State of Colorado Car Sales License Test 2024 New Latest Version with All Questions, Exams of Marketing

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State of Colorado Car Sales License Test 2024 New Latest Version with All Questions and 100% Correct Answers Depot plates may be used during normal business hours to transport a motor vehicle --- ----- Correct Answer -------- (D) all the above The license of a motor vehicle sales person or a powersport salesperson may be denied ,revoked , or suspended on any of the following EXCEPT? -------- Correct Answer -------- (A) advertising a salvage vehicle while identifying the vehicle as salvage vehicle A dealer is required to conspicuously display in there place of business the license of each sale person employed by the dealer -------- Correct Answer -------- (A)true The license of a motor Sale person or powersport sale person me be denied, revoked or suspended on any of the following ground except -------- Correct Answer -------- (B) advertising a salvage vehicle while identifying the vehicle as salvage A new motor vehicle has three of the following characteristics. Which one doesn't it have? -------- Correct Answer -------- (B) title Which of the following step are required to properly and legally repossess a motor vehicle -------- Correct Answer -------- (A) effect a lien creating a security interest A dealer is responsible for taking written actions to attempt to correct a misleading advertisement placed by a manufacturer if the advertisement contains the dealer name - ------- Correct Answer -------- (B) False A sales person can change dealer ship during a license year provided that a change of employer notification form and fee is summited to the board. It is unlawful for such a sales person to act as a motor vehicle sales person of power sport sale person until a new liscenes is procured -------- Correct Answer -------- False All motor vehicle dealer and powersport dealer must post clear , legible signs on their principle place of businesses if? -------- Correct Answer -------- (B) if they will be open less than 40 hour per week The motor vehicle dealer board is authorizing and empowered to -------- Correct Answer -------- (D) all the above -amends and repeal rules, regulation and prevision If a dealer receive more than 10,000 cash in a single transaction, they must -------- Correct Answer -------- (A) file a federal form with the internal revenue with thin 15 days Three of the following are required when a dealer is advertising a lease of motor vehicles or powersport vehicle with a payment amount, which is not required -------- Correct Answer -------- -amount or percentage down payment -terms of repayment (car payment date) Annul percentage rate( interest rate and loan ) The liscnese of a new or used dealer, whole sale auction or wholesale dealer maybe denied suspended revoke or fined for all the following except -------- Correct Answer ----- --- Attempting to negotiate the sale or lease or a motor vehicle with the intent to make profit The listener of a motor vehicle sale person or a powersport sale person maybe denied revoked or suspended on the following grounds -------- Correct Answer -------- -unfitness of character -breaking the law -false info Ect Advertisement would include -------- Correct Answer -------- Licensee name with the world dealer Or All the above By obtaining an off person permit , dealer may sell motor vehicle at another location on a sunday -------- Correct Answer -------- -FALSE -no sale of vehicle should be done on Sunday Which of the following is a false statement regarding dealer and buyers -------- Correct Answer -------- A dealer must offer a warranty on all motor vehicle sold Three of the following type of motor vehicle are exempt from the true mill age act with one is not -------- Correct Answer -------- Motor vehicle with out-of -out of state title In addition to possible dealer board sanctions, if a dealer or salesperson is found using bait & switch advertising, the criminal penalty is a class 2 misdemeanor and a maximum twelve months in jail $1,000 fine, or both. -------- Correct Answer -------- TRUE Which of the following is not proof of ownership of a motor vehicle for a Colorado dealer? -------- Correct Answer -------- A vehicle subject to a lien on the tile A motor vehicle salesperson may work for more than one dealership during one license year. -------- Correct Answer -------- TRUE Which of the following is true about the Colorado lemon law? -------- Correct Answer ----- --- "A reasonable number of attempts" to repair applied when the motor vehicle has a. investigate any suspected or alleged violation by any motor vehicle salesperson b. investigate any suspected or alleged violation by any motor vehicle dealer c. order an administrative hearing be held if it believes there is probable cause that a violation occurred d. all of the above --------- Correct Answer ---------- D. (f) (I) To investigate through the executive director, on its own motion or upon the written and signed complaint of any person, any suspected or alleged violation by any motor vehicle dealer, motor vehicle salesperson, used motor vehicle dealer, wholesale motor vehicle auction dealer, or wholesaler licensee of any of the terms and provisions of this part 1 or of any rule or regulation promulgated by the board under the authority conferred upon it in this section. The board shall order an investigation of all written and signed complaints, shall have the authority to issue subpoenas and to delegate the authority to issue subpoenas to the executive director, and the executive director shall make an investigation of all such complaints transmitted by the board pursuant to section 12-6-105. if the board determines that there is probable cause to believe a violation of this article has occurred, it may order that an administrative hearing be held pursuant to section 24-4-105, C.R.S. https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2 0Vehicles%20laws.pdf Dealers may be administratively fined by the Dealer Board up to what amount for each separate offense? --------- Correct Answer ---------- (m) (I) (A) If a hearing is held before an administrative law judge or a hearing officer designated by the board from within the board's membership, after due notice and a hearing by such judge or hearing officer pursuant to section 24-4-105, C.R.S., to review the findings of law and fact and the fairness of any fine imposed and to uphold such fine, to impose an administrative fine upon its own initiative, which shall not exceed ten thousand dollars for each separate offense https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2 0Vehicles%20laws.pdf New and used motor vehicle dealers, wholesalers and wholesale auction dealers are required to have a surety bond in the amount of $ --------- Correct Answer ---------- $50,000 for Dealer/Wholesaler https://www.colorado.gov/pacific/enforcement/dealer-and-wholesaler-motor-vehicle- powersports-auto-industry-division Motor vehicle salespersons are required to have a surety bond in the amount of $ --------- Correct Answer ---------- Surety Bond with FULL LEGAL NAME in the amount of $15,000. A photocopy may be submitted. https://www.colorado.gov/pacific/enforcement/salesperson-auto-industry-division Selling ___ or more vehicles or offering for sale more than ___ vehicles at the same address or telephone number in any one calendar year, shall be prima facie evidence that a person is engaged in the business of selling motor vehicles. --------- Correct Answer --- ------- 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 shall be prima facie evidence that a person is engaged in the business of selling or leasing new or new and used motor vehicles. https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2 0Vehicles%20laws.pdf The definition of a used motor vehicle dealer includes which of the following? --------- Correct Answer ---------- (17) "Used motor vehicle dealer" means any 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 and new motor vehicles or who is engaged wholly or in part in the business of selling used motor vehicles, whether or not such motor vehicles are owned by such person. https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2 0Vehicles%20laws.pdf Wholesalers may: a. make a profit or gain selling to dealers and wholesalers b. employ a motor vehicle salesperson c. conduct business in their own personal name d. hold both a wholesale license and a motor vehicle salesperson license at the same time --------- Correct Answer ---------- A. Regulation 12-6-102 (18) 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 Regulation 12-6- 104 (3)(a) https://www.sos.state.co.us/CCR/GenerateRulePdf.do?ruleVersionId=2129&fileName=1 %20CCR%20205-1 Which of the following is not a requirement for motor vehicle dealers, used motor vehicle dealers, or wholesalers? a. report to the Dealer Board any transfer of 10% or more of ownership to one individual b. submit to the Dealer Board a written notice when a licensee changes the trade name of the business c. report to the Dealer Board when a licensee changes the site or location of the principal place of business d. submit to the Dealer Board a copy of a valid Colorado ID --------- Correct Answer ------ ---- D? No licensee shall change the name or trade name of the business without submitting written notice to the Board, not less than ten days prior to the change. Any transfer of ten percent or more of the capital stock of any corporation holding a license under the provisions of this article shall be reported to the administrator not less than ten days prior to such transfer. https://www.colorado.gov/pacific/sites/default/files/JANUARY%208%20MV%20REGS% 20unhighlited011215.pdf Secure Verifiable Identification — A photocopy of an appropriate identification such as a Colorado Driver License for the applicant (unless the applicant is a corporation or LLC ) https://www.colorado.gov/pacific/enforcement/dealer-and-wholesaler-motor-vehicle- powersports-auto-industry-division 44-20-119. Notice of change of address or status. (1) 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 the dealer's principal place of business, the dealer shall immediately upon making the change so notify the board in writing, confiscate and return such salesperson's license to the board https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2 0Vehicles%20laws.pdf A salesperson can change dealerships during the licensing year provided that a Change of Employer Notification form is submitted to the Board. It is unlawful for such salesperson to act as a motor vehicle salesperson until a new _________ is procured. -- ------- Correct Answer ---------- It shall be unlawful for such salesperson to act as a motor vehicle salesperson until a new license is procured. https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2 0Vehicles%20laws.pdf A buyer agent may: a. be a person whose business includes the purchase of motor vehicles primarily for resale b. be retained or hired by a consumer to assist, represent, or act on behalf of such consumer in connection with the purchase or lease of a motor vehicle c. advertise the consumer's trade-in d. receive compensation from a dealer or salesperson --------- Correct Answer ---------- B (b) (I) "Buyer agent" does not include a person whose business includes the purchase of motor vehicles primarily for resale or lease; except that nothing in this subsection (2.5) shall be construed to prohibit a buyer agent from assisting a consumer regarding the disposal of a trade-in motor vehicle that is incident to the purchase or lease of a vehicle if the buyer agent does not advertise the sale of, or sell, such vehicle to the general public, directs interested dealers and wholesalers to communicate their offers directly to the consumer or to the consumer via the buyer agent, does not handle or transfer titles or funds between the consumer and the purchaser, receives no compensation from a dealer or wholesaler purchasing a consumer's vehicle, and identifies himself or herself as a buyer agent to dealers and wholesalers interested in the consumer's vehicle. (II) A "buyer agent" licensed pursuant to this part 1 shall not be employed by or receive a fee from a person whose business includes the purchase of motor vehicles primarily for resale or lease, a motor vehicle manufacturer, a motor vehicle dealer, or a used motor vehicle dealer. https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%2 0Vehicles%20laws.pdf A new motor vehicle has three of the following characteristics. Which one doesn't it have? a. a motor vehicle being transferred for the first time from a manufacturer b. a motor vehicle that is titled c. a motor vehicle which has not been used and commonly known as a "new" vehicle d. a motor vehicle with less than 1500 demonstration miles at the franchised dealer ------ --- Correct Answer ---------- B. 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"." 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. https://www.colorado.gov/pacific/sites/default/files/JANUARY%208%20MV%20REGS% 20unhighlited011215.pdf Which of the following would always indicate a motor vehicle is used? a. a vehicle with less than 1500 demonstration miles at the franchised dealer b. a vehicle with a properly assigned Manufacturer's Certificate of Origin c. a vehicle that is titled d. a vehicle with a Monroney label --------- Correct Answer ---------- C. 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 https://www.colorado.gov/pacific/sites/default/files/JANUARY%208%20MV%20REGS% 20unhighlited011215.pdf Since 1985, the Federal Trade Commission's Used Car Rule has required that dealers prominently and conspicuously display the __________________ on every used car or light truck offered for sale. This is also known as the "as is" sticker. --------- Correct Answer ---------- Buyers Guide https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/used- car-rule Three of the following are required when a dealer is advertising a lease of a motor vehicle with a payment amount. Which one is not required? a. disclosing the cost of leasing versus the cost of purchasing. b. disclosing the number, amounts and due dates or periods of scheduled payments. c. disclosing whether or not a security deposit is required. d. disclosing that the transaction advertised is a lease. --------- Correct Answer ---------- A. Regulation M Then the following terms must be disclosed: That the advertised transaction is a lease; The total amount due prior to or at consummation or delivery; The number, amounts and due dates or periods of scheduled payments; A statement of whether or not a security deposit is required; and 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 the residual value of the leased property https://www.colorado.gov/pacific/sites/default/files/Dealer%20Board%20Advertising%20 Rules%20DR%202332.pdf An advertisement would include: a. a commercial message in a flyer b. a commercial message in a direct mail literature c. a price on a vehicle windshield d. all of the above --------- Correct Answer ---------- D. Advertisement means any commercial message in any newspaper, magazine, leaflet, flyer, or catalog, on radio, television or 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, https://www.colorado.gov/pacific/sites/default/files/Dealer%20Board%20Advertising%20 Rules%20DR%202332.pdf A dealer has how many days to deliver or facilitate delivery of title from the date of sale? --------- Correct Answer ---------- 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. Which of the following is not proof of ownership of a motor vehicle for a Colorado dealer? a. a used vehicle with a properly assigned Colorado title to the licensed dealer b. a used vehicle with a properly assigned out-of-state title to the licensed dealer c. a signed Monroney Label d. a new vehicle assigned by a MCO to the licensed Colorado dealer --------- Correct Answer ---------- C. Anyone can take that out of a window and sign it.. Full-use dealer plates cannot be displayed on vehicles that are used by the dealership for any _______________ purpose --------- Correct Answer ---------- Commercial ? (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. https://leg.colorado.gov/sites/default/files/images/olls/crs2016-title-42.pdf About: Vehicles displaying Dealer Full-Use license plates may be utilized by the owners and co-owners or employees of the dealership, the spouse or dependent child living in the same household as the licensed dealer or wholesaler or any person including former, current and prospective customers, in order to serve the legitimate business interest of the dealership. https://www.colorado.gov/pacific/dmv/other-license-plates Which one of the following statements is true regarding dealer demo plates? a. a demonstration drive may last up to 14 days b. a demo plate that is lost or stolen must be reported within 2 working days to the Department of Revenue Dealer Section c. a demo plate may be used on a commercial vehicle owned by the dealership d. a demo plate may be loaned to celebrities, athletes or accountants for personal use -- ------- Correct Answer ---------- No answer... Read below 2. May be displayed on vehicles for demonstration drive purposes, during normal business hours, when a dealership employee is in the vehicle with the prospective buyer. a. May be displayed on vehicles operated by a prospective buyer for demonstration drives. Demonstration drives by a prospective purchaser shall not exceed seven calendar days. 2.12 Lost or stolen dealer plates shall be reported within seventy-two (72) hours to the local law enforcement agency and the Department of Revenue, Division of Motor Vehicles, Registration Section using form number DR2283 Affidavit for Lost or Stolen License Plates/Permits. All depot plates shall be replaced for the original statutory fee identified in 42-3-116 CRS and the material fees identified 42-3-301 CRS. 1. Shall only be displayed on vehicles offered for sale by a dealer. 4. Dealer Demonstration license plates may not be displayed on vehicles that: f. Are tow vehicles or parts pickup/delivery vehicles. https://www.colorado.gov/pacific/sites/default/files/April%2014%202016%20Unhighlight ed%20MV%20Regulations_1.pdf Which of the following is true regarding dealer demo plates? a. a dealer demo plate may be loaned out to a charitable organization such as for use in a parade b. dealer demo plates may be used on vehicles owned by the dealership such as tow trucks parts pickup vehicles or service loaners c. dealer demo plates may be displayed only on vehicles owned by or consigned to the dealer or wholesaler d. a dealer demo plate may be used on vehicles being delivered to the purchaser -------- - Correct Answer ---------- C. 4. Dealer Demonstration license plates may not be displayed on vehicles that: a. Have been sold, leased, or rented, or; b. Are being delivered to the purchaser, 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. https://www.colorado.gov/pacific/sites/default/files/April%2014%202016%20Unhighlight ed%20MV%20Regulations_1.pdf Which of the following is true regarding depot plates? a. depot plates may be used by a repair facility to road test a vehicle after repair during normal business hours b. depot plates may be used to transfer a vehicle from point of purchase to the dealers lot c. depot plates may be used as demo plates d. depot plates may be used to deliver a purchased vehicle to the consumer --------- Correct Answer ---------- 2.5 A depot plate may be used by the dealership to transport vehicles to and from the dealer's place of business or storage for the purpose of completing work that involves repairing, painting, upholstering, polishing or other similar types of work on the vehicle. A depot plate may also be used for road testing the vehicle after repair. Movement of a vehicle using a depot plate for any purpose other than those listed above shall constitute private use. https://www.colorado.gov/pacific/sites/default/files/April%2014%202016%20Unhighlight ed%20MV%20Regulations_1.pdf A new or used motor vehicle dealer may legally do which of the following with a temporary registration permit? a. issue a 7 day permit upon the sale of a motor vehicle to another dealer b. issue a permit for a demonstration drive by a consumer c. loan, give, borrow, sell, exchange or issue permits for or with another dealer d. issue a second permit to a consumer or another dealer --------- Correct Answer -------- -- A. 7 day B2b sale, 60 days to customer 2.3 Temporary permits and dealer stubs shall be issued by Dealers upon consummation of a sale. Dealers shall not loan, give, borrow, sell, exchange or issue permits for or with another dealer, individual, business, company, or corporation. Temporary permits are not renewable, but when circumstances warrant, subsequent permits may be applied for by the consumer from their County Motor Vehicle Office or the Auto Industry Division. https://www.colorado.gov/pacific/sites/default/files/April%2014%202016%20Unhighlight ed%20MV%20Regulations_1.pdf How many temporary permits may a dealer issue for each road worthy vehicle sold --------- Correct Answer ---------- 1 a. 72 hours after the buyer's order was signed b. as soon as the title has been signed over to the dealer c. only when the financing has been approved d. when the customer signs a power-of-attorney form --------- Correct Answer ---------- c. only when the financing has been approved Colorado's Lemon Law covers: a. new self-propelled vehicles, including pickups and vans b. new self-propelled vehicles, including pickups, vans, motor homes and motorcycles c. all new vehicles d. all of the above --------- Correct Answer ---------- Colorado's Lemon Law covers only new self-propelled vehicles, including pickups and vans. Motor homes and motorcycles are excluded from the Lemon Law. https://www.colorado.gov/pacific/sites/default/files/Colorado%E2%80%99s%20Lemon% 20Law%20For%20Consumers%20and%20Dealers.pdf Which of the following is true about Colorado's Lemon Law? a. defects, such as a rattle or squeak, that do not substantially impair its use and market value are not covered b. prior to suing a manufacturer for refund or replacement vehicle, the consumer must first send a written notice of defect by certified mail to the manufacturer c. under law, a "reasonable number of attempts" to repair applies when the same defect exists after it has been subject to repair four or more times within the first year after the date of original delivery d. all of the above --------- Correct Answer ---------- D. Defects, such as rattles or squeaks, which do not substantially impair the use or market value of the vehicle are not covered. 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. Under the law, a "reasonable number of attempts" to repair a defect applies when the same defect remains after it has been subject to repair four (4) or more times within the first year after the date of original delivery. The proper steps to repossess a motor vehicle include: a. effect a lien creating a security interest b. allow the required payment to default (become at least 10 days late) c. send or hand deliver a "right to cure" letter to the debtor and allow the debtor 20 days to cure d. all of the above --------- Correct Answer ---------- D. https://lawhelp.coloradolegalservices.org/files/C778C1AF-0259-C21E-D854- 1BFD140C9164/attachments/374152D1-D682-83E3-EAA9- 55E75D32E188/repossession-timeline.pdf Local law enforcement offices must be notified within _______ hour(s) before or after the repossession of a motor vehicle occurs. --------- Correct Answer ---------- 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. https://www.colorado.gov/pacific/sites/default/files/Study%20Guide%20- %20Miscellaneous%20Statutes%20%26%20Regulations%20%282017-2018%29.pdf Which of the following may motor vehicle dealers sell on a Sunday? a. any car on their lot b. a boat trailer or snowmobile trailer c. no vehicles may be sold on a Sunday d. trucks over 10,000 lbs --------- Correct Answer ---------- c. no vehicles may be sold on a Sunday