Colorado Car Sales Practice Test

If a salesperson changes employment, what is required before they can start at a new dealership?

1. They need to notify the Board

2. They need to get a new license number

3. They need to meet their previous employer

4. There are no requirements

The correct answer is: They need to notify the Board

When a salesperson changes employment and decides to work at a new dealership, notifying the Board is a key requirement. This procedure helps maintain the integrity and regulatory compliance of the car sales industry. The Board is responsible for overseeing the licensing and conduct of salespeople and dealerships, ensuring that all practices align with state laws and regulations. By notifying the Board, the salesperson provides transparency regarding their employment status and ensures that the new dealership is aware of their licensing details. This step is essential for proper record-keeping and helps prevent any potential legal issues that may arise from unregistered employment changes. In contrast, obtaining a new license number is not necessary unless there are specific circumstances, such as a complete change of industry or significant legal issues. Meeting with the previous employer is not a regulatory requirement for changing jobs in this industry. Lastly, stating that there are no requirements overlooks the necessity of informing the governing body about employment status.