Colorado Car Sales Practice Test

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Prepare for the Colorado Car Sales Exam. Use flashcards and multiple-choice questions with hints and explanations. Get ready for success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which statement about sales contracts is true regarding used vehicles?

All used vehicles must be sold with a warranty
Vehicles sold "as-is" must have a guarantee
Dealers must indicate on the contract when a vehicle is sold "as-is"
Sales contracts are not required for used vehicles

The correct answer is: Dealers must indicate on the contract when a vehicle is sold "as-is"

The correct statement emphasizes that dealers have an obligation to indicate on the sales contract when a vehicle is sold "as-is." This is crucial because an "as-is" sale means that the buyer accepts the vehicle in its current condition without any guarantees or warranties. By clearly marking this on the contract, the dealer ensures that the buyer is aware of the limitations regarding liability for defects or future repairs. This practice helps to maintain transparency in the sales process and safeguards both parties by clearly communicating the conditions of the sale. The indication of "as-is" on the contract serves not only as a protection for the dealer but also informs the buyer about the nature of their purchase, which is fundamental to maintaining fair practices in used vehicle sales.