OMVIC OMVIC Mandatory Disclosures and Consumer Protection 5 — Questions and Answers
Question 1: Under OMVIC's advertising standards, a dealer must include which element in all advertised prices for vehicles?
- All fees and charges that the consumer will be required to pay, excluding HST and licensing (Correct answer)
- Only the base vehicle price before any additional dealer fees
- The price the dealer paid for the vehicle plus a maximum 15% markup
- The MSRP established by the vehicle manufacturer regardless of dealer adjustments
Correct answer: All fees and charges that the consumer will be required to pay, excluding HST and licensing
OMVIC advertising standards require dealers to use all-in pricing that includes all mandatory fees and charges (other than HST and licensing) so consumers can make accurate comparisons.
Question 2: A consumer alleges that a dealer's salesperson verbally promised a free one-year oil change service at the time of sale. This promise was not included in the written purchase agreement. Under the MVDA, what is the status of this promise?
- Verbal promises not included in the written agreement are difficult to enforce; the written agreement governs the transaction (Correct answer)
- Verbal promises by registered salespersons are legally binding even without written confirmation
- OMVIC will automatically enforce verbal promises made during a sale on the consumer's behalf
- The consumer can claim the oil changes because all verbal representations by registrants are deemed contractual under MVDA
Correct answer: Verbal promises not included in the written agreement are difficult to enforce; the written agreement governs the transaction
While misrepresentation is actionable, verbal promises not recorded in the written purchase agreement are difficult to enforce; consumers should insist all promises are documented in writing.
Question 3: A consumer notices that the final bill of sale includes a $399 'window etching' charge they did not request or authorize. Under OMVIC consumer protection rules, the consumer:
- Has the right to refuse and have the charge removed, as unauthorized additions to the contract are not permissible (Correct answer)
- Must pay the charge since it is itemized in the bill of sale they signed
- May only dispute the charge through CAMVAP arbitration, not OMVIC
- Is bound by the charge since window etching is a required security feature under Ontario law
Correct answer: Has the right to refuse and have the charge removed, as unauthorized additions to the contract are not permissible
Adding unauthorized products or charges to a consumer's contract without their prior knowledge and consent violates OMVIC's consumer protection standards; the consumer has the right to have it removed.
Question 4: OMVIC requires all registered dealers to display their registration certificate at their place of business. Why is this a consumer protection measure?
- It allows consumers to confirm the dealer is licensed and subject to OMVIC's regulatory oversight and Compensation Fund protection (Correct answer)
- It is purely an administrative requirement with no practical consumer benefit
- It allows consumers to verify the dealer's insurance coverage before purchasing
- It is required only during OMVIC audits, not for day-to-day consumer-facing purposes
Correct answer: It allows consumers to confirm the dealer is licensed and subject to OMVIC's regulatory oversight and Compensation Fund protection
Displaying the registration certificate confirms to consumers that the dealer is regulated by OMVIC, giving them access to regulatory protections including the Compensation Fund.
Question 5: Under the MVDA, what obligation does a dealer have when a consumer asks for the total cost of financing, including all interest and charges?
- The dealer must provide a clear disclosure of the total cost of borrowing, including the APR and total amount payable (Correct answer)
- The dealer is only required to state the monthly payment and the number of payments
- Total cost of credit disclosure is governed exclusively by the federal Cost of Borrowing regulations and is not an MVDA obligation
- The dealer may decline to provide a total cost figure if the rate is negotiable
Correct answer: The dealer must provide a clear disclosure of the total cost of borrowing, including the APR and total amount payable
Consumer protection under the MVDA and federal cost of credit rules requires full disclosure of the APR and total cost of borrowing so consumers can make informed financing decisions.
Question 6: A consumer who purchased a vehicle from a dealer later discovers the vehicle was involved in a collision but the dealer has gone out of business. The consumer may be able to claim compensation from:
- The Motor Vehicle Dealers Compensation Fund, if the dealer was registered at the time of sale and the loss resulted from fraud or dishonesty (Correct answer)
- The Ontario Motor Vehicle Industry Council's litigation fund
- The vehicle manufacturer's extended warranty fund
- CMHC's consumer protection insurance plan for vehicle purchases
Correct answer: The Motor Vehicle Dealers Compensation Fund, if the dealer was registered at the time of sale and the loss resulted from fraud or dishonesty
The Compensation Fund provides recourse even after a dealer closes, as long as the dealer was registered at the time of the fraudulent transaction and the claim meets fund criteria.
Question 7: An OMVIC inspector arrives at a dealership without prior notice to conduct a compliance inspection. Under the MVDA, the dealer is required to:
- Allow the inspector access to the premises, records, and vehicles as required by the inspection (Correct answer)
- Request a minimum of 48 hours' notice before permitting any inspection
- Allow the inspection only if the inspector presents a court-issued warrant
- Permit access to the sales floor but not to financial records without prior legal review
Correct answer: Allow the inspector access to the premises, records, and vehicles as required by the inspection
OMVIC inspectors have authority under the MVDA to conduct unannounced inspections; dealers must cooperate and provide access to records and premises as required.
OMVIC OMVIC Mandatory Disclosures and Consumer Protection 5
Under OMVIC's advertising standards, a dealer must include which element in all advertised prices for vehicles?