OMVIC OMVIC Code of Ethics Scenarios 1

Question 1

A salesperson at a dealership discovers that a used vehicle they are about to sell has undisclosed previous frame damage. The manager says to ignore it and close the deal. What is the ethically required action under the OMVIC Code of Ethics?

Accepted Answer

Disclose the frame damage to the buyer before the sale proceeds

Answer

The OMVIC Code of Ethics requires registrants to deal honestly and fairly; concealing known material defects violates the duty of honesty regardless of management pressure.

Question 2

A dealership salesperson is negotiating with a buyer and knows the vehicle was previously used as a daily rental. Under the OMVIC Code of Ethics, the salesperson must:

Accepted Answer

Disclose the prior daily-rental use to the buyer before purchase

Answer

Prior use as a daily rental is a mandatory disclosure under MVDA regulations, and the Code of Ethics requires registrants to comply fully with all disclosure obligations.

Question 3

A registered motor vehicle dealer receives a written complaint from a consumer alleging misrepresentation. According to the OMVIC Code of Ethics, the dealer should:

Accepted Answer

Respond to the complaint promptly and professionally, attempting fair resolution

Answer

The Code of Ethics requires registrants to handle consumer complaints professionally and make reasonable efforts to resolve disputes fairly.

Question 4

A salesperson is also a part-owner of an auto auction business. A customer is considering buying a vehicle that the salesperson recently sourced from that auction. What does the OMVIC Code of Ethics require?

Accepted Answer

Disclose the conflict of interest to the customer before completing the sale

Answer

The Code of Ethics requires registrants to disclose any personal financial interest or conflict of interest that could affect their dealings with a consumer.

Question 5

A customer becomes upset during negotiation and raises their voice. The salesperson, to end the confrontation quickly, tells the customer the vehicle has never been in an accident, which the salesperson has not confirmed. This conduct violates the OMVIC Code of Ethics because:

Accepted Answer

Making unverified representations about vehicle history is misrepresentation

Answer

The Code of Ethics prohibits registrants from making false or misleading statements; stating unverified facts as truth constitutes misrepresentation.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC OMVIC Code of Ethics Scenarios 1