Download ✅ CO Dealer Board Mastery Exam | 100% Correct Answers | Verified 2025/2026 Licensing and more Exams Business Statistics in PDF only on Docsity!
State of Colorado Motor Vehicle Dealer
Board Mastery Examination
The Motor Vehicle Dealer Board has among its members - ✔✔Board is comprised of three (3) motor vehicle dealers, three (3) used motor vehicle dealers, and three (3) public members https://www.colorado.gov/pacific/enforcement/dealer-board-members-auto-industry-division The Motor Vehicle Dealer Board is authorized and empowered to a. issue or deny buyer agent licenses b. issue or deny manufacturer representative licenses c. issue or deny motor vehicle dealer and salesperson licenses d. all of the above - ✔✔C. the administration, enforcement, issuance, and denial of licenses to motor vehicle dealers, motor vehicle salespersons, used motor vehicle dealers, wholesale motor vehicle auction dealers, and wholesalers https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%20Vehicles%20la ws.pdf The executive director is hereby charged with the administration, enforcement, and issuance or denial of the licensing of buyer agents, distributors, manufacturer representatives, and motor vehicle manufacturers. The Motor Vehicle Dealer Board is authorized and empowered to: 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 - ✔✔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%20Vehicles%20la ws.pdf Dealers may be administratively fined by the Dealer Board up to what amount for each separate offense? - ✔✔(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%20Vehicles%20la ws.pdf New and used motor vehicle dealers, wholesalers and wholesale auction dealers are required to have a surety bond in the amount of $ - ✔✔$50,000 for Dealer/Wholesaler https://www.colorado.gov/pacific/enforcement/dealer-and-wholesaler-motor-vehicle-powersports- auto-industry-division
c. conduct business in their own personal name d. hold both a wholesale license and a motor vehicle salesperson license at the same time - ✔✔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 - ✔✔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%20unhighlited 215.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, https://www.colorado.gov/pacific/sites/default/files/crs2018-title-44.pdf Three of the following are characteristics of an off-premise permit. Which one is not? a. the permit could be used for a permanent second location b. the permit cannot exceed six days except for the National Western Stock Show, the Colorado State Fair and the Denver Auto Show, which shall not exceed 20 days c. the permit shall be available for inspection at the sale d. consecutive permits for the same location are not allowed - ✔✔A. Up to six calendar days from start to finish is allowed for an off-premise permit, except as provided below;
The license of a motor vehicle salesperson may be denied, revoked, or suspended on the following grounds except: a. having knowingly disposed of a stolen motor vehicle b. defrauding any retail buyer to such person's damage c. representing as "new" a motor vehicle that the salesperson knows is used d. not having a valid Colorado drivers license - ✔✔D... A photocopy of an appropriate identification such as a Colorado Driver License https://www.colorado.gov/pacific/enforcement/salesperson-auto-industry-division The license of a motor vehicle salesperson may be denied, revoked, or suspended on the following grounds except: a. to engage as a licensee without having in force a good and sufficient bond with corporate surety b. having been convicted of or pled nolo contendre to a felony c. using point of sale literature in advertising d. improperly withholding or misappropriating to such salesperson's own use money belonging to customers or other persons, received in the course of employment as a motor vehicle salesperson - ✔✔c. using point of sale literature in advertising A dealer, wholesaler or salesperson who is convicted of any felony or any crime 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? - ✔✔A salesperson who is convicted of or pled nolo contendere or a plea in a deferred judgment and sentenced to any felony or any crime pursuant to article 3, 4, or 5 of title 18, C.R.S., or like crime pursuant to federal law or the law of any other state, must give the board written notice of such
conviction within thirty days after such conviction https://www.colorado.gov/pacific/sites/default/files/JANUARY%208%20MV%20REGS%20unhighlited 215.pdf When a salesperson voluntarily leaves or is discharged from a dealership, the dealer must immediately return that salesperson's _________ to the Dealer Board. - ✔✔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 https://www.colorado.gov/pacific/sites/default/files/January%207%202015%20Motor%20Vehicles%20la ws.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. - ✔✔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%20Vehicles%20la ws.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 - ✔✔B
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%20unhighlited 215.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 - ✔✔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%20unhighlited 215.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. - ✔✔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. - ✔✔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%20Rules%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 - ✔✔D.
A dealer may advertise in which of the following manners? a. using a qualifying statement which is not clear and is not adjacent to the offer b. using an asterisk to change the meaning of an advertising statement c. advertising using the word wholesale in connection with retail sales 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 - ✔✔D. 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 Rule 5. Advertising in such a manner which utilizes an asterisk Rule 11. Advertising any reference to "dealer cost" or "invoice" price. Advertising the word "wholesale" in connection with the retail offering of motor vehicles https://www.colorado.gov/pacific/sites/default/files/Dealer%20Board%20Advertising%20Rules%20DR% 202332.pdf A dealer's advertising must contain the dealer's licensed name and/or the word(s): - ✔✔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. https://www.colorado.gov/pacific/sites/default/files/Dealer%20Board%20Advertising%20Rules%20DR% 202332.pdf 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? a. accepting a deposit for the advertised vehicle and then switching the purchase order to a higher priced vehicle b. requiring that tie-in sales or other undisclosed conditions be met prior to the sale c. making disparaging comments about the advertised vehicle, such as "this vehicle's 4 - cylinder engine is not very powerful, you need a V-6 that cost more." d. all of the above - ✔✔D.. (VI) Accepting a deposit for the goods, property, or services and subsequently switching the purchase order to higher-priced goods, property, or services (III) Requiring tie-in sales or other undisclosed conditions to be met prior to selling the advertised goods, property, or services (II) Disparagement in any respect of the advertised goods, property, or services or the terms of sale; https://leg.colorado.gov/sites/default/files/images/olls/crs2016-title-06.pdf 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? a. tax rate b. amount or percentage of the down payment c. terms of repayment d. annual percentage rate - ✔✔A. 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, and
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 - ✔✔No answer... Read below
- 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.
- 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%20Unhighlighted%20MV% Regulations_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 - ✔✔C.
- 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%20Unhighlighted%20MV% Regulations_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 - ✔✔2.5 A depot plate may be used by the dealership to transport vehicles to and from the dealer's
How many temporary permits may a dealer issue for each road worthy vehicle sold - ✔✔ 1 More Q & Answer - ✔✔https://www.studyblue.com/notes/note/n/motor-vehicle-licensing- test/deck/ Records of vehicle transfers and odometer statements must be retained for ____ years. - ✔✔ 5 The odometer law declares all of the following except: a. it is unlawful for any person to alter the odometer of any motor vehicle with the intent to change the number of miles indicated thereon b. it is unlawful to replace an odometer under any circumstance c. it is unlawful for any person, with the intent to defraud, to operate a motor vehicle on any street knowing that the odometer is disconnected d. it is unlawful for any person to advertise for sale or to install any device which causes an odometer to register any mileage other than the true mileage driven - ✔✔B. 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. https://www.law.cornell.edu/uscode/text/49/ Three of the following types of motor vehicles are exempt from the Truth in Mileage Act. Which one is not exempt? a. motor vehicles 10 years old and older b. motor vehicles having a gross empty weight more than 16,000 lbs (more than 10,000 lbs in Colorado) c. motor vehicles with out-of-state titles
d. motor vehicles that are not self-propelled (i.e. trailers) - ✔✔C. Exemptions from odometer disclosures Vehicles 10 years old or older. Vehicles with a manufacturer's gross vehicle weight rating over 16,000 pounds. Snowmobiles. All-terrain vehicles. Vehicles that are not self-propelled. Title transfers when at least one of the registered owners is staying the same, except when the title submitted is from out of state. Duplicate title only. https://www.dot.nd.gov/divisions/mv/docs/faq-odometer-disclosure.pdf The federal cash reporting rule requires dealers to file federal form 8300 with the Internal Revenue Service when they receive more than $10,000 cash in a single transaction. How many days does a dealer have to file this form? a. 5 days b. 15 days c. 30 days d. 45 days - ✔✔Generally, a business must file Form 8300 within 15 days after they receive the cash. https://www.irs.gov/businesses/small-businesses-self-employed/irs-form- 8300 - reference-guide Which of the following is a false statement regarding dealers and buyers? a. a dealer must offer a warranty on all motor vehicles sold b. a buyer does not have 72 hours to change their mind on a motor vehicle sale that took place at the dealership c. a dealer shall clearly indicate on the customer contract when a vehicle is sold "as
