Board Mastery Examination Questions

State of Colorado Motor Vehicle Dealer Board Mastery Examination Questions and Answers (Verified Answers)

Question 1: The Motor Vehicle Dealer Board has among its

members

CORRECT ANSWER : Board is comprised of three (3)

motor vehicle dealers, three (3) used motor vehicle dealers, and three (3) public members

Question 2: The Motor Vehicle Dealer Board is authorized

and empowered to

• issue or deny buyer agent licenses
• issue or deny manufacturer representative licenses
• issue or deny motor vehicle dealer and salesperson licenses
• all of the above

CORRECT ANSWER : 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

Question 3: The Motor Vehicle Dealer Board is authorized

and empowered to:

• investigate any suspected or alleged violation by any motor

vehicle salesperson

• investigate any suspected or alleged violation by any motor

vehicle dealer

• order an administrative hearing be held if it believes there

is probable cause that a violation occurred

• all of the above

CORRECT ANSWER : d.

Question 4: Dealers may be administratively fined by the

Dealer Board up to what amount for each separate offense?

CORRECT ANSWER : shall not exceed ten thousand dollars

for each separate offense

Question 5: 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

Question 6: 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.

Question 7: 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

Question 8: 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.

Question 9: Wholesalers may:

• make a profit or gain selling to dealers and wholesalers
• employ a motor vehicle salesperson
• conduct business in their own personal name
• hold both a wholesale license and a motor vehicle

salesperson license at the same time

CORRECT ANSWER : a.

Question 10: Which of the following is not a requirement for

motor vehicle dealers, used motor vehicle dealers, or wholesalers?

• report to the Dealer Board any transfer of 10% or more of

ownership to one individual