OMVIC OMVIC Code of Ethics Scenarios 2

Question 1

A car salesperson promises a customer that the certified pre-owned vehicle has passed a 150-point inspection when no such inspection has been completed. Under the OMVIC Code of Ethics, this constitutes:

Accepted Answer

Misrepresentation, which is a violation of the duty to deal honestly

Answer

The Code of Ethics prohibits all misrepresentations, including verbal false statements about a vehicle's certification or inspection status.

Question 2

A dealership posts an online advertisement for a vehicle at $18,500 but adds $2,800 in undisclosed administrative fees at the point of sale. What does the OMVIC Code of Ethics and MVDA require?

Accepted Answer

All fees must be included in the advertised price or clearly disclosed before any agreement is signed

Answer

Under OMVIC's advertising standards and the Code of Ethics, the total price including all mandatory fees must be disclosed in advertising to prevent deception.

Question 3

A salesperson's personal friend is selling a vehicle through the dealership. The salesperson adjusts the asking price upward to earn a higher commission without the friend's knowledge. This violates the Code of Ethics because:

Accepted Answer

Registrants must not use their position to gain an undisclosed financial advantage over any client, including friends

Answer

The Code of Ethics requires registrants to act in the client's best interest and disclose any personal financial interests affecting the transaction.

Question 4

A consumer has signed an agreement to purchase a used vehicle. Before the vehicle is delivered, the salesperson discovers it was previously registered as a salvage vehicle. The salesperson should:

Accepted Answer

Immediately disclose the branded title status to the consumer and allow them to reconsider the purchase

Answer

Branded title (salvage) status is a mandatory disclosure; discovering it after signing but before delivery still triggers the obligation to immediately inform the consumer.

Question 5

A dealership service technician who is not a registered salesperson is approached by a walk-in customer asking about buying a used vehicle on the lot. The technician begins negotiating a price and promises delivery. Under the Code of Ethics and MVDA:

Accepted Answer

Only registered salespersons may conduct vehicle sales negotiations; the technician should refer the customer to a registered registrant

Answer

Under the MVDA, negotiating the sale of a motor vehicle requires registration with OMVIC; unregistered employees may not conduct sales activities.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC OMVIC Code of Ethics Scenarios 2