OMVIC OMVIC Vehicle Sales Process and Documentation 2

Question 1

A trade-in vehicle is included in a sale transaction. What must the bill of sale reflect about the trade-in under OMVIC requirements?

Accepted Answer

The agreed trade-in value and any lien balance

Answer

The bill of sale must clearly state the agreed trade-in allowance and disclose any outstanding lien on the trade-in vehicle.

Question 2

Under the MVDA, what obligation does a dealer have when selling a vehicle that has existing structural damage?

Accepted Answer

Disclose the structural damage to the buyer before completing the sale

Answer

Structural damage is a mandatory disclosure item regardless of repair cost; dealers must inform buyers of known structural damage prior to sale.

Question 3

A salesperson forgets to disclose that a used vehicle was previously used as a daily rental. Under OMVIC rules, what consequence can the dealer face?

Accepted Answer

Administrative penalty and potential registration suspension

Answer

Failure to make mandatory disclosures can result in administrative penalties and disciplinary action against the dealer's registration.

Question 4

When must a dealer provide the buyer with a copy of the signed bill of sale?

Accepted Answer

At the time the contract is signed

Answer

The buyer is entitled to receive their copy of the signed contract at the time of signing, not at a later date.

Question 5

Which item is NOT required to be included in a motor vehicle bill of sale under OMVIC standards?

Accepted Answer

Buyer's social insurance number

Answer

A buyer's social insurance number is personal tax information not required on a vehicle bill of sale; the VIN, price, and warranties are required.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test