Colorado Car Sales Practice Test

What should a dealer do to sell at an off-premise location legally?

1. Obtain a Class Two Off-Premise Permit

2. Inform local authorities

3. Secure an outdoor sale agreement

4. Acquire a special vendor's license

The correct answer is: Obtain a Class Two Off-Premise Permit

To sell at an off-premise location legally, a dealer must obtain a Class Two Off-Premise Permit. This permit is specifically required by law to ensure that all sales conducted outside of the dealer's established business location comply with regulatory standards. This includes considerations like consumer protection measures and adherence to local zoning laws. When a dealer has the proper permit, it signifies that they have met the statutory requirements necessary to conduct business in an off-premise setting. This helps maintain an orderly marketplace and protects both consumers and dealers in terms of accountability and compliance with the law. The other options, while they may seem relevant, do not directly fulfill the legal requirement necessary for conducting sales in an off-premise location. For instance, informing local authorities might be an important step for awareness but does not replace the need for the actual permit. Likewise, securing an outdoor sale agreement or acquiring a special vendor's license may pertain to certain situations but again do not align with the specific requirement of having the Class Two Off-Premise Permit.