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COLORADO CAR SALES MASTERY
EXAM 2024 | 230 QUESTIONS AND
CORRECT ANSWERS | ALREADY
GRADED A+ | LATEST VERSION
A dealer may advertise in which of the following manners? ------CORRECT ANSWER--- ----------d. using a color picture in the ad that is not the same color as the actual vehicle being advertised as long as the disclosure, "vehicle colors may vary" is included A dealer's advertising must contain the dealer's licensed name and/or the word(s): ------ CORRECT ANSWER-------------The dealer's name or the word "dealer" must be included in the advertisement or both name and the word "dealer" if the name appears but does not clearly reflect that the business is a dealer. The Colorado Consumer Protection Act declares bait and switch advertising to be a deceptive trade practice. Bait and switch advertising would include which of the following? ------CORRECT ANSWER-------------all of the above Three of the following are required to be disclosed when a dealer is advertising a closed-end credit sale of a motor vehicle with a down payment amount, payment amount, number of payments, period of repayment or amount of finance charge. Which one is not required? ------CORRECT ANSWER-------------a. tax rate 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 channel 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? ------CORRECT ANSWER-------------a signed Monroney Label Which one of the following statements is true regarding dealer demo plates? ------ CORRECT ANSWER-------------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. 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 Which of the following is true regarding dealer demo plates? ------CORRECT ANSWER- ------------dealer demo plates may be displayed only on vehicles owned by or consigned to the dealer or wholesaler Which of the following is true regarding depot plates? - -----CORRECT ANSWER---------- ---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. A new or used motor vehicle dealer may legally do which of the following with a temporary registration permit? ------CORRECT ANSWER-------------issue a permit for a demonstration drive by a consumer How many temporary permits may a dealer issue for each road worthy vehicle sold ------ CORRECT ANSWER------------- 1
Motor homes and motorcycles are excluded from the Lemon Law. Which of the following is true about Colorado's Lemon Law? ------CORRECT ANSWER- ------------all of the above Local law enforcement offices must be notified within _______ hour(s) before or after the repossession of a motor vehicle occurs. ------CORRECT ANSWER-------------1 hour before Which of the following may motor vehicle dealers sell on a Sunday? ------CORRECT ANSWER-------------no vehicles may be sold on a Sunday the definition of used motor vehicle dealer or used power sports ------CORRECT ANSWER-------------a person who attempts to negotiate a sale or lease of a of a used MV or PWSP vehicle for profit when advertising a specific number of motor vehicles, that ------CORRECT ANSWER---- ---------True selling , Leasing , exchanging, renting with option to purchase ------CORRECT ANSWER-------------True By obtaining an off premise permit, dealers may sell motor vehicle at ------CORRECT ANSWER-------------False Which of the following statements is true regarding dealer demo ------CORRECT ANSWER-------------a demo drive cannot exceed 7 days
CO lemon law includes ------CORRECT ANSWER-------------Defects that substantially impair the market value of the vehicle motor vehicle insurance is required ------CORRECT ANSWER-------------for all registered vehicles intended for use on Colorado roads which is true regarding in-transit plates? ------CORRECT 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 power sport dealers may sell which of the following on Sunday ------CORRECT ANSWER-------------A powersport vehicle which of the following is a used vehicle? ------CORRECT ANSWER-------------a demo vehicle with 1300 miles Depot plates may be used during normal business hours to transport ------CORRECT ANSWER-------------all of the above Prominently and conspicuously display? ------CORRECT ANSWER-------------Buyer's guide The Motor vehicle dealer board does not have among its members ------CORRECT ANSWER-------------three employees from the dept. of revenue Which of the following must be conspicuously displayed in the dealers place of business? ------CORRECT ANSWER-------------License of dealer Salesmen Licenses Name of dealership license
A motor vehicle salesman can be personally liable for any proven claim or judgement in excess of their surety bond ------CORRECT ANSWER-------------true Which must remain in the window of a new motor vehicle until its sold to the ultimate purchaser? ------CORRECT ANSWER-------------Monroney Label A motor vehicle salesperson may work for more than 1 dealership during one year ------ CORRECT ANSWER-------------true In addition to possible dealer bond sanctions, if a dealer/salesperson uses bait and switch it is a class 2 misdemeanor with a 12 month max jailtime and 1k fine or both ------ CORRECT ANSWER-------------true The License of a motor vehicle salesperson or a power sports salesperson may be denied revoked, or suspended on any of the following grounds except: ------CORRECT ANSWER-------------Advertising a salvage vehicle while identifying the vehicle as a salvage vehicle The license of a motor vehicle salesperson or power-sports salesperson may be denied, revoked or suspended on any of the following grounds except: ------CORRECT ANSWER-------------b) advertising a salvaged vehicle while identifying the vehicle as a salvage vehicle According to colorado law, which of the following must be licensed as a motor vehicle dealer and or powersports dealer? ------CORRECT ANSWER-------------d) All of the above Colorado Lemon law covers: ------CORRECT ANSWER-------------c)defects that substantially impair the market value of a vehicle
Three of the following are required to be disclosed in an advertisement when a dealer is advertisement a closed end credit sale of a mother vehicle or powersports...except? -----
- CORRECT ANSWER-------------d) tax rate The motor vehicle dealer board is authorized and empowered to: ------CORRECT ANSWER-------------D)all of the above Local law enforcement officers must be notified within ___ hours before or after the repossession of a motor vehicle occurs: ------CORRECT ANSWER-------------A)1 hours All motor vehicle dealers and power-sports dealers must post a clear, legible sign on their principal place of business if: ------CORRECT ANSWER-------------B) they will be open less than 40 hours a week A dealer may issue a temporary permits for each roadworthy vehicle sold ------ CORRECT ANSWER-------------B) false (verify) The motor vehicle dealer board may be decide how large a fine to impose on a dealer who sells primarily vehicles that weigh 1,500 pounds or more so long as it does not exceed 5k - -----CORRECT ANSWER-------------a)True (verify) The Colorado's consumer protection act declares bait and switch advertising to be deceptive trade practice. Bait and switch advertising includes which of the following -----
- CORRECT ANSWER-------------d)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? ------CORRECT ANSWER-------------B)motor vehicles with out-of-state titles
The license of a new or used dealer, wholesale auction dealer or wholesaler may be denied suspended, revoked or fined for all of the following grounds except ------ CORRECT ANSWER-------------Employing a properly licensed salesperson The only items that can be added to an advertised price are ------CORRECT ANSWER-- -----------C) Dealer handling and preparation charges The license of a motor vehicle salesperson or a powersports salesperson may be denied, revoked, or suspended on any of the following grounds except: ------CORRECT ANSWER-------------D)using point of sale literature in advertising A buyer agent may ------CORRECT ANSWER-------------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 Three of the following are deceptive trade practices. Which of the following is not? ------ CORRECT ANSWER-------------Delivering goods as promised A new or used motor vehicle dealer may legally do which of the following with a temporary permit? ------CORRECT ANSWER-------------Issue a permit for a demonstration drive by a consumer Re federal cash reporting rule requires dealers to file form 83000.... ------CORRECT ANSWER-------------15 Days A new motor vehicle has three of the following characteristics. Which one doesn't it have? ------CORRECT ANSWER-------------D) a title A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how many days to report conviction? ------CORRECT ANSWER-------------A ) 30 Days
Three of the following are require when a dealer is advertising a lease of a a motor vehicle or powersports vehicle with a payment amount which one is not required? ------ CORRECT ANSWER-------------D) disclosing the cost of leasing versus the cost of purchasing The definition of a used mother vehicle dealer or used powersports dealer includes which of the following? ------CORRECT 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 A customer's trade- in vehicle on a financed deal may be sold ------CORRECT ANSWER-------------D) only when the financing has been approved Wholesalers : ------CORRECT ANSWER-------------C)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 ------CORRECT ANSWER------------- False The license of a motor vehicle salesperson or a powersports salesperson may be denied, revoked or suspended on the following grounds ------CORRECT ANSWER------- ------D) all of the above A dealer must take in the title in their own name before selling a car to retail customer -- ----CORRECT ANSWER-------------B) 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
A dealers advertising must contain the dealers licensed name and the words ------ CORRECT ANSWER-------------C) dealer Which of the following does not fit the definition of a motor vehicle dealer ------ CORRECT ANSWER-------------C) someone who sells motor vehicles solely to wholesalers Depot plates may be used during normal business hours to transport a motor vehicle --- ---CORRECT ANSWER-------------D ) all of the above Licensed powersport dealers may not sell powersports on Sundays ( verify) ------ CORRECT ANSWER-------------False By definition an advertisement may include any commercial message on any computer display or window, display which is delivered or made available to a customer or prospective customer in any manner whatsoever ------CORRECT ANSWER------------- True ( verify) The motor Vehicle dealer board is authorized and empowered to ------CORRECT ANSWER-------------D) all of the above The federal odometer law declares that it is unlawful to do any of the following except --- ---CORRECT ANSWER-------------C) to operate a motor vehicle on any street, with the intent to defraud, knowing that the odometer is disconnected Dealer demo plates may be used on motor vehicles ------CORRECT ANSWER------------
- D) properly assigned in the name of the dealership
New and used motor vehicle dealers, powersports dealers, and wholesale auction dealers are required to have a surety bond ------CORRECT ANSWER-------------D) all of the above Motor vehicle and powersport salespeople are required to have a surety bond in the amount of : ------CORRECT ANSWER-------------15k$ The buyers guide or "as is" sticker must be ------CORRECT ANSWER------------- Provided to a customer in another language than English In advertisement motor vehicle, a dealer or salesperson may ------CORRECT ANSWER-------------Make reference "dealer cost" or "invoice price" Which of the following steps are require to properly and legally repossess a motor vehicle ------CORRECT ANSWER-------------Effect a lien creating a security interest Which of the following motor vehicles may be sold on Sundays? ------CORRECT ANSWER-------------C)Motor Homes The Motor Vehicle Dealer Board is authorized and empowered to: ------CORRECT ANSWER-------------issue or deny motor vehicle dealer and salesperson licenses Dealers may be administratively fined by the Dealer Board up to what amount for each separate offense? ------CORRECT ANSWER-------------shall not exceed 10,000 dollars for each separate offense 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/ Wholesalers
The license of a motor vehicle salesperson may be denied, revoked, or suspended on the following grounds except: ------CORRECT ANSWER-------------not having a valid Colorado drivers license The license of a motor vehicle salesperson may be denied, revoked, or suspended on the following grounds except ------CORRECT ANSWER-------------to engage as a licensee without having in force a good and sufficient bond with corporate surety A dealer, wholesaler or salesperson who is convicted of any felony or any criminal pursuant to Article 3, 4 or 5 of Title 18, C.R.S. (felony or criminal misdemeanor) or like crime pursuant to federal law or law of any other state has _____ days to give the Dealer Board written notice of such conviction? ------CORRECT ANSWER------------- 30 days after such conviction When a salesperson voluntarily leaves or is discharged from a dealership, the dealer must immediately return that salesperson's _________ to the Dealer Board. ------ CORRECT ANSWER-------------motor vehicle dealer or used motor vehicle dealer who last employed the salesperson shall confiscate and return such salesperson's license to the board 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 sales person 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. A new motor vehicle has three of the following characteristics. Which one doesn't it have? ------CORRECT ANSWER-------------motor vehicle that is titled Which of the following would always indicate a motor vehicle is used? ------CORRECT ANSWER-------------a vehicle that is titled
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 Which of the following must be identified in advertising? ------CORRECT ANSWER------- ------all of the above The only items that can be added to an advertised price are: ------CORRECT ANSWER- ------------none of the above The advertise price of a motor vehicle must include: ------CORRECT ANSWER------------
- Answer- Finance Charge Advertisement of rate of finance charge. If an advertisement states a rate of finance charge, it shall state the rate as an "annual percentage rate," using that term. If the annual percentage rate may be increased after consummation, the advertisement shall state that fact. If an advertisement is for credit not secured by a dwelling, the advertisement shall not state any other rate, except that a simple annual rate or periodic rate that is applied to an unpaid balance may be stated in conjunction with, but not more conspicuously than, the annual percentage rate. If an advertisement is for credit secured by a dwelling, the advertisement shall not state any other rate, except that a simple annual rate that is applied to an unpaid balance may be stated in conjunction with, but not more conspicuously than, the annual percentage rate. Advertisement of terms that require additional disclosures - Triggering terms. If any of the following terms is set forth in an advertisement, the advertisement shall meet the requirements of paragraph (d)(2) of this section: (i) The amount or percentage of any downpayment. (ii) The number of payments or period of repayment. (iii) The amount of any payment.
A buyers agent may: ------CORRECT ANSWER-------------Right answer- retained or hired by a consumer for a fee or other thing of value to assist, represent, or act on behalf of the consumer in connection with the purchase or lease of a motor vehicle / powersport vehicle. Wrong Answers----------
- intentionally enter into a financial agreement with a motor vehicle salesperson for the buyer's agent benefit
- be employed by a dealer or salesperson
- coerce a motor vehicle dealer into providing installment financing with specified financial institution Found in---------------------------------------- "Buyer agent" means any person required to be licensed pursuant to this part 1 who is retained or hired by a consumer for a fee or other thing of value to assist, represent, or act on behalf of the consumer in connection with the purchase or lease of a motor vehicle. Motor vehicle and power sports salesperson are required to have a surety bond in the amount of ------CORRECT ANSWER-------------15, 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 dollar If there are no remaining reassignments on the back of the title the dealer can complete a Statement of Fact to reassign the title. ------CORRECT ANSWER-------------Cannot find in study guides or online... educated guess. False?
------CORRECT ANSWER-------------"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 DivisionStudy Guide- Motor Vehicle Regulations REGULATION 12- 6 - 102(13) 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. an off premises permit: ------CORRECT ANSWER-------------Right Answer- must be readily available for inspection at the sale 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. 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:
