OMVIC Motor Vehicle Dealers Compensation Fund

Question 1

What is the maximum amount a consumer can recover from the Motor Vehicle Dealers Compensation Fund for a single claim?

Accepted Answer

$45,000

Answer

$10,000

Answer

$25,000

Answer

$100,000

Question 2

Who funds the Motor Vehicle Dealers Compensation Fund?

Accepted Answer

Registered dealers through a transaction fee remitted for each vehicle sold or leased

Answer

The Ontario government through general tax revenue

Answer

Consumers through a surcharge collected at the time of vehicle purchase

Answer

Insurance companies licensed to operate in Ontario

Question 3

How much is the transaction fee that a registered dealer must remit to OMVIC for each vehicle sold or leased?

Accepted Answer

$10 per vehicle

Answer

$5 per vehicle

Answer

$25 per vehicle

Answer

$50 per vehicle

Question 4

When must a registered dealer remit their transaction fees to OMVIC?

Accepted Answer

Annually, with their dealer registration renewal

Answer

Within 30 days of each individual vehicle sale

Answer

Monthly, with a sales summary report

Answer

Quarterly, with an audited financial statement

Question 5

Which of the following scenarios would most likely qualify for a valid claim against the Motor Vehicle Dealers Compensation Fund?

Accepted Answer

A consumer suffers a financial loss because a registered dealer committed fraud in the sale

Answer

A consumer is dissatisfied with the colour of the vehicle they purchased

Answer

A consumer wants to return a vehicle within 10 days because they changed their mind

Answer

A consumer disputes the trade-in value a dealer offered

Question 6

A consumer's vehicle purchase results in a $60,000 loss due to dealer fraud. How much can they recover from the Compensation Fund?

Accepted Answer

$45,000, because that is the maximum per-claim limit under the MVDA

Answer

The full $60,000, as the Fund covers all proven losses

Answer

$30,000, because the Fund covers only 50% of any loss

Answer

Nothing, because losses over $50,000 are ineligible