sales license exam with 100%
correct answers 2024
Colorado Motor Vehicle Industry Laws - answer
To view the source material, go to
http://www.lexisnexis.com/hottopics/colorado/ - answer
12-6-101. Legislative declaration - answer
(1) The general assembly hereby declares that: - answer
(a) The sale and distribution of motor vehicles affects the public
interest and a significant factor of inducement in making a sale of a
motor vehicle is the trust and confidence of the purchaser in the
retail dealer from whom the purchase is made and the expectancy
that such dealer will remain in business to provide service for the
motor vehicle purchased; - answer
(b) Proper motor vehicle service is important to highway safety and
the manufacturers and distributors of motor vehicles have an
obligation to the public not to terminate or refuse to continue their
franchise agreements with retail dealers unless the manufacturer or
distributor has first established good cause for termination or
noncontinuance of any such agreement, to the end that there shall
be no diminution of locally available service; - answer
(c) The licensing and supervision of motor vehicle dealers by the
motor vehicle dealer board are necessary for the protection of
consumers and therefore the sale of motor vehicles by unlicensed
dealers or salespersons, or by licensed dealers or salespersons who
have demonstrated unfitness, should be prevented; - answer
,(d) Consumer education concerning the rules and regulations of the
motor vehicle industry, the considerations when purchasing a motor
vehicle, and the role, functions, and actions of the motor vehicle
dealer board are necessary for the protection of the public and for
maintaining the trust and confidence of the public in the motor
vehicle dealer board; and - answer
(e) Subject to the United States constitution and the Colorado
constitution, this article applies to each sales, service, and parts
agreement in effect, regardless of when the agreement was
adopted. - answer
12-6-102. Definitions. - answer
As used in this part 1 and in part 5 of this article, unless the context
or section 12-6-502 otherwise requires: - answer
(1) (Deleted by amendment, L. 92, p. 1841, § 2, effective July 1,
1992.) - answer
(1.5) "Advertisement" means any commercial message in any
newspaper, magazine, leaflet, flyer, or catalog, on radio, television,
or a public address system, in direct mail literature or other printed
material, on any interior or exterior sign or display, in any window
display, on a computer display, or in any point-of-transaction
literature or price tag that is delivered or made available to a
customer or prospective customer in any manner whatsoever;
except that such term does not include materials required to be
displayed by federal or state law. - answer
(2) "Board" means the motor vehicle dealer board. - answer
(2.4) "Business incidental thereto" means a business owned by the
motor vehicle dealer or used motor vehicle dealer related to the
,sale of motor vehicles, including, without limitation, motor vehicle
part sales, motor vehicle repair, motor vehicle recycling, motor
vehicle security interest assignment, and motor vehicle towing. -
answer
(2.5) (a) (I) "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
such consumer in connection with the purchase or lease of a motor
vehicle. - answer
(II) "Consumer", as used in this subsection (2.5), means a purchaser
or lessee of a motor vehicle, which vehicle is primarily used for
business, personal, family, or household purposes. "Consumer" does
not include a purchaser of motor vehicles who purchases said motor
vehicles primarily for resale. - answer
(b) (I) "Buyer agent" does not include a person whose business
includes the purchase of motor vehicles primarily for resale or
lease; except that nothing in this subsection (2.5) shall be
construed to prohibit a buyer agent from assisting a consumer
regarding the disposal of a trade-in motor vehicle that is incident to
the purchase or lease of a vehicle if the buyer agent does not
advertise the sale of, or sell, such vehicle to the general public,
directs interested dealers and wholesalers to communicate their
offers directly to the consumer or to the consumer via the buyer
agent, does not handle or transfer titles or funds between the
consumer and the purchaser, receives no compensation from a
dealer or wholesaler purchasing a consumer's vehicle, and identifies
himself or herself as a buyer agent to dealers and wholesalers
interested in the consumer's vehicle. - answer
(II) A "buyer agent" licensed pursuant to this part 1 shall not be
employed by or receive a fee from a person whose business includes
the purchase of motor vehicles primarily for resale or lease, a motor
vehicle manufacturer, a motor vehicle dealer, or a used motor
vehicle dealer. - answer
, (3) "Coerce" means to compel or attempt to compel by threatening,
retaliating, economic force, or by not performing or complying with
any terms or provisions of the franchise or agreement; except that
recommendation, exposition, persuasion, urging, or argument shall
not be deemed to constitute coercion. - answer
(4) "Community" means a franchisee's area of responsibility as set
out in the franchise. - answer
(4.5) (a) "Custom trailer" means any motor vehicle which is not
driven or propelled by its own power and is designed to be attached
to, become a part of, or be drawn by a motor vehicle and which is
uniquely designed and manufactured for a specific purpose or
customer. - answer
(b) "Custom trailer" does not include manufactured housing, farm
tractors, and other machines and tools used in the production,
harvest, and care of farm products. - answer
(5) "Distributor" means a person, resident or nonresident, who, in
whole or in part, sells or distributes new motor vehicles to motor
vehicle dealers or who maintains distributor representatives. -
answer
(6) and (7) (Deleted by amendment, L. 2003, p. 1300, § 1, effective
April 22, 2003.) - answer
(7.5) "Executive director" means the executive director of the
department of revenue charged with the administration,
enforcement, and issuance or denial of the licensing of buyer
agents, distributors, manufacturer representatives, and
manufacturers. - answer
(8) and (9) (Deleted by amendment, L. 2003, p. 1300, § 1, effective
April 22, 2003.) - answer
