Colorado Sales License Practice Test

Question: 1 / 400

What should a dealer do if selling a car with known defects?

Disclose the defects

Disclosing known defects is essential for maintaining transparency and trust in a sales transaction. By informing potential buyers about any issues with the vehicle, the dealer adheres to ethical practices and helps purchasers make informed decisions. This action not only aligns with legal requirements regarding consumer protection laws but also fosters a relationship built on honesty between the dealer and the buyer.

This approach can mitigate potential liability issues and contribute to customer satisfaction in the long run. Buyers are more likely to appreciate the transparency and may be willing to proceed with the purchase, even if defects exist, as long as they are informed and can properly assess the value of the vehicle in light of those defects. In contrast, failing to disclose defects could lead to legal repercussions, damage the dealership's reputation, and erode buyer trust.

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Sell the vehicle for a lower price without mentioning defects

Ignore the defects if they are minor

Offer no warranty

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