OMVIC Licensing Requirements Questions and Answers

What percentage of deposits need to be retained in a trust account?

$40,000

$3,500

$10,000

$6,000

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When a car receives a Safety Standards Certificate, what does that mean?

The car isn’t claimed to be in mechanically sound condition, roadworthy, or to have received any kind of guaranteed maintenance. The car might not be safe to drive and might need expensive repairs that the buyer would have to pay for. The car might not be able to be registered to be driven in its current state.

Records must be retained for a minimum of six years.

On the day of inspection, the car complied with a number of fundamental safety requirements.

Collision with damage exceeding $3000

Flames

Deluge

Damage to the structure or altercations

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Is it possible to charge the consumer for the transaction fee?

FALSE

TRUE

Correct! Wrong!

What amount of known damage repairs must dealers disclose?

$3,000

$11,000

$21,000

$8,000

Correct! Wrong!

If the dealers principal in a big dealership assigns someone to make sure salespeople are registered, who should that someone be?

The Supervisor of Payroll

The Manager of Sales

The Curator

The Salesman

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If the financial standing or prior actions of a “interested person in respect of the applicant / registrant” provide reasonable grounds, OMVIC may refuse, revoke, or suspend registration to a dealer, salesperson, or business.

Who would a “interested person” be according to OMVIC?

Failure to disclose any of the following leads to recession:

1) Used as a police and emergency services vehicle in the past

2) Prior daily rental use (unless afterwards acquired by a person other than a dealer)

3) The distance or mileage traveled

1) OMVIC

2) The Compensation Fund for Motor Vehicle Dealers

3) CAMVAP

1) Has a potential or actual beneficial interest in the company

2) Has the ability to exert control on the dealer or salesman, either directly or indirectly

3) Has given or might have given the company funding, either directly or indirectly

1) Previous behavior
2) Application with a false assertion
3) Did not follow the rules
4) Not required to exercise sound financial judgment
5) After paying a claim, the Compensation Fund has not received payment back.

Correct! Wrong!

What steps does a dealer need to take in order to store records somewhere other than the place they trade from?

The “Sales Final” phrase that is required

The contract needs to define “as is” specifically.

Records must be retained for a minimum of six years.

Request and obtain a formal authorization from the Registrar of OMVIC.

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What authority does OMVIC have to stop or correct a dealer’s incorrect or misleading advertising if it is determined to exist?

OMVIC has the authority to issue an order compelling the dealer to stop publishing and/or issue a correction or retraction.

An initialed statement by the buyer indicating that there is no maximum distance, or a maximum distance that will be displayed on the odometer upon delivery

(LAT) License Appeal Tribunal

Correct! Wrong!

Contracts must contain warning or instructional clauses intended to educate buyers or lessees about their rights and obligations as well as to make sure they are aware of the presence of specific agencies or organizations.

What kinds of agencies / organizations are these?

1) Merchants
2) A seller
3) Executive assistants
4) Accountants

NOT
– service managers

Request and obtain a formal authorization from the Registrar of OMVIC.

On the day of inspection, the car complied with a number of fundamental safety requirements.

1) OMVIC

2) The Compensation Fund for Motor Vehicle Dealers

3) CAMVAP

Correct! Wrong!

A customer’s right to rescind an agreement is triggered by three disclosure requirements that must be fulfilled. What do they consist of?

The buyer has the right to terminate the agreement at any moment and request the return of any deposit or trade-in if there isn’t a formal contract and the buyer gives the dealer their money.

1) Finish and pass the certification program

2) Pay the Charge

3) Work as a salesperson for a recognized dealer or be hired by one.

Correct! Wrong!

Which organization or body upholds MVDA?

MINISTERY OF MOVEMENT

OMVIC

LICENSE APPEAL TRIBUNAL

MVDA

Correct! Wrong!

Free OMVIC Licensing Requirements Test 1

What percentage of deposits need to be retained in a trust account?

When a car receives a Safety Standards Certificate, what does that mean?

Is it possible to charge the consumer for the transaction fee?

What amount of known damage repairs must dealers disclose?

If the dealers principal in a big dealership assigns someone to make sure salespeople are registered, who should that someone be?

If the financial standing or prior actions of a “interested person in respect of the applicant / registrant” provide reasonable grounds, OMVIC may refuse, revoke, or suspend registration to a dealer, salesperson, or business.

Who would a “interested person” be according to OMVIC?

What steps does a dealer need to take in order to store records somewhere other than the place they trade from?

What authority does OMVIC have to stop or correct a dealer’s incorrect or misleading advertising if it is determined to exist?

Contracts must contain warning or instructional clauses intended to educate buyers or lessees about their rights and obligations as well as to make sure they are aware of the presence of specific agencies or organizations.

What kinds of agencies / organizations are these?

A customer’s right to rescind an agreement is triggered by three disclosure requirements that must be fulfilled. What do they consist of?

Which organization or body upholds MVDA?

Free OMVIC Ethics and Professionalism Test 2

Free OMVIC Legal Requirements Test 3

Free OMVIC Licensing Requirements Test 3

Free OMVIC Legal Requirements Test 2

Free OMVIC Legal Requirements Test 1

Free OMVIC Ethics and Professionalism Test 3

What percentage of deposits need to be retained in a trust account?

When a car receives a Safety Standards Certificate, what does that mean?

Is it possible to charge the consumer for the transaction fee?

What amount of known damage repairs must dealers disclose?

If the dealers principal in a big dealership assigns someone to make sure salespeople are registered, who should that someone be?

If the financial standing or prior actions of a “interested person in respect of the applicant / registrant” provide reasonable grounds, OMVIC may refuse, revoke, or suspend registration to a dealer, salesperson, or business. Who would a “interested person” be according to OMVIC?

What steps does a dealer need to take in order to store records somewhere other than the place they trade from?

What authority does OMVIC have to stop or correct a dealer’s incorrect or misleading advertising if it is determined to exist?

Contracts must contain warning or instructional clauses intended to educate buyers or lessees about their rights and obligations as well as to make sure they are aware of the presence of specific agencies or organizations. What kinds of agencies / organizations are these?

A customer’s right to rescind an agreement is triggered by three disclosure requirements that must be fulfilled. What do they consist of?

Which organization or body upholds MVDA?

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If the financial standing or prior actions of a “interested person in respect of the applicant / registrant” provide reasonable grounds, OMVIC may refuse, revoke, or suspend registration to a dealer, salesperson, or business.

Who would a “interested person” be according to OMVIC?

Contracts must contain warning or instructional clauses intended to educate buyers or lessees about their rights and obligations as well as to make sure they are aware of the presence of specific agencies or organizations.

What kinds of agencies / organizations are these?

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