Colorado Sales License Practice Test 2026 – Your All-in-One Guide to Passing the Exam!

The statement presented in the question is accurate because a dealer is generally not liable for correcting misleading advertisements created and disseminated by a manufacturer, unless they specifically approved or contributed to that advertisement. In many cases, manufacturers assume the responsibility for their promotional content, and dealers can rely on the manufacturer's adherence to advertising standards.

This context emphasizes that a dealer’s name being associated with an advertisement does not automatically make them responsible for its content unless there is direct involvement or approval on their part. Therefore, the dealer’s responsibility to correct misleading advertisements is conditional and not an automatic obligation.

In situations where a misleading advertisement carries a dealer's name without their approval, that dealer does not bear the onus for making corrections, highlighting the importance of understanding the implications of approval and involvement in advertising practices.