OMVIC OMVIC Curbsiding and Illegal Sales Practices 2 — Questions and Answers
Question 1: What distinguishes a curbsider from a legitimate private seller under Ontario law?
- A curbsider always sells vehicles for cash, while a private seller accepts financing
- A curbsider sells vehicles repeatedly for profit as a business without OMVIC registration (Correct answer)
- A curbsider sells only imported vehicles not eligible for Canadian standards
- A curbsider must sell at least ten vehicles per year to be prosecuted
Correct answer: A curbsider sells vehicles repeatedly for profit as a business without OMVIC registration
The key distinction is the repeated profit-driven commercial activity without the required OMVIC registration.
Question 2: Under the MVDA 2002, what is the maximum fine a corporation can face for operating as an unregistered motor vehicle dealer?
- $50,000
- $100,000 (Correct answer)
- $200,000
- $500,000
Correct answer: $100,000
Corporations found guilty of unregistered dealing under the MVDA 2002 can face fines up to $100,000.
Question 3: Which of the following would NOT typically raise suspicion of curbsiding activity?
- A seller cannot recall when or where they purchased the vehicle
- The vehicle ownership shows a very short period of registered ownership
- A seller has a clear service history folder and can describe specific repairs (Correct answer)
- A seller is advertising three different vehicles at the same time on online marketplaces
Correct answer: A seller has a clear service history folder and can describe specific repairs
Detailed knowledge of a vehicle's service history is consistent with genuine personal ownership, not curbsiding.
Question 4: A person found guilty of curbsiding under the MVDA may, in addition to a fine, face which other penalty?
- Mandatory vehicle impoundment
- Imprisonment for up to two years (Correct answer)
- Suspension of their driver's licence
- Mandatory community service hours
Correct answer: Imprisonment for up to two years
The MVDA 2002 allows for imprisonment for up to two years in addition to financial penalties for serious breaches including unregistered dealing.
Question 5: Why is the consumer unable to access the Compensation Fund after buying from a curbsider?
- The Compensation Fund only covers new vehicle purchases
- The Compensation Fund only applies to transactions with OMVIC-registered dealers (Correct answer)
- The Compensation Fund maximum payout is too low to cover used vehicle disputes
- Consumers must file within 30 days, which is impossible to meet
Correct answer: The Compensation Fund only applies to transactions with OMVIC-registered dealers
OMVIC's Motor Vehicle Dealers Compensation Fund is only available when the transaction involves a registered OMVIC dealer.
Question 6: Which of the following best describes OMVIC's enforcement role regarding curbsiding?
- OMVIC can only warn curbsiders; it cannot impose fines directly
- OMVIC investigators can gather evidence and refer cases for prosecution under the MVDA (Correct answer)
- OMVIC is limited to publishing alerts; the OPP handles all enforcement
- OMVIC can only act if at least ten complaints are filed against the same individual
Correct answer: OMVIC investigators can gather evidence and refer cases for prosecution under the MVDA
OMVIC has investigative authority and can refer cases to the Ministry of Government and Consumer Services for prosecution under the MVDA.
Question 7: A consumer notices the seller of a used car met them in a mall parking lot, is reluctant to disclose their address, and the ownership shows the seller bought the car only two weeks earlier. These are signs of:
- A motivated private seller trying to close a quick deal
- A vehicle that may have undisclosed accident history
- Likely curbsiding — an unregistered dealer posing as a private seller (Correct answer)
- A consignment sale arranged by a registered dealer
Correct answer: Likely curbsiding — an unregistered dealer posing as a private seller
Meeting in a neutral location, withholding personal address, and very short ownership are classic curbsiding red flags under OMVIC's consumer education guidelines.
OMVIC OMVIC Curbsiding and Illegal Sales Practices 2
What distinguishes a curbsider from a legitimate private seller under Ontario law?