OMVIC OMVIC Dealer Operations and Business Practices 1 — Questions and Answers
Question 1: Under OMVIC regulations, how long must a registered dealer retain vehicle sales records?
- 1 year
- 3 years
- 6 years (Correct answer)
- 10 years
Correct answer: 6 years
Ontario's Motor Vehicle Dealers Act requires dealers to keep records for a minimum of 6 years.
Question 2: Which document must an OMVIC-registered dealer prominently display in their place of business?
- OMVIC membership certificate
- Dealer registration certificate (Correct answer)
- Fire safety permit
- Municipal business licence
Correct answer: Dealer registration certificate
Dealers are required by the MVDA to prominently display their dealer registration certificate at their premises.
Question 3: What is the primary role of a dealer operator under OMVIC?
- Handle all vehicle appraisals personally
- Ensure the dealership complies with all MVDA requirements (Correct answer)
- Act as the sole salesperson on the lot
- Submit monthly sales reports to OMVIC
Correct answer: Ensure the dealership complies with all MVDA requirements
The dealer operator is legally responsible for ensuring the dealership and all its registrants comply with MVDA obligations.
Question 4: When a dealership changes its registered address, what must it do?
- Notify customers by mail
- Update its website within 30 days
- Notify OMVIC immediately (Correct answer)
- File a court declaration
Correct answer: Notify OMVIC immediately
Dealers must notify OMVIC immediately of any change to their registered business address.
Question 5: Which of the following is a prohibited trade practice under the MVDA for dealers?
- Offering extended warranties
- Accepting trade-in vehicles
- Making false or misleading representations (Correct answer)
- Providing free vehicle history reports
Correct answer: Making false or misleading representations
Making false or misleading representations about a vehicle or transaction is explicitly prohibited under the MVDA.
Question 6: A dealer who sells vehicles without being registered with OMVIC is subject to what consequence?
- A warning letter only
- Mandatory retraining
- Fines and potential prosecution (Correct answer)
- Temporary suspension of advertising
Correct answer: Fines and potential prosecution
Operating as an unregistered dealer is an offence under the MVDA and can result in significant fines and criminal prosecution.
OMVIC OMVIC Dealer Operations and Business Practices 1
Under OMVIC regulations, how long must a registered dealer retain vehicle sales records?