OMVIC OMVIC Mandatory Disclosures and Consumer Protection 8

Question 1

Under the MVDA, a registered dealer must provide a consumer with a written copy of the purchase agreement. When must this copy be given?

Accepted Answer

Before or at the time the consumer signs the agreement

Answer

Within 5 business days after the consumer signs

Answer

At the time of vehicle delivery

Answer

Only when the consumer requests a copy in writing

Question 2

A consumer purchased a used vehicle and later learned the engine had been replaced before the sale but this was not disclosed. The replacement engine is from a different model year. This non-disclosure:

Accepted Answer

May be a material misrepresentation giving the consumer grounds for complaint if it was a known fact affecting the vehicle's value or safety

Answer

Is not actionable because engine replacements are routine and do not require disclosure

Answer

Only requires disclosure if the replacement engine reduces the vehicle's horsepower

Answer

Is the consumer's responsibility to discover through a pre-purchase inspection

Question 3

A consumer who feels they were defrauded by a dealer wants to understand OMVIC's complaint process. What is the correct sequence?

Accepted Answer

File a written complaint with OMVIC → OMVIC investigates → OMVIC may mediate, refer to discipline, or pursue enforcement action

Answer

File a complaint in Ontario Small Claims Court → Court notifies OMVIC → OMVIC investigates

Answer

Contact the Canadian Automobile Dealers Association → CADA mediates → OMVIC enforces

Answer

Submit a BBB complaint → BBB notifies OMVIC → OMVIC investigates within 90 days

Question 4

A dealer's advertisement states 'no fees, no surprises' but then charges consumers a $499 'documentation fee' at signing. Under OMVIC advertising standards, this advertisement is:

Accepted Answer

False and misleading because the advertised claim directly contradicts the dealer's actual practice of charging fees

Answer

Acceptable as advertising puffery that consumers should not take literally

Answer

Only problematic if the fee is not disclosed before delivery

Answer

Acceptable because documentation fees are a standard industry practice widely known to consumers

Question 5

A consumer's vehicle purchase was conditional on passing a third-party inspection. The inspector found significant issues, and the consumer wants to cancel. The dealer insists the sale is final. Under the MVDA, the consumer:

Accepted Answer

Has the right to cancel because the inspection condition was not satisfied, and the deposit must be returned

Answer

Must proceed because conditions can only be waived by a court order

Answer

May only substitute another vehicle, not cancel entirely

Answer

Must accept the vehicle if the repair costs are less than $3,000

Question 6

A consumer approached OMVIC about a dealer who took a $5,000 deposit for a vehicle that was allegedly already sold to another buyer. After investigation, OMVIC finds the dealer acted fraudulently. What consumer protection tools are available?

Accepted Answer

OMVIC can pursue regulatory action against the dealer's registration and the consumer may apply to the Compensation Fund for the deposit loss

Answer

OMVIC can only issue the dealer a warning; criminal fraud charges must be initiated by the consumer

Answer

The Compensation Fund cannot be used since the vehicle was never delivered

Answer

The consumer's only remedy is a civil lawsuit; OMVIC does not handle financial restitution

Question 7

A dealer registers a vehicle under a consumer's name without their knowledge or consent in order to reset the odometer warranty period. This conduct under the MVDA is:

Accepted Answer

Fraudulent and a serious violation, as it involves forgery and misrepresentation of the vehicle's history

Answer

Permissible if the dealer later discloses the registration to the consumer

Answer

Only a violation if the consumer can prove they suffered financial harm

Answer

A minor administrative error that can be corrected by OMVIC without disciplinary action