OMVIC OMVIC Dealer Operations and Business Practices 2

Question 1

What must a dealer do before a salesperson begins working at their dealership?

Accepted Answer

Ensure the salesperson holds a valid OMVIC registration

Answer

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?

Accepted Answer

A documentation fee disclosed in advance

Answer

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?

Accepted Answer

4

Answer

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:

Accepted Answer

Registered salespersons with OMVIC

Answer

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?

Accepted Answer

A consumer protection fund for losses from fraudulent dealers

Answer

OMVIC's Compensation Fund protects consumers who suffer financial loss as a result of a registered dealer's fraudulent or dishonest act.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test