Colorado Sales License Practice Test

The statement that a dealer must offer a warranty on all motor vehicles sold is false because, under Colorado law, while dealers are often encouraged to provide warranties for the vehicles they sell, they are not required to do so for every sale. Warranties are typically a matter of business practice rather than a legal obligation. Some dealers may sell vehicles "as is," meaning they do not have to offer any warranty or guarantee regarding the condition of the vehicle.

The other statements reflect accurate practices regarding dealer obligations. Dealers can refuse a sale to any buyer based on their discretion or business policies, as long as they are not violating laws against discrimination. They are also obligated to provide vehicle history reports and disclose known defects, as these practices ensure that buyers are fully informed about the vehicle they are considering for purchase. This transparency helps protect consumers from potential fraud and misrepresentation.