Colorado Car Sales Practice Test

What document must a motor vehicle dealer submit when changing their business trade name?

1. Written notice to the dealer board

2. New license application

3. Revocation notice

4. Approval form from the executive director

The correct answer is: Written notice to the dealer board

When a motor vehicle dealer decides to change their business trade name, they are required to submit a written notice to the dealer board. This procedure is essential for several reasons. First, the dealer board must maintain accurate and up-to-date records of registered dealers, which includes the official names under which they operate. Changing the trade name without notifying the board could lead to confusion, misinformation, and potential legal issues regarding the dealer's operations. By providing a written notice, the dealer ensures that their new trade name is officially recognized and that any necessary updates to licensing, advertising, and business correspondence can be made efficiently. This step is fundamental to maintaining compliance with state regulations governing motor vehicle sales and ensuring transparency in the marketplace. In this context, other options such as submitting a new license application, a revocation notice, or an approval form from the executive director are not the standard procedures required specifically for changing a trade name. Each of these documents serves different purposes within the regulatory framework.