OMVIC Licensing Requirements Test 1

Question 1

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

Accepted Answer

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

Answer

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

Answer

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

Answer

(LAT) License Appeal Tribunal

Question 2

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

Accepted Answer

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

Answer

The "Sales Final" phrase that is required

Answer

The contract needs to define "as is" specifically.

Answer

Records must be retained for a minimum of six years.

Question 3

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

Accepted Answer

The Manager of Sales

Answer

The Supervisor of Payroll

Answer

The Curator

Answer

The Salesman

Question 4

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

Accepted Answer

$10,000

Answer

$40,000

Answer

$3,500

Answer

$6,000

Question 5

Which organization or body upholds MVDA?

Accepted Answer

OMVIC

Answer

MINISTERY OF MOVEMENT

Answer

LICENSE APPEAL TRIBUNAL

Answer

MVDA

Question 6

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

Accepted Answer

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

Answer

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.

Answer

Records must be retained for a minimum of six years.

Answer

Collision with damage exceeding $3000

Flames

Deluge

Damage to the structure or altercations

Question 7

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

Accepted Answer

TRUE

Answer

FALSE

Question 8

What amount of known damage repairs must dealers disclose?

Accepted Answer

$3,000

Answer

$11,000

Answer

$21,000

Answer

$8,000

Question 9

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?

Accepted Answer

1) OMVIC

2) The Compensation Fund for Motor Vehicle Dealers

3) CAMVAP

Answer

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

NOT
- service managers

Answer

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

Answer

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

Question 10

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?

Accepted Answer

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

Answer

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

Answer

1) OMVIC

2) The Compensation Fund for Motor Vehicle Dealers

3) CAMVAP

Answer

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.