State of Colorado Sales License Test 2024 Questions and Answers (Graded A), Exams of Engineering

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State of Colorado Sales License Test 2024 Questions and Answers (Graded A) Three of the following types of motor vehicles are exempt from the truth in mileage act. - ANSWER-~Vehicles 10 years old or older~Vehicles having a gross empty weight more than 10,000 lbs~Vehicles not self propelled (Trailers) The definition of a used motor vehicle dealer or used dealer includes which of the following? - ANSWER-a person who attempts to negotiate a sale or lease of a used motor vehicle or powersports vehicle with the intent to make a profit or gain The Motor Vehicle Board is authorized and empowered to: - ANSWER-All Of The Above ~Amend and repeal rules, regulations and previsions When advertising a specific number of motor vehicles, that same number of vehicles must be invoiced to the dealer - ANSWER-TRUE bait and switch is - ANSWER-ad that attracts consumers with a low-priced product, then tries to sell them a higher-priced product Selling, Leasing, Trade-In, with option to purchase, offering or negotiating and exchange of interest in 3+ vehicles in any 1 year is prima facie evidence that a person is engaged in the business of selling or leasing motor vehicles - ANSWER-TRUE By obtaining an off-premise permit, dealers may sell motor vehicles at another location on Sunday - ANSWER-FALSE - NO Sale of vehicle should be done on Sundays Which of the following statements is true regarding dealer demo plates? - ANSWER-a demo drive cannot exceed 7 days Colorado Lemon Law includes: - ANSWER-defects that substantially impair the market value of the vehicle Motor vehicle insurance is required: - ANSWER-for all registered vehicles intended for use on colorado roads Which is true regarding in-transit plates? - ANSWER-in-transit plates may be used to transport vehicles from point of purchase to point of storage or from point of storage to point of sale Licensed dealers may sell which of the following on Sundays? - ANSWER-The selling of boat trailers and snowmobile are exempt Which of the following steps are required to properly and legally repossess a motor vehicle? - ANSWER-effect a lien creating a security interest, Allow the required payment to default (become at least 10 days late), send or hand deliver a "right to cure" letter to the debtor and allow the debtor 20 days to cure An advertisement may include - ANSWER-licensed name with the word DEALER which of the following is a used vehicle? - ANSWER-any vehicle that has been previously bought a demo vehicle with 1500 miles Which of the following are deceptive trade practices? - ANSWER-All of the above Bait and switch How many temp permits may a dealer issue for each roadworthy vehicle sold? - ANSWER-1 An extension can only be issued but the DMV Depot plates may be used during normal business hours to transport a motor vehicle - ANSWER-all of the above All plates Three of the following are required when a dealer is advertising a lease of a motor vehicle with a payment amount - ANSWER-~Amount or percentage of the down payment ~terms of repayment (car payment date) ~Annual percentage rate (interest rate of the loan) which is NOT required when advertising a lease? - ANSWER-disclosing the cost of lease vs purchasing Prominently and conspicuously display the ________? - ANSWER-FTC Buyer's Guide A temp registration permit may be issued: - ANSWER--for 60 days in a B2C sale-for 7 days in a B2B sale Motor Vehicle salesmen are required to have a surety bond in the amount of $30k - ANSWER-False, $15,000 If a salesperson leaves a dealership during the licensing year and becomes employed at another dealership they must acquire a new license for the unexpired portion of their returned license from the board - ANSWER-TRUE Which is not a deceptive trade practice? - ANSWER-Disclosing to the purchaser in writing prior to the sale that a vehicle is a salvage The Motor Vehicle dealer board may decide how large a fine to impose on a dealer who sells vehicles <1500lbs, as long as it does not exceed $5,000 - ANSWER-False $10,000 The Motor Vehicle Dealer board is authorized and empowered to - ANSWER-All of the above -propose fees -order hearing -investigate the following must be conspicuously displayed in the dealers place of business? - ANSWER-all of the above -license of dealer -salesmen licenses -name of dealership license Records of vehicle transfers and odometer statements must be kept for 5 years - ANSWER-TRUE An advertisement would NOT include - ANSWER-a salesperson's verbal statement of the MSRP A dealer is not responsible for taking written action to attempt to correct a misleading advertisement placed by a manufacturer if the advertisement contains the dealers name - ANSWER-False Which is true of the Colorado Lemon Law? - ANSWER-"a reasonable number of attempts" to repair applied when the motor vehicle has been out of service for repairs a cumulative total of 30 or more business days during the warranty term or 1 year from date of delivery When advertising terms price conditions of sale of a car, dealers may use the term: - ANSWER-"With approved credit" according to Colorado law motor vehicle leasing companies do not need a motor vehicle dealers license - ANSWER-False The License of a motor vehicle salesperson may be denied revoked or suspended on the following grounds - ANSWER-Unfitness of character breaking law false info etc. An off-premise permit: - ANSWER-Must be readily available for inspection at the sale Prima Facie is - ANSWER-Evidence at face value According to Colorado law, which of the following must be licensed as a motor vehicle dealer and or powersports dealer? - ANSWER-All of the above Colorado Lemon law covers: - ANSWER-defects that substantially impair the market value of a vehicle A dealer may issue a temporary permits for each roadworthy vehicle sold - ANSWER- FALSE The Colorado consumer protection act declares bait and switch advertising to be deceptive trade practice. Bait and switch advertising includes which of the following - ANSWER-All of the above Three of the following types of motor vehicles are exempt from the truth in mileage act. Which one is not exempt? - ANSWER-motor vehicles with out-of-state titles The motor vehicle dealer board does not have among its members - ANSWER-three employees from the enforcement division Three of the following are characteristics of an off-premise permit. . Which one is not? - ANSWER-The permit cannot exceed six days except for the national western stock show, the Colorado state fair, greely stampede Which of the following is a true statement regarding dealers and buyers? - ANSWER-a dealer shall clearly indicate on the costumer contract when a vehicle sold "as is" and without a guarantee When advertising a specific number of motor vehicles that same number of vehicles must have been invoiced to the dealer - ANSWER-True When a salesperson leaves a dealer, that dealer must do all of the following except - ANSWER-immediately employ a new salesperson, licensed or not The license of a motor vehicle salesperson or a powersports salesperson may be denied, revoked, or suspended on any of the following grounds except: - ANSWER- using point of sale literature in advertising A new or used motor vehicle dealer may legally do which of the following with a temporary permit? - ANSWER-issue a permit upon the sale of a motor vehicle to another dealer A new motor vehicle has three of the following characteristics. Which one doesn't it have? - ANSWER-A title A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how many days to report conviction? - ANSWER-30 Days The definition of a used mother vehicle dealer or used powersports dealer includes which of the following ? - ANSWER-A person who attempts to negotiate a sale or lease of a used motor vehicle or powersports vehicle with the intent to make a profit or gain Wholesalers: - ANSWER-must use a name other than their personal name on all business documents A dealer is required to have on file the licenses of each of their employed salespersons but need not display them in their place of business - ANSWER-False A dealer must take in the title in their own name before selling a car to a retail customer - ANSWER-False A salesperson can change dealerships during the licensing year provided that the correct form and fee is submitted to the board such sales person may begin work as a motor vehicle salespersons or powersports salesperson while awaiting a new license from the board - ANSWER-False Which of the following is acceptable proof of ownership of a motor vehicle for a Colorado dealer? - ANSWER-A vehicle subject to a lien on the tile Records of vehicles transfers and odometer statements must be retained for: - ANSWER-5 years Which of the following would indicate a motor vehicle is used - ANSWER-A certificate of title has been issued A motor vehicle dealer is responsible for: - ANSWER-all of the above An advertisement would include - ANSWER-All of the above Which of the following is a deceptive trade practice? - ANSWER-All of the above Demo plates can be displayed on vehicles that are used by the dealership for any commercial purpose - ANSWER-True Which of the following does not fit the definition of a motor vehicle dealer - ANSWER- someone who sells motor vehicles solely to wholesalers