Which statement is false regarding dealers and buyers?

Prepare for the Colorado Sales License Test. Study with flashcards and multiple choice questions, featuring hints and explanations. Ace your exam!

The correct statement here emphasizes that not all motor vehicle sales made by a dealer require a warranty. In Colorado, dealers are generally obligated to provide warranties, but they can also sell vehicles "as-is," in which case they do not have to offer any form of warranty. This flexibility allows dealers to cater to a range of buyers and vehicle types, particularly for older or used vehicles that might be sold without any guarantees of performance or reliability.

The other statements reflect valid conditions regarding dealer and buyer interactions. Dealers can indeed refuse to sell any vehicle for various reasons, including pricing issues or buyer eligibility. Additionally, they have the legal right to retain buyer deposits under certain circumstances, such as if the deposit was made in an agreement contingent upon the buyer fulfilling specific conditions. Finally, full disclosure of vehicle defects is not only a best practice but often a legal requirement to ensure a fair transaction, aimed at protecting consumer rights.

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