OMVIC OMVIC Curbsiding and Illegal Sales Practices 5 — Questions and Answers
Question 1: Which action by a consumer BEST helps them avoid buying from a curbsider?
- Asking the seller for their SIN number to verify identity
- Verifying the seller's OMVIC registration at OMVIC.ca before completing the purchase (Correct answer)
- Checking only that the vehicle passes an emissions test
- Meeting in a public location to ensure personal safety
Correct answer: Verifying the seller's OMVIC registration at OMVIC.ca before completing the purchase
OMVIC's public dealer registry at OMVIC.ca allows consumers to verify whether a seller is a registered dealer or salesperson, the most direct protection against curbsiders.
Question 2: Under the MVDA 2002, which of the following is considered an 'illegal trade practice' when conducted by a registered dealer?
- Offering a loyalty discount to returning customers
- Making false or misleading representations about a vehicle's history or condition (Correct answer)
- Charging an administration fee disclosed before the contract is signed
- Offering a certified inspection from a third-party mechanic
Correct answer: Making false or misleading representations about a vehicle's history or condition
Making false or misleading representations is an illegal trade practice under the MVDA and the Ontario Consumer Protection Act, applicable to registered dealers.
Question 3: If an OMVIC inspector arrives at a business they believe is operating as an unregistered dealer, which power does the MVDA 2002 grant them?
- Power to arrest the business owner immediately
- Power to enter the premises and inspect records without prior notice (Correct answer)
- Power to impound all vehicles on the lot without a court order
- Power to issue fines on the spot without any hearing process
Correct answer: Power to enter the premises and inspect records without prior notice
OMVIC inspectors have statutory authority under the MVDA 2002 to enter business premises and examine records as part of an investigation.
Question 4: A curbsider who also misrepresents vehicle history (e.g., conceals a rebuilt title) may face charges under which additional Ontario statute?
- Ontario Highway Traffic Act only
- Ontario Consumer Protection Act 2002 (Correct answer)
- Ontario Business Corporations Act
- Ontario Securities Act
Correct answer: Ontario Consumer Protection Act 2002
Misrepresentations by unregistered sellers may also violate the Consumer Protection Act 2002, which prohibits unfair practices in consumer transactions.
Question 5: Which of the following vehicle sale scenarios would MOST likely be considered curbsiding under the MVDA 2002?
- An estate executor selling a single inherited vehicle
- A mechanic buying six vehicles at auction over eight months, repairing and reselling each for a margin (Correct answer)
- A private citizen trading in a personal vehicle to a registered dealer
- A registered dealer conducting a tent sale at a local fairgrounds
Correct answer: A mechanic buying six vehicles at auction over eight months, repairing and reselling each for a margin
Regularly buying, repairing, and reselling vehicles for profit without OMVIC registration constitutes curbsiding, regardless of mechanical improvements made.
Question 6: OMVIC's 'Consumer Handbook' advises buyers to look for the dealer's OMVIC registration certificate at the dealership. Where should this certificate be displayed?
- On the dealer's website only
- In a conspicuous location at the dealer's registered place of business (Correct answer)
- Only in the general manager's private office
- Submitted to OMVIC annually but not required on premises
Correct answer: In a conspicuous location at the dealer's registered place of business
Registered dealers must display their OMVIC certificate of registration in a prominent location at their designated business premises.
Question 7: When enforcement action leads to a conviction for curbsiding, who prosecutes the case in Ontario?
- OMVIC's own legal team prosecutes directly in criminal court
- The Crown Attorney's office prosecutes under the Provincial Offences Act (Correct answer)
- The Better Business Bureau administers all curbsiding prosecutions
- The RCMP prosecutes under the Canadian Consumer Product Safety Act
Correct answer: The Crown Attorney's office prosecutes under the Provincial Offences Act
Curbsiding cases are provincial offences prosecuted by the Crown through the Provincial Offences Act after OMVIC or the Ministry refers the matter for prosecution.
OMVIC OMVIC Curbsiding and Illegal Sales Practices 5
Which action by a consumer BEST helps them avoid buying from a curbsider?