Car Sales Test Colorado Exam With 100% Correct Answers 2024, Exams of Advanced Education

Download Car Sales Test Colorado Exam With 100% Correct Answers 2024 and more Exams Advanced Education in PDF only on Docsity! Car Sales Test Colorado Exam With 100% Correct Answers 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 Answer-Advertising a salvage vehicle while identifying the vehicle as a salvage vehicle The advertise price of a motor vehicle must include: - Correct Answer-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 Answer-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 Answer-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: 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 Answer-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 A customer's trade-in on a financed deal may be sold - Correct Answer-only when the financing as been approved (II) (III) (b) (2) Accepts a used vehicle as a trade-in on the purchase or lease of a motor vehicle, used motor vehicle, powersports vehicle, or used powersports vehicle and sells or leases the vehicle that has been traded in before the purchaser or lessee has been approved for a consumer credit transaction as defined in section 5-1-301 (12) if the approval is a condition of the purchase or lease; 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 Answer-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 Answer-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 Answer-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 Answer-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 Answer-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. - Correct Answer-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 Answer-All the Above - Correct Answer-(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 Answer-True? - Correct Answer-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 Answer-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 Answer-ny 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 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 Answer-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. If a mortgagee, lienholder, or the mortgagee's or lienholder's assignee or the agent of either repossesses a motor or off-highway vehicle because of default in the terms of a secured debt, the repossessor shall notify, either orally or in writing, a law enforcement agency, as provided in this section, of the repossession, the name of the owner, the name of the repossessor, and the name of the mortgagee, lienholder, or assignee. The notification must be made at least one hour before, if possible, and in any event no later than one hour after, the repossession occurs. If the repossession takes place in an incorporated city or town, the repossessor shall notify the police department, town marshal, or other local law enforcement agency of the city or town. If the repossession takes place in the unincorporated area of a county, the repossessor shall notify the county sheriff. (2) A repossessor who violates subsection (1) of this section is guilty of a class 2 misdemeanor and, upon conviction, shall be punished as provided in section 18- 1.3-501, C.R.S. (3) If a motor or off-highway vehicle being repossessed is subject to the "Uniform Commercial Code - Secured Transactions", article 9 of title 4, C.R.S., the repossession is governed by section 4-9- 629, C.R.S. (4) As used in this section, the term "repossessor" means the party who physically takes possession of the motor or off-highway vehicle and drives, tows, or transports the vehicle for delivery to the mortgagee, lienholder, or assignee or the agent of the mortgagee, lienholder, or assignee. - Correct Answer-With respect to a consumer credit transaction, after a consumer has been in default for ten days for failure to make a required payment and has not voluntarily surrendered possession of goods or the mobile home that are collateral, a creditor may give the consumer the notice described in this section. A creditor gives notice to the consumer pursuant to this section when the creditor delivers the notice to the consumer or mails the notice to the consumer at the consumer's residence, as defined in section 5-1-201 (6). In- Transit plates may be used on motor vehicles - Correct Answer-answer- such as tow trucks and delivery vehicles. 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. - Correct Answer-"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 Answer-"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 Answer-"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 Answer-"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 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 Answer-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 Answer-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, 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 furnish and keep in force any bond required under this part 1 (h) Having made a fraudulent or illegal sale, transaction, or repossession; (i) Willful misrepresentation, circumvention, or concealment of or failure to disclose, through whatsoever subterfuge or device, any of the material particulars or the nature thereof required to be stated o - Correct Answer-The license of a motor vehicle salesperson may be denied, revoked, or suspended on the following grounds: (a) (Deleted by amendment, L. 92, p. 1857, § 20, effective July 1, 1992.) (b) Material misstatement in an application for a license; (c) Failure to comply with any provision of this part 1 or any rule or regulation promulgated by the board or executive director under this part 1; (d) To engage in the business for which such licensee is licensed without having in force and effect a good and sufficient bond with corporate surety as provided in this part 1; (e) To intentionally publish or circulate any advertising which is misleading or inaccurate in any material particular or which misrepresents any motor vehicle products sold or attempted to be sold by such salesperson; (f) Having indulged in any fraudulent business practice; (g) Selling, offering, or attempting to negotiate the sale, exchange, or lease of motor vehicles for any motor vehicle dealer or used motor vehicle dealer for which such salesperson is not licensed; except that negotiation with a motor vehicle dealer for the sale, exchange, or lease of new and used motor vehicles, except those vehicles defined in section 42-1- 102 (55), C.R.S., as motorcycles and section 33-14.5-101 (3), C.R.S., as off-highway vehicles, by a salesperson compensated for said negotiation by the used motor vehicle dealer for which such salesperson is licensed shall not be grounds for denial, revocation, or suspension; 31 Auto Industry Division Study Guide- Motor Vehicle Statutes (h) Representing oneself as a salesperson for any motor vehicle dealer or used motor vehicle dealer when such salesperson is not so employed and licensed; (i) (Deleted by amendment, L. 92, p. 1857, § 20, effective July 1, 1992.) (j) Having been convicted of or pled nolo contendere to any felony, or any cr - Correct Answer-12-6-125. Advertisement - inclusion of dealer name A motor vehicle dealer or used motor vehicle dealer or any agent of the dealers shall not advertise any offer for the sale, lease, or purchase of a motor vehicle or a used motor vehicle that creates the false impression that the vehicle is being offered by a private party or by a buyer's agent or that does not contain the name of the dealer or the word "dealer" or, if the name is contained in the offer and does not clearly reflect that the business is a dealer, both the name of the dealer and the word "dealer". - Correct Answer-12-6-302. Sunday closing No person, firm, or corporation, whether owner, proprietor, agent, or employee, shall keep open, operate, or assist in keeping open or operating any place or premises or residences, whether open or closed, for the purpose of selling, bartering, or exchanging or offering for sale, barter, or exchange any motor vehicle, whether new, used, or secondhand, on the first day of the week commonly called Sunday. This part 3 shall not apply to the opening of an establishment or place of business on the said first day of the week for other purposes, such as the sale of petroleum products, tires, or automobile accessories, or for the purpose of operating and conducting a motor vehicle repair shop, or for the purpose of supplying such services as towing or wrecking. The provisions of this part 3 shall not apply to the opening of an establishment or place of business on the said first day of the 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 Answer-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 Answer-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 Answer-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. A dealer's advertising must contain the dealer's licensed name /or the words - Correct Answer-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 Answer-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 Answer-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 (iii) The "annual percentage rate," using that term, and, if the rate may be increased after consummation, that fact. - Correct Answer-Advertisement of terms that require additional disclosure - (1) Triggering terms. An advertisement that states any of the following items shall contain the disclosures required by paragraph (d)(2) of this section, except as provided in paragraphs (e) and (f) of this section: (i) The amount of any payment; or (ii) A statement of any capitalized cost reduction or other payment (or that no payment is required) prior to or at consummation or by delivery, if delivery occurs after consummation. (2) Additional terms. An advertisement stating any item listed in paragraph (d)(1) of this section shall also state the following items: (i) That the transaction advertised is a lease; (ii) The total amount due prior to or at consummation or by delivery, if delivery occurs after consummation; (iii) The number, amounts, and due dates or periods of scheduled payments under the lease; (iv) A statement of whether or not a security deposit is required; and (v) A statement that an extra charge may be imposed at the end of the lease term where the lessee's liability (if any) is based on the difference between 24 Auto Industry Division Study Guide- Federal Statutes & Regulations the residual value of the leased property and its realized value at the end of the lease term. - Correct Answer-Removal, Alteration, or Illegibility of Required Label Any person who willfully removes, alters, or renders illegible any label affixed to a new automobile pursuant to section 1232 of this title, or any endorsement thereon, prior to the time that such automobile is delivered to the actual custody and possession of the ultimate purchaser of such new automobile, except where the manufacturer relabels the automobile in the event the same is rerouted, repurchased, or reacquired by the manufacturer of such automobile, shall be fined not more than $1,000, or imprisoned not more than one year, or both. Such removal, alteration, or rendering illegible with respect to each automobile shall constitute a separate offense - Correct Answer-All the above - Right Answer Wrong answers Preventing tampering A person may not— (1) advertise for sale, sell, use, install, or have installed, a device that makes an odometer of a motor vehicle register a mileage different from the mileage the vehicle was driven, as registered by the odometer within the designed tolerance of the manufacturer of the odometer; (2) disconnect, reset, alter, or have disconnected, reset, or altered, an odometer of a motor vehicle intending to change the mileage registered by the odometer; (3) with intent to defraud, operate a motor vehicle on a street, road, or highway if the person knows that the odometer of the vehicle is disconnected or not operating; or (4) conspire to violate this section or section 32704 or 32705 of this title. - Correct Answer-All the above - Right Answer Wrong answers Service, repair, and replacement (a) Adjusting Mileage. —A person may service, repair, or replace an odometer of a motor vehicle if the mileage registered by the odometer remains the same as before the service, repair, or replacement. If the mileage cannot remain the same— (1) the person shall adjust the odometer to read zero; and (2) the owner of the vehicle or agent of the owner shall attach a written notice to the left door frame of the vehicle specifying the mileage before the service, repair, or replacement and the date of the service, repair, or replacement. (b) Removing or Altering Notice. — A person may not, with intent to defraud, remove or alter a notice attached to a motor vehicle as required by this section. 29 Auto Industry 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 Answer-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 Answer-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 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 Answer-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 Three of the following types of motor vehicles are exempt from the Truth in Mileage Act. Which one is not exempt. - Correct Answer-motor vehicles with out-of-state titles 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; o the motor vehicle board does not have among its members - Correct Answer-Answer- 3 employees from the Enforcement Division Motor vehicle dealer board (1) There is hereby created and established the motor vehicle dealer board, consisting of nine members who have been residents of this state for at least five years, three of whom shall be licensed motor vehicle dealers, three of whom shall be licensed used motor vehicle dealers, and three of whom shall be members from the public at large. Licensed motor vehicle dealers may: - Correct Answer-sell motor vehicles thre days a week, so long as they are open at least 4 continuous hours per day between 9 Am and 9 PM. Colorado Lemon Law Cover's: - Correct Answer-answer- defects that substantially impair the market value of the vehicle 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 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. A dealer is not responsible for taking written action to attempt to correct a misleading ad placed by a monufacturerr if the ad contains the dealers name - Correct Answer-false which of the following is a rtue statement regaurding dealers and buyers - Correct Answer-a dealer shall indicate on the customer contract when a vehicle is sold, "as-is", and without a guarantee which of the following are deceptive trade practices - Correct Answer-all the above Which of the following is true about dealer demo plates - Correct Answer-a demo plate may be used on a commercial vehicle owned by the ownership an advertisement would not include - Correct Answer-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 Answer-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 Answer-false... can't be any manner right??? dealers must either be self insura=ed ir have insurance for their vehicles - Correct Answer-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 Answer-disclosing the cost of a leasing versus the cost of purchasing records of vehicle transfers and odometer statements must be related for ________ years - Correct Answer-5 wholesalers - Correct Answer-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 Answer-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 Answer-True? When a salesperson leaves a dealer, the dealer must do all the following execpt: - Correct Answer-Immediately employ a new salesperson, licensed or not 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 Answer-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 Answer-$1,000 The federal odometer law declares that it is unlawful to do any of the following execpt: - Correct Answer-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 Answer-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 Answer-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 Answer-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 Answer- the license of a dealer may be denied, revoked, or suspended on any of the following grounds except: - Correct Answer-employing a properly licensed sales person