directly by the CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 manufacturer to any agency of the United States in conformity with contractual specifications. (b) A transferor of a new vehicle prior to its first transfer for purposes other than resale need not disclose the vehicle's odometer mileage. (c) A lessor of any of the vehicles listed in paragraph (a) of this section need not notify the lessee of any of these vehicles of the disclosure requirements of § 580.7. Depot Plates may be used on motor vehicles: correct answers Not able to find so educated guess... But - Right Answer All the above Wrong answers -Depot Plates transferred from point of purchase to the dealers lot -depot plates may be used by a dealer to road test a vehicle after repair - which help deliver a purchased vehicle to a consumer Where I can find the word------------ A Dealer can obtain one Depot License Plate per mechanic or service technician employed by the Dealer. Upon application or renewal, the owner or authorized representative of the Dealer must certify the number of mechanics or service technicians currently employed by the Dealer. r. Such plates may, during the registration period for which they were issued, be transferred from one such vehicle to another when owned and operated by or with the authority of such manufacturer or representative of such manufacturer or operated by such drive-away or tow- away transporter or dealer Any dealer in motor vehicles, trailers, or semitrailers may operate, move, or transport a vehicle owned by such dealer on the streets and highways of this state without registering such vehicle and without an attached numbered plate if there is displayed on such vehicle a depot tag Which of the following is true about Colorado's Lemon Law correct answers can't find in any of the guides... educated guess Right Answer- Prior to suing the manufactory the consumer for refund or replacement vehicle, the consumer must first send a written notice of defect by certified mail to the manufacture. Colorado's lemon law covers any defect or condition that substantially impairs the vehicle's use and market value. The law calls such a defect or condition a "nonconformity." The law does not CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 cover any nonconformity caused by the consumer abusing, neglecting, or making unauthorized modifications of the vehicle. The manufacturer must be allowed a reasonable number of attempts to fix any nonconformity reported to them by the consumer. The Colorado lemon law defines a "reasonable number of attempts" as four or more times for the same problem without success, or if the vehicle is in the shop for 30 days or more without successfully repairing the problem. Defects, such as rattles or squeaks, which do not substantially impair the use or market value of the vehicle are not covered. Neither are defects resulting from abuse, neglect, or unauthorized modifications or alterations of the vehicle by a consumer Prior to suing a manufacturer for a refund or replacement vehicle, the consumer must first send a written notice of defect by certified mail to the manufacturer. The consumer must give them a chance to repair the vehicle and go through the manufacturer's informal dispute settlement procedure, if one exists. https://www.allenstewart.com/lemon-laws-by-state/colorado-lemon-law/ All the above A new motor vehicle has three of the following characteristics. Which one doesn;t it have? correct answers Right Answer- A title A new motor vehicle, is defined as "any motor vehicle being transferred for the first time from a manufacturer or importer, or dealer or agent or agent of a manufacturer or importer, and which motor vehicle has heretofore not been used, and is what is commonly known as a "new motor vehicle"." For the purpose of administration of the Motor Vehicle Dealers and Salesperson Licensing Law, a "new" motor vehicle shall be deemed to be a motor vehicle sold by a Colorado licensed motor vehicle dealer, as defined in the Act, who is franchised by the manufacturer of that make of motor vehicle to sell such motor vehicles. Said motor vehicle shall not have been used as a demonstrator or for private use, or for any other purpose which would indicate "use" in the strict definition of the word "used." A motor vehicle which has been used by a dealer solely for the purpose of demonstration to prospective customers shall be considered a "new vehicle", unless such demonstration use has been for more than Fifteen Hundred (1500) miles. New motor vehicles may be exchanged between dealers enfranchised to sell the same make of vehicle by a proper assignment of the Manufacturer's Certificate of Origin. In advertising motor vehicle, a dealer or salesperson may: correct answers I know the answer looks the same as below but the wording is different... that's the only one. Right answer- use a picture of a different vehicle than is being sold, but a vehicle of the same, year, make, and equipment CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 an advertisement would not include correct answers a salespersons verbal statement of the manufactor's suggested retail price local law enforcement must be notified with ______ hour before or after the repossession of a motor vehicle occurs correct answers 1 Advertising may include any commerical message in any newspaper, magazine, flyer, on radio, television, or public address system, computer display, or window display which is delivered or made aviable for a customer or prospect customer in any manner what so ever. correct answers false... can't be any manner right??? dealers must either be self insura=ed ir have insurance for their vehicles correct answers false Three of the following are required when a dealer is advertising a lease of a motor vehicle or powersports vehicle with a payment amount. Which on is not required? correct answers disclosing the cost of a leasing versus the cost of purchasing records of vehicle transfers and odometer statements must be related for ________ years correct answers 5 wholesalers correct answers Answer- Wholesalers shall use a name other than their personal name on all business documents for the purchase and sale of motor vehicles" Wholesaler" means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, exchanges, or offers or attempts to negotiate a sale, lease, or exchange of an interest in new or new and used motor vehicles solely to motor vehicle dealers or used motor vehicle dealers. No person may hold both a wholesaler license and a motor vehicle salesperson license at the same time. wholesaler may not employ a motor vehicle salesperson. licensed powersport dealers may sell powersports on Sundays correct answers False When advertising the sale of a specific motor vehicle. If not statement has been made concerning a specific-time and of the advertised price, such vehicle shall be sold at the advertised price for a period of fice days following the last date the ad was published correct answers True? When a salesperson leaves a dealer, the dealer must do all the following execpt: correct answers Immediately employ a new salesperson, licensed or not CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 Which of the following is considered prima facie evidence that a person is engaged in the business of setting of leasing motor vehicles or powersport vehicles correct answers selling, leasing, exchanging, renting, with option to purchase, offering, or negotiating, an exchange of interest in three or more vehicles or ten or more powersport vehicles in any one calendar year What is the highest fine per offense (key word) that the motor vehicle dealer board or an admirative law judge may impose on a dealer who sells primarily vehicles that weigh less than 1,500 pounds correct answers $1,000 The federal odometer law declares that it is unlawful to do any of the following execpt: correct answers to replace the odometer under certain circumstances the license of a motor vehicle salesperson or powersport may be denied, revoked, or suspended on any of the following grounds except: correct answers advertising a salvaged vehicle while identifying the vehicle as a salvage vehicle Three of the following are required to be disclosed in an advertisement when a dealer us advertising a closed-end credit sale of motor vehicle or powersports vehicle with down payment amount, payment amount, number of payments and period of repayment or amount of finance charge. Which one is n ot required? correct answers tax rate the license of a motor vehicle salesperson or powersport may be denied, revoked, or suspended on any of the following grounds except: correct answers using point of sale literature in advertising full use dealer plates can be displayed on all vehicles owned and offered for sale by dealer or wholesaler, except those that are used on tow vehicles or parts delivery/pickup vehicles correct answers the license of a dealer may be denied, revoked, or suspended on any of the following grounds except: correct answers employing a properly licensed sales person the motor vehicle dealer board is authorized and empowered to correct answers all the above it is unlawful for a motor vehicle salesperson to: correct answers begin acting as a salesperson while awaiting a new license from the board the definition of a used motor vehicle dealer or used powersports dealer includes which of the following correct answers A person who attempts to negoitiate a sale or lease of a used motor vehicle or powersports vehicle woth the intent to make a profit or gain The federal cash reporting rule required dealers to file federal form 8300 with the internal revenue service when they recieve more than $10,000 cash in a single transaction. How many days does a dealer have to file the form. correct answers 15 days CAR SALES TEST COLORADO EXAM COMPLETE QUESTIONS AND ANSWERS VERIFIED ANSWERS CERTIFIED 100% GRADED A+ UPDATED 2024 Motor Vehicles may be sold on Sundays correct answers hen a salesperson leaves a dealer, that dealer must return that salesperson's license to the Auto Industry Division correct answers True Which of the following would indicate a motor vehicle is used correct answers Someone who sells motor vehicles solely to wholesalers Which of the following is true regarding in-transit plates correct answers in-transit plates may be used for point of purchase to the point of storage, or from the point of storage to the point of sale Dealer In-Transit License Plates: 1. May be displayed on vehicles that: a. Are for intra-state and inter-state transport of vehicles offered for sale, consigned to be sold, or owned by a dealer. b. Are being operated from point of purchase to the point of storage, or from the point of storage to the point of sale. c. Are for demonstration purposes only when a dealership employee is in the vehicle with the prospective buyer. d. Are in a safe roadworthy condition. 2. Dealer In-Transit license plates may not be displayed on vehicles that: 76 Auto Industry Division Study Guide- Miscellaneous Statutes & Regulations a. Are being operated by prospective buyers without a dealership employee being present in the vehicle while being operated, or; b. Have been sold, leased, or rented, or; c. Are dealer or dealership employees' personal vehicles, or; d. Are loaned or donated by the dealership, or; e. Are being pulled, hauled or are otherwise considered cargo, or; f. Are tow vehicles or parts pickup/delivery vehicles. according to COlorado law, which of the following does not need to be a licenses as a motor vehicle dealer and/or powersports dealer? correct answers a buyers agent Licensed salespersons cannot obtain a buyer agent license because they receive compensation from a dealer. Buyer agents are strictly prohibited from being employed or receiving any fee from a dealer. a dealer must take the title in their own name before selling a car to a retail customer correct answers Unsure... False A "used motor vehicle" is defined as any motor vehicle which has been sold, bargained, exchanged, given away, or the title thereto transferred from the person who first took title thereto from the manufacturer or importer, dealer or agent of the manufacturer or importer, or so used as to have become what is commonly known as a "secondhand motor vehicle"." In the event of transfer on the certificate of origin, from the original franchised dealer to any other dealer or individual other than a franchised dealer of the same make of vehicle, the vehicle shall be considered a "used" motor vehicle, and must be titled in the new owner's name. Vehicles with more Than Fifteen Hundred (1500) miles of demonstration use shall be considered used'