OMVIC Consumer Protection and Dispute Resolution 4

Question 1

A consumer purchases a vehicle from a registered dealer for $52,000 and later discovers the dealer forged documentation to conceal the vehicle's salvage history. The dealer's registration is subsequently revoked. If the consumer files a claim with the OMVIC Compensation Fund, what is the maximum recovery available?

Accepted Answer

$45,000, regardless of the actual purchase price

Answer

The OMVIC Compensation Fund caps individual claims at $45,000 per transaction, regardless of actual loss suffered. Even though the consumer paid $52,000, the maximum Compensation Fund recovery is $45,000. Legal fees and costs beyond the cap are not recoverable through the Fund — the consumer would need to pursue additional remedies through the courts.

Question 2

After a thorough investigation, OMVIC concludes that a dealer violated the MVDA by misrepresenting a vehicle's accident history to a consumer. Which of the following outcomes can OMVIC directly compel as part of its regulatory enforcement action?

Accepted Answer

Suspend or revoke the dealer's OMVIC registration

Answer

OMVIC is a regulator, not an arbitrator or civil court. Its enforcement powers are disciplinary — it can suspend, revoke, or impose conditions on a dealer's or salesperson's registration, and levy administrative penalties. OMVIC cannot directly order a dealer to refund consumers, pay legal costs, or enter arbitration. Those civil remedies must be pursued through CAMVAP, Small Claims Court, or the courts.

Question 3

A consumer signs a vehicle purchase agreement at a franchised new-car dealership's permanent showroom. Two days later the consumer regrets the purchase and demands cancellation, citing Ontario's Consumer Protection Act cooling-off provisions. The dealer refuses. Is the dealer's refusal lawful?

Accepted Answer

Yes — the CPA cooling-off provisions do not apply to purchases negotiated and completed at a dealer's permanent place of business

Answer

Ontario's Consumer Protection Act cooling-off provisions apply to specific agreement categories, notably internet agreements and direct agreements (door-to-door sales). Purchases negotiated and completed at a dealer's permanent place of business are expressly excluded from these provisions. There is no statutory cooling-off period for dealership vehicle sales in Ontario, so the dealer's refusal is entirely lawful — the consumer is bound by the signed contract.

Question 4

A consumer bought a 4-year-old vehicle from a franchised dealer whose manufacturer participates in CAMVAP. The vehicle has a persistent assembly defect the dealer cannot fix after three repair attempts. The consumer wants CAMVAP arbitration. Which statement most accurately describes CAMVAP's jurisdiction in this situation?

Accepted Answer

CAMVAP can arbitrate assembly defects and warranty disputes, but applies eligibility criteria that include defined vehicle age and odometer thresholds

Answer

CAMVAP (Canadian Motor Vehicle Arbitration Plan) handles assembly defects and warranty disputes independently of OMVIC — no OMVIC finding is a prerequisite. However, CAMVAP eligibility is not unlimited: vehicles must meet defined age and mileage thresholds (generally no more than 4 model years old and under a specified odometer limit) and the manufacturer must participate. A 4-year-old vehicle may be at the edge of eligibility, making the consumer's eligibility something to verify, not assume.

Question 5

A dealer sells a used vehicle without disclosing that it was previously used as a short-term daily rental. The consumer discovers this months after purchase. Under Ontario's MVDA and its regulations, which statement best describes the dealer's disclosure obligation?

Accepted Answer

Former daily rental status is a prescribed material fact that must be proactively disclosed, whether or not the consumer asks

Answer

Under Ontario's MVDA regulations, prior use as a daily rental is a prescribed material fact. Dealers are legally required to disclose it proactively — the obligation is not triggered by a consumer's inquiry and is not subject to duration or warranty conditions. Failing to disclose is a regulatory violation that can expose the dealer to disciplinary action and may entitle the consumer to void the contract.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC Consumer Protection and Dispute Resolution 4