Colorado Car Sales Practice Test

Which of the following actions must be reported to the board within thirty days after a conviction?

1. Change of employment by a salesperson

2. Conviction of a felony by a dealer

3. Opening a dealership for business

4. Signing a purchase contract

The correct answer is: Conviction of a felony by a dealer

The requirement to report a conviction of a felony to the board within thirty days is grounded in the regulatory framework that governs dealer and salesperson conduct in the automotive sales industry. This regulation is in place to maintain transparency and integrity in the car sales profession, ensuring that individuals who hold licenses or operate businesses are held to legal and ethical standards. A felony conviction can significantly affect a person's ability to conduct business and poses potential risks to consumers and other stakeholders in the industry. By mandating the reporting of such convictions, the board can take necessary actions to evaluate the dealer's or salesperson's fitness to continue operating within the industry. This can include reviewing their licensing status, determining if any corrective measures are needed, or even revoking their license if necessary. The other actions listed, such as changing employment, opening a dealership, or signing a purchase contract, do not typically entail required notifications to the board within that specific timeframe. While these actions are important in the context of a sales career, they do not carry the same implications for public safety and industry integrity that a felony conviction does.