Colorado Car Sales Practice Test

Which action must a dealer take if they cease to have a principal place of business?

1. Notify the board immediately

2. Return the dealer's license within a month

3. File for a new application

4. Change their place of business within 30 days

The correct answer is: Notify the board immediately

When a dealer ceases to have a principal place of business, the requirement to notify the board immediately is essential because it allows the regulatory authority to maintain accurate records and ensure compliance with state laws governing dealer operations. This immediate notification is crucial in order to prevent any potential lapses in the dealer's licensing status, avoid legal penalties, and facilitate any necessary administrative actions that must be taken in response to the change in business status. By informing the board, the dealer upholds transparency and adheres to the regulations that govern dealership operations in Colorado. The other actions listed, while important in different contexts, do not address the immediate procedural requirement that arises from losing a principal place of business.