Colorado Car Sales Practice Test 2025 - Free Car Sales Practice Questions and Study Guide

Question: 1 / 400

What happens if a dealer fails to disclose a salvage title?

Nothing, it's not mandatory to disclose

They may face penalties including fines and loss of licensure

If a dealer fails to disclose a salvage title, they may face penalties including fines and loss of licensure. In Colorado, as in many states, it is a legal requirement for dealers to disclose any significant issues with a vehicle’s title, including if it has been declared a salvage. This regulation protects consumers from purchasing vehicles with hidden defects that could affect safety and performance.

Failing to disclose a salvage title could lead to enforcement actions by regulatory authorities, resulting in fines or revocation of the dealer's license to operate. This accountability ensures that dealers maintain transparency and ethical practices in their business operations. The requirement to disclose salvage titles is a critical part of consumer protection laws, ensuring that buyers can make informed decisions regarding their vehicle purchases.

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They can be sued by the buyer

The sale is automatically voided

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