OMVIC Licensing Requirements Test 2

Question 1

What must be true about the advertising by dealers and salespeople according to the Code of Ethics Regulations?

Accepted Answer

It must be legal, decent, ethical, and truthful

Answer

It should focus on the competition's weaknesses

Answer

It can be exaggerated for effect

Answer

It must be extravagant and eye-catching

Question 2

What must be conducted in a secure manner to ensure only registrants or registered dealers gain access?

Accepted Answer

Online Auctions

Answer

Garage Register Maintenance

Answer

Vehicle branding program

Answer

Safety Standards Certificate Issuance

Question 3

The irrevocable letter of credit for a dealer not selling their vehicle but offering an extended warranty must be:

Accepted Answer

$500,000

Answer

$100,000

Answer

$200,000

Answer

Varies based on vehicle model

Question 4

Who must salespeople be employed or retained by in order to apply for registration as a salesperson?

Accepted Answer

A registered dealer

Answer

A car leasing company

Answer

An automotive manufacturer

Answer

An automotive repair shop

Question 5

What happens to a trade-in upon contract rescission due to failure in required disclosures?

Accepted Answer

The dealer must refund the trade-in amount indicated on the contract

Answer

The trade-in is considered a separate transaction and is not affected

Answer

The dealer must return the trade-in vehicle

Answer

The buyer keeps both vehicles

Question 6

What is required when advertising used vehicles of the current or previous model year?

Accepted Answer

Indicating that the vehicle is used

Answer

Only highlighting the features

Answer

Stating that the vehicle is new

Answer

No specific requirements

Question 7

Under what condition must dealers register a vehicle in the purchaser's name?

Accepted Answer

Upon completion of the sale

Answer

If the vehicle is new

Answer

If the purchaser requests not to do so

Answer

Only if financing is involved

Question 8

If the salesperson is acting on behalf of the dealer, who must sign the warranty contract?

Accepted Answer

The salesperson, dealer, and purchaser

Answer

The salesperson and purchaser only

Answer

Only the dealer

Answer

Only the purchaser

Question 9

What must dealers and salespersons disclose regarding the vehicles they are selling?

Accepted Answer

All "material facts" about the vehicle, even if not asked

Answer

Only information about safety features

Answer

Only information about previous ownership and mileage

Answer

Only information specifically asked for by the customer

Question 10

What is the maximum individuak claim amount allowed against the Motor Vehicle Dealers Compensation Fund?

Accepted Answer

$45,000

Answer

$50,000

Answer

$25,000

Answer

$15,000