OMVIC OMVIC Code of Ethics Scenarios 5

Question 1

A registered salesperson's friend is a body shop owner who pays the salesperson a referral fee each time a customer is directed to the shop for repairs. The salesperson recommends the shop to every buyer but never discloses the referral arrangement. This conduct:

Accepted Answer

Violates the Code of Ethics because the undisclosed financial interest creates a conflict of interest

Answer

An undisclosed financial benefit that influences advice given to consumers is a conflict of interest requiring disclosure under the Code of Ethics.

Question 2

A dealership advertises a vehicle on a third-party website listing 'leather seats' as a feature. The vehicle actually has leatherette (synthetic) upholstery. Upon noticing this during a test drive, the salesperson says nothing. This is:

Accepted Answer

Unethical because failing to correct a known material misrepresentation in advertising is a violation of the Code

Answer

The Code of Ethics requires registrants to ensure representations in all advertising are accurate and to correct known errors; silence when aware of a material inaccuracy is itself deceptive.

Question 3

A consumer is financing a vehicle and asks the salesperson what the interest rate is. The salesperson quotes only the promotional buy-down rate but does not mention that the rate will increase to 9.9% after six months. This conduct:

Accepted Answer

Violates the Code of Ethics because omitting material financing terms creates a misleading impression

Answer

Omitting material terms that would affect a consumer's financial decision, such as a future rate increase, is a form of deception contrary to the duty of honest dealing.

Question 4

A principal dealer is aware that one of their registered salespersons has been making false statements to customers about warranty coverage. The principal takes no action. Under OMVIC's regulatory framework:

Accepted Answer

The principal is responsible for supervising registrants and may be held accountable for failing to address known misconduct

Answer

Under the MVDA, principal dealers have supervisory responsibilities; knowingly allowing misconduct without corrective action exposes the principal to regulatory liability.

Question 5

A consumer who purchased a vehicle two weeks ago calls the dealership to report a serious undisclosed mechanical defect. Under the Code of Ethics, the salesperson should:

Accepted Answer

Take the complaint seriously, engage professionally, and work with the consumer toward a fair resolution

Answer

The Code of Ethics requires professionalism and fair dealing, including a genuine good-faith effort to address legitimate post-sale complaints about undisclosed defects.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC OMVIC Code of Ethics Scenarios 5