Colorado Car Sales Practice Test

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Study for the Colorado Car Sales Exam. Use our extensive resources, including flashcards and multiple-choice questions, to prepare effectively. Equip yourself with the knowledge needed to succeed!

Practice this question and more.

According to federal odometer law, which of the following actions is lawful?

Replacing the odometer under certain circumstances
Altering the odometer reading
Disconnecting the odometer
Using a vehicle with a malfunctioning odometer

The correct answer is: Replacing the odometer under certain circumstances

Replacing the odometer under certain circumstances is lawful according to federal odometer law, specifically when the replacement is necessary due to malfunction and is completed in compliance with regulations. This includes ensuring the new odometer is accurately set to reflect the vehicle's mileage and properly documenting the replacement to inform future buyers of the vehicle’s history. Maintaining transparency about the vehicle's history is crucial, and the law mandates that any replacement must be carried out in a way that does not mislead or defraud prospective buyers. Additionally, proper disclosure must be made on legal documents, such as the title. In contrast, altering the reading, disconnecting the odometer, or using a vehicle with a malfunctioning odometer can lead to inaccuracies in reporting mileage and are generally considered deceptive practices that violate federal law, thus leading to penalties.