Colorado Car Sales Practice Test

Which of the following statements about odometer disclosure is false?

1. A transferor must provide a written disclosure of cumulative mileage

2. A dealer needs to maintain records for five years

3. A written disclosure is not needed if the seller is unaware of the mileage

4. Lessors must notify the lessee of disclosure obligations

The correct answer is: A written disclosure is not needed if the seller is unaware of the mileage

When evaluating the statement regarding odometer disclosure, it's important to recognize that clear communication about a vehicle’s mileage is a legal requirement under federal and state laws. In this context, the assertion that a written disclosure is not necessary if the seller is unaware of the mileage is incorrect. Under odometer disclosure laws, sellers are required to provide a written disclosure about the vehicle's cumulative mileage regardless of whether they personally know the exact mileage. This is crucial because misleading or incomplete information can lead to fraud and consumer protection issues. It places the onus on the seller to acknowledge the vehicle's recorded mileage to the best of their ability, and ignorance of the mileage does not exempt them from this legal responsibility. Other statements, such as the requirement for a transferor to provide a written disclosure of cumulative mileage, the dealer's obligation to maintain records for five years, and the requirement for lessors to inform lessees of their disclosure obligations, are all consistent with odometer disclosure regulations. Each highlights the importance of transparency and accountability in vehicle sales and leasing practices.