Colorado Car Sales Practice Test 2026 – All-in-One Guide to Master Your Exam Success!

The motor vehicle dealer board plays a crucial role in overseeing the activities of motor vehicle dealerships. One of its key functions is to impose penalties on dealerships that violate regulations or fail to comply with the established standards of conduct. This authority helps ensure that dealerships operate fairly and transparently, protecting consumers from unethical practices.

Additionally, the board has the capacity to approve certain actions related to vehicle registrations, ensuring that these processes adhere to legal and regulatory requirements. The combination of these responsibilities highlights the board's role in maintaining order and integrity within the automotive sales industry.

The option that suggests "0 and 2" seems to imply a selection of multiple correct actions. However, focusing on the main authorities of the board, it is accurate to recognize the two outlined responsibilities related to penalties and vehicle registrations, as they align with the board’s primary functions.

The other options, such as setting standard prices for all vehicles, do not fall within the typical purview of a regulatory board, which usually does not dictate price points in a free market, allowing for competitive pricing strategies among dealerships.