OMVIC OMVIC Code of Ethics Scenarios 4 — Questions and Answers
Question 1: A vehicle salesperson discovers, after delivery, that they accidentally told the customer the vehicle came with winter tires when it did not. The salesperson is aware of this error. What is the appropriate course of action under the Code of Ethics?
- Proactively contact the consumer, acknowledge the error, and make it right (Correct answer)
- Wait to see if the consumer notices before taking any action
- Document the error internally and consult a lawyer before contacting the consumer
- Amend the bill of sale retroactively to remove any reference to winter tires
Correct answer: Proactively contact the consumer, acknowledge the error, and make it right
The Code of Ethics requires registrants to correct errors honestly; failing to proactively remedy an unintentional misrepresentation once discovered is itself an ethical breach.
Question 2: An OMVIC-registered salesperson uses a personal social media account to post glowing fake reviews about their dealership under different names. This conduct:
- Violates the Code of Ethics by engaging in deceptive conduct that misleads consumers (Correct answer)
- Is permissible since personal social media is outside OMVIC's jurisdiction
- Only becomes a violation if the fake reviews reference specific false vehicle facts
- Is acceptable if the reviews are positive and do not defame competitors
Correct answer: Violates the Code of Ethics by engaging in deceptive conduct that misleads consumers
The Code of Ethics extends to a registrant's professional conduct broadly; posting fake reviews is deceptive and dishonest conduct that reflects on the individual's fitness to be registered.
Question 3: A consumer financing a vehicle is steered toward a specific lender because that lender pays the dealer a higher kickback, not because the terms are in the consumer's best interest. This conduct:
- Violates the Code of Ethics by prioritizing the dealer's financial gain over the consumer's best interest without disclosure (Correct answer)
- Is standard industry practice and fully permitted under the MVDA
- Is permissible if the consumer's monthly payment falls within their stated budget
- Only becomes a violation if the lender charges an interest rate above 30%
Correct answer: Violates the Code of Ethics by prioritizing the dealer's financial gain over the consumer's best interest without disclosure
The Code of Ethics requires registrants to act in consumers' interests; steering a customer to a lender for undisclosed financial benefit is a conflict of interest that must be disclosed.
Question 4: A registered salesperson is aware that a vehicle on the lot has a Safety Standards Certificate (SSC) that was issued based on falsified inspection records. They sell the vehicle without disclosing this. Under the Code of Ethics:
- The salesperson is in violation because they knowingly misrepresented the vehicle's certified safety status (Correct answer)
- The salesperson is not in violation because the mechanic who falsified the inspection bears all liability
- The violation only applies to the inspection shop, not to the registered salesperson
- The salesperson's liability is limited since they did not personally falsify the records
Correct answer: The salesperson is in violation because they knowingly misrepresented the vehicle's certified safety status
Knowingly selling a vehicle with a fraudulent safety certificate violates the Code's prohibition on misrepresentation regardless of who created the false records.
Question 5: A consumer asks a salesperson directly whether the vehicle has ever been in a flood. The salesperson knows it has been but says 'not that I'm aware of.' This response:
- Is a misrepresentation because the salesperson answered falsely about a known material fact (Correct answer)
- Is not a violation since 'not that I'm aware of' is not a direct denial
- Is acceptable because flood damage is not specifically listed as a mandatory disclosure under MVDA
- Is only a violation if the consumer can prove financial loss from the flood damage
Correct answer: Is a misrepresentation because the salesperson answered falsely about a known material fact
Giving a deliberately evasive answer about a material fact the registrant knows to be true is a form of deception prohibited by the Code of Ethics.
Question 6: During a slow month, a dealer's principal instructs all sales staff to add a '$599 documentation fee' to every deal without previously advertising it. A salesperson who adds this fee without disclosing it to the consumer before agreement:
- Violates the Code of Ethics by adding an undisclosed charge consumers did not agree to (Correct answer)
- Is protected from liability because they followed the principal's direction
- Complies with the Code as long as the fee is itemized on the final bill of sale
- Only violates the Code if the consumer asks specifically about additional fees beforehand
Correct answer: Violates the Code of Ethics by adding an undisclosed charge consumers did not agree to
Adding undisclosed fees to a transaction is deceptive conduct under the Code of Ethics; consumers must be informed of all charges before an agreement is reached.
Question 7: A customer with limited English proficiency is shown a contract with terms the salesperson knows the customer does not understand. The salesperson does not offer translation assistance and rushes the signing. This conduct:
- Violates the Code of Ethics because registrants must ensure consumers have sufficient understanding to give informed consent (Correct answer)
- Is permissible because the consumer chose to visit an English-language dealership
- Only becomes an issue if the consumer later contests a specific contract term
- Is not a violation since translation services are not legally required under the MVDA
Correct answer: Violates the Code of Ethics because registrants must ensure consumers have sufficient understanding to give informed consent
The Code of Ethics requires fair dealing, which includes ensuring vulnerable or language-limited consumers genuinely understand what they are signing before proceeding.
OMVIC OMVIC Code of Ethics Scenarios 4
A vehicle salesperson discovers, after delivery, that they accidentally told the customer the vehicle came with winter tires when it did not.
The salesperson is aware of this error.
What is the appropriate course of action under the Code of Ethics?