OMVIC OMVIC MVDA and Legislation 3

Question 1

Under the MVDA, a 'motor vehicle dealer' is defined to include which of the following types of businesses?

Accepted Answer

New vehicle dealers, used vehicle dealers, lease dealers, and wholesalers who trade in motor vehicles in Ontario

Answer

The MVDA defines 'motor vehicle dealer' broadly to capture all business types that trade in motor vehicles — whether new vehicles, used vehicles, leased vehicles, or wholesale transactions. All must be registered with OMVIC.

Question 2

What is the significance of the 'Registered Salesperson Certificate' under OMVIC?

Accepted Answer

It is the official proof that an individual has met OMVIC's registration requirements and is authorized to trade in motor vehicles as a salesperson in Ontario

Answer

The Registered Salesperson Certificate is the official OMVIC registration document for salespersons. Without it, an individual cannot legally trade in motor vehicles in Ontario. It is evidence of meeting OMVIC's registration requirements, including completing the mandatory salesperson education program.

Question 3

Under the MVDA, what is a 'curbsider' and why does OMVIC enforce against this practice?

Accepted Answer

An unregistered person who regularly buys and resells vehicles privately while posing as a private seller to avoid the legal obligations of a registered dealer

Answer

Curbsiders are unregistered vehicle traders who misrepresent themselves as private sellers to avoid OMVIC registration, consumer protection obligations, and disclosure requirements. They harm consumers by selling vehicles without the protections that registered dealers must provide.

Question 4

Under the MVDA, what obligation does a dealer have when taking a vehicle in trade from a consumer?

Accepted Answer

The dealer must disclose any encumbrances (liens) on the trade-in vehicle and handle trade-in proceeds honestly

Answer

When accepting a trade-in, dealers must handle the transaction honestly and must not misappropriate lien proceeds. If the trade-in has an existing lien (loan), the dealer is responsible for ensuring that lien is discharged properly using trade-in proceeds.

Question 5

Under the MVDA, a registered salesperson who leaves their employer dealer must:

Accepted Answer

Notify OMVIC of the change and either transfer their registration to a new registered employer or have their registration placed in inactive status

Answer

Salesperson registrations are tied to a specific employer dealer. When employment ends, the salesperson must notify OMVIC and either transfer their registration to a new registered dealer or place it in inactive status until new employment begins.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC OMVIC MVDA and Legislation 3