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Motor Vehicle Industry License - State of
Colorado Sales License Test Study Guide
Three of the following types of motor vehicles are exempt from the truth in mileage act. - ✔✔ ~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? - ✔✔Any person who attempts to make profit lease or sale of a used vehicle When advertising a specific number of motor vehicles, that same number of vehicles must be invoiced to the dealer - ✔✔TRUE bait and switch - ✔✔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 - ✔✔TRUE By obtaining an off-premise permit, dealers may sell motor vehicles at another location on Sunday - ✔✔False NO Sale of vehicle should be done on Sundays Which of the following statements is true regarding dealer demo plates? - ✔✔a demo drive cannot exceed 7 days CO Lemon Law includes: - ✔✔defects that substantially impair the market value of the vehicle
Motor vehicle insurance is required: - ✔✔for all registered vehicles intended for use on colorado roads Which is true regarding in-transit plates? - ✔✔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? - ✔✔The selling of boat trailers and snowmobile are exempt Which of the following steps are required to properly and legally repossess a motor vehicle? - ✔✔effect a lien creating a security interest An advertisement may include - ✔✔licensed name with the word DEALER which of the following is a used vehicle? - ✔✔and any vehicle that has been previously bought a demo vehicle with 1500 miles Which of the following are deceptive trade practices? - ✔✔All of the above Bait and switch How many temp permits may a dealer issue for each roadworthy vehicle sold? - ✔✔ 1 An extension can only be issued but the DMV Depot plates may be used during normal business hours to transport a motor vehicle - ✔✔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. - ✔✔~Amount or percentage of the downpayment ~therms of repayment (car payment date) ~Annual percentage rate (interest rate of the loan)
Federal odometer law declares it unlawful to do the following: - ✔✔operate MV on any street with intent to defraud knowing the odometer is disconnected A dealer has how many days to facilitate delivery from the date of sale? - ✔✔30 days Which of the following is NOT proof of ownership for a MV for a CO dealer? - ✔✔a vehicle subject to a lien on the title a dealers ad must contain the dealers licensed name and the words - ✔✔Dealer fed cash reporting requires dealers to file form 8300 with IRS within how many days of receiving $10k cash? - ✔✔15 days Wholesalers may? - ✔✔Sell to dealers and other wholesalers The license of a MV salsesman may be revoked/suspended on the following grounds: - ✔✔Violating any of the terms and provisions The license of a MV salesman may be revoked/suspended on all grounds EXCEPT: - ✔✔advertising a salvaged vehicle while identifying that vehicle as salvaged The ad price of a MV must include: - ✔✔dealer handling and prep charges Which must remain in the window of a new motor vehicle until its sold to the ultimate purchaser? - ✔✔Monroney label A MV dealer, wholesaler, or salesperson must give Dealer Board written notice of - ✔✔If hours of business are going to change MVs with demo plates may be loaned to charity orgs and celebrities - ✔✔False
Which is a false statement regarding dealers and buyers - ✔✔A dealer must offer a warranty on all motor vehicles sold in addition to possible dealer bond sanctions, if a dealer/salesperson uses bait & switch it is a class 2 misdemeanor with 12 mo max jailtime and $1k fine or both - ✔✔True What is the highest fine per offense the dealer board may impose on dealers who sell vehicles less than 1500 lbs? - ✔✔$ The license of a MV salesperson or PWSPT may be denie/revoked/suspended on any of the following grounds except - ✔✔improperly withholding/misappropriating/converting to ones own use any money belonging to customers or any persons received in employment as a salesperson according to CO law which does NOT need to be licensed as a motor vehicle dealer? - ✔✔All of the above need to be The Motor Vehicle Dealer Board does NOT have among its members: - ✔✔Three employees from the dept. of revenue A buyer agent - ✔✔be retained or hired by a consumer to assist/represent/act on behalf of such consumer in connection with the purchase of lease of a MV Local law enforcement agencies must be notified within 4 hours after the repossession of a MV - ✔✔False The license of a new or used dealer/WholeSaler may be denied/suspended /revoked /fined for the following - ✔✔Making a material misstatement in an application of license A customer's trade-in vehicle on a financed deal may be sold - ✔✔Only when the financing has been approved and the contract binding has been signed
according to co law motor vehicle leasing companies do not need a motor vehicle dealers license - ✔✔FALSE The License of a motor vehicle salesperson may be denied revoked or suspended on the following grounds - ✔✔Unfitness of character breaking law false info etc Three of the following are characteristics of an off-premise permit - ✔✔Must be submitted before the event CLOSED SUNDAYS Can't exceed 20 days Prima Facie - ✔✔Evidence at face value The license of a motor vehicle salesperson or power-sports salesperson may be denied,revoked or suspended on any of the following grounds except: - ✔✔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? - ✔✔d) All of the above Colorado Lemon law covers: - ✔✔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? - ✔✔d) tax rate The motor vehicle dealer board is authorized and empowered to: - ✔✔D)all of the above
Local law enforcement officers must be notified within 1 hours before or after the repossession of a motor vehicle occurs: - ✔✔A)1 hours All motor vehicle dealers and power-sports dealers must post a celar, legible sign on their principal place of business if: - ✔✔B) they wull be open less than 40 hours a week A dealer may issue a temporary permits for each roadworthy vehicle sold - ✔✔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 moreso long as it does not exeed 5k - ✔✔a)True (verify) The colorado consumer protection act declares bait and switch advertising to be deceptive trade practice. Bait and switch advertising includes which of the following - ✔✔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? - ✔✔B)motor vehicles with out-of-state titles The motor vehicle dealer board does not have among its members - ✔✔c)three employees from the enforcement division What is the highest fine per offense that the motor vehicle dealer board or an administrative law judge may impose on a dealer , who sells primarily vehicles that wigh less than 1,500 pounds - ✔✔$1, Three of the following are characteristics of an off-premise permit.. WHich one is not? - ✔✔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? - ✔✔B) a dealer shall clearly indicate on the costumer contract when a vehicle sold "as is" and withou a guarantee When advertising a specific number of motor vehicles that same number of vehicles must have been invoiced to the dealer - ✔✔A)True
A dealer wholesaler or salesperons convicted of any felony or any crime.. Has how many days to report conviction? - ✔✔A ) 30 Days Three of the followikng are require when a dealer is advertising a lease of a a motr vehicle or powersports vehicle with a payement amount which one is not required? - ✔✔D) disclosing the cost of leasing versust the cost of purchasing The definition of a used mother vehicle dealer or used powersports dealer includes whifh of the following? - ✔✔Aperson who attempts to negotiate a sale or lease of a used motor vehicle or powersports vehicle withe the intent to make a profit or gain A customer's trade- in vehicle on a financed deal may be sold - ✔✔D) only when the financing has been aprooed Wholesalers : - ✔✔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 - ✔✔False The license of a motor vehicle salesperson or a powersports salesperson may be denied, revoked or suspended on the following grounds - ✔✔D) all of the above A dealer must take in the title in their own name before selling a car to retail customer - ✔✔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 motor vehicle salesperons or powersports salesperson while awaiting a new license from the board - ✔✔B) False Which of the following is acceptable proof of ownership of a motor vehicle for a colorado dealer? - ✔✔A vehicle subject to a lien on the tile
Records of vehicles transfers abd idineter statenebts must be retanied for: - ✔✔C) 5 years Motor vehicle dealers, powersport dealers, used motor vehicle dealers, used powersports dealers or wholesalers are not required to report to the dealer board - ✔✔B) any change in the hours of operation of the business whenthe business continues full time (review) Which of the following would indicate a motor vehicle is used - ✔✔A certificate of title has been issued A motor vehicle dealer is responsible for : - ✔✔D) all of the above An advertisement would include - ✔✔D) all of the above The license of a new or used dealer, wholesale auction dealer, or wholesaler may be denied, suspended revoked or fined for the following - ✔✔D) all of the above A buyer agent may - ✔✔D) be retained or hired by a consumer to assist r, represent or act on behalf of such consumer in connection with the purchase or lease of Which of the following is a deceptive trade practice? - ✔✔D) All of the above are deceptive trade practices Demonstration plates can be displayed on vehicles tat are used by the dealership for any commercial purpose - ✔✔true A dealers advertising must contain the dealers licensed name and the words - ✔✔C) dealer Which of the following does not fit the definition of a motor vehicle dealer - ✔✔C) someone who sells motor vehicles solely to wholesalers Depot plates may be used durin gnormal business hours to transport a motr vehicle - ✔✔D ) all of the above
Three of the following types of motor vehicles are exempt from the truth in mileage act. - ✔✔~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? - ✔✔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: - ✔✔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 - ✔✔TRUE bait and switch is - ✔✔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 - ✔✔TRUE By obtaining an off-premise permit, dealers may sell motor vehicles at another location on Sunday - ✔✔FALSE - NO Sale of vehicle should be done on Sundays Which of the following statements is true regarding dealer demo plates? - ✔✔a demo drive cannot exceed 7 days Colorado Lemon Law includes: - ✔✔defects that substantially impair the market value of the vehicle Motor vehicle insurance is required: - ✔✔for all registered vehicles intended for use on colorado roads
Which is true regarding in-transit plates? - ✔✔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? - ✔✔The selling of boat trailers and snowmobile are exempt Which of the following steps are required to properly and legally repossess a motor vehicle? - ✔✔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 - ✔✔licensed name with the word DEALER which of the following is a used vehicle? - ✔✔any vehicle that has been previously bought a demo vehicle with 1500 miles Which of the following are deceptive trade practices? - ✔✔All of the above Bait and switch How many temp permits may a dealer issue for each roadworthy vehicle sold? - ✔✔ 1 An extension can only be issued but the DMV Depot plates may be used during normal business hours to transport a motor vehicle - ✔✔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 - ✔✔~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? - ✔✔disclosing the cost of lease vs purchasing
Which of the following is NOT proof of ownership for a Motor Vehicle for a CO dealer? - ✔✔a vehicle subject to a lien on the title a dealers ad must contain the dealers licensed name and the words - ✔✔Dealer federal cash reporting requires dealers to file form 8300 with IRS within how many days of receiving $10,000 cash? - ✔✔15 days Wholesalers may? - ✔✔Sell to dealers and other wholesalers or Make a profit or gain selling to dealers and wholesalers The license of a Motor vehicle salesman may be revoked/suspended on the following grounds: - ✔✔Violating any of the terms and provisions The license of a Motor vehicle salesman may be revoked/suspended on all grounds EXCEPT: - ✔✔advertising a salvaged vehicle while identifying that vehicle as salvaged The advertised price of a Motor vehicle must include: - ✔✔dealer handling and preparation charges Which must remain in the window of a new motor vehicle until its sold to the ultimate purchaser? - ✔✔Moroney label A Motor vehicle dealer, wholesaler, or salesperson must give Dealer Board written notice of - ✔✔If hours of business are going to change Motor vehicles with demo plates may be loaned to charity organizations and celebrities - ✔✔False
Which is a false statement regarding dealers and buyers - ✔✔A dealer must offer a warranty on all motor vehicles sold in addition to possible dealer bond sanctions, if a dealer/salesperson uses bait & switch it is a class 2 misdemeanor with 12 months maximum jailtime and $1,000 fine or both - ✔✔TRUE What is the highest fine per offense the dealer board may impose on dealers who sell vehicles less than 1500 lbs? - ✔✔$ The license of a Motor vehicle salesperson or PWSPT may be denied/revoked/suspended on any of the following grounds except - ✔✔improperly withholding/misappropriating/converting to ones own use any money belonging to customers or any persons received in employment as a salesperson according to Colorado law which does NOT need to be licensed as a motor vehicle dealer? - ✔✔All of the above The Motor Vehicle Dealer Board does NOT have among its members: - ✔✔Three employees from the dept. of revenue A buyer agent - ✔✔is retained or hired by a consumer to assist/represent/act on behalf of such consumer in connection with the purchase of lease of a Motor vehicle Local law enforcement agencies must be notified within 4 hours after the repossession of a Motor Vehicle - ✔✔False 1 hour The license of a new or used dealer/Wholesaler may be denied/suspended /revoked /fined for the following - ✔✔Making a material misstatement in an application of license A customer's trade-in vehicle on a financed deal may be sold - ✔✔Only when the financing has been approved and the contract binding has been signed
When advertising terms price conditions of sale of a car, dealers may use the term: - ✔✔"With approved credit" according to Colorado law motor vehicle leasing companies do not need a motor vehicle dealers license - ✔✔False The License of a motor vehicle salesperson may be denied revoked or suspended on the following grounds - ✔✔Unfitness of character breaking law false info etc. An off-premise permit: - ✔✔Must be readily available for inspection at the sale Prima Facie is - ✔✔Evidence at face value According to Colorado law, which of the following must be licensed as a motor vehicle dealer and or powersports dealer? - ✔✔All of the above Colorado Lemon law covers: - ✔✔defects that substantially impair the market value of a vehicle A dealer may issue a temporary permits for each roadworthy vehicle sold - ✔✔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 - ✔✔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? - ✔✔motor vehicles with out-of-state titles
The motor vehicle dealer board does not have among its members - ✔✔three employees from the enforcement division Three of the following are characteristics of an off-premise permit.. Which one is not? - ✔✔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? - ✔✔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 - ✔✔True When a salesperson leaves a dealer, that dealer must do all of the following except - ✔✔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: - ✔✔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? - ✔✔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? - ✔✔A title A dealer wholesaler or salespersons convicted of any felony or any crime.. Has how many days to report conviction? - ✔✔30 Days The definition of a used mother vehicle dealer or used powersports dealer includes which of the following? - ✔✔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: - ✔✔must use a name other than their personal name on all business documents
