OMVIC OMVIC Curbsiding and Illegal Sales Practices 4 — Questions and Answers
Question 1: Which of the following best describes 'odometer fraud' in the context of illegal motor vehicle sales practices in Ontario?
- Resetting an odometer to a lower reading to misrepresent the vehicle's mileage (Correct answer)
- Failing to disclose that the vehicle was previously used as a rental
- Selling a vehicle that has had its engine replaced without disclosure
- Listing a vehicle at a price that does not include HST
Correct answer: Resetting an odometer to a lower reading to misrepresent the vehicle's mileage
Odometer fraud involves tampering with or rolling back a vehicle's mileage reading to deceive buyers about actual use and wear, which is illegal under both the MVDA and Criminal Code.
Question 2: Under the MVDA 2002, which of the following is NOT a requirement for a registered motor vehicle dealer in Ontario?
- Maintaining a designated business premises
- Displaying OMVIC registration at the place of business
- Belonging to a national automobile dealers association (Correct answer)
- Providing a written purchase contract to consumers
Correct answer: Belonging to a national automobile dealers association
Membership in a national dealers association is not mandated by the MVDA 2002; OMVIC registration, a designated premises, and written contracts are required.
Question 3: What is the primary reason curbsiders often use multiple email addresses and phone numbers when advertising vehicles?
- To offer volume discounts to repeat buyers
- To avoid being identified as a pattern dealer and evade OMVIC enforcement (Correct answer)
- To comply with privacy regulations by segmenting inquiries
- To provide better customer service for different vehicle types
Correct answer: To avoid being identified as a pattern dealer and evade OMVIC enforcement
Using multiple contact identifiers helps curbsiders appear to be different individual sellers, making it harder for OMVIC investigators to establish a pattern of trade.
Question 4: Under the MVDA 2002, a conviction for illegal vehicle trade can result in imprisonment. What is the maximum jail term for an individual?
- Six months
- One year
- Two years (Correct answer)
- Five years
Correct answer: Two years
The MVDA 2002 provides for imprisonment of up to two years for individuals convicted of serious offences including unregistered dealing.
Question 5: An individual who is a registered OMVIC salesperson may legally sell a vehicle privately on behalf of a friend without going through their employer. This statement is:
- True, because personal registrants can conduct private sales on their own time
- False, because OMVIC registrants acting as intermediaries for third-party profit must transact through a registered dealership (Correct answer)
- True, provided the vehicle is not commercially titled
- False only if the salesperson receives monetary compensation
Correct answer: False, because OMVIC registrants acting as intermediaries for third-party profit must transact through a registered dealership
A registered salesperson who facilitates vehicle sales outside their registered employer's dealership — especially for profit — violates MVDA requirements.
Question 6: When investigating a suspected curbsider, OMVIC inspectors may gather evidence by:
- Seizing the suspect's bank records without a court order
- Reviewing vehicle ownership records, ad histories, and conducting undercover test purchases (Correct answer)
- Accessing the suspect's cell phone data directly from the carrier
- Detaining the suspect's vehicles without judicial approval
Correct answer: Reviewing vehicle ownership records, ad histories, and conducting undercover test purchases
OMVIC investigators use publicly available advertising records, vehicle ownership histories, and lawful undercover activity to establish patterns of illegal trade.
Question 7: A buyer purchased a used car advertised as 'certified pre-owned' from what turned out to be a curbsider. What protection does this label offer under Ontario law?
- Full protection under the MVDA as if purchased from a registered dealer
- No protection — 'certified pre-owned' designations only carry legal weight when sold by registered dealers (Correct answer)
- Protection under the Consumer Protection Act equal to a new vehicle purchase
- A mandatory refund within 14 days regardless of the seller's status
Correct answer: No protection — 'certified pre-owned' designations only carry legal weight when sold by registered dealers
CPO designations have legal standing only when applied by registered dealers under manufacturer programs; a curbsider's use of the term is misleading but provides no statutory buyer protection.
OMVIC OMVIC Curbsiding and Illegal Sales Practices 4
Which of the following best describes 'odometer fraud' in the context of illegal motor vehicle sales practices in Ontario?