Colorado Car Sales Practice Test

True or False: A dealer is responsible for correcting a misleading advertisement placed by a manufacturer that includes the dealer's name.

1. True

2. False

3. Only if notified

4. Only if it's a first offense

The correct answer is: False

A dealer is not responsible for correcting a misleading advertisement placed by a manufacturer, even if the dealer's name is included. This is because the manufacturer holds primary responsibility for the content of its advertisements. The dealer may have limited control over the content created and disseminated by the manufacturer and thus cannot be held accountable for misleading information that originates from them. It's important to differentiate the responsibilities of dealers and manufacturers in these scenarios to ensure compliance with marketing laws and regulations. The options suggesting responsibility based on notification or the number of offenses imply that a dealer might bear some responsibility under certain conditions, which is not the case. The dealer's liability in such situations is generally limited to ensuring their own advertising materials are accurate and not misleading.