Colorado Sales License Practice Test

What is a required disclosure that must be made by dealers?

1. The vehicle’s mileage

2. The cost of the vehicle

3. Any known defects with the vehicle

4. The vehicle’s manufacturer

The correct answer is: Any known defects with the vehicle

A required disclosure that must be made by dealers is related to any known defects with the vehicle. This is crucial in maintaining transparency between the dealer and the buyer. If a dealer is aware of defects that could affect the vehicle's performance, safety, or value, they are obligated to disclose this information to potential buyers. This requirement is in place to protect consumers, ensuring they make informed decisions based on the condition of the vehicle. While mileage is an important factor that reflects a vehicle's usage and can impact its value, and the cost is essential in the buying process, the disclosure of known defects is particularly significant as it directly pertains to the buyer's safety and satisfaction. Information about the vehicle’s manufacturer, although relevant, does not carry the same level of consumer protection importance as disclosing known defects. Thus, the ethical and legal obligation to inform buyers about any known issues reinforces the need for trust in the sales process.