OMVIC OMVIC Dealer Operations and Business Practices 2 — Questions and Answers
Question 1: What must a dealer do before a salesperson begins working at their dealership?
- Submit a background check to police
- Ensure the salesperson holds a valid OMVIC registration (Correct answer)
- Provide 40 hours of in-house training
- File a staffing notice with the Ministry
Correct answer: Ensure the salesperson holds a valid OMVIC registration
A salesperson must be registered with OMVIC before engaging in any vehicle sales activities at a dealership.
Question 2: Under OMVIC rules, which of the following fees can a dealer legitimately charge a buyer?
- A fee for using a competitor's financing
- A documentation fee disclosed in advance (Correct answer)
- A fee for every test drive
- A mandatory colour upgrade fee
Correct answer: A documentation fee disclosed in advance
Dealers may charge documentation or administration fees as long as they are clearly disclosed to the buyer in advance.
Question 3: What is the maximum number of vehicles a private individual can sell in Ontario before requiring dealer registration?
- 2
- 4 (Correct answer)
- 6
- 10
Correct answer: 4
Selling more than 4 vehicles in a 12-month period generally triggers the requirement to register as a dealer under the MVDA.
Question 4: An OMVIC-registered dealer must ensure all employees who sell vehicles are:
- Bonded with the provincial government
- Registered salespersons with OMVIC (Correct answer)
- Certified mechanics
- Fluent in both official languages
Correct answer: Registered salespersons with OMVIC
Every individual who sells or negotiates vehicle sales must hold a valid OMVIC salesperson registration.
Question 5: Which of the following best describes OMVIC's Compensation Fund?
- A fund that pays dealer advertising costs
- A government grant for dealership renovations
- A consumer protection fund for losses from fraudulent dealers (Correct answer)
- An insurance pool for dealer liability claims
Correct answer: A consumer protection fund for losses from fraudulent dealers
OMVIC's Compensation Fund protects consumers who suffer financial loss as a result of a registered dealer's fraudulent or dishonest act.
Question 6: A dealer discovers a vehicle on their lot has an outstanding lien. What should the dealer do?
- Sell the vehicle and disclose the lien to the buyer verbally
- Discharge the lien before selling or fully disclose it in writing (Correct answer)
- Ignore it if the lien is small
- Report it to the police immediately
Correct answer: Discharge the lien before selling or fully disclose it in writing
Dealers must either clear outstanding liens before a sale or provide full written disclosure to the buyer.
OMVIC OMVIC Dealer Operations and Business Practices 2
What must a dealer do before a salesperson begins working at their dealership?