Car Sales Test Colorado Questions and Answers with Rationales (Download To Score An A), Exams of Advertising and Sales Promotion

Download Car Sales Test Colorado Questions and Answers with Rationales (Download To Score An A) and more Exams Advertising and Sales Promotion in PDF only on Docsity! Car Sales Test Colorado Questions and Answers with Rationales (Download To Score An A) 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: Advertising a salvage vehicle while identifying the vehicle as a salvage vehicle The advertise price of a motor vehicle must include: 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 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 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 acceptable to the Department of the location of the title or the MCO. The dealer's or wholesaler's right to ownership shall be clear from such evidence. The title or MCO must be procured by the dealer or wholesaler upon the sale and delivery of the vehicle and delivered or mailed to the purchaser or chattel mortgage company within thirty (30) days pursuant to 42-6- 112, C.R.S. f. Vehicles with incomplete or insufficient titles shall be marked "Not for Sale" and withheld from any public offering. Satisfactory Evidence of Vehicle Ownership 2.1 The Department may accept the following documents as evidence of vehicle ownership: a. A certificate of title issued by the State of Colorado or a Foreign Jurisdiction transferred as provided in section 42-6-110, C.R.S.; b. A Current Registration for the vehicle listing the applicant's name if issued by a Foreign Jurisdiction that does not issue a title for that vehicle type; c. A bill of sale for a vehicle not previously required to be titled or registered in the State of Colorado; d. A bill of sale for a vehicle from a Foreign Jurisdiction if the Department verifies that the jurisdiction does not issue a title for or register that vehicle type; e. A Current Registration issued by the U.S. Armed Services; f. A copy of a court order describing the vehicle by year, make, and Vehicle The board recognizes two classes of off-premise permit based upon specific sales-related conditions and restrictions. These are: Class One --- a Limited Sales Activity Off-premise Permit. The following conditions and restrictions apply to this permit: Licensed salespersons or owners authorized to sell must be present at the off- premise location at all times when the public is present; and, Licensed salespersons or owners authorized to sell may negotiate the terms of a sale at the off-premise location; and, 4 3) b.1) 2) Auto Industry DivisionStudy Guide- Motor Vehicle Regulations 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. Class Two --- a Full Sales Activity Off-premise Permit. The following conditions and restrictions apply to this permit: Licensed salespersons or owners authorized to sell must be present at the off- premise location at all times when the public is present; and, 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 at the off-premise location. 4. The board issues an off-premise permit for a restricted number of days, as follows: a. b. c. 5. 6. 7. 8. Up to six calendar days from start to finish is allowed for an off-premise permit, except as provided below; Up to twenty calendar days from start to finish is allowed for an off-premise permit for the National Western Stock Show, the Colorado State Fair, the Greeley Stampede, or the Denver Auto Show. The board may, in its informed discretion, approve consecutive off-premise permits for a recurring special event at the same location for a limited period of time. A motor vehicle dealer must make an off-premise permit readily-available for inspection by any person at the off-premise location during the entire period that the permit is valid. A motor vehicle dealer must ensure that every person it uses for sales activity at an off-premise sales event has been issued a Colorado motor vehicle salesperson's license by no later than fourteen calendar days prior to the off-premise event. By no later than fourteen calendar days prior to the off-premise event, a motor vehicle dealer must submit a completed application form for an off-premise permit. The board shall reject for filing any application for an off-premise permit that is not accompanied by a remittance in the full amount of the fee for the permit. The board may reject for filing any application that does not completely satisfy the requirements of the application form and its instructions. A motor vehicle dealer may occasionally display vehicles without an off-premise permit at an event or location away from the dealership. Sales activity is prohibited. However, a person may be present to provide security or to distribute information about the dealership and its vehicles. Which of the following persons are required by federal law, to adhere to the Truth in Mileage Act? all the above A customer's trade-in on a financed deal may be sold 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: 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 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 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? 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 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. 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? All the Above (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 A dealer has how many days to deliver or facilitate delivery of title from the date of sale A dealer of motor or off-highway vehicles shall, within thirty days after the sale, deliver or facilitate the delivery of the certificate of title to a purchaser or the holder of a chattel mortgage on the motor or offhighway vehicle subject to section 42-6-109. 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 Right Answer- False An application for a full-use dealer plate may be submitted by a motor vehicle dealer or wholesaler who: (A) Has sold more than twenty-five motor vehicles in the twelve-month period preceding application; (B) Purchases an existing motor vehicle dealership or wholesale business that has sold more than twenty-five vehicles during the twelve-month period preceding application; or(C) Obtains a license to operate a new or used motor vehicle dealership or wholesale business with an inventory of fifty or more motor vehicles. (II) Full-use dealer plates may be used in lieu of, in the same manner as, and to the same extent as number plates issued pursuant to section 42-3-201. 29 Auto Industry Division Study Guide- Miscellaneous Statutes & Regulations (b) (I) The department shall issue full-use dealer plates upon payment of the fee specified in subparagraph (II) of this paragraph (b) and upon application of a motor vehicle dealer or wholesaler accompanied by satisfactory evidence that the applicant is entitled to the plate in accordance with the criteria established in subparagraph (I) of paragraph (a) of this subsection (6). (II) The annual fee for full-use dealer plates shall be established and adjusted annually by the department based on the average of specific ownership taxes and registration fees paid for passenger vehicles and light duty trucks that are seven model years old or newer and that were registered during the one-year period preceding January 1 of each year. Such annual fee shall be prorated on a monthly basis. The annual fee for full-use dealer plates for motorcycles shall be established and adjusted annually by the department based on the average of specific ownership taxes and registration fees paid for motorcycles that are seven model years old or newer and that were registered during the one-year period preceding January 1 of each year. Such annual fee for motorcycles shall be prorated on a monthly basis. (III) Full-use dealer plates shall be valid for a period not to exceed one year. (IV) Each full-use dealer plate shall be returned to the department within ten days after the sale or closure of a motor vehicle dealership or wholesale business listed in an application submitted pursuant to subparagraph (I) of this paragraph (b). (c) Full-use dealer plates may be used only for vehicles owned and offered for sale by the dealer or wholesaler. Full-use dealer plates shall not be used on vehicles owned by dealerships or wholesalers that are commonly used by that dealer as tow trucks or vehicles commonly used by that dealer to pick up or deliver parts. At the dealer's or wholesaler's discretion, the full-use plate may be transferred from one motor vehicle to another motor vehicle. The dealer or wholesaler shall not be required to report any such transfer to the department. (d) A motor vehicle dealer or wholesaler may assign a full-use dealer plate only to the following persons: (I) Owners or co-owners of the licensed dealership or wholesale motor vehicle business; (II) An employee of the motor vehicle dealer or wholesaler; (III) To any person, including former, current, and prospective customers, in order to serve the legitimate business interest of the motor vehicle dealership or motor vehicle wholesale business; and (e) A spouse or dependent child living in the same household as the licensed dealer or wholesaler. 30 Auto Industry Division Study Guide- Miscellaneous Statutes & Regulations (f) As used in this subsection (6), "motor vehicle dealer or wholesaler" includes motor vehicle dealers, used motor vehicle dealers, and wholesalers as those terms are defined in section 12-6-102 Dealer Full Use License Plates: 1. May be displayed on vehicles offered for sale by a dealer. 2. Vehicle must continue to be owned by the dealership while assigned to any of the persons listed below. The DR 2574 Colorado Registration Receipt issued with the Dealer Full Use license plate must be maintained in the vehicle displaying the Dealer Full Use license plate along with the dealer ownership documents. a. Owners and co-owners of the dealership. b. Employees of the dealership. c. Any person, including former, current, and prospective customers, in order to serve the legitimate business interest of the dealership. d. Spouse or dependent child living in the same household as the dealer. 3. Dealer Full Use license plates may not be displayed on vehicles that: a. Have been sold, leased, rented, or donated by the dealership. b. Are being pulled, hauled, or are otherwise considered cargo. c. Are tow vehicles or parts pickup/delivery vehicles A customers trade-in vehicle on a financed deal may be sold Only when the financing has been approved 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; Which of the following steps are required to porperly and legally repossess a motor vehicle allow the debtor 20 days to cure 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. 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 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. "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 "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 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 New and used motor vehicle dealers, powersports dealer, wholesalers and wholesale auction dealers are required to have a surety bond 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, wholesale motor vehicle auction dealer applicant, or wholesaler applicant except the amount of the bond shall be five thousand dollars for those dealers who sell only small utility trailers that weigh less than two thousand pounds. The aggregate liability of the surety for all transactions shall not exceed the amount of the bond, regardless of the number of claims or claimants All bonds required pursuant to this section shall be renewed annually at such time as the bondholder's license is renewed. Such renewal may be done through a continuation certificate issued by the surety. 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? 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 site or location of such dealer's principal place of business, such dealer shall immediately upon making such change so notify the board in writing, and thereupon a new license shall be granted for the unexpired portion of the term of such license at a fee established pursuant to section 12-6- 110. Should a motor vehicle dealer or used motor vehicle dealer, for any reason whatsoever, cease to possess a principal place of business, as defined in this part 1, from and on which such dealer conducts the business for which such dealer is licensed, such dealer shall immediately so notify in writing the board and, upon demand therefor by the board, shall deliver to it such dealer's license, which shall be held and retained until it appears to the board that such licensee again possesses a principal place of business; whereupon, such dealer's license shall be reissued. Nothing in this part 1 shall be construed to prevent a motor vehicle dealer or used motor vehicle dealer from conducting the business for which such dealer is licensed at one or more sites or locations not contiguous to such dealer's principal place of business but operated and maintained in conjunction therewith. (2) (a) If a motor vehicle dealer changes to a new line-make of motor vehicles, adds another franchise for the sale of new motor vehicles, or cancels or, for any cause whatever, otherwise loses a franchise for the sale of new motor vehicles, the dealer shall immediately so notify the board. In the case of a cancellation or loss of franchise, the board shall determine whether the dealer who lost the franchise should be licensed as a used motor vehicle dealer. (b) If the motor vehicle dealer no longer possesses a franchise to sell new motor vehicles, the board shall take up, and the motor vehicle dealer shall deliver to the board, the dealer's license, and the board shall direct the director to issue the dealer a used motor vehicle dealer's license. (c) Upon the cancellation or loss of a franchise to sell new motor vehicles and the relicensing of a dealer as a used motor vehicle dealer, the dealer may continue in the business of a motor vehicle dealer for a time, not exceeding six months after the date of the relicensing of the dealer, to enable the dealer to dispose of the stock of new motor vehicles on hand at the time of relicensing, but not otherwise. 26 Auto Industry Division Study Guide- Motor Vehicle Statutes (3) If a motor vehicle salesperson is discharged, leaves an employer, or changes a place of employment, the motor vehicle dealer or used motor vehicle dealer who last employed the salesperson shall confiscate and return such salesperson's license to the board. Upon being reemployed as a motor vehicle salesperson, the motor vehicle salesperson shall notify the board. Upon receiving such notification, the board shall issue a new license for the unexpired portion of such returned license after collecting a fee set pursuant to section 12-6-110 (5). It shall be unlawful for such salesperson to act as a motor vehicle salesperson until a new license is procured. (4) Should a wholesaler, for any reason whatsoever, change such wholesaler's place of business or business address during any license year, such wholesaler shall immediately so notify the board. (5) Any wholesale motor vehicle auction dealer who changes a place of business or business address during any license year shall notify the board immediately of such dealer's new business address. (6) (a) Exce No licensee shall change the name or trade name of the business, his place of business or business address without submitting written notice to the administrator, not less than ten days prior to the change. 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: All the above - Right Answer Wrong answers -Employing an unlicensed sales person - failing to perform, either intentionally or negligently, any written agreement with any buyer or seller - representing or selling as "new" any motor vehicle that the dealer knows is a used motor vehicle 12-6-118 Licenses- grounds for denial, suspension, or revocation A motor vehicle dealer's, wholesale motor vehicle auction dealer's, wholesaler's, buyer agent's, or used motor vehicle dealer's license may be denied, suspended, or revoked 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) Violation of any of the terms and provisions of this part 1 or any rule or regulation promulgated by the board under this part 1; (d) Having been convicted of or pled nolo contendere to any felony, or any crime pursuant to article 3, 4, or 5 of title 18, C.R.S., or any like crime pursuant to federal law or the law of any other state. A certified copy of the judgment of conviction by a court of competent jurisdiction shall be conclusive evidence of such conviction in any hearing held pursuant to this article. (e) Defrauding any buyer, seller, motor vehicle salesperson, or financial institution to such person's damage; 29 Auto Industry Division Study Guide- Motor Vehicle Statutes (f) Intentional or negligent failure to perform any written agreement with any buyer or seller; (g) Failure or refusal to 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 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. 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. 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 at the off-premise location. 4. The board issues an off- premise permit for a restricted number of days, as follows: a. Up to six calendar days from start to finish is allowed for an off-premise permit, except as provided below; b. Up to twenty calendar days from start to finish is allowed for an off-premise permit for the National Western Stock Show, the Colorado State Fair, the Greeley Stampede, or the Denver Auto Show. c. The board may, in its informed discretion, approve consecutive off-premise permits for a recurring special event at the same location for a limited period of time. 5. A motor vehicle dealer must make an off-premise permit readily-available for inspection by any person at the off-premise location during the entire period that the permit is valid. 6. A motor vehicle dealer must ensure that every person it uses for sales activity at an off-premise sales event has been issued a Colorado motor vehicle salesperson's license by no later than fourteen calendar days prior to the off-premise event. 7. By no later than fourteen calendar days prior to the off-premise event, a motor vehicle dealer must submit a completed application form for an off-premise permit. The board shall reject for filing any application for an off-premise permit that is not accompanied by a remittance in the full amount of the fee for the permit. The board may reject for filing any application that does not completely satisfy the requirements of the application form and its instructions. 8. A motor vehicle dealer may occasionally display vehicles without an off-premise permit at an event or location away from the dealership. Sales activity is prohibited. However, a person may be present to provide security or to distribute information about the dealership and its vehicles. 5 Auto Industry Division Study Guide- Motor Vehicle Regulations 9. The books and records of each dealer, excluding financial statements and tax returns, shall be open to inspection Monday through Friday between 9AM and 5PM by the Board and its agents and representatives with cause, including ongoing investigation, compliance audit, sworn complaint, order of the Board. All records, including financial records and tax returns shall be provided upon subpoena by the Board. However, all records provided by a Dealer to the Board or its agents or representatives, either voluntarily or pursuant to a subpoena, shall be made available to the Dealer for testing, inspection, or copying, under direct supervision by the Auto Industry Division staff, upon a request by the Dealer. 10. Additional locations which are immediately adjacent to the principal place of business of the licensed dealer shall be considered contiguous for the purpose of this statute. "Immediately adjacent" shall mean either next to or directly or diagonally across from the dealership even if a public road or thoroughfare is between the additional location and the dealer's principal place of business. Subject to any applicable local zoning or sign requirements, the additional location shall not have any signage which identifies the additional location as being operated under any name other than the name or tradename of the licensee's principal place of business. The additional location may not advertise under a different name than that under which the dealership is licensed. 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 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 reasons: a. the application is incomplete; or, b. the information provided in the application does not fulfill a requirement of any one of or any combination of the following: 1) the application form; 2) the instructions for the application; 3) this regulation; or, 4) other relevant law or regulation; or, c. the applicant either did not respond to a request for additional information or provided an inadequate response, or both; or, d. the information contained in the application or the associated background investigation, or both, establishes a separate basis in relevant law or regulation to deny the license. 6. Not less than ten calendar days prior to changing the trade name of a licensed business, the licensee must submit a written application to the board seeking approval for the change. 7. Additional places of business are allowed in the name of the principal place of business, but they must display a sign with the same name as that required by the board for the principal location, and, if the additional place of business is more than just a storage lot, the licensee must provide adequate office and sanitary facilities. Locations contiguous to the principal place of business are not considered additional locations. The books and records of an additional location may be maintained at the principal place of business 8. Prior to a licensee's doing business under a different name at an additional place of business, the licensee must submit for the board's approval a new, complete application, together with the appropriate fee, and the correct bond. 9. Prior to a licensee's making a material change to the operating entity under which the licensee does business, the licensee must submit for the board's approval a new, complete application, together with the appropriate fee, and the correct bond. 10. A licensee must conduct business solely under its licensed name. However, if a licensee is one of several dealers with common ownership, the licensee may advertise under a name that reflects the common ownership. Designations like the following, which clearly reflect common ownership, are acceptable solely for advertising purposes: "John Doe Dealerships" or "Joe's Automotive Group." 9 Auto Industry Division Study Guide- Motor Vehicle Regulations NEW REGULATION 12-6-104(3)(i) A licensed motor vehicle dealer must display a permanent sign or device at its principal place of business and at every other approved business location. The sign or device must identify the dealer by its licensed name and be clearly visible 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 vehicle, if such use is clearly ascertainable from a title brand, from information obtained from a prior owner, from a Vehicle Identification Number (VIN), from a State-issued Identification Number, or from any other source. 10. The powersports vehicle had been put to a use or had been altered in such a way that a reasonable person would consider unusual or extraordinary, such as use as a racing vehicle. The Buyers Guide, or "as is" sticker must be: The Buyers Guide shall be displayed prominently and conspicuously in any location on a vehicle and in such a fashion that both sides are readily readable. You may remove the form temporarily from the vehicle during any test drive, but you must return it as soon as the test drive is over The amount of cash a customer uses for a transaction and when the customer makes the transaction are the determining factors for when the business must file the Form 8300. Generally, a business must file Form 8300 within 15 days after they receive the cash. If the 15th day falls on a Saturday, Sunday, or holiday the business must file the report on the next business day. 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. (d) Advertisement of terms that require additional disclosures - (1) 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. (2) Additional terms. An advertisement stating any of the terms in paragraph (d)(1) of this section shall state the following terms,49 as applicable (an example of one or more typical extensions of credit with a statement of all the terms applicable to each may be used): 49 [Reserved] (i) The amount or percentage of the downpayment. (ii) The terms of repayment, which reflect the repayment obligations over the full term of the loan, including any balloon payment. (iii) The "annual percentage rate," using that term, and, if the rate may be increased after consummation, that fact. 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. 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 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. 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 of motor vehicles (unless otherwise exempted by the Secretary by regulation), except in the case of transfers of new motor vehicles from a vehicle manufacturer jointly to a dealer and a person engaged in the business of renting or leasing vehicles for a period of 30 days or less. (B) For purposes of subparagraph (A), the term "new motor vehicle" means any motor vehicle driven with no more than the limited use necessary in moving, transporting, or road testing such vehicle prior to delivery from the vehicle manufacturer to a dealer, but in no event shall the odometer reading of such vehicle exceed 300 miles. (5) The Secretary may exempt such classes or categories of vehicles as the Secretary deems appropriate from these requirements. Until such time as the Secretary amends or modifies the regulations set forth in 49 CFR 580.6, such regulations shall have full force and effect. 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 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: 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 Advertising shall be construed to be misleading or inaccurate in the following particulars: Rule 1. Advertising a motor vehicle which is not in operable condition unless specifically disclosed. Rule 2. Advertising which would imply the dealer is going out of business when such is not the case. Rule 3. Advertising a specific motor vehicle for sale or lease with price or terms quoted, without fully identifying the vehicle as to year, make, model and dealer stock number. Such vehicle shall be willfully shown and sold at the advertised price and/or terms while such vehicle remains unsold or unleased, for a period of five days following the last date the ad was published, unless the ad states that the advertised price and terms are good only for a specific time and such time has elapsed. If a specific number of motor vehicles is advertised, such vehicles must have been invoiced to the dealer. Rule 4. Using a picture or photograph of a vehicle in advertising when the picture or photograph is not the same make, year and equipment actually being offered for the price or terms advertised. Rule 5. Advertising in such a manner which utilizes an asterisk or other reference symbols to contradict or materially change the meaning of any advertising statements. Rule 6. A used vehicle shall not be advertised in any manner that creates the impression that it is new. Rule 7. Advertising motor vehicles which are known by the dealer to be salvage, rebuilt from salvage, or flood vehicles, which are not so identified in the advertisement. Rule 8. Advertising in any manner to imply that a purchaser will be receiving benefits of any existing loan on a vehicle when no such benefit exists. Rule 9. Advertising or making statements that are not true or that cannot or will not be honored. Advertising which creates the false impression that the purchaser will determine the terms, price or conditions of a sale, such as "write your own deal," "name your own price," "no reasonable offer refused," and "we will not be undersold." Advertising any item as "free" which is associated with or conditioned upon the negotiated sale of a motor vehicle. Rule 10. Advertising sales prices for used motor vehicles which claim or imply a specific savings or discount without clearly and accurately documenting the basis for the savings or discount. Rule 11. Advertising any reference to "dealer cost" or "invoice" price. Advertising the word "wholesale" in connection with the retail offering of motor vehicles. 26 Auto Industry Division Study Guide- Motor Vehicle Regulations Rule 12. Advertising a specific trade-in amount or range of amounts without, in fact, offering such a trade-in amount and, failing to disclose or advertise the M.S.R.P., sale price, or capitalized cost of the vehicle from which the trade-in will be deducted. Rule 13. Advertising the price of a vehicle without including all costs to the purchaser at the time of delivery, except sales tax, finance charges, cost of emissions test, other governmental fees or taxes, and transportation costs, incurred after sale, to deliver the vehicle to the purchaser at the purchaser's request. Rule 14. Advertising any specific discount or rebate on new motor vehicles without the manufacturer's suggested retail price conspicuously stated in the ad. When advertising rebates, incentives, or other offers, a dealer shall not combine such offers or give the impression that such offers are obtainable, when in fact they are not. Rule 15. Advertising any qualifying statement or disclosure which is not clear, conspicuous, and readable, and which is not adjacent to the offer or terms it qualifies, and in less than eight-point type. Rule 16. Advertising any contest that offers to prospective participants the opportunity to receive or compete for gifts or prizes without such advertisement containing the words "no purchase or payment of any kind is necessary to enter or win this contest" in boldfaced type and at least tenpoint type. Rule 17. If any advertisement relates to a lease, the advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a vehicle. Rule 18. Statements, such as "Everybody Financed," "No Credit Rejected," "We Finance Anyone," and other statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit, are prohibited, unless such statements are true. Rule 19. Bait advertising, as defined in § 18-5-303, C.R.S., is not allowed. A dealer may use 3 temporary permits for each roadworthy vehicle sold False Three of the following are decpetive trade practices. Which one of the following is not? delivering goods as promised In addition to possible dealer board sactions, if a dealer or salesperson is found using bait and switch advertising, the criminal penalty is a class 2 misdemeanor and a maximum of 12 months in jail. $1000 fine, or both. True (3) Bait advertising is a class 2 misdemeanor Three of the following types of motor vehicles are exempt from the Truth in Mileage Act. Which one is not exempt. 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 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: 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: 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. the license of a motor vehicle salesperson or powersport may be denied, revoked, or suspended on any of the following grounds except: 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? tax rate the license of a motor vehicle salesperson or powersport may be denied, revoked, or suspended on any of the following grounds except: 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 the license of a dealer may be denied, revoked, or suspended on any of the following grounds except: employing a properly licensed sales person the motor vehicle dealer board is authorized and empowered to all the above it is unlawful for a motor vehicle salesperson to: 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 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. 15 days Motor Vehicles may be sold on Sundays hen a salesperson leaves a dealer, that dealer must return that salesperson's license to the Auto Industry Division True Which of the following would indicate a motor vehicle is used Someone who sells motor vehicles solely to wholesalers Which of the following is true regarding in-transit plates 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? 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 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' 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. 1 "Depot License Plates" or "Depot Tags" - means a numbered plate issued by the department authorizing the movement of dealership vehicles to and from the dealer's place of business or storage for the purpose of completing work tha https://www.ftc.gov/tips-advice/business-center/guidance/answering-dealers-questions-about- revised-used-car-rule The new English-language version of the Buyers Guide adds a statement in Spanish advising Spanish-speaking consumers to ask for the Buyers Guide in Spanish if the dealer is conducting the sale in Spanish.